Summary by Moomoo AI
Fortinet reported strong Q2 2024 financial results with total revenue increasing 11% year-over-year to $1.43 billion. Service revenue grew 20% to $982.4 million, while product revenue declined 4% to $451.9 million. Gross margin expanded 3.7 percentage points to 80.8%, driven by higher service margins and favorable revenue mix.Operating income surged 57% to $437.2 million with operating margin expanding to 30.5%, up from 21.6% last year, reflecting improved operational efficiency and cost management. The company maintained strong cash generation with operating cash flow of $342 million. Deferred revenue grew to $5.90 billion, demonstrating continued momentum in recurring revenue streams.Looking ahead, Fortinet expects service revenue growth to moderate but remain strong, driven by unified SASE and SecOps offerings. The company announced two strategic acquisitions - Lacework for $149 million and Next DLP for $96 million - to strengthen its cloud security and data protection capabilities. Management remains focused on innovation and market expansion while maintaining profitability.
