Fortinet, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Fortune at Q1 2021 earnings announcement call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star then 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then 0. I would now like to hand the conference over to your speaker for today. Peter Salkowski, Vice President, Investor Relations. You may begin, sir.

Thank you, Tawanda. Good afternoon, everyone. This is Peter Salkowski, Vice President, Investor Relations at Fortinet. I am pleased to welcome everyone to our call to discuss Fortinet's financial results for the first quarter of 2021. Speakers on today's call are Ken Zee, Fortinet's founder, chairman, and CEO, and Keith Jensen, our Chief Financial Officer. This is a live call that 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. Keith will then review our financial and operating results for the first quarter before providing guidance for the second quarter and updating the full year. We'll then open the call for questions. During the Q&A session, we ask that you please keep your questions brief and limit yourself to one question to allow others to participate. Before we begin, I'd like to remind everyone that on today's call, we will be making forward-looking statements, and these forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Please refer to our SEC filings, in particular the risk factors in 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, all references to financial metrics that we make on today's call are non-GAAP unless stated otherwise. Our GAAP results and GAAP to non-GAAP reconciliations are located in the earnings press release and in the presentation that accompanied today's remarks both of which are posted on the investor relations website. Lastly, all references to growth are on a year-over-year basis unless noted otherwise. I'll now turn the call over to Ken.

Thank you, Peter, and thank you to everyone for joining today's call to review our first quarter 2021 result. We are very pleased with our strong first quarter performance. Building increased 27 percent to $851 million, driven by solid execution across a broad and integrated product and services. Secure SD-WAN contribute 14% to first quarter building. Total revenue growth 23% to $710 million, with product revenue growth of 25%, the highest quarterly product revenue growth in the last five years. With strong business momentum and good visibility, we remain focused on growth. In the first quarter, we released 40 OSM.0, which offered the industry's first OS level with tight integration of a broad security and network functions, including SASE, SD-WAN, Zero Trust Network Access, CASB, and 5G capability. Today, we are now the 40-Gate 7121F, the world's farthest next-generation firewall and the only firewall with hyperscale 400-Gate interface. The 7121F enables 5G mobile network operators to secure multiple edges within their infrastructure and enable MSPs to build up scalable security offerings. Powered by a new MP7 security process unit, the 7121X delivers security computing of 2X to 19X greater than competitive solutions. We continue to see momentum and adoption of our SD-WAN, CIC, and Zero Trust Network Access solution among the world's largest service providers. Today, we announced British Telecom, a new managed secure SD-WAN service powered by Fortinet. In March, Fortinet and AT&T announced the availability of a new managed safety solution for enterprise customers. Increasingly, organizations are consolidating towards a holistic platform approach, delivering integrated and automated security that cover on-premise network, endpoint, and cloud secure edge. The 49 Security Fabric is a cybersecurity platform organically built on a broad and a good set of networking and security technology designed to seamlessly operate together. The high profile of security incidents that occurred over the past few months, along with the pandemic, has elevated the need for a broad platform that can secure and enterprise our entire infrastructure across multiple edges in a zero-trust environment. We expect companies to increase the percentage of IT spending used for security in an effort to address their cybersecurity needs. Our security-driven networking approach is a key growth driver. Additionally, we expect that our significant organic product growth will lead Before turning the call over to Keith, I would like to thank our employees, customers, partners worldwide for their continued support and hard work.