Fortinet, Inc. (NASDAQ: FTNT) stock is experiencing a notable rise on the US stock charts this morning, following the disclosure of its recent financials. At the latest current-market update, FTNT shares were rising 21.30% to trade at $67.69.
Fortinet Balancing Between Growth And Profitability
Fortinet (FTNT) reported robust financial outcomes for the second quarter ended June 30, 2024, demonstrating a commendable balance between growth and profitability. The company’s non-GAAP operating margin achieved a record 35.1%, marking an increase of 820 basis points year-over-year. Billings and revenue figures fell at the upper end of their respective guidance ranges.
Total revenue saw a rise of 10.9%, generating $1.43 billion, while product revenue experienced a decrease of 4.4%, totaling at $451.9 million. Conversely, service revenue climbed by 19.8% to $982.4 million. The company reported a GAAP net income of $379.8 million, with diluted net income per share stood at $0.49.
Strategic Investments and Acquisitions
Fortinet continues to focus on expanding its footprint in the Unified SASE (Secure Access Service Edge) and Security Operations markets while capturing market share in Secure Networking. The company is positioning itself as a leader in the SASE space, distinguished as the sole vendor in the Gartner Magic Quadrant for Single-Vendor SASE and appearing in five separate network security Magic Quadrant reports.
In a separate announcement, Fortinet has acquired Next DLP, a prominent player in insider risk and data protection. This acquisition is expected to enhance Fortinet’s position in the standalone enterprise data loss prevention (DLP) market and reinforce its leadership in integrated DLP solutions across endpoint and SASE environments.
Next DLP’s advanced technology, recognized by industry analysts and recently listed as a Representative Vendor in the 2023 Gartner Market Guide for Data Loss Prevention and Insider Risk Management Solutions, will significantly bolster Fortinet’s data protection capabilities.
The integration of Next DLP’s cloud-native SaaS data protection platform will augment Fortinet’s Unified SASE offering, further strengthening its Security Service Edge (SSE) and Security Fabric solutions.