Company profile

Ticker
FTNT
Exchange
CEO
Ken Xie
Employees
Location
Fiscal year end
Former names
Fortinet Inc
SEC CIK
IRS number
770560389

FTNT stock data

(
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FINRA relative short interest over last month (20 trading days) ?

Calendar

31 Oct 19
26 Feb 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Sep 19 Jun 19 Mar 19 Dec 18
Revenue 547.5M 521.7M 472.6M 507M
Net income 79.8M 72.7M 58.8M 182.6M
Diluted EPS 0.46 0.42 0.34 1.05
Net profit margin 14.58% 13.94% 12.44% 36.02%
Operating income 100M 75.2M 50.6M 85.1M
Net change in cash 153.4M -194.8M 104.5M -56.9M
Cash on hand 1.18B 1.02B 1.22B 1.11B
Cost of revenue 124.1M 128.3M 113M 128.5M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 1.8B 1.49B 1.28B 1.01B
Net income 332.2M 31.4M 32.2M 7.99M
Diluted EPS 1.91 0.18 0.18 0.05
Net profit margin 18.44% 2.10% 2.52% 0.79%
Operating income 231M 109.8M 42.9M 14.88M
Net change in cash 301.4M 102M 165.7M 260.05M
Cash on hand 1.11B 811M 709M 543.3M
Cost of revenue 450.4M 385.3M 337.8M 286.78M

Financial data from Fortinet earnings reports

70.7% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 588 536 +9.7%
Opened positions 113 64 +76.6%
Closed positions 61 65 -6.2%
Increased positions 151 169 -10.7%
Reduced positions 247 213 +16.0%
13F shares
Current Prev Q Change
Total value 12.95B 9.15B +41.4%
Total shares 120.91M 119.32M +1.3%
Total puts 833.1K 883.2K -5.7%
Total calls 774.4K 573.71K +35.0%
Total put/call ratio 1.1 1.5 -30.1%
Largest owners
Shares Value Change
Vanguard 17.39M $1.86B -0.0%
BLK BlackRock 10.83M $1.16B -0.0%
STT State Street 5.79M $618.59M -0.9%
Renaissance Technologies 5.75M $613.97M +35.5%
AMP Ameriprise Financial 5.52M $589.3M +27.3%
Geode Capital Management 2.61M $278.43M +2.2%
Allianz Asset Management GmbH 2.3M $245.51M +11.8%
Altshuler Shaham 2.06M $219.42M -17.4%
Whale Rock Capital Management 1.97M $210.26M NEW
BMO Bank Of Montreal 1.94M $207.49M +38.2%
Largest transactions
Shares Bought/sold Change
Whale Rock Capital Management 1.97M +1.97M NEW
Renaissance Technologies 5.75M +1.51M +35.5%
Aqr Capital Management 1.45M -1.43M -49.7%
AMP Ameriprise Financial 5.52M +1.18M +27.3%
JHG Janus Henderson 306.1K -963.9K -75.9%
1832 Asset Management 565.8K +565.8K NEW
EMG Man 779.94K +561.81K +257.6%
Two Sigma Investments 1.27M +560.49K +78.5%
BMO Bank Of Montreal 1.94M +537.11K +38.2%
Arrowstreet Capital, Limited Partnership 1.08M -520.02K -32.5%

