Fortinet (FTNT) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this network security company have returned -14.4%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Security industry, which Fortinet falls in, has lost 8.1%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate Revisions

Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Fortinet is expected to post earnings of $0.27 per share for the current quarter, representing a year-over-year change of +35%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.4%.

For the current fiscal year, the consensus earnings estimate of $1.04 points to a change of +30% from the prior year. Over the last 30 days, this estimate has changed +1.8%.

Story continues

For the next fiscal year, the consensus earnings estimate of $1.28 indicates a change of +22.8% from what Fortinet is expected to report a year ago. Over the past month, the estimate has changed +4.9%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the latest change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Fortinet.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue Growth

Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Fortinet, the consensus sales estimate for the current quarter of $1.12 billion indicates a year-over-year change of +29.6%. For the current and next fiscal years, $4.38 billion and $5.29 billion estimates indicate +31% and +20.9% changes, respectively.

Last Reported Results and Surprise History

Fortinet reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +28.6%. EPS of $0.24 for the same period compares with $0.19 a year ago.

Compared to the Zacks Consensus Estimate of $1.03 billion, the reported revenues represent a surprise of +0.43%. The EPS surprise was +9.09%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

Valuation

Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Fortinet is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Fortinet. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Endpoint Protection Platforms (EPP) , Endpoint Security , Intrusion Prevention Systems (IPS)

Fortinet has raised prices on products and services to address macroeconomic challenges including shipping delays, longer activation timelines and the suspension of sales in Russia.

See Also: OnDemand | Zero Tolerance: Controlling The Landscape Where You'll Meet Your Adversaries

The Silicon Valley-based platform security vendor says price hikes have more than offset supply chain and geopolitical headwinds in latest months, allowing Fortinet to increase both product gross margins and short-term deferred revenue from a year ago, according to CFO Keith Jensen. Service gross margins dropped since it will take longer for that side of the business to benefit from higher prices, Jensen says (see: Fortinet CEO Ken Xie: OT Business Will Be Bigger Than SD-WAN).

"Our goal is really to try over a longer period of time to just match the cost increases and maintain a consistent margin," Jensen tells investors Wednesday. "It's not that we're really trying to take down more margin."

Fortinet has found that higher prices don't tend to result in lost business since the company has historically offered 30% to 40% better performance at the same price as products from competitors, Jensen says. Fortinet tracks "very religiously" in its CRM tool why it loses competitive deals and hasn't seen any uptick in deals being lost on price since the company began charging customers more, he says.

"The question is always, 'How far can you push the envelope?'" Jensen says. "We know we come into the conversation with a significant price performance advantage."

The company has even raised prices around products that are no longer shipping since higher labor costs mean the expense associated with providing services and renewals on older products has increased, according to CEO Ken Xie. Although the price of the older product itself hasn't changed, Xie says customers now have to spend more to service and support that product.

Channel partners receive 60 days advanced notice before a price increase takes effect, and Jensen says the impact of price hikes is felt fairly quickly from both a product revenue and billings perspective. The trickle-down effect is much slower when it comes to service revenue, but Jensen expects growth to accelerate there as well in late 2022 and 2023 thanks to the price increases.

"You're going to see the benefit over a much longer period of time on the service revenue line," Jensen says. "You will see the benefit in billings much sooner. That's a very good leading indicator of where service revenue growth is going to go in the future."

Surviving the Supply Chain Squeeze

Price hikes are just one way Fortinet has attempted to address supply chain challenges alongside increasing inventory purchase commitments, redesigning products and qualifying additional suppliers, according to Jensen. But even with those actions, Jensen says demand continues to outpace supply, meaning that Fortinet's backlog is expected to increase throughout the rest of 2022.

"As we balance our pricing actions with the opportunity for continued market share gains, we have passed along most but not all cost increases," Jensen says.

Fortinet's backlog increased yet again in the quarter ended June 30 by $72 million to $350 million, but the rate of increase is down from $120 million in the first quarter of 2022, according to Xie. Networking equipment accounted for 50% of Fortinet's backlog due to continued challenges sourcing raw materials for switches and access points, while the company's FortiGate firewalls accounted for 40% of backlog.

"Our operation and R&D teams did an excellent job navigating the tough supply chain environment," Jensen says. "Nonetheless, we still expect supply chain constraints to be challenging throughout the remainder of the year."

