The company posted better-than-expected results on Wednesday. Total revenue was $441.3 million for the second quarter of 2018, an increase of 21 percent compared to $363.5 million in the same quarter last year. Billings, meanwhile, grew 20 percent year over year to $513.4 million.
It saw strong demand for its Security Fabric platform, cloud offering, and FortiASIC chip technology, and it gained “significant traction” in the SD-WAN market, Xie said.
“Fortinet is the only security vendor that provides a unique combination of a next-generation firewall and SD-WAN in a single integrated offering,” he added, noting the seven-figure deal is with Superunie, a Dutch supermarket with almost 30 percent of the Dutch market. “This competitive win was against a large networking company.”
The company started developing the technology about five years ago, and initially partnered with SD-WAN vendors to add security to their products. Last month it said it has begun offering SD-WAN directly to its customers.
The company has a large installed base for its FortiGate firewall, and it says its customers have been asking it for SD-WAN. Combining its firewall and SD-WAN gives it a competitive advantage, Xie said.
“We’re making Fortinet the only vendor combining SD-WAN with security together,” he said. “There is a huge advantage compared with the multiple box solution right now in the market.” Benefits to customers include cost savings and flexible management, he added. “A lot of customers see the huge advantage we have and more interest in this market, we believe, is a huge opportunity for us.”
Fortinet’s growth results boosted its stock almost 14 percent late in the day on Thursday putting the company on track to beat its previous closing high of $68.57.
BMO Capital Markets gave Fortinet an outperform rating. “We like FTNT’s positioning as a cost-effective security solution, particularly with SMBs, and increasingly with enterprise customers,” wrote BMO Capital Markets analyst Keith Bachman in a research note.