.Fiscal initial quarter revenue developed 14% year over year to $2.1 billion.Next-Generation Protection ARR expanded 40% year over year to $4.5 billion.Remaining functionality responsibility expanded twenty% year over year to $12.6 billion.SANTA CLAM CLARA, Calif., Nov. twenty, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the worldwide cybersecurity forerunner, declared today financial results for its own budgetary first quarter 2025, finished Oct 31, 2024.Overall profits for the economic 1st fourth 2025 expanded 14% year over year to $2.1 billion, compared with overall income of $1.9 billion for the financial first fourth 2024. GAAP take-home pay for the fiscal first one-fourth 2025 was actually $350.7 million, or even $0.99 every watered down portion, compared to GAAP earnings of $194.2 million, or $0.56 every watered down portion, for the economic first quarter 2024.Non-GAAP earnings for the financial first one-fourth 2025 was $544.9 thousand, or $1.56 every watered down portion, compared with non-GAAP net income of $466.3 million, or even $1.38 every watered down portion, for the economic initial one-fourth 2024.
A reconciliation in between GAAP and also non-GAAP info is actually contained in the tables listed below.” Our Q1 results reinforced our principle in our separated platformization tactic,” claimed Nikesh Arora, leader and chief executive officer of Palo Alto Networks. “We view an increasing market understanding that platformization is actually the game changer that will certainly fix safety and also enable much better artificial intelligence end results. I anticipate this are going to be a multiyear style for which our team are most ideal installed to deliver to our customers.”.” Our platformization progress continued in Q1, steering solid monetary end results,” claimed Dipak Golechha, main monetary police officer of Palo Alto Networks.
“Because of this, we are actually elevating our NGS ARR, income and non-GAAP EPS guidance for the year.”.Assets SplitPalo Alto Networks declared that its own panel of directors has approved a two-for-one forward equity crack of the business’s outstanding reveals of ordinary shares. The stock crack is to be effected with a modification to the provider’s restated certificate of incorporation, which are going to additionally perform a proportionate rise in the number of authorized portions of ordinary shares from 1.0 billion to 2.0 billion. Each shareholder of record as of the shut of exchanging on December 12, 2024 (the “record time”), will definitely receive, after the shut of investing on December 13, 2024, one extra share for every share held on the file day.
Trading is actually anticipated to begin on a split-adjusted manner on December 16, 2024.Financial OutlookPalo Alto Networks delivers direction based upon existing market conditions and desires.For the budgetary 2nd fourth 2025, our team anticipate:.Next-Generation Surveillance ARR of $4.70 billion to $4.75 billion, standing for year-over-year growth of in between 35% and also 36%.Continuing to be performance obligation of $12.9 billion to $13.0 billion, working with year-over-year growth of between 20% and also 21%.Overall profits in the range of $2.22 billion to $2.25 billion, standing for year-over-year growth of between 12% and also 14%.Weakened non-GAAP net income every cooperate the stable of $1.54 to $1.56, making use of 350 million to 352 thousand reveals outstanding.For the 2025, our company anticipate:.Next-Generation Safety And Security ARR of $5.52 billion to $5.57 billion, representing year-over-year development of between 31% and 32%.Remaining efficiency obligation of $15.2 billion to $15.3 billion, working with year-over-year development of in between 19% as well as 20%.Overall profits in the variety of $9.12 billion to $9.17 billion, standing for year-over-year growth of 14%.Non-GAAP operating frame in the series of 27.5% to 28.0%.Diluted non-GAAP take-home pay per share in the range of $6.26 to $6.39, making use of 350 thousand to 354 thousand shares impressive.Adjusted totally free capital scope in the variety of 37% to 38%.Guidance for non-GAAP economic procedures leaves out share-based compensation-related costs, consisting of share-based pay-roll income tax expenditure, acquisition-related prices, featuring modification in decent value of dependent factor obligation, amortization expenditure of acquired abstract possessions, litigation-related costs, non-cash charges related to convertible details, as well as profit tax obligation and various other tax obligation corrections related to our long-lasting non-GAAP helpful tax obligation cost, alongside certain non-recurring costs as well as specific non-recurring cash flows. We have actually not reconciled non-GAAP operating scope assistance to GAAP operating frame, weakened non-GAAP net income every reveal advice to GAAP net income per diluted reveal or even readjusted free of cost cash flow frame advice to GAAP internet cash money from functioning tasks because our company perform certainly not supply guidance on GAAP operating scope, GAAP income or net cash from operating activities as well as would certainly not have the ability to provide the different reconciling cash and also non-cash items in between GAAP as well as non-GAAP economic measures because specific items that affect these measures are uncertain or away from our control, or even may not be reasonably forecasted, including share-based payment expense, without silly attempt. The actual amounts of such resolving items will definitely have a considerable effect on the firm’s GAAP net income every watered down portion and GAAP web money coming from running tasks.Profits Contact InformationPalo Alto Networks will definitely hold a video recording webcast for analysts and also clients to cover the company’s financial initial quarter 2025 leads along with the expectation for its own economic 2nd one-fourth as well as 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific time. Open up to the public, investors may access the webcast, additional economic info and earnings slides coming from the “Investors” part of the company’s website at investors.paloaltonetworks.com.