Fortinet's gross margins have been affected not only by price increase but also the product mix from one quarter to the next, Jensen says. The company earns more profit on high-end firewalls as compared with entry-level firewalls, meaning that if Fortinet introduces a high-end firewall in a specific quarter or ends up with more high-end firewall shipments, the company's margins are likely to be higher, he says.

The impact of the economic downturn on Fortinet has thus far been brief and relatively insignificant, Jensen says. Fortinet saw a dip in field closure rates during the first half of June as well as the addition of an approver or negotiator on the customer side in larger deals to ensure the client was making the right decision, according to Jensen. But despite the pause, close rates actually increased slightly last quarter.

"For whatever reason, there was a slight pause there for a couple weeks in June," Jensen says. "But everybody came back and got the deal done that last week in June."

Product Revenue Growth Outpaces Service

Fortinet's revenue of $1.03 million in the quarter ended June 30 was in line with Seeking Alpha's sales estimate. Meanwhile, the company's non-GAAP earnings of $0.24 per share edged out Seeking Alpha's non-GAAP estimate of $0.22 per share.

The company's stock is down $5.88 - 9.35% - to $57 per share in after-hours trading Wednesday. That's the lowest Fortinet's stock has traded since July 26.

The Americas accounted for 40.2% of Fortinet's revenue in the second quarter, while Europe, the Middle East and Africa, or EMEA, delivered 38% of revenue and Asia-Pacific, or APAC, was responsible for the remaining 21.8% of revenue.

For all of 2022, Fortinet expects non-GAAP net income of $1.01 to $1.06 per share on revenue of between $4.35 billion and $4.4 billion. Analysts had been expecting non-GAAP net income of $1 per share on sales of $4.38 billion.

Fortinet on Wednesday introduced a compact Next-Generation Firewall (NGFW) targeted at hyperscale data centers and 5G networks. The FortiGate 4800F occupies four rack units while providing up to 2.4 terabits per second (2 Tbps) throughput. It includes 400 gigabit per second Ethernet (GbE), 200 GbE and 50 GbE ports for scalability depending on need, the company said.

“The combination of performance and scalability packed into our latest firewall will help future-proof organizations’ investments in hyperscale data centers, especially with the rise of 5G and as the volume and velocity of data continues to accelerate at an unprecedented pace,” said John Maddison, executive vice president of products and chief marketing officer at Fortinet.

Next-Generation Firewalls (NGFWs) build on traditional firewall capabilities like packet filtering, network address translation (NAT) and virtual private network (VPN) capabilities with deep packet inspection, intrusion prevention and other techniques to maintain more performant and secure connections. 

Specific to 5G, Fortinet said the 4800F enables massive machine-to-machine (M2M) connection that requires secure IP connectivity to untrusted environments like the Internet, edge sites, and cloud services. It can support 25 million connections per second. The 4800F also secures 5G RAN traffic and core connectivity with IPsec-based VPN performance that Fortinet clocks at 19x faster than previous models.

The secret behind the 4800F’s horsepower is the presence of 16 NP7 processors, according to the company. The NP7 is a purpose-designed Network Processing Unit (NPU) developed by Fortinet that accelerates network functions that would otherwise slow CPUs, like IPv4, IPv6, unicast and multicast, IPsec decryption, VXLAN termination and network address translation.

“With the increased scale of 5G radio and the sharing of RAN between operators to reduce costs, the FortiGate 4800F provides a cost-effective security gateway to handle 5G’s RAN scalability and security requirements for both user and control planes,” said the company.

When it comes to hyperscale and large enterprise data center installations, Fortinet claims to be the only vendor delivering 400GbE interfaces on a hyperscale firewall. The company said the 4800F has been designed to deliver significantly faster Secure Socket Layer (SSL) inspection compared to industry averages, and offers Transport Layer Security (TLS) 1.3 protocol support. It supports Virtual Extensible LAN (VXLAN) segmentation, to create massively scalable virtual overlay networks.

The device is managed using FortiGuard, Fortinet’s AI-driven security framework. FortiGuard provides real-time threat detection and security enforcement using context-driven policy management designed to support hybrid deployments in the cloud, on the enterprise network, and at endpoints. The company noted that the firewall also implements universal Zero Trust Network Architecture (ZTNA) support.

