Fortinet, Inc.

Good day and thank you for standing by. Welcome to the Fortinet Third Quarter 2021 Earnings Announcement Conference 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, 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 first speaker for today, Mr. Peter Salkowski, Vice President of Investor Relations. Please go ahead, sir.

Thank you, Eli. 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 third quarter of 2021. Speakers on today's call are Ken Z, 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 providing a high-level perspective of our business. Keith will then follow with the financial and operating results for the third quarter before providing guidance for the fourth 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 today 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 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 will now turn the call over to Ken.

Thanks, Peter, and thank you to everyone for joining today's call to review our outstanding third quarter 2021 result. Building increased 42 percent to $1.64 billion, exceeding our $1 billion in quarterly building for the first time in Fortinet history. Global G2000 building growth accelerated to over 50 percent. Total revenue growth 33 percent to $867 million, with product revenue up 51 percent. our highest quarterly product revenue growth since going public in November 2009. With very strong business momentum, we remain focused on growth. According to Gartner, the network parameter is fragmented with many security teams and the tools operating in silos. And integration best-of-three solution only adds to the complexity. To address this challenge, Gartner is predicting that by 2024, Organizations that adopt a cybersecurity mesh architecture will reduce the financial impact of individual security incidents by an average of 90%. In a recent report, Gartner called out Fortinet Security Fabric as a platform that offers cybersecurity mesh architecture approach. Fortinet is helping customers solve the issue of complexity through our security-driven networking and security fabric platform approach. Fortinet's unrivaled FortiASIC offers 5 to 10 times more security computing power. This results in tightly integrated functionality with better performance, lower cost and power consumption compared with a general CPU. Our organically developed FortiFabric solution like email, web, and endpoint together with FortiFirewall offers much broader protection, more integration, and better automation than other competitive solutions. As organizations continue to consolidate towards a powerful approach and as network security expands to local and wide area networks, to the work from anywhere environment and to the cloud, Fortinet is strongly positioned to significantly capture market share of a projected total addressable market of more than $174 billion by 2025. We are confident that this trend, together with the relentless focus on organic innovation, will drive better than industry average long-term growth for Fortinet. Work from anywhere is here to stay. The COVID-19 pandemic has greatly expanded the work from anywhere model. According to Gartner, organizations are facing a hybrid future, with 75% of workers saying their expectation for working flexibility has increased Today, Fortinet announced the industry's most complete solution to enable organizations to secure and connect work from anywhere. By unifying Fortinet's broad portfolio of zero-trust, endpoint, and network security solutions within the Fortinet Secure Fabric, Fortinet delivers security that follows users whether on the road and home or in the office to provide enterprise-grade protection and productivity. In the 2021 Ghana Magic Quadrant for One Age Infrastructure just announced, Fortinet was once again named the leader, placed highest in the ability to execute, and ranked number one for remote worker in critical capability. Building on our leadership in IC1, Fortinet and Verizon recently announced the expansion of the Verizon Global offering with Fortinet Secure IC1. The solution is designed to provide enterprise and the business market customer with a converged networking and security solution in a box to secure and connect work from anywhere. We continue to see momentum and adoption of a secure SD-WAN, 5G-enabled SD branch, and a cloud-delivered SaaS solution among the world's largest service providers. These service providers, including AT&T, which is Telecom, Telefonica, and others, we plan to announce in the coming months. Before turning the call over to Keith, I would like to thank our employees, customers, and partners worldwide for their continued support and hard work. Keith.