Fortinet, Inc. stock research
FY2024 Q1
Fortinet (FTNT) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was essentially unchanged compared with the immediately preceding quarter but increased relative to the same quarter one year earlier. Gross profit and gross margin both weakened slightly from the prior quarter, while the year-ago comparison shows improvement in both gross profit and gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was essentially unchanged compared with the immediately preceding quarter but increased relative to the same quarter one year earlier. Gross profit and gross margin both weakened slightly from the prior quarter, while the year-ago comparison shows improvement in both gross profit and gross margin.
- Cost of revenue decreased both sequentially and year-over-year, which supported gross profit despite flat sequential revenue. The gross margin remained high, with a small sequential decline that was more than offset by a year-over-year gain.
- Compared with the prior quarter, revenue was stable while gross profit and gross margin were slightly lower. Compared with the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.5%
Gross profit
$1.0B
Revenue
$1.4B
Cost of revenue
$304.7M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+1.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2023 | $1.3B | $997.0M | $295.8M | 77.1% |
| Sep 30, 2023 | $1.3B | $1.0B | $317.7M | 76.2% |
| Dec 31, 2023 | $1.4B | $1.1B | $315.9M | 77.7% |
| Mar 31, 2024 | $1.4B | $1.0B | $304.7M | 77.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.2 pts
Year-over-year change
Mar 31, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue decreased both sequentially and year-over-year, which supported gross profit despite flat sequential revenue. The gross margin remained high, with a small sequential decline that was more than offset by a year-over-year gain.
Compared with the prior quarter, revenue was stable while gross profit and gross margin were slightly lower. Compared with the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor whether cost of revenue can continue to decline or stabilize, as it was the primary factor supporting gross margin in the current quarter.