Security company Fortinet started its first quarter of the year on a high note as its security fabric gave the company an additional 10,000 customer wins — one of which was a $12 million billing, said company officials on its earnings call yesterday.
The company also beat its own expectations in terms of billings. Fortinet achieved $403.3 million in billings — a 22 percent increase year-over-year.
Fortinet’s Security Fabric allows customers to gain visibility into non-Fortinet products and can be integrated into third-party environments, which has been a selling point for the security company, said Fortinet officials on the call.
By developing a series of open application programming interfaces (APIs), customers can join Fortinet’s security fabric at multiple integration points including the hypervisor, the software-defined network (SDN) orchestration controller, the cloud, and policy managers.
Company officials noted that the bulk of its investments are going toward its sales and marketing teams who are focused on providing more direct contact with its customers.
For its first quarter, ended March 31, 2017, Fortinet reported revenues of $340.6 million — a 20 percent increase year-over-year, beating its own expected range of $330 million to $335 million.
Of the total revenue, product revenue was $135.3 million — a 9 percent increase from first quarter of 2016. And its service revenue brought in $205.3 million, an increase of 28 percent year-over-year. The large increase in service revenue is reflected by Fortinet’s shift toward a subscription-based revenue model.
Its non-GAAP net income for the quarter was $31 million, or $0.17 per share, compared to $20.1 million for the same quarter a year ago. This is a 42 percent increase year-over-year.