Fortinet (FTNT) FY2022 results: revenue $4.4 billion, up 32.2% on the year

Fortinet, Inc. (FTNT) reported revenue of $4.4 billion for fiscal 2022, the year ended 31 December 2022, up 32.2% on the year before. Net income was $857 million, up 41.3%, and diluted earnings per share $1.06. The figures are the company's own, from the 10-K it filed with the SEC on 24 February 2023.

Revenue

$4.4 billion

+32.2% on the year

FY2015FY2022

Operating margin

21.9%

19.5% a year earlier

FY2015FY2022

Net income

$857 million

+41.3% on the year

FY2015FY2022

Diluted EPS

$1.06

+46.0% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	4,417	3,342	2,594	+32.2%
Cost of revenue	1,085	783	570	+38.6%
Gross profit	3,332	2,559	2,024	+30.2%
Gross margin	75.4%	76.6%	78.0%
Research and development	512	424	341	+20.8%
Operating income	970	650	532	+49.1%
Operating margin	21.9%	19.5%	20.5%
Interest expense	18.0	14.9	0.0	+20.8%
Pre-tax income	956	628	542	+52.1%
Income tax	30.8	14.1	53.2	+118.4%
Effective tax rate	3.2%	2.2%	9.8%
Net income	857	607	488	+41.3%
Net margin	19.4%	18.2%	18.8%
Diluted EPS	$1.06	$0.73	$0.58	+46.0%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	1,731	1,500	1,084	+15.4%
Capital expenditure	281	296	126	-5.0%
Free cash flow	1,449	1,204	958	+20.4%
Free cash flow margin	32.8%	36.0%	36.9%
Cash from investing	764	-1,325	-72.8
Cash from financing	-2,130	82.8	-1,172
Depreciation and amortisation	104	84.4	68.8	+23.6%
Share-based compensation	217	208	192	+4.5%
Buybacks	1,991	742	1,080	+168.4%
Diluted shares, weighted	805m	836m	838m	-3.6%
Shares outstanding at period end	782m	810m	812m	-3.5%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	-282	782	856
Non-controlling interest	0.0	16.7	0.0
Debt	990	988	0.0	+0.2%
Operating lease liabilities	62.5	40.5	34.0	+54.3%
Other liabilities	5,457	4,092	3,154	+33.4%
Total liabilities and equity	6,228	5,919	4,044	+5.2%
Fixed assets	898	688	448	+30.7%
Goodwill	128	125	93.0	+2.3%
Intangible assets	56.0	63.6	31.6	-11.9%
Investments	45.5	441	894	-89.7%
Cash and equivalents	1,683	1,319	1,062	+27.6%
Receivables	1,262	808	720	+56.2%
Inventory	265	176	140	+50.5%
Other assets	1,891	2,299	656	-17.8%
Total assets	6,228	5,919	4,044	+5.2%

10-K for the year ended 31 December 2022, filed 24 February 2023: the filing.