Fortinet, Inc.

Good day, and thank you for standing by. Welcome to the Fortinet Second Quarter 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 1-1 on your telephone. You will then hear an automated message advising you that your hand is raised. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your speaker today, Peter Solinsky. Please go ahead.

Thank you, Hope. 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 second quarter of 2022. Speakers on today's call are Ken Zee, Fortinet's Founders 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 operating results for the second quarter or providing guidance for the third quarter, updating the full year. We'll then open the call for questions. During the Q&A, we ask that you please limit yourself to one question and one follow-up question to allow for others to participate. Before we begin, I'd like to remind everyone that on today's call, we'll 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 and accompanying today's remarks, both of which are posted on the Investor Relations website. Ken and Keith's prepared remarks today for the earnings call will be posted on the quarterly earnings section of our Investor Relations website immediately following today's call. Lastly, all references are on a year-over-year basis unless noted otherwise. I'll now turn the call over to Ken.

Thanks, Peter. Thank you to everyone for joining today's call to review our outstanding second quarter 2022 result. Total building increased 36%, the sixth consecutive quarter of at least 35% year-over-year building growth. Revenue growth 29%, driven by 34% of product revenue growth. SD-WAN and OT bulking growth over 60% and 75%, which together accounted for 25% of a total second quarter bulking. Our better than expected performance demonstrate the strong demand for our cybersecurity innovation. Fortinet is at the forefront of networking and security convergence. enabling our customer to reduce complexity while securing and connecting hybrid and remote user to advance security with superior performance. Today, we announce the FortiGate 4800F, our latest innovation in converged network security. The 4800F is the world's fastest compact firewall for hyperscale data center and 5G network. Powered by a 400 MP7 SPU, the 4800F delivers security computing of an average 5 to 10 times better performance than competitive solutions across the six most common and important functions. A leader in the Garmin Magic Quadrant for one-edge infrastructure, Fortinet continues to take market share for Secure SD-WAN. Our integrated Secure SD-WAN solution, powered by Fortinet SPU SoC 4, deliver huge performance, security, and efficiency over traditional offerings. In addition to convergence, consolidation of vendor and product functionality is another major trend, particularly in network security. In a recent CISO survey, Gartner found the percentage of companies surveyed who want a fewer security provider increased to 75% from only 29% in 2020. With over 30 product lines built mostly by our in-house strong engineering and development innovation, Fortinet has benefited from this consolidation with our security fabric mesh offering. The Fortinet security mesh platform delivers unparalleled protection with a broad, integrated, and automated protection across multiple edges, from endpoint to data center and hybrid cloud environment. These two major trends, convergence and consolidation, position Fortinet well for long-term 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 that are contributing to Fortinet's strong growth.