.Fiscal first one-fourth revenue grew 14% year over year to $2.1 billion.Next-Generation Protection ARR increased 40% year over year to $4.5 billion.Staying efficiency obligation increased twenty% year over year to $12.6 billion.SANTA CLARA, Calif., Nov. 20, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the international cybersecurity leader, declared today monetary results for its monetary initial quarter 2025, finished Oct 31, 2024.Overall profits for the fiscal very first quarter 2025 grew 14% year over year to $2.1 billion, compared to complete profits of $1.9 billion for the monetary very first fourth 2024. GAAP take-home pay for the budgetary very first fourth 2025 was $350.7 thousand, or $0.99 per diluted share, compared to GAAP net income of $194.2 million, or $0.56 every watered down share, for the financial very first fourth 2024.Non-GAAP income for the fiscal very first one-fourth 2025 was $544.9 thousand, or even $1.56 every watered down allotment, compared to non-GAAP earnings of $466.3 million, or $1.38 per diluted share, for the monetary 1st fourth 2024.
A getting back together between GAAP and non-GAAP relevant information is actually consisted of in the dining tables listed below.” Our Q1 leads bolstered our strong belief in our differentiated platformization strategy,” mentioned Nikesh Arora, chairman and CEO of Palo Alto Networks. “Our team find an expanding market awareness that platformization is the game changer that will definitely fix security and also allow better AI outcomes. I expect this will be actually a multiyear fad for which we are most ideal set up to provide to our clients.”.” Our platformization progress proceeded in Q1, steering powerful financial end results,” stated Dipak Golechha, main monetary officer of Palo Alto Networks.
“Because of this, our team are increasing our NGS ARR, income and also non-GAAP EPS assistance for the year.”.Stock SplitPalo Alto Networks revealed that its own board of directors has actually authorized a two-for-one forward equity split of the provider’s outstanding allotments of ordinary shares. The stock split is actually to be effected with a modification to the company’s reiterated certificate of incorporation, which will certainly additionally effect a proportional boost in the amount of legitimate portions of ordinary shares coming from 1.0 billion to 2.0 billion. Each shareholder of report since the shut of exchanging on December 12, 2024 (the “file day”), will get, after the close of investing on December thirteen, 2024, one additional allotment for every single allotment hung on the record date.
Investing is actually expected to start on a split-adjusted manner on December 16, 2024.Financial OutlookPalo Alto Networks supplies support based upon current market circumstances and desires.For the fiscal second fourth 2025, our team expect:.Next-Generation Safety And Security ARR of $4.70 billion to $4.75 billion, standing for year-over-year growth of between 35% and 36%.Staying performance commitment of $12.9 billion to $13.0 billion, working with year-over-year growth of between twenty% as well as 21%.Complete profits in the variety of $2.22 billion to $2.25 billion, standing for year-over-year growth of in between 12% and also 14%.Watered down non-GAAP net income every cooperate the stable of $1.54 to $1.56, using 350 million to 352 million portions exceptional.For the fiscal year 2025, our team assume:.Next-Generation Safety And Security ARR of $5.52 billion to $5.57 billion, exemplifying year-over-year growth of in between 31% and also 32%.Remaining performance commitment of $15.2 billion to $15.3 billion, exemplifying year-over-year development of in between 19% and twenty%.Total income in the range of $9.12 billion to $9.17 billion, representing year-over-year growth of 14%.Non-GAAP operating margin in the series of 27.5% to 28.0%.Diluted non-GAAP