.Fiscal first one-fourth revenue grew 14% year over year to $2.1 billion.Next-Generation Security ARR expanded 40% year over year to $4.5 billion.Staying performance responsibility grew twenty% year over year to $12.6 billion.SANTA CLARA, Calif., Nov. 20, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, revealed today financial end results for its monetary initial fourth 2025, ended October 31, 2024.Complete revenue for the economic very first quarter 2025 increased 14% year over year to $2.1 billion, compared to overall income of $1.9 billion for the economic 1st one-fourth 2024. GAAP net income for the budgetary 1st fourth 2025 was actually $350.7 million, or even $0.99 per watered down allotment, compared with GAAP net income of $194.2 million, or even $0.56 per watered down portion, for the monetary 1st fourth 2024.Non-GAAP earnings for the financial first fourth 2025 was $544.9 thousand, or even $1.56 every diluted allotment, compared with non-GAAP net income of $466.3 thousand, or even $1.38 every diluted reveal, for the economic initial quarter 2024.
A settlement between GAAP and non-GAAP info is included in the tables below.” Our Q1 results improved our principle in our separated platformization technique,” said Nikesh Arora, chairman as well as chief executive officer of Palo Alto Networks. “Our company observe an increasing market awareness that platformization is actually the activity changer that will certainly address surveillance and also permit much better AI end results. I anticipate this will definitely be actually a multiyear fad for which our experts are actually most effectively set up to supply to our customers.”.” Our platformization progress continued in Q1, driving powerful monetary outcomes,” claimed Dipak Golechha, chief financial officer of Palo Alto Networks.
“Because of this, our company are actually raising our NGS ARR, income and non-GAAP EPS advice for the year.”.Share SplitPalo Alto Networks announced that its panel of directors has actually authorized a two-for-one forward assets split of the company’s exceptional reveals of ordinary shares. The equity crack is to be effected with a change to the provider’s restated certificate of consolidation, which will likewise effect a proportional boost in the number of authorized shares of ordinary shares coming from 1.0 billion to 2.0 billion. Each shareholder of report since the close of trading on December 12, 2024 (the “document date”), will certainly acquire, after the close of investing on December 13, 2024, one additional reveal for every single share hung on the report day.
Trading is assumed to start on a split-adjusted basis on December 16, 2024.Financial OutlookPalo Alto Networks provides guidance based on current market circumstances and also requirements.For the budgetary 2nd one-fourth 2025, we assume:.Next-Generation Security ARR of $4.70 billion to $4.75 billion, working with year-over-year development of in between 35% and also 36%.Remaining functionality responsibility of $12.9 billion to $13.0 billion, exemplifying year-over-year development of in between 20% as well as 21%.Total revenue in the range of $2.22 billion to $2.25 billion, standing for year-over-year growth of between 12% and 14%.Weakened non-GAAP take-home pay per cooperate the range of $1.54 to $1.56, making use of 350 million to 352 thousand shares impressive.For the fiscal year 2025, we expect:.Next-Generation Surveillance ARR of $5.52 billion to $5.57 billion, embodying year-over-year growth of in between 31% as well as 32%.Continuing to be performance responsibility of $15.2 billion to $15.3 billion, embodying year-over-year growth of in between 19% and also twenty%.Overall income in the series of $9.12 billion to $9.17 billion, representing year-over-year growth of 14%.Non-GAAP operating frame in the series of 27.5% to 28.0%.Watered down non-GAAP income per share in the stable of $6.26 to $6.39, utilizing 350 thousand to 354 thousand shares outstanding.Readjusted totally free capital scope in the variety of 37% to 38%.Guidance for non-GAAP monetary steps omits share-based compensation-related charges, featuring share-based payroll tax obligation expense, acquisition-related prices, featuring change in decent worth of dependent factor responsibility, amortization expense of obtained unobservable possessions, litigation-related costs, non-cash fees connected to exchangeable notes, and earnings tax as well as other income tax corrections related to our lasting non-GAAP reliable tax obligation price, in addition to particular