Fortinet, Inc.

Good day and thank you for standing by. Welcome to the Fortinet Second Quarter 2021 Earnings 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 1 on your telephone keypad. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Peter Salkowski, Vice President of Investor Relations. Sir, please go ahead.

Thank you, Catherine. Good afternoon, everyone. This is Peter Salkowski, Vice President of Investor Relations at Fortinet. I am pleased to welcome everyone to our call to discuss Fortinet's financial results for the second quarter of 2021, which we are hosting from inside of our new building. 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 the Investor Relations website. Ken will begin our call by providing a high-level perspective on our business. Keith will then review our financial and operating results for the second quarter before providing guidance for the third quarter and updating the full year. We will 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 your opinions only as of the date of this presentation. 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 is located in our earnings press release and in the presentation that accompanies 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 will now turn the call over to Kenneth.

Thanks, Peter, and thank you to everyone for joining today's call to review our outstanding second quarter 2021 results. Buildings increased 35 percent to $961 million, driven by solid execution, and was the best it has been since 2015. Secure S demand accounted for 14 percent of second quarter buildings. Total revenue growth 30% to $801 million, with product revenue up 41%. Product revenue growth was the highest for nearly 10 years. Free cash flow was $395 million, a quarterly record level. With strong business momentum, we remain focused on growth. Today, we announced expansion of our 40 care and 40 guard security services, adding a new security service called 40 Trust, FortiTrust security services offer user-based licensing that follow the user across the organization's entire security platform. This enables organizations to easily manage and secure across all networks, endpoint, and cloud, which traditionally has been siloed. Initial service levels are being offered for Zero Trust network access and identity verification. We enhance the current FortiCare security services which cover all Fortinet security fabric product with three level of services to including 24 by 7 technical support and timely issue resolution. Additionally, FortiCon security service has been fine-tuned for different segment with added individual services for enterprise, bundles for commercial, and the packages for SMB. Leveraging industry-leading threat intelligence from FortiGuard Lab, FortiGuard Secure Service offers market-leading AI-enabled security capability that regularly adjusts protection across the Fortinet security fabric. Today, we announced a new FortiGuard 3500F, the industry's first high-performance next-generation firewall with integrated zero-trust network access and ransomware protection. powered by the 49MP7A6 SPU, the 3500F offers an average six times more performance than other competitive products based on our security computing. This makes the 3500F the best protection for high-speed internal network and data centers. We continue to see the momentum and adoption of SD-WAN Zero Trust Network Access, and cloud solutions among the world's largest service providers. In May, Fortinet was recognized as the winner of the Microsoft Security Customer Impact Award. Last week, Fortinet was named Google Cloud's 2020 Security Partner of the Year, recognized for innovative thinking, outstanding customer service, and best in class use of cloud products and services. Before turning the call over to Keith, I would like to thank our employee, customer, and partners worldwide for their continuous support and hard work.