A replay will definitely be actually readily available three hours after the result of the webcast and archived for one year.Progressive StatementsThis press release includes forward-looking claims that include dangers, unpredictabilities, and also presumptions including declarations concerning our platformization approach and financial overview for the financial 2nd quarter 2025 and also 2025. There are actually a substantial amount of factors that might result in genuine end results to contrast materially coming from forward-looking claims produced or even suggested in this press release, including: advancements as well as changes typically market, political, economical, and also business conditions failure of our platformization product offerings breakdown to obtain the anticipated perks of our tactical alliances and accomplishments improvements in the reasonable market value of our dependent factor to consider obligation associated with achievements threats related to handling our growth dangers associated with brand new product, membership and also assistance offerings, featuring our item offerings that utilize AI switches in top priorities or hold-ups in the progression or even release of new product or subscription or even various other offerings, or even the failure to quick build as well as accomplish market approval of brand new products and memberships as well as existing products, registrations and also help offerings failure of our business techniques quickly evolving technological growths available for protection products, subscriptions as well as assistance offerings defects, errors, or even weakness in our products, registrations or help offerings our consumers’ investing in selections and also the span of sales cycles our competitors our potential to draw in as well as retain brand new consumers our ability to get and also incorporate various other companies, products, or even modern technologies in a successful method our personal debt monthly payment commitments as well as our allotment bought plan, which may certainly not be fully consummated or boost shareholder market value, and any reveal repurchases which can impact the price of our common stock.Additional threats and also uncertainties on these and various other variables that could impact our monetary outcomes as well as the positive statements our team produce in this press release are consisted of under the subtitles “Danger Aspects” and “Management’s Dialogue and also Review of Financial Health Condition and End Results of Workflow” as well as elsewhere in our Annual File on Type 10-K submitted with the USA Securities as well as Exchange Compensation (” SEC”) on September 6, 2024, which is accessible on our site at investors.paloaltonetworks.com and on the SEC’s site at www.sec.gov. Additional information will additionally be stated in other documentations that we submit with or even decorate to the SEC from time to time.
All forward-looking declarations in this particular news release are based upon our ideas and also information accessible to administration as of the time hereof, and our team do not assume any responsibility to improve the positive statements delivered to reflect celebrations that happen or conditions that exist after the time on which they were actually made.Non-GAAP Financial Measures as well as Various Other Secret MetricsPalo Alto Networks has delivered within this news release financial relevant information that has not been actually prepared based on usually approved bookkeeping guidelines in the United States (GAAP). The business uses these non-GAAP monetary actions and various other crucial metrics internally in assessing its financial outcomes and strongly believes that using these non-GAAP monetary steps and also essential metrics are actually valuable to financiers as an additional device to evaluate on-going operating end results as well as styles, as well as in reviewing the provider’s economic outcomes with various other providers in its field, a number of which present identical non-GAAP monetary procedures or essential metrics.The discussion of these non-GAAP economic procedures and key metrics are certainly not indicated to be looked at alone or as a substitute for comparable GAAP monetary solutions and need to read only along with the company’s combined economic statements prepped based on GAAP. A getting back together of the firm’s historical non-GAAP monetary steps to their most directly equivalent GAAP procedures has actually been actually provided in the economic claim tables included in this press release, and clients are actually urged to assess these getting backs together.Non-GAAP operating scope.