non-recurring expenses and also particular non-recurring capital. We have actually certainly not reconciled non-GAAP operating margin advice to GAAP operating frame, thinned down non-GAAP take-home pay per allotment support to GAAP take-home pay per diluted allotment or even readjusted cost-free cash flow scope direction to GAAP internet cash coming from functioning activities due to the fact that our experts perform not offer advice on GAAP operating scope, GAAP take-home pay or even internet cash from operating activities and also will not have the ability to present the several reconciling cash money and also non-cash things between GAAP and also non-GAAP monetary measures given that particular products that impact these solutions are uncertain or out of our management, or even may certainly not be actually fairly anticipated, including share-based settlement cost, without unreasonable attempt. The real volumes of such reconciling products will certainly have a notable effect on the business’s GAAP take-home pay every diluted portion and GAAP web money from working tasks.Incomes Get In Touch With InformationPalo Alto Networks will certainly throw a video webcast for experts and capitalists to go over the provider’s monetary 1st fourth 2025 results in addition to the overview for its own monetary 2nd fourth as well as fiscal year 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific time. Available to everyone, investors might access the webcast, additional monetary details and also incomes slides coming from the “Financiers” area of the provider’s web site at investors.paloaltonetworks.com.
A replay will definitely be actually accessible 3 hours after the conclusion of the webcast as well as archived for one year.Positive StatementsThis press release consists of positive statements that involve risks, unpredictabilities, and also expectations including statements concerning our platformization method as well as economic overview for the economic 2nd fourth 2025 and also fiscal year 2025. There are a significant amount of elements that might cause true end results to vary materially from progressive claims produced or implied in this particular news release, featuring: developments and also adjustments as a whole market, political, economical, and also service health conditions breakdown of our platformization product offerings breakdown to attain the expected benefits of our calculated alliances and acquisitions changes in the reasonable worth of our dependent point to consider responsibility linked with achievements risks linked with handling our growth dangers connected with brand-new product, subscription as well as assistance offerings, including our item offerings that make use of AI changes in priorities or even problems in the progression or even release of new product or registration or even other offerings, or even the failure to timely build as well as accomplish market recognition of new products and also memberships along with existing products, registrations as well as help offerings failing of our organization approaches swiftly evolving technical developments in the marketplace for safety items, registrations and also help offerings problems, inaccuracies, or weakness in our items, memberships or help offerings our clients’ investing in choices and also the size of purchases cycles our competition our potential to draw in as well as maintain new clients our ability to get as well as integrate various other providers, products, or modern technologies in a successful fashion our personal debt settlement responsibilities and our portion repurchase program, which may certainly not be actually entirely consummated or even enrich shareholder worth, as well as any allotment repurchases which could affect the price of our ordinary shares.Added dangers and also anxieties on these as well as other factors that can influence our economic results and also the forward-looking statements we produce in this particular news release are featured under the captions “Risk Variables” as well as “Management’s Discussion and also Study of Financial Ailment as well as Outcomes of Procedures” as well as elsewhere in our Annual Document on Kind 10-K submitted along with the united state Stocks and also Substitution Percentage (” SEC”) on September 6, 2024, which is on call on our website at investors.paloaltonetworks.com and on the SEC’s website at www.sec.gov. Additional info is going to additionally be actually set forth in other files that we file along with or decorate to the SEC once in a while.
