Fortinet, Inc. (NASDAQ:FTNT) Q4 2017 Earnings Conference Call - Final Transcript

Feb 05, 2018 • 06:30 pm ET


Fortinet, Inc. (NASDAQ:FTNT) Q4 2017 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Fortinet Fourth Quarter 2017 Earnings Announcement. [Operator Instructions]

I would now like to introduce your host for today's program, Peter Salkowski, Vice President of Investor Relations. Please go ahead.

Peter Salkowski

Thank you, Jonathan. Good afternoon, everyone. This is Peter Salkowski, Vice President of Investor Relations at Fortinet, and I am pleased to welcome you to our call to discuss Fortinet's financial results for the fourth quarter and full-year 2017. Speakers on today's call are Ken Xie, Fortinet's Founder, Chairman and CEO, Drew Del Matto, CFO, and Keith Jensen, CAO. This is a live call and will be available for replay via webcast on our Investor Relations website.

Ken will begin our call today by providing a high-level perspective on our business. Drew will then follow with our financial and operating results, and Keith will conclude with providing our forward guidance outlook before opening up the call for questions. [Operator Instructions] As a reminder, today, we're holding two calls. For those who have additional questions, we will hold a second conference call at 3:30 p.m. Pacific Time. Both calls will be webcast from our Investor Relations website.

Before we begin, I'd like to remind you that on the call today we will be making 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 and our most recent Form 10-K and Form 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, I'd like to remind everyone that all references to financial metrics that we make on today's call are non-GAAP, unless otherwise stated. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release and on Slides 13 through 16 of the presentation that accompanies today's remarks. We also encourage you to refer to our Investor Relations section of our website for important information, including our earnings press release issued a few minutes ago, the slides that accompany today's prepared remarks, and other important information about the company. A replay of this call will be available on our website.

I will now turn the call over to Ken.

Ken Xie

Thanks to everyone for joining today's call to discuss our fourth quarter and full year 2017 result. As we begin 2018, Fortinet has more market momentum and opportunities than ever. Our fourth quarter again demonstrated strong market leadership with revenue and billing growth of 15%.

For the full year 2017, our revenue grew 17%, while our billing grew 19%. Based on reported billings, Fortinet grow faster than any of our top competitors over the last four quarters. In 2018, we will continue to deliver growth in excess of the market, balanced with profitability. Four powerful growth engines will drive our business