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Fortinet, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports total revenue of $1.51 billion for the quarter, an increase from $1.33 billion in the same quarter the previous year. This growth was driven by a 19% increase in service revenue, while product revenue rose by 2%.
Gross profit for the quarter was $1.24 billion, up from $1.02 billion in the previous year, with a total gross margin of 82.5% compared to 76.2% in the prior year.
Operating expenses for the quarter amounted to $773.8 million, up from $713.7 million in the previous year, primarily due to increases in research and development, sales and marketing, and general and administrative expenses.
Net income for the quarter was $539.9 million, compared to $322.9 million in the previous year. The effective tax rate for the quarter was 13%, up from 0% in the prior year.
Fortinet's cash, cash equivalents, short-term and long-term investments, and marketable equity securities totaled $3.70 billion as of September 30, 2024.
Deferred revenue was $6.01 billion as of September 30, 2024, an increase of 5% from December 31, 2023.
Cash flows from operating activities were $1.78 billion for the nine months ended September 30, 2024, compared to $1.74 billion in the same period last year.
During the quarter, Fortinet completed the acquisitions of Lacework Inc. and Next DLP Holdings Limited, contributing $13.8 million to the quarter's revenue.
The company repurchased less than 0.1 million shares of its common stock during the quarter under its share repurchase program.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fortinet Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.