Palo Alto Networks describes non-GAAP operating frame as non-GAAP operating revenue divided through overall profits. The business specifies non-GAAP operating revenue as working profit plus share-based compensation-related charges, including share-based payroll income tax expenditure, acquisition-related prices, featuring change in reasonable value of dependent factor responsibility, amortization expense of obtained abstract resources, and also litigation-related fees. The company feels that non-GAAP operating scope delivers administration and entrepreneurs with better exposure right into the rooting performance of the provider’s core organization operating end results.Non-GAAP income as well as earnings every allotment, weakened.
Palo Alto Networks defines non-GAAP take-home pay as earnings plus share-based compensation-related charges, including share-based payroll income tax cost, acquisition-related costs, consisting of improvement in reasonable market value of dependent factor responsibility, amortization expense of acquired intangible properties, litigation-related fees, featuring lawful settlement deals, and non-cash charges associated with exchangeable notes. The company also omits coming from non-GAAP net income tax obligation corrections connected to our long-term non-GAAP successful tax obligation fee in order to provide a comprehensive picture of the provider’s reoccuring primary service operating end results. The company specifies non-GAAP income every allotment, weakened, as non-GAAP take-home pay divided due to the weighted-average watered down shares excellent, which includes the potentially dilutive impact of the business’s staff member equity incentive planning honors and the firm’s convertible senior details outstanding as well as associated warrants, after giving result to the anti-dilutive influence of the business’s details hedge arrangements, which minimizes the prospective economical dilution that typically will take place upon conversion of the provider’s exchangeable senior details.
Under GAAP, the anti-dilutive effect of the note bush is actually not mirrored in watered down allotments exceptional. The provider thinks about these non-GAAP financial measures to become useful metrics for monitoring as well as capitalists for the same factors that it makes use of non-GAAP operating margin.Next-Generation Protection ARR. Palo Alto Networks describes Next-Generation Protection ARR as the annualized designated profits of all energetic contracts as of the final time of the coverage duration for Prisma as well as Cerebral cortex offerings comprehensive of the VM-Series and also related solutions, and also specific cloud-delivered security solutions.
Starting the monetary first one-fourth 2025, Next-Generation Safety ARR features income attributable to QRadar program as a company agreements that our team recently obtained coming from International Service Machines Enterprise. The firm looks at Next-Generation Protection ARR to become a beneficial measurement for administration and real estate investors to analyze the efficiency of the provider due to the fact that Next-Generation Safety and security is where the firm has actually concentrated its own innovation as well as the provider expects its own general income to become overmuch driven by this Next-Generation Safety profile. Since Next-Generation Safety ARR carries out not have the impact of providing a numerical procedure that is different coming from any kind of equivalent GAAP measure, the business carries out not consider it a non-GAAP measure.Real estate investors are actually cautioned that there are actually a variety of constraints related to using non-GAAP economic measures as well as crucial metrics as logical tools.
A number of the modifications to the firm’s GAAP financial procedures reflect the exclusion of items that are repeating and also will certainly be demonstrated in the business’s financial end results for the near future, like share-based remuneration, which is an integral part of Palo Alto Networks staff members’ payment as well as effects their performance. In addition, these non-GAAP financial solutions are actually not based upon any type of standard approach prescribed by GAAP, and the parts that Palo Alto Networks leaves out in its calculation of non-GAAP monetary actions might differ from the components that its peer providers leave out when they report their non-GAAP results of procedures. Palo Alto Networks makes up for these limitations through supplying certain details regarding the GAAP totals excluded coming from these non-GAAP financial procedures.
