(Reuters) - Fortinet reported fourth-quarter profit above analysts' estimates on Tuesday, as enterprises spent more to safeguard their digitized operations against the rising risk of attacks, sending the cybersecurity company's shares up 10.4% in extended trading.
A rapid increase in data theft and hacking incidents in recent years has left government entities to major conglomerates scrambling to shovel funds into cybersecurity solutions to strengthen their digital presence.
Fortinet, although a smaller peer amongst bigger names such as Palo Alto, boasts of a diversified portfolio of solutions that has helped it attract a sizeable customer base.
The company reported adjusted earnings of 51 cents per share, compared with LSEG estimates of 43 cents.
The quarter benefited from muted seasonal budget flush and deferred revenues from some deals closing in the fourth quarter.
The company closed about 6 deals, each of which were over $10 million, said CFO Keith Jensen on an investor call.
The Sunnyvale, California-based company expects to generate revenue in the range of $1.30 billion to $1.36 billion for the first quarter of 2024, while analysts on average expected $1.37 billion, according to LSEG data.
Fortinet reported fourth-quarter revenue of $1.42 billion, above analysts' average estimate of $1.41 billion.
(Reporting by Yamini Kalia in Bengaluru; Editing by Shinjini Ganguli)