Stock Analysis on Net
Stock Analysis on Net

Fortinet Inc. (NASDAQ:FTNT)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 8, 2023.

Common-Size Income Statement
Quarterly Data

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Fortinet Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Product
Service
Revenue
Product
Service
Cost of revenue
Gross profit
Research and development
Sales and marketing
General and administrative
Gain on intellectual property matter
Operating expenses
Operating income
Interest income
Interest expense
Other income (expense), net
Income before income taxes and loss from equity method investment
(Provision for) benefit from income taxes
Loss from equity method investment
Net income including non-controlling interests
Net (income) loss attributable to non-controlling interests, net of tax
Net income attributable to Fortinet, Inc.

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The financial data exhibits distinct trends in revenue composition and profitability measures over the observed periods.

Revenue Composition
The percentage of revenue derived from products shows some fluctuation but generally ranges between approximately 33% and 42%, with a slight upward trend in recent quarters, reaching a peak of 42.1% in December 2022. Conversely, service revenue as a percentage of total revenue corresponds inversely, generally declining from around 64% in early periods to about 57.9% to 60.33% in the latest quarters, indicating a gradual shift towards product revenue.
Cost of Revenue and Gross Profit
The cost of revenue as a percentage of total revenue tends to decrease over time, moving from lows around 25% in early periods to mid-20s in more recent quarters, implying some improvement in cost management. Correspondingly, gross profit margins have generally improved or remained steady, fluctuating mostly between 73% and 78%, with a slight dip observed around 2022 but recovering subsequently.
Operating Expenses
Operating expenses as a proportion of revenue have shown a steady downward trend, notably dropping from about 67.5% in March 2018 to below 54% by the end of 2021 and remaining in the range of 48.9% to 54% thereafter. Among expense categories, research and development spending consistently decreased relative to revenue, falling from around 14.8% to roughly 11-12% in recent quarters. Sales and marketing expenses also diminished, from about 46% early on to a range closer to 35-38% recently. General and administrative expenses gradually declined from over 6% to around 3.5-4% near the end of the period.
Profitability
Operating income as a percentage of revenue exhibited a positive trend, increasing from around 8% to peaks above 27% by late 2022, demonstrating improved operational efficiency. Income before income taxes and loss from equity investments followed a similar upward trajectory. Net income attributable to the company generally increased from approximately 10% to over 24% by March 2023, despite some fluctuations. This signifies sustained profitability growth.
Other Income and Expenses
Interest income peaked during earlier periods, reaching over 2% of revenue, but declined and remained low in recent quarters, recovering slightly toward the end. Interest expense emerged in the dataset only from late 2020 onward, remaining modest but consistent. Other income or expense demonstrated volatility without a clear trend, oscillating between minor gains and losses relative to revenue. Gains on intellectual property matters appeared starting late 2019, contributing a small but consistent percentage near 0.1% of revenue.
Tax and Equity Investments
The provision for income taxes as a percentage of revenue shows high variability across quarters, including periods of tax benefits and tax charges, reflecting fluctuating tax circumstances. Losses from equity method investments appeared sporadically but remained relatively small in magnitude until a notable increase in one quarter ending in March 2023, reflecting potential challenges or write-downs in equity stakes.