Fortinet, Inc. (NASDAQ:FTNT) Q1 2024 Earnings Call Transcript

Page 3 of 3

Ken Xie: Yes. Could agree, there’s a lot of interest in AI — we started our time more fully AI to different products, which are helping customers more efficiently manage their operation there. And that’s also what drive additional service, additional product out there. I’d say it’s still more in the early ramp-up stage, and — but the interest is we very high end, we do see some benefit already — but how soon will be materializing.

Keith Jensen: Yeah, I think it’s some more tactical responses to you. In general, we’re charging for it separately. It’s on the price list. It’s additive to it and you’re going to really push my technical knowledge, maybe somebody here can eat me out. But I think there’s an LLM the customer has to go out and buy on their own in some cases to enable it. And then I would offer a really shameless plug. I really tell you, you should go look at our website and see the demo that was done at Accelerate with FortiAI, it was fantastic.

Joseph Gallo: Yes. We saw it live. Just a quick follow-up on really, really appreciate the time to register or days to register metrics really interesting. Was there any seasonality in that metric historically before after firewall cycle? Just trying to better understand if we should expect to find a floor at 2019 levels or if there’s a potential another leg down? Thanks.

Ken Xie: I think probably if I look back to 2030 years when there’s a big attack in the space, then they drive some kind of a new function, then there’s some rush by something maybe impact some of them. Otherwise, it’s pretty normal, I don’t know, seven, eight whatever a customer to register. And then the last two, three years, the supply chain really changing sometimes certain channel partners on the distributor may try to have a little bit more inventory and some kind of customer because it takes some time to deploy, they also try to order some actual inventory. But that’s pretty much normal now. If you play the order, you pretty much can better deliver right away. No longer has to lead time anymore. So that’s where we see is the digestion pretty much go over, and it’s pretty back to normal in the current environment now.

Keith Jensen: And I think the charts actually goes all the way back to 2019. And you can see it by quarter there. Nothing jumps out of me in terms of seasonality by quarter that we really have that I would call out to it.

Joseph Gallo: Okay.

Operator: This now concludes the question-and-answer session. I would now like to turn it back to Peter Salkowski for closing remarks.

Peter Salkowski: Thank you, Breana. I’d like to thank everyone for joining today’s call. Fortinet will be attending investor conferences hosted by JPMorgan and Bank of America during the second quarter. Fireside chat — website link — webcast link will be posted on the Events and Presentations section of our Fortinet’s Investor Relations website. If you have any follow-up questions, please feel free to contact me. Have a great rest of your day. Thank you very much.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

Follow Fortinet Inc. (NASDAQ:FTNT)

Page 3 of 3