“Setting up universal ZTNA with an on-prem or virtual FortiGate ensures that consistent policies and controls span across all operating environments, including across multiple clouds,” said Fortinet.

Fortinet recently announced FortiCNP, a new built-in-the-cloud offering that correlates security findings from across an organization’s cloud footprint to facilitate friction-free cloud security operations.

FortiCNP’s patented Resource Risk Insights (RRI)TM technology produces context-rich, actionable insights that help teams prioritize the remediation and mitigation of risks with the highest potential impact on cloud workload security without slowing down the business.

Also announced today, Fortinet is an Amazon Web Services (AWS) Launch Partner for Amazon GuardDuty Malware Protection, which provides agentless malware detection capabilities across AWS data stores, disk volumes, and workload images. FortiCNP supports Amazon GuardDuty Malware Protection, delivering near-real-time threat protection with zero-permission capabilities to actively scan running workloads with no impact or delays to operations.

A defining feature of FortiCNP is integration with AWS security products and services, and the Fortinet Security Fabric, which helps organizations more effectively secure their cloud environments and maximize their cloud security investments.

FortiCNP Resource Risk Insights (RRI)TM leverages a patented risk score algorithm to contextualize security findings from Fortinet Cloud Security solutions and AWS products and services to provide teams with prioritized, context-rich, and actionable insights about resources that present the highest risk and need immediate attention.

By analyzing, correlating, and contextualizing security findings from AWS cloud security services with FortiCNP, customers maximize the value and benefit from easy deployment capabilities offered by Amazon GuardDuty Malware Protection, Amazon Inspector, AWS Security Hub, AWS CloudTrail, and AWS Organizations.

SUNNYVALE, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) --

John Maddison, EVP of Products and CMO at Fortinet
“No other firewall is better suited to support hyperscale and 5G. Not only is FortiGate 4800F the industry’s fastest compact hyperscale firewall, with 2.4 Tbps of capacity, but it is also the only 4RU chassis on the market that includes 400GbE, 200GbE, and 50GbE ports, which allows hyperscale customers and mobile network operators to seamlessly scale their business without disrupting operations. The combination of performance and scalability packed into our latest firewall will help future-proof organizations’ investments in hyperscale data centers, especially with the rise of 5G and as the volume and velocity of data continues to accelerate at an unprecedented pace.”

News Summary
Fortinet®  (NASDAQ: FTNT), a global leader in broad, integrated, and automated cybersecurity solutions, today announced the FortiGate 4800F series of hyperscale firewalls, which sets new standards for security, scale, performance, and innovation to meet the requirements of hyperscale customers and 5G mobile network operators (MNOs). Powered by 16 of Fortinet’s seventh generation network processors (NP7 ), FortiGate 4800F offers the highest performance figures of any compact firewall, with Security Compute Ratings that deliver up to 34x better performance than competitor solutions, including the ability to support an average of 19x more connections per second.

Large enterprises and MNOs are in the continual pursuit of doing more with less. When it comes to firewalls, higher performance in a smaller footprint means security becomes an enabler for 5G adoption, allowing mobile providers to deliver new use cases for enterprises and critical industries and infrastructure. It also ensures enterprise customers such as high-velocity e-retail, cutting-edge research facilities, financial institutions, and cloud providers have access to the performance, scalability, and security they need to meet escalating business needs. Reduced costs for space, cooling, and power are additional benefits to achieving higher performance in a smaller form factor.

With these outcomes in mind, Fortinet’s dedication to pushing the boundaries of what is possible in security performance has yielded the most powerful compact firewall yet: the FortiGate 4800F. With a 4RU chassis and 400GbE, 200GbE, and 50GbE interfaces, this latest model of Fortinet’s flagship line of firewalls enables MNOs to secure 5G networks with the following capabilities:

• Accelerates 5G adoption with secure IP connectivity and support for 19x more connections per second: 5G enables massive machine-to-machine communications that require secure IP connectivity to untrusted environments such as the internet, edge sites, and the cloud. The FortiGate 4800F enables MNOs to secure massive scale and performance for IP connectivity to external networks and domains with massive carrier-grade NAT (CGNAT) performance and hardware logging. To build capacity that meets the needs of today and the future, FortiGate 4800F supports 25 million connections per second to give MNOs the capacity they need to handle surges in traffic and large sustained loads of subscriber connections. Enterprises with ultra-performance needs can converge multiple firewalls into a single unified system, host on-premises applications, and deliver the required user experience.
• Secures 5G radio access network (RAN) traffic and core connectivity with 19x faster IPsec VPN performance: With the increased scale of 5G radio and the sharing of RAN between operators to reduce costs, the FortiGate 4800F provides a cost-effective security gateway (SecGW or SEG) to handle 5G’s RAN scalability and security requirements for both user and control planes.

