Here are 1-3 brief analogies to describe Fortinet:

• Cisco for enterprise network security.
• ADT for corporate IT security.

• FortiGate Next-Generation Firewalls (NGFWs): These are hardware appliances that provide comprehensive network security, including firewall, VPN, intrusion prevention, and advanced threat protection.
• FortiGuard Security Services: These are subscription-based services that offer real-time threat intelligence updates, web filtering, anti-spam, and other security protections for Fortinet devices.
• FortiClient Endpoint Security: This software solution protects endpoints (computers, mobile devices) from malware, exploits, and other cyber threats.
• FortiManager & FortiAnalyzer: These are centralized management and analytics platforms for overseeing and monitoring Fortinet security infrastructure.
• Secure Access Solutions (FortiSwitch, FortiAP): These network hardware products, such as secure switches and wireless access points, provide secure and managed access to networks.

Fortinet's Major Customers

• Enterprises: Large corporations across all industries, including financial services, healthcare, manufacturing, retail, technology, and more, utilize Fortinet's comprehensive security fabric for their complex network, cloud, and endpoint protection needs.
• Small and Medium Businesses (SMBs): Fortinet offers scalable solutions that cater to the cybersecurity requirements of smaller organizations, often delivered through their extensive network of channel partners.
• Managed Security Service Providers (MSSPs) and Telecommunications Companies: These are often direct customers of Fortinet who leverage Fortinet's technology to build and deliver their own managed security services to their end-clients. They also embed Fortinet solutions within their infrastructure offerings. While specific names are not disclosed as "major customers" by Fortinet, large telecom companies and service providers like AT&T (T) and Verizon (VZ) are known to be users and partners of various cybersecurity vendors, including Fortinet, for their managed services portfolios.
• Government and Education Sectors: Public sector entities (federal, state, and local governments) and educational institutions (universities, K-12) are significant users of Fortinet's security platforms to protect sensitive data and critical infrastructure.
• Channel Partners (Resellers and System Integrators): Companies like CDW (CDW) and Insight Enterprises (NSIT) are examples of large IT solutions providers who purchase Fortinet products from distributors to then resell and integrate for their end-user clients. These partners are direct customers in Fortinet's sales channel.

Ken Xie, Founder, Chairman, and Chief Executive Officer (CEO)

A cybersecurity expert and successful entrepreneur, Ken Xie founded Systems Integration Solutions (SIS), a software firewall business, in 1993. He then founded NetScreen in 1996, which was acquired by Juniper Networks for $4 billion in 2004. Fortinet, co-founded with his brother Michael Xie in 2000, is his third cybersecurity company that has been instrumental in shaping the industry. Ken Xie earned an M.S. degree in electrical engineering from Stanford University and B.S. and M.S. degrees in electronic engineering from Tsinghua University.

Keith Jensen, Chief Financial Officer (CFO) (Retiring May 15, 2025)

Keith Jensen has served as Fortinet's CFO since May 2018 and is scheduled to retire on May 15, 2025. He joined Fortinet in May 2014 as Chief Accounting Officer. Jensen began his career in public accounting with Coopers and Lybrand. He previously served as CFO of Dorado Networks, which was later acquired by First American Title. He also held multiple finance leadership roles, including CFO and Chief Accounting Officer, at Sybase (later acquired by SAP America) and was Chief Accounting Officer and CFO for DataDirect Networks, a privately held data storage company.

Christiane Ohlgart, Chief Financial Officer (CFO) (Effective May 15, 2025)

Christiane Ohlgart will succeed Keith Jensen as Fortinet's CFO, effective May 15, 2025. She currently serves as Chief Accounting Officer. Ms. Ohlgart brings over three decades of experience and previously served as CFO at IGEL Technology, a secure access operating system developer. Her background also includes roles as SVP Finance and Treasurer at Syapse, Inc., and VP Finance of Intermedia.net, Inc. She previously held the role of VP Finance at Fortinet.

Michael Xie, Founder, President, and Chief Technology Officer (CTO)

Michael Xie co-founded Fortinet with his brother Ken Xie in 2000. He has dedicated his career to the network security industry, driving innovations in technology, products, and services at Fortinet for two decades. Before founding Fortinet, he worked as a Software Architect at NetScreen Technologies and a Software Designer at Milkyway Networks Corp. Michael Xie holds M.S. degrees in electrical & computer engineering from the University of Manitoba and automobile engineering from Tsinghua University.

John Whittle, Chief Operating Officer (COO)

John Whittle has more than 25 years of experience managing a wide range of operational matters for technology companies and has been an executive at Fortinet for over 18 years. In his current role, he oversees various global teams including mergers and acquisitions, strategic alliances, marketing, product security, information security, IT, manufacturing, corporate real estate, legal, and government affairs. Prior to Fortinet, John was vice president, general counsel for Corio, an enterprise cloud application company, where he managed the company's initial public offering and acquisition by IBM. He also served as an attorney at Wilson Sonsini Goodrich & Rosati.

The rapid adoption of Secure Access Service Edge (SASE) and Security Service Edge (SSE) architectures threatens Fortinet's traditional appliance-centric network security business model. Led by cloud-native security vendors, this architectural shift consolidates network and security functions into a unified, cloud-delivered service, potentially diminishing the relevance and market share of on-premise security appliances and siloed point solutions that have historically been Fortinet's core strength.

Fortinet's main products and services address a significant global market, with its total addressable market (TAM) projected to grow from $150 billion in 2024 to $208 billion by 2027.

The addressable markets for Fortinet's key product areas are as follows (all market sizes are global):

• Secure Networking: This market is expected to reach $86 billion by 2027. It represents Fortinet's largest addressable market.
• Unified SASE (Secure Access Service Edge): The market for Unified SASE is anticipated to grow to $36 billion by 2027.
• Security Operations (SecOps): The Security Operations market is projected to reach $78 billion by 2027.

Fortinet (FTNT) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Expansion of Unified SASE (Secure Access Service Edge) Solutions: Fortinet is heavily investing in and seeing significant growth from its Unified SASE offerings. This strategy emphasizes a single-vendor approach, integrating various security functionalities and leveraging its large SD-WAN customer base for upselling FortiSASE. The company reported strong Unified SASE billing growth and expects continued momentum in this area.

2. Growth in Security Operations (SecOps) Solutions: Security Operations is a rapidly expanding pillar for Fortinet, demonstrating impressive annual recurring revenue (ARR) and billings growth. The company is actively expanding its portfolio in AI-driven secure operations and plans to cross-sell these advanced solutions to its existing customer base, capitalizing on emerging security market opportunities.

3. Next-Generation Firewall (NGFW) Upgrade Cycle: Fortinet is benefiting from an ongoing refresh cycle for its Next-Generation Firewalls. A substantial number of firewall units are reaching their end-of-service dates by late 2026 and in 2027, creating a stable product revenue opportunity. This upgrade cycle also serves as a critical entry point for customers to adopt Fortinet's broader integrated security solutions.

4. Advancement of Cloud-based and AI-driven Security Services: Fortinet is committed to a cloud-first, AI-driven growth model, exemplified by the expansion of FortiCloud and the integration of AI capabilities across its Security Fabric (FortiAI). These innovations, which include enhanced threat protection and streamlined security operations, are crucial for driving recurring revenue streams and addressing the evolving demands of hybrid and distributed environments.

5. Increased Service Revenue and Subscription-based Offerings: A strategic focus for Fortinet is the shift towards higher-margin, recurring service revenue, particularly from its SaaS solutions and security subscriptions. The company has consistently reported strong service revenue growth, which is a key component of its overall revenue expansion and profitability strategy.