Later on, the provider might likewise omit non-recurring expenditures and various other expenditures that do not show the business’s core service operating outcomes.Regarding Palo Alto NetworksPalo Alto Networks is actually the worldwide cybersecurity leader, committed to producing on a daily basis more secure than the one before with industry-leading, AI-powered services in network safety, cloud safety and security and also protection operations. Powered through Precision AI, our modern technologies provide precise danger discovery and quick response, decreasing false positives and also enhancing surveillance effectiveness. Our platformization approach includes unique protection solutions in to a consolidated, scalable system, improving management and delivering operational efficiencies with comprehensive defense.
From shielding network perimeters to securing cloud atmospheres and also guaranteeing swift incident response, Palo Alto Networks enables services to achieve Absolutely no Leave surveillance and with confidence take advantage of digital improvement in an ever-evolving threat garden. This steady devotion to protection and also development produces us the cybersecurity companion of option.At Palo Alto Networks, our company’re committed to combining the finest people in service of our objective, so we’re likewise pleased to become the cybersecurity work environment of option, recognized amongst Newsweek’s The majority of Adored Workplaces (2021-2024), with a rating of 100 on the Impairment Impartiality Index (2024, 2023, 2022), as well as HRC Ideal Places for LGBTQ+ Equal Rights (2022 ). For more details, see www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks company logo, and Precision artificial intelligence are actually hallmarks of Palo Alto Networks, Inc.
in the United States and also in territories throughout the world. All other hallmarks, trade names, or even service marks made use of or stated here come from their corresponding owners. Any type of unreleased services or attributes (as well as any type of solutions or functions certainly not typically available to clients) referenced in this or even various other news release or public claims are actually certainly not presently offered (or even are actually not however commonly readily available to consumers) and also might not be supplied when expected or even in all.
Clients that obtain Palo Alto Networks requests should make their investment selections based upon services as well as components presently generally accessible. Palo Alto Networks, Inc. Preparatory Compressed Consolidated Statements of Functions.( In thousands, other than every reveal information).( Unaudited).
Three Months Finished. Oct 31,. 2024.2023.Revenue:.
Product.$ 353.8.$ 341.1.Registration as well as assistance.1,785.0.1,537.0.Total profits.2,138.8.1,878.1.Cost of income:. Product.75.0.77.4.Membership and support.479.1.395.4.Complete expense of profits.554.1.472.8.Overall markup.1,584.7.1,405.3.Operating expenses:. R & d.480.4.409.5.Purchases as well as advertising.720.1.660.5.General and managerial.97.7.120.1.Overall business expenses.1,298.2.1,190.1.Operating income.286.5.215.2.Passion cost.( 1.2 ).( 2.9 ).Other revenue, net.83.3.70.3.Profit prior to profit taxes.368.6.282.6.Provision for income tax obligations.17.9.88.4.Earnings.$ 350.7.$ 194.2.
Earnings per share, general.$ 1.07.$ 0.63.Earnings every reveal, thinned down.$ 0.99.$ 0.56. Weighted-average portions utilized to figure out net income every allotment, standard.326.8.310.1.Weighted-average allotments used to figure out take-home pay per portion, watered down.354.5.349.8. Palo Alto Networks, Inc.
Getting back together of GAAP to Non-GAAP Financial Amounts.( In millions, apart from every portion quantities).( Unaudited). Three Months Ended. Oct 31,.
2024.2023. GAAP operating income.$ 286.5.$ 215.2.Share-based compensation-related costs.315.1.287.8.Acquisition-related prices( 1 ).15.1.–.Amortization expenditure of obtained unobservable possessions.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-GAAP operating profit.$ 616.2.$ 529.3.Non-GAAP operating scope.28.8 %.28.2 %. GAAP take-home pay.$ 350.7.$ 194.2.Share-based compensation-related charges.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amortization expense of gotten intangible possessions.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-cash charges related to convertible keep in minds( 3 ).0.5.1.0.Profit income tax as well as other tax obligation modifications( 4 ).( 136.0 ).( 43.0 ).Non-GAAP net income.$ 544.9.$ 466.3.
