Fortinet, Inc.

After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising you your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised today's conference is being recorded. I would now like to hand my conference over to your speaker today, Aaron Ovadeva, Senior Director of Investor Relations. Please go ahead.

Thank you and good afternoon, everyone. This is Aaron Ovadia, Senior Director of Investor Relations at Fortinet. I am pleased to welcome everyone to our call to discuss Fortinet's financial results for the fourth quarter and full year of 2024. Joining me on today's call are Ken Zee, Fortinet's founder, chairman, and CEO, Keith Jensen, our CFO, John Whittle, our COO, and Christiana Olgaard, our CAO and sales operations leader. 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 fourth quarter and full year of 2024 before providing guidance in the first quarter and full year of 2025. He will then open the call for questions. During the Q&A session, we ask that you please limit yourself to one question and one follow-up 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 our 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 our earnings press release and in the presentation that accompanied today's remarks, both of which are posted on our investor relations website. The prepared remarks for today's earnings call will be posted on the quarterly earnings section of our investor relations website following today's call. Lastly, all references to growth are on a year-over-year basis unless noted otherwise. I will now turn the call over to Ken.

Thank you, Aaron, and thank you to everyone for joining the call. We are pleased with our strong performance in the fourth quarter, successfully balancing growth and profitability, including record operation margin of 39%, total revenue growth of 17%, including product revenue growth of 18%, our highest growth rate in six quarters, as we further strengthen our market leadership in secure networking. A strong growth in unified SASE and secure operation with security service age building growth of 85%, which drove our unified SASE building growth of 13%, accounting for 23% of our business. The strong unified SASE growth highlights the value that our customers see in our single vendor SASE strategy. We are the only vendor to organically develop the key SASE functionality into a single operating system for TOS. which integrate market-leading next-gen firewalls, SD-WAN, ZDNA, Secure Web Gateway, CASB, DLP, and other innovations, seamlessly unifying networking and security, delivering enhanced user experience, and securing access to applications across on-premises and cloud environments. Using firewalls, an SD-WAN customer can deploy FortiSASI in the cloud or on-premises within minutes. We also enable sovereign SASE for service providers and a large enterprise to host 40 SASE within their own data center, enabling typing control of their data and grid connectivity, while leveraging our 40AC technology to accelerate SASE function for superior performance. Additionally, Fortinet's AI power security, unified management, and single agent approach provide consistent protection across all location and devices, ensuring full control, visibility, and simplified deployment, while also offering industry's simplest licensing and 3x or 5x data performance per user. AI-driven secure operations accounted for 11% of total billing, while ARR grew 32%. We recently enhanced our secure app portfolio by acquiring PerceptionPoint, a leader in advanced email and collaboration security. These acquisitions strengthen our end-to-end cybersecurity by extending protection beyond email to the entire modern workspace, addressing the growing advanced threat risk in today's elevated threat environment. In secure networking, we continue to lead industry with a convergence and consolidation strategy, a vision we have been driven for 25 years. Industry forecasts predict that secure networking will surpass traditional networking by 2026. As the number one secure networking vendor, Fortinet has secured over half of all global firewalls and lead the convergence trend. Also as shown on slide four, Fortinet continues to be the only vendor to leverage a single operation system, FortiOS, across five secure networks in Ghana Magic Quadrant. Customers increasingly recognize that our FortiOS and FortiASIC technology deliver a 5x to 10x better performance than competitors by enhancing security effectiveness and reducing total cost of ownership. This is especially evident in the operation technology where OT cells approached 1 billion in 2024. Today, we introduce the 40-gauge, 30-gauge, 50-gauge, and 70-gauge next-generation firewall and a unified chassis solution designed for SMB and its distributed enterprise with cutting-edge performance and enhanced security delivering up to 5x to 10x faster support and a better threat protection than industry average, and supporting a wide range of security network interface for remote access. In addition, we recently acquired a remining share of Linksys, a leading provider of connectivity solution to expand our enterprise-grade security to employees working remotely, home business, and consumers. Lastly, I'm very proud to share that Fortinet was recently recognized on Forbes' Most Trust Company in America list, ranked number seven overall and the only cybersecurity company in the top 50 list, highlighting our transparency and commitment to our customer as the most trust cybersecurity company. I would like to thank our employees, customers, partners, and suppliers worldwide for their continued support and hard work. And we're now trying to call over to Keith.