All progressive statements in this press release are actually based on our beliefs as well as relevant information on call to administration since the date hereof, and also our company do not presume any type of obligation to update the forward-looking claims offered to demonstrate celebrations that happen or even instances that exist after the day on which they were produced.Non-GAAP Financial Solutions as well as Various Other Trick MetricsPalo Alto Networks has provided in this particular news release monetary information that has actually not been actually prepped based on generally allowed accounting concepts in the United States (GAAP). The business uses these non-GAAP monetary actions and various other crucial metrics internally in examining its own monetary results and also strongly believes that making use of these non-GAAP monetary measures and also essential metrics are actually valuable to financiers as an extra device to assess continuous operating results and also styles, and also in reviewing the firm’s monetary outcomes with various other firms in its own market, a number of which present comparable non-GAAP financial actions or key metrics.The discussion of these non-GAAP economic steps and vital metrics are actually not indicated to become looked at in isolation or even as a substitute for similar GAAP financial steps and ought to know simply along with the company’s consolidated financial declarations prepared in accordance with GAAP. A settlement of the company’s historic non-GAAP economic procedures to their very most straight comparable GAAP measures has been given in the monetary claim dining tables consisted of in this news release, and also financiers are encouraged to examine these getting backs together.Non-GAAP operating scope.
Palo Alto Networks describes non-GAAP operating scope as non-GAAP operating earnings split by complete income. The firm specifies non-GAAP operating revenue as operating revenue plus share-based compensation-related fees, featuring share-based payroll tax expense, acquisition-related prices, featuring modification in reasonable value of dependent factor to consider liability, amount expense of obtained abstract possessions, and litigation-related charges. The firm thinks that non-GAAP operating scope offers management as well as clients with better presence in to the underlying performance of the firm’s core service operating results.Non-GAAP income and income every share, weakened.
Palo Alto Networks specifies non-GAAP take-home pay as take-home pay plus share-based compensation-related charges, featuring share-based pay-roll tax obligation cost, acquisition-related prices, featuring adjustment in decent market value of dependent factor responsibility, amortization expenditure of obtained abstract assets, litigation-related costs, including lawful negotiations, as well as non-cash charges related to exchangeable notes. The company likewise excludes from non-GAAP income tax adjustments related to our long-lasting non-GAAP efficient income tax cost if you want to give a total photo of the company’s repeating primary organization operating outcomes. The provider determines non-GAAP earnings per share, diluted, as non-GAAP take-home pay split by the weighted-average diluted shares excellent, which includes the possibly dilutive result of the firm’s employee equity motivation strategy awards and the company’s modifiable senior keep in minds excellent and related warrants, after offering effect to the anti-dilutive effect of the company’s note hedge deals, which decreases the potential economical dilution that typically would happen upon sale of the provider’s convertible elderly notes.
Under GAAP, the anti-dilutive influence of the note bush is not reflected in diluted shares impressive. The firm looks at these non-GAAP economic measures to become useful metrics for administration and also capitalists for the very same explanations that it makes use of non-GAAP operating scope.Next-Generation Safety And Security ARR. Palo Alto Networks determines Next-Generation Security ARR as the annualized allocated revenue of all energetic agreements since the ultimate time of the coverage duration for Prisma and also Pallium offerings broad of the VM-Series and similar solutions, as well as certain cloud-delivered security solutions.
Beginning the economic first one-fourth 2025, Next-Generation Surveillance ARR features earnings attributable to QRadar software as a service contracts that we lately acquired from International Organization Machines Enterprise. The business thinks about Next-Generation Safety and security ARR to become a valuable measurement for administration as well as investors to assess the performance of the business given that Next-Generation Safety is where the company has concentrated its advancement and the firm expects its own overall income to become overmuch steered through this Next-Generation Safety and security portfolio. Due To The Fact That Next-Generation Protection ARR does not possess the impact of offering a mathematical procedure that is various from any similar GAAP solution, the company performs rule out it a non-GAAP measure.Entrepreneurs are forewarned that there are a variety of limits associated with the use of non-GAAP financial actions and crucial metrics as analytical resources.
Many of the changes to the company’s GAAP financial solutions reflect the exemption of things that are reoccuring and also are going to be actually shown in the business’s financial results for the foreseeable future, like share-based payment, which is a vital part of Palo Alto Networks employees’ compensation as well as impacts their performance. Additionally, these non-GAAP economic actions are not based on any standard process recommended through GAAP, as well as the elements that Palo Alto Networks excludes in its estimate of non-GAAP economic steps may contrast from the elements that its own peer business omit when they disclose their non-GAAP outcomes of operations. Palo Alto Networks compensates for these limits through supplying certain details pertaining to the GAAP totals omitted coming from these non-GAAP financial steps.
