Fortinet Inc. (NASDAQ:FTNT) Q4 2014 Earnings Conference Call - Final Transcript

Jan 28, 2015 • 04:30 pm ET


Fortinet Inc. (NASDAQ:FTNT) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to your Fortinet Q4 2014 Earnings Announcement Call. At this time, all participants will be in a listen-only mode, but later there will be a chance to ask questions and instructions will be given at that time. [Operator Instructions] And as a reminder, today's conference is being recorded.

And now, I would like to turn it over to your host, Michelle Spolver. Ma'am, please go ahead.

Michelle Spolver

Thank you. Good afternoon, everyone and thank you for joining this conference call to discuss Fortinet's financial results for the fourth quarter and full year 2014. With me today are Ken Xie, Fortinet's Founder, Chairman and CEO and Drew Del Matto, CFO.

In terms of the structure of the call, Ken will begin by providing perspective on our business and product advantages, Drew with then review our financial and operating results and conclude with our forward guidance outlook. We will then open the call for questions. As a reminder, today we are holding two calls. For those who have additional or more detailed questions, we will hold the second conference call at 3:30 PM Pacific Time. Both calls will be webcast from our Investor Relations website.

Before we begin, let me first read this disclaimer. Please note that some comments we make today are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Please refer to our SEC filings; in particular, the risk factors in our Forms 10-K and 10-Q for more information.

All forward-looking statements reflect our opinions only as of the date of this presentation and we undertake no obligation and specifically disclaim any obligation to update forward-looking statements. Also please note, we'll be discussing certain non-GAAP financial measures on this call. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release and on Slides 14 through 17 of the presentation that accompanies today's remarks.

Please refer to our Investor Relations website at for more important information including our earnings press release issued a few minutes ago and the slides that accompany today's prepared remarks. A replay of this call will also be available on our website. Note that we routinely post information on our website and we encourage you to make use of that resource.

With that let me now turn the call over to Ken.

Ken Xie

Thanks, Michelle. And thanks to everyone joining the call today. I'm very pleased with Fortinet's progress during the fourth quarter. We have very strong finish towards this year. The Q4 build in growth of 35% or more than three times of the market is the highest we have experienced in 16 quarters.

During the quarter, we expand sales within our current customer base and acquired about 8,000 new customers adding to our large existing customer base, which includes a majority of Fortune Global 100. And we again got a number of large deal with enterprise service