FortiGate 4800F also delivers hyperscale security for hyperscale data centers with the following capabilities:

• Enables 400G ultra-fast data center interconnect: With 400GbE ports in a compact 4RU form factor, FortiGate 4800F enables organizations to connect and replicate data securely with ultra-fast elephant flows, while ensuring privacy and confidentiality to certain that all data and services are delivered close to the customers and partners. Enterprises with ultra-performance needs can converge multiple firewalls into a single unified system, host on-premises applications, and deliver the required user experience. In April 2021, Fortinet became the first vendor to deliver 400GbE ports on a hyperscale firewall via FortiGate 7121F, followed by the FortiGate 3700F in May 2022. FortiGate 4800F continues Fortinet’s legacy as the only vendor delivering 400GbE interfaces on a hyperscale firewall to support the most intensive hyperscale use cases.
• Removes blind spots with 6x faster SSL inspection: With as much as 95% of today’s traffic being encrypted, SSL-inspection has become critical to properly secure the network. While encrypted paths are meant to make traffic more secure, they also let bad actors hide malicious activity. To allow all encrypted traffic to be inspected while keeping up with the speed of today’s networks, FortiGate 4800F offers the industry’s highest SSL-inspection performance as well as support for the industry’s latest TLS 1.3 standard. This also ensures network blind spots are eliminated by enabling full visibility of clear-text and encrypted network flows.
• Secures hybrid IT architectures with VXLAN segmentation: Digital acceleration is only possible with hybrid IT architectures that seamlessly connect and secure on-prem and cloud assets. The FortiGate 4800F enables massively scalable hardware-accelerated Virtual Extensible LAN (VXLAN) segmentation and allows super-fast communication between enormously scaled services, such as compute, storage, and applications that are co-hosted on physical and virtual platforms.

The entire FortiGate suite of next-generation and hyperscale firewalls supports organizations of all sizes with the following features:

• High-performance security at scale: FortiGuard AI-Powered Security Services deliver innovative real-time protection for known, zero-day and unknown threats, including IPS, DNS, AV, and inline sandbox, for datacenter edge and core deployments leveraging segmentation and more granular device (OT/IoT) as well as web and application security capabilities for comprehensive perimeter protection.
• Supports zero trust architectures with integrated universal ZTNA: FortiGate natively integrates universal zero trust network access (ZTNA) enforcement to support zero trust architectures. Setting up universal ZTNA with an on-prem or virtual FortiGate ensures that consistent policies and controls span across all operating environments, including across multiple clouds.
  

FortiGate 4800F vs. Competitors
Below is a comparison of the top firewalls on the market against the target performance numbers of the FortiGate 4800F series.  Security Compute Rating  is a benchmark (performance multiplier) that compares FortiGate performance versus the industry average of competing products across various categories that fall within the same price band.

Additional Resources

• Learn more about how the  Fortinet Security Fabric  delivers broad, integrated, and automated protection across an organization’s entire digital infrastructure.
• Learn more about FortiGuard Labs threat intelligence and research or Fortinet’s AI-powered FortiGuard Security Services portfolio.
• Learn more about Fortinet’s  free cybersecurity training  which includes broad cyber awareness and product training. As part of the Fortinet Training Advancement Agenda (TAA), the Fortinet Training Institute also provides training and certification through the  Network Security Expert (NSE) Certification,  Academic Partner, and  Education Outreach  programs.
• Read more about how Fortinet customers are securing their organizations.
• Engage in the Fortinet User Community (Fuse). Share ideas and feedback, learn more about our products and technology, and connect with peers.
• Follow Fortinet on  Twitter,  LinkedIn,  Facebook, and Instagram. Subscribe to Fortinet on YouTube.

About Fortinet
Fortinet (NASDAQ: FTNT) makes possible a digital world that we can always trust through its mission to protect people, devices, and data everywhere. This is why the world’s largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 580,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at  https://www.fortinet.com, the  Fortinet Blog, or  FortiGuard Labs.

