This is very interesting, thanks for the post. I’m overall net bullish on cybersecurity given the global landscape now and how “wars” are also fought online. Did they give any guidance on recurring rev for 2023? Are their solutions pointed towards a weaker industry? OR is this just SPY related?
Not seeing anything about 2023 guidance on their Q3 ER. Just Q4 and FY 2022.
Guidance
For the fourth quarter of 2022, Fortinet currently expects:
Revenue in the range of $1.275 billion to $1.315 billion
Billings in the range of $1.665 billion to $1.720 billion
Non-GAAP gross margin in the range of 75.0% to 76.0%
Non-GAAP operating margin in the range of 30.0% to 31.0%
Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.38 to $0.40, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 795 million to 805 million.
For the fiscal year 2022, Fortinet currently expects:
Revenue in the range of $4.410 billion to $4.450 billion
Service revenue in the range of $2.645 billion to $2.655 billion
Billings in the range of $5.540 billion to $5.595 billion
Non-GAAP gross margin in the range of 75.0% to 76.0%
Non-GAAP operating margin in the range of 26.0% to 27.0%
Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $1.13 to $1.15, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 800 million to 810 million.
While they maintained FTNT’s ‘outperform’ status, several outlets did give it PT drops to the $60-70 range. Even the low end of these are still 33% above where it’s sitting now, but the market has been punishing PT drops these days.