Fortinet, Inc.

Hello, thank you for standing by and welcome to Fortinet fourth quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star one on your telephone. 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, Please go ahead.

Thank you, Josh. Good afternoon, everyone. This is Peter Salkowski, Vice President of Investor Relations at Fortinet. I'm pleased to welcome everyone to our call to discuss Fortinet's financial results for the fourth quarter and full year of 2021. Speakers on today's call are Ken Vee, Fortinet's founder, chairman, and CEO, and Keith Jensen, our Chief Financial Officer. This is a live call, and that will be available via replay via our website 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 third quarter before providing guidance for the first quarter and full year of next year. We'll then open the call for questions. During the Q&A, 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 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 and must be stated otherwise. Our GAAP results and GAAP to non-GAAP reconciliations is located in an 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'll now turn the call over to Ken.

Thanks, Peter, and thank you for everyone for joining this call to review our outstanding fourth quarter and four-year 2021 results. For the fourth quarter, bookings increased 49 percent to $1,428,000,000. Billions increased 36 percent to $1,306,000,000. Global G2000 buildings growth accelerated to over 90 percent. Secure S1 buildings was up 67 percent, accounting for 16 percent of total buildings. Total revenue growth, 29 percent to $964,000,000, with product revenue up 31 percent. Our team navigated well through a challenging supply chain environment to deliver outstanding results. For the full year, revenue was $3.3 billion, and the GAAP operation margin was 20 percent. We generated a record of $1.2 billion of free cash flow, and we recorded our 13th consecutive year of GAAP profitability. Three growth drivers convergence of security and networking, vendor consolidation with our security fabric mesh platform, and an elevated threat environment are driving our strong financial results and market share gains. The move to work from anywhere has rapidly expanded the attack surface, which traditional network security firms have to protect. Fortinet's security-driven networking approach converges networking and security, including next-generation firewall, SD-WAN, 5G, ZTNA, and OT to reduce complexity by securing and connecting remote user to advance security and performance and networking speed. Enterprise organizations are increasingly consolidating to a cybersecurity match approach. Fortinet's security fabric platform delivers unparalleled protection through its cybersecurity mesh architecture that provides broad, integrated, and automated protection across multiple edges, from endpoint to data center and hybrid cloud environment. Today, we announce the FortiGate 3000F, the latest FortiGate next-generation firewall powered by Fortinet ASIC MP7 SPU to deliver scalable, high-performance convergence of networking and security for zero-trust edge and core network. The Fortinet 3000i secure computing routine offers an average 5x better performance than competitive offerings. Fortinet recently stood out among 19 network firewall vendors in Ghana's critical capability for network firewall. Evaluated for their performance across non-critical capability, FortiGate solution received overall high score in the enterprise data center, distributed enterprise edge, and SMB use case, and a second high score in public cloud use case. Our FortiGate product is the only leader in both Gartner Magic Quadrant for network firewall and SD-WAN. Over the last several years, Fortinet's industry-leading innovation has transformed our company into one of the most influential and fastest-growing cybersecurity leaders. This, in addition to our growth drivers, strongly positions us to capture market share and move to the next level of growth. Before turning the call over to Keith, I would like to thank our employees, customers, partners, and suppliers worldwide for their continued support and hard work I would especially like to thank our operation team for doing a great job supporting Fortinet's fast growth. Keith.