Fortinet®, a global cybersecurity leader driving the convergence of networking and security, announced financial results for the first quarter ended March 31, 2024.
Financial Highlights for the First Quarter of 2024
Total revenue was $1.35 billion for the first quarter of 2024, an increase of 7.2% compared to $1.26 billion for the same quarter of 2023. Product revenue was $408.9 million for the first quarter of 2024, a decrease of 18.3% compared to $500.7 million for the same quarter of 2023. Service revenue was $944.4 million for the first quarter of 2024, an increase of 24.0% compared to $761.6 million for the same quarter of 2023.
Total billings were $1.41 billion for the first quarter of 2024, a decrease of 6.4% compared to $1.50 billion for the same quarter of 2023. Total deferred revenue was $5.79 billion as of March 31, 2024, an increase of 18.6% compared to $4.88 billion as of March 31, 2023.
GAAP operating income was $321.2 million for the first quarter of 2024, representing a GAAP operating margin of 23.7%. This compares to GAAP operating income of $273.5 million for the same quarter of 2023, representing a GAAP operating margin of 21.7%. Non-GAAP operating income was $386.1 million for the first quarter of 2024, representing a non-GAAP operating margin of 28.5%. This compares to non-GAAP operating income of $334.0 million for the same quarter of 2023, representing a non-GAAP operating margin of 26.5%.
GAAP net income was $299.3 million for the first quarter of 2024, compared to GAAP net income of $247.7 million for the same quarter of 2023. GAAP diluted net income per share was $0.39 for the first quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.31 for the same quarter of 2023, based on 793.4 million diluted weighted-average shares outstanding. Non-GAAP net income was $333.9 million for the first quarter of 2024, compared to non-GAAP net income of $269.7 million for the same quarter of 2023. Non-GAAP diluted net income per share was $0.43 for the first quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding, compared to $0.34 for the same quarter of 2023, based on 793.4 million diluted weighted-average shares outstanding.
Cash flow from operations was $830.4 million for the first quarter of 2024, compared to $677.5 million for the same quarter of 2023. Free cash flow was $608.5 million for the first quarter of 2024, compared to $647.2 million for the same quarter of 2023.
“We are diligently executing on our strategy announced six months ago to leverage our scale, go-to-market capabilities, customer-first focus, and engineering expertise to capitalize on the fast-growing Unified SASE and Security Operations markets while continuing to gain market share in Secure Networking,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We believe our Unified SASE offering is the most comprehensive in the industry and we are well-positioned to lead in our three core growth areas by leveraging our expertise in converging networking and security, our history of AI innovation, and our ability to integrate products across our FortiOS operating system. We’re pleased to have executed with strong financial discipline in the first quarter leading to outperforming on Non-GAAP operating margin and free cash flow.”