GAAP take-home pay per portion, weakened.$ 0.99.$ 0.56.Share-based compensation-related costs.0.92.0.86.Acquisition-related expenses( 1 ).0.04.0.00.Amount expense of obtained unobservable resources.0.11.0.07.Litigation-related costs( 2 ).( 0.12 ).0.01.Non-cash fees associated with modifiable details( 3 ).0.00.0.00.Profit tax and various other income tax modifications( 4 ).( 0.38 ).( 0.12 ).Non-GAAP income per portion, diluted.$ 1.56.$ 1.38. GAAP weighted-average reveals made use of to figure out income per reveal, watered down.354.5.349.8.Weighted-average anti-dilutive influence newsworthy hedge deals.( 5.9 ).( 11.6 ).Non-GAAP weighted-average allotments used to calculate take-home pay every portion, diluted.348.6.338.2. ( 1 ).Feature achievement deal prices, share-based settlement related to the money settlement deal of certain equity awards, improvement in fair market value of contingent factor to consider obligation, as well as expenses to terminate certain work, operating lease, and various other arrangements of the obtained companies.( 2 ).Consists of the amount of trademark licenses and also commitment not to take legal action against.
During the 3 months ended October 31, 2024, it additionally includes a release of earlier accrued lawful backup charge.( 3 ).Consists of non-cash rate of interest expenditure for amount of financial debt issue expenses associated with the business’s exchangeable senior details.( 4 ).Feature income tax obligation adjustments related to our long-term non-GAAP effective tax obligation fee. Palo Alto Networks, Inc. Preliminary Short Consolidated Equilibrium Linens.( In thousands).
October 31, 2024.July 31, 2024. ( unaudited). Properties.
Present possessions:. Money and cash money equivalents.$ 2,282.8.$ 1,535.2.Temporary assets.1,108.2.1,043.6.Accounts receivable, web.1,132.9.2,618.6.Temporary financing receivables, net.805.1.725.9.Short-term postponed agreement costs.367.6.369.0.Prepaid expenditures and various other current resources.546.1.557.4.Overall existing possessions.6,242.7.6,849.7.Residential property as well as devices, net.361.0.361.1.Functioning lease right-of-use properties.389.0.385.9.Long-lasting expenditures.4,119.7.4,173.2.Lasting finance receivables, web.1,092.2.1,182.1.Lasting put off agreement costs.531.9.562.0.A good reputation.4,050.8.3,350.1.Unobservable properties, web.809.6.374.9.Deferred income tax possessions.2,397.5.2,399.0.Various other possessions.380.2.352.9.Total assets.$ 20,374.6.$ 19,990.9.Obligations and shareholders’ equity. Existing liabilities:.
Accounts payable.$ 211.6.$ 116.3.Accumulated remuneration.354.5.554.7.Accumulated and other responsibilities.683.1.506.7.Prolonged revenue.5,507.7.5,541.1.Modifiable senior details, internet.645.8.963.9.Overall existing liabilities.7,402.7.7,682.7.Lasting delayed revenue.5,585.9.5,939.4.Prolonged tax obligation obligations.250.8.387.7.Long-term operating lease liabilities.379.6.380.5.Other lasting obligations.843.8.430.9.Overall responsibilities.14,462.8.14,821.2.Investors’ equity:. Preferred stock.–.–.Common stock and additional paid-in financing.4,214.9.3,821.1.Accumulated other extensive loss.( 4.0 ).( 1.6 ).Kept incomes.1,700.9.1,350.2.Complete shareholders’ equity.5,911.8.5,169.7.Complete responsibilities and investors’ equity.$ 20,374.6.$ 19,990.9. SOURCE Palo Alto Networks, Inc
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