FTNT-O

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNDR, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.
Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at  www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.

Fortinet Inc. and Rapid7 Inc. shares dropped in late trading after both reported lower-that-expected outlooks amid broader market issues, including negative economic growth and 40-year high inflation.

For its second quarter ended June 30, Fortinet reported a profit before costs such as stock compensation of $194.1 million, or 24 cents per share, up from $158.7 million, or 19 cents per share in the same quarter of last year. Revenue rose 29%, to $1.03 billion.

Analysts had been expecting a profit of 22 cents per share on revenue of $1.03 billion.

Fortinet’s product revenue in the quarter rose 34%, to $400.7 million, service revenue rose 25.2%, to $629.4 million, and total bookings rose 42%, to $1.38 billion. Deferred revenue as of the end of June was $3.93 billion, up 35%.

“We delivered strong revenue and billings growth in the second quarter driven by an over 50% year-over-year increase in the number of transactions larger than $1 million,” Ken Xie (pictured), founder, chairman and chief executive officer of Fortinet, said in a statement. “Large enterprise companies continue to favor Fortinet’s industry-leading cost for performance advantage and integrated platform strategy.”

For the third quarter, Fortinet is predicting an adjusted profit of 26 to 28 cents a share on revenue of $1.105 billion to $1.135 billion. Analysts had expected 27 cents and $1.13 billion. For the full-year 2022, earnings per share are predicted to be $1.01 to $1.06 on revenue of $4.35 billion to $4.4 billion. Analysts had expected a profit of $1.03 a share on revenue of $4.39 billion.

Fortinet’s figures were roughly in line with what analysts expected, but the company had previously said that it expected earnings per share of $5.00 to $5.15 for the full year and investors noticed. Fortinet shares were down almost 10% in late trading.

Rapid7 reported an adjusted loss of one cent per share on revenue of $167.5 million in the quarter. Analysts had expected a loss of four cents a share on revenue of $164.12 million.

Annualized recurring revenue rose 35% year-over-year, to $658 million, while the company’s number of customers ended the quarter at 10,624, up 14%. ARR per customer rose 18%, to $62,000.

“As customers prioritize spending around their modern cloud environments, Rapid7 continues to address their most urgent security challenges with our market-leading Insight platform,” Corey Thomas, chairman and CEO of Rapid7, said in the company’s earnings release. “In the current environment, there is a significant opportunity for consolidation across security operations from both a capability and economic standpoint, and our differentiated solutions are positioned to enable customers to accelerate that process while driving profitable, sustainable growth for Rapid7.”

For the third quarter, Rapid7 predicts an adjusted profit of three to six cents per share on revenue of $175 million to $177 million. Analysts had expected a profit of 14 cents a share on revenue of $177.8 million. For the full year, the company is predicting a profit of eight to 15 cents a share on revenue of $686 million to $690 million versus an expected 11 cents and $689.85 million.

The stronger-than-expected figures for the second quarter were outweighed by the miss in the third-quarter outlook. Rapid7’s shares were down 3% after the bell.

Photo: SiliconANGLE

RIYADH, Saudi Arabia, July 27, 2022 /PRNewswire/ -- sirar by stc, the cutting-edge cyber security provider by stc group, was recognized and awarded the "Managed Security Service Provider Partner of the Year 2021" for its valuable contribution towards the Cyber security industry.

As an advance cybersecuriy, sirar by stc offers a comprehensive range of cyber security products and services that help businesses manage digital risks effectively, achieve compliance with relevant laws and regulations, and enable a robust and secure digital transformation journey.

Fortinet, a leading vendor for cybersecurity solutions had recently held Fortinet Security Day in Riyadh at Crowne Plaza RDC where leading partners, distributors & key customers of the region were invited. During the event, Fortinet recognized and announced the winners for the top partner awards for their outstanding achievements & contributions in various domains.

Photo - https://mma.prnewswire.com/media/1867617/sirar_stc.jpg

View original content to download multimedia:https://www.prnewswire.com/news-releases/sirar-by-stc-wins-managed-security-service-provider-partner-of-the-year-at-fortinet-security-day-riyadh-301594533.html

SOURCE sirar stc

[ Back To TMCnet.com's Homepage ]