Financial report summary

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Risks
  • Our operating results are likely to vary significantly and be unpredictable.
  • Adverse economic conditions or reduced information technology spending may adversely impact our business.
  • Our billings, revenue, operating margin and free cash flow growth may slow or may not continue.
  • We generate a majority of revenue from sales to distributors, resellers and end-customers outside of the United States, and we are therefore subject to a number of risks associated with international sales and operations.
  • If we are not successful in continuing to execute our strategy to increase our sales to large and medium-sized end-customers, our results of operations may suffer.
  • Managing inventory of our products and product components is complex. Insufficient inventory may result in lost sales opportunities or delayed revenue, while excess inventory may harm our gross margins.
  • We are dependent on the continued services and performance of our senior management, the loss of any of whom could adversely affect our business, operating results and financial condition.
  • If we are unable to hire, retain and motivate qualified personnel, our business will suffer.
  • If we do not increase the effectiveness of our sales organization, we may have difficulty adding new end-customers or increasing sales to our existing end-customers and our business may be adversely affected.
  • The sales prices of our products and services may decrease, which may reduce our gross profits and operating margin, and which may adversely impact our financial results and the trading price of our common stock.
  • If our internal enterprise IT networks, on which we conduct internal business and interface externally, our operational networks, through which we connect to customer systems and provide services, or our research and development networks, our back-end labs and cloud stacks through which we research and develop products and services, are compromised, public perception of our products and services will be harmed, our customers may be breached and harmed, we may become subject to liability, and our business, operating results and stock price may be adversely impacted.
  • Reliance on a concentration of shipments at the end of the quarter could cause our billings and revenue to fall below expected levels.
  • Unless we continue to develop better market awareness of our company and our products, and to improve lead generation and sales enablement, our revenue may not continue to grow.
  • We rely on third-party channel partners for substantially all of our revenue. If our partners fail to perform, our ability to sell our products and services will be limited, and if we fail to optimize our channel partner model going forward, our operating results will be harmed. Additionally, a small number of distributors represents a large percentage of our revenue and gross accounts receivable, and one distributor accounted for 32% of our total net accounts receivable as of September 30, 2019.
  • Actual, possible or perceived defects or vulnerabilities in our products or services, the failure of our products or services to detect or prevent a security breach or the misuse of our products could harm our reputation and divert resources.
  • If we do not appropriately manage any future growth, including through the expansion of our real estate facilities, or are unable to improve our systems, processes and controls, our operating results will be negatively affected.
  • We may experience difficulties maintaining and expanding our internal business management systems.
  • If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our operating results could fall below expectations of securities analysts and investors, resulting in a decline in our stock price.
  • We offer retroactive price protection to certain of our major distributors, and if we fail to balance their inventory with end-customer demand for our products, our allowance for price protection may be inadequate, which could adversely affect our results of operations.
  • Because we depend on several third-party manufacturers to build our products, we are susceptible to manufacturing delays that could prevent us from shipping customer orders on time, if at all, and may result in the loss of sales and customers, and third-party manufacturing cost increases could result in lower gross margins and free cash flow.
  • Because some of the key components in our products come from limited sources of supply, we are susceptible to supply shortages, long lead times for components, and supply changes, each of which could disrupt or delay our scheduled product deliveries to our customers, result in inventory shortage, cause loss of sales and customers or increase component costs resulting in lower gross margins and free cash flow.
  • We are exposed to fluctuations in currency exchange rates, which could negatively affect our financial condition and results of operations.
  • Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose end-customers in the public sector or negatively impact our ability to contract with the public sector.
  • Global economic uncertainty and weakening product demand caused by political instability and conflict could adversely affect our business and financial performance.
  • We are subject to governmental export and import controls that could subject us to liability or restrictions on sales, and could impair our ability to compete in international markets.
  • Efforts to withdraw from or materially modify international trade agreements, to change tax provisions related to global manufacturing and sales or to impose new tariffs, economic sanctions or related legislation, any of which could adversely affect our financial condition and results of operations.
  • If we fail to comply with environmental requirements, our business, financial condition, operating results and reputation could be adversely affected.
  • A portion of our revenue is generated by sales to government organizations, which are subject to a number of challenges and risks.
  • False detection of vulnerabilities, viruses or security breaches or false identification of spam or spyware could adversely affect our business.
  • Our ability to sell our products is dependent on the quality of our technical support services, and our failure to offer high-quality technical support services would have a material adverse effect on our sales and results of operations.
  • We could be subject to changes in our tax rates, the adoption of new U.S. or international tax legislation or exposure to additional tax liabilities.
  • Forecasting our estimated annual effective tax rate is complex and subject to uncertainty, and there may be material differences between our forecasted and actual tax rates.
  • Our inability to acquire and integrate other businesses, products or technologies could seriously harm our competitive position.
  • Our business is subject to the risks of warranty claims, product returns, product liability and product defects.
  • Our business is subject to the risks of earthquakes, fire, power outages, typhoon, floods and other catastrophic events, and to interruption by manmade problems such as civil unrest, labor disruption, critical infrastructure attack and terrorism.
  • If our new products and product enhancements do not achieve sufficient market acceptance, our results of operations and competitive position will suffer.
  • Demand for our products may be limited by market perception that individual products from one vendor that provide multiple layers of security protection in one product are inferior to point solution network security solutions from multiple vendors.
  • We face intense competition in our market and we may lack sufficient financial or other resources to maintain or improve our competitive position.
  • If functionality similar to that offered by our products is incorporated into existing network infrastructure products, organizations may decide against adding our appliances to their network, which would have an adverse effect on our business.
  • Our proprietary rights may be difficult to enforce, which could enable others to copy or use aspects of our products without compensating us.
  • Our products contain third-party open source software components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to sell our products.
  • Claims by others that we infringe their proprietary technology or other litigation matters could harm our business.
  • We rely on the availability of third-party licenses.
  • As a public company, we are subject to compliance initiatives that will require substantial time from our management and result in significantly increased costs that may adversely affect our operating results and financial condition.
  • Changes in financial accounting standards may cause adverse unexpected fluctuations and affect our reported results of operations.
  • If securities or industry analysts stop publishing research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.
  • The trading price of our common stock may be volatile.
  • Share repurchases under the Repurchase Program could increase the volatility of the trading price of our common stock, could diminish our cash reserves, could occur at non-optimal prices and may not result in the most effective use of our capital.
  • Anti-takeover provisions contained in our certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Good
New words: aware, bankruptcy, Chinese, chromium, enSilo, gateway, hexavalent, hybrid, scrapped, slowly, typhoon, unwilling, WiFi
Removed: aluminum, computationally, consisting, Faraday, intensive, March, occurred, par, perpetual, reengineer, reengineering, settled, steel