In the future, the business may likewise exclude non-recurring costs and also various other expenditures that do not mirror the provider’s primary company operating outcomes.About Palo Alto NetworksPalo Alto Networks is the global cybersecurity forerunner, dedicated to helping make each day much safer than the one prior to with industry-leading, AI-powered options in system security, cloud safety and surveillance functions. Powered through Precision artificial intelligence, our technologies supply specific danger diagnosis as well as swift response, reducing misleading positives and improving surveillance effectiveness. Our platformization approach integrates diverse security remedies into a consolidated, scalable platform, improving control and also delivering functional efficiencies along with comprehensive security.
Coming from protecting network perimeters to safeguarding cloud settings and making sure quick occurrence feedback, Palo Alto Networks inspires services to attain Absolutely no Depend on protection and also with certainty welcome digital makeover in an ever-evolving hazard yard. This steadfast commitment to protection as well as technology produces our company the cybersecurity companion of choice.At Palo Alto Networks, our company’re devoted to bringing together the finest folks operational of our objective, so we are actually likewise glad to be the cybersecurity office of selection, identified among Newsweek’s Many Really loved Place of work (2021-2024), with a credit rating of one hundred on the Disability Equal Rights Index (2024, 2023, 2022), and also HRC Absolute Best Places for LGBTQ+ Equal Rights (2022 ). For more details, check out www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks logo design, as well as Accuracy AI are hallmarks of Palo Alto Networks, Inc.
in the USA as well as in legal systems throughout the globe. All various other trademarks, brand, or service marks used or pointed out here come from their respective proprietors. Any sort of unreleased solutions or even features (as well as any type of services or even attributes certainly not generally on call to consumers) referenced in this or various other news release or even public claims are actually certainly not currently readily available (or even are actually certainly not yet typically available to clients) and also may certainly not be provided when anticipated or even in all.
Customers that acquire Palo Alto Networks uses need to produce their investment decisions based on solutions and attributes currently generally available. Palo Alto Networks, Inc. Initial Concise Consolidated Statements of Operations.( In thousands, except per allotment records).( Unaudited).
Three Months Ended. Oct 31,. 2024.2023.Earnings:.
Product.$ 353.8.$ 341.1.Subscription as well as assistance.1,785.0.1,537.0.Total income.2,138.8.1,878.1.Price of profits:. Product.75.0.77.4.Registration and also support.479.1.395.4.Overall price of profits.554.1.472.8.Overall gross profit.1,584.7.1,405.3.Operating budget:. Research and development.480.4.409.5.Purchases as well as advertising and marketing.720.1.660.5.General as well as management.97.7.120.1.Total business expenses.1,298.2.1,190.1.Working income.286.5.215.2.Rate of interest expenditure.( 1.2 ).( 2.9 ).Various other income, internet.83.3.70.3.Revenue before revenue taxes.368.6.282.6.Stipulation for revenue taxes.17.9.88.4.Earnings.$ 350.7.$ 194.2.
Net income per allotment, standard.$ 1.07.$ 0.63.Income per share, weakened.$ 0.99.$ 0.56. Weighted-average portions used to compute income every share, basic.326.8.310.1.Weighted-average shares utilized to compute take-home pay every share, thinned down.354.5.349.8. Palo Alto Networks, Inc.
Settlement of GAAP to Non-GAAP Financial Amounts.( In thousands, except every allotment quantities).( Unaudited). 3 Months Finished. October 31,.
2024.2023. GAAP operating profit.$ 286.5.$ 215.2.Share-based compensation-related charges.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amortization expense of gotten intangible resources.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-GAAP operating earnings.$ 616.2.$ 529.3.Non-GAAP operating scope.28.8 %.28.2 %. GAAP net income.$ 350.7.$ 194.2.Share-based compensation-related fees.315.1.287.8.Acquisition-related prices( 1 ).15.1.–.Amount expense of gotten abstract properties.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-cash costs related to convertible keep in minds( 3 ).0.5.1.0.Revenue tax as well as other tax modifications( 4 ).( 136.0 ).( 43.0 ).Non-GAAP take-home pay.$ 544.9.$ 466.3.
