Palo Alto Networks

  • Cybersecurity   firm Palo Alto Networks reported better-than-expected results  on greater demand for network security hardware and online security solutions.

  • Total   revenue for the fiscal third quarter slowed slightly, growing 29% year over   year to $1.4 billion. (Revenue was up 30% in the previous quarter). Product   grew 22% and total services grew by 32%. By geography, growth was balanced,   with the Americas growing 30%, EMEA up 28%, and JAPAC growing by 29%.

  • Non-GAAP   net income jumped 38.4% year over year to $193.1 million, or $1.79 per   diluted share.

  • Palo   Alto said that reduced economic activity was not yet being seen but that it   had experienced supply shortages, which it expects to persist for another   year. On inflationary pressures, the hardware-maker said higher component and   shipping costs narrowed the company’s adjusted gross margin in the quarter to   72.9%, down 170 basis points.

  • The   company said it has seen a marked increase in Russian cyberattacks since the   war in Eastern Europe began, with a resulting increase in interest from   corporations and government agencies across Europe for digital protection.

  • Chairman and CEO Nikesh Arora said the trend that started with the pandemic such as widespread cyberattacks, network transformation, cloud transformation, and fortifying one's infrastructure continue to be strong. The company raised its guidance for the full year and now expects adjusted earnings of $7.43 to $7.46 per share on $5.481 billion to $5.501 billion in revenue.

Palo Alto Networks