Investment Strategy Paying Off: Q4 Billings Rise 35% year over year and FY14 Billings Grow 31% year over year
SUNNYVALE, Calif. – January 28, 2015 – Fortinet® (NASDAQ: FTNT), a global leader in high performance cyber security solutions, today announced financial results for the fourth quarter and full year ended December 31, 2014.
“Fortinet had an excellent fourth quarter, exceeding or meeting our expectations across all key metrics,” said Ken Xie, founder, chairman and chief executive officer of Fortinet. “We are a growth-oriented company, we’ve been investing for growth, and that strategy is paying off. Our Q4 billings growth was the highest in sixteen quarters and we saw a continued increase in new enterprise customer wins and the number of large deals closed. Cyber security remains at the forefront of enterprise IT priorities and Fortinet has a proven platform of competitively-differentiated products and threat research to address these complex threats. Entering 2015, we are confident in our direction and opportunity and thus are continuing to invest for future growth and market share gains.”
Fourth Quarter 2014 Highlights
Billings of $282.7 million, up 35% year over year
Revenues of $224.0 million, up 26% year over year
Non-GAAP diluted net income per share of $0.141
Cash flow from operations of $35.4 million
Free cash flow of $30.0 million1
Cash, cash equivalents and investments of $991.7 million
Deferred revenue of $558.8 million, up 29% year over year
Full Year 2014 Highlights
Billings of $896.5 million, up 31% year over year
Revenues of $770.4 million, up 25% year over year
Non-GAAP diluted net income per share of $0.481
Cash flow from operations of $196.6 million
Free cash flow of $164.4 million
Financial Highlights for the Fourth Quarter of 2014
Billings: Total billings were $282.7 million for the fourth quarter of 2014, an increase of 35% compared to $209.8 million in the same quarter of 2013.
Revenue: Total revenue was $224.0 million for the fourth quarter of 2014, an increase of 26% compared to $177.4 million in the same quarter of 2013. Within total revenue, product revenue was $110.7 million, an increase of 32% compared to the same quarter of 2013. Services and other revenue was $113.3 million, an increase of 21% compared to the same quarter of 2013.
Deferred Revenue: Total deferred revenue was $558.8 million as of December 31, 2014, an increase of $58.7 million from $500.0 million as of September 30, 2014.
Cash and Cash Flow: As of December 31, 2014, cash, cash equivalents and investments were $991.7 million, compared to $963.8 million as of September 30, 2014. In the fourth quarter of 2014, cash flow from operations was $35.4 million and free cash flow1 was $30.0 million.
GAAP Operating Income: GAAP operating income was $19.9 million for the fourth quarter of 2014, representing a GAAP operating margin of 9%. GAAP operating income was $24.6 million for the same quarter of 2013, representing a GAAP operating margin of 14%.
GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $6.8 million for the fourth quarter of 2014, compared to GAAP net income of $12.0 million for the same quarter of 2013. GAAP diluted net income per share was $0.04 for the fourth quarter of 2014, compared to $0.07 for the same quarter of 2013.
Non-GAAP Operating Income: Non-GAAP operating income was $36.8 million for the fourth quarter of
2014, representing a non-GAAP operating margin of 16%. Non-GAAP operating income was $38.3 million for the same quarter of 2013, representing a non-GAAP operating margin of 22%.
Non-GAAP Net Income and Diluted Net Income Per Share: Non-GAAP net income was $24.1 million for the fourth quarter of 2014, compared to non-GAAP net income of $26.3 million for the same quarter of 2013. Non-GAAP diluted net income per share was $0.14 for the fourth quarter of 2014, compared to $0.16 for the same quarter of 2013.