GAAP income every portion, thinned down.$ 0.99.$ 0.56.Share-based compensation-related fees.0.92.0.86.Acquisition-related prices( 1 ).0.04.0.00.Amount expenditure of obtained unobservable possessions.0.11.0.07.Litigation-related charges( 2 ).( 0.12 ).0.01.Non-cash fees related to convertible notes( 3 ).0.00.0.00.Earnings tax and other income tax corrections( 4 ).( 0.38 ).( 0.12 ).Non-GAAP income every allotment, thinned down.$ 1.56.$ 1.38. GAAP weighted-average portions utilized to calculate income per reveal, weakened.354.5.349.8.Weighted-average anti-dilutive effect of note hedge contracts.( 5.9 ).( 11.6 ).Non-GAAP weighted-average portions made use of to compute income per portion, watered down.348.6.338.2. ( 1 ).Consists of accomplishment transaction expenses, share-based compensation pertaining to the cash settlement deal of specific equity honors, adjustment in reasonable value of dependent consideration liability, as well as prices to cancel certain employment, working lease, as well as various other arrangements of the obtained business.( 2 ).Consists of the amount of trademark licenses and covenant certainly not to take legal action against.
Throughout the 3 months ended October 31, 2024, it also consists of a launch of previously accumulated lawful backup fee.( 3 ).Feature non-cash rate of interest cost for amortization of financial obligation publication costs related to the provider’s exchangeable elderly notes.( 4 ).Include earnings tax changes connected to our long-lasting non-GAAP effective tax fee. Palo Alto Networks, Inc. Initial Short Consolidated Balance Linens.( In millions).
October 31, 2024.July 31, 2024. ( unaudited). Possessions.
Present resources:. Cash money as well as cash equivalents.$ 2,282.8.$ 1,535.2.Short-term assets.1,108.2.1,043.6.Accounts receivable, net.1,132.9.2,618.6.Short-term financing receivables, web.805.1.725.9.Short-term deferred arrangement expenses.367.6.369.0.Prepaid expenses as well as other existing properties.546.1.557.4.Total existing assets.6,242.7.6,849.7.Property as well as tools, internet.361.0.361.1.Operating lease right-of-use properties.389.0.385.9.Lasting financial investments.4,119.7.4,173.2.Lasting loan receivables, web.1,092.2.1,182.1.Long-lasting deferred deal prices.531.9.562.0.A good reputation.4,050.8.3,350.1.Abstract possessions, net.809.6.374.9.Deferred income tax assets.2,397.5.2,399.0.Various other assets.380.2.352.9.Complete possessions.$ 20,374.6.$ 19,990.9.Liabilities as well as shareholders’ equity. Current obligations:.
Accounts owed.$ 211.6.$ 116.3.Accrued settlement.354.5.554.7.Accumulated and various other obligations.683.1.506.7.Deferred earnings.5,507.7.5,541.1.Exchangeable elderly details, net.645.8.963.9.Total current liabilities.7,402.7.7,682.7.Long-term delayed revenue.5,585.9.5,939.4.Deferred tax obligation liabilities.250.8.387.7.Long-term operating lease responsibilities.379.6.380.5.Other long-lasting liabilities.843.8.430.9.Overall responsibilities.14,462.8.14,821.2.Stockholders’ equity:. Participating preferred stock.–.–.Common stock and also additional paid-in funding.4,214.9.3,821.1.Collected various other extensive loss.( 4.0 ).( 1.6 ).Retained profits.1,700.9.1,350.2.Overall stockholders’ equity.5,911.8.5,169.7.Total liabilities and investors’ equity.$ 20,374.6.$ 19,990.9. SOURCE Palo Alto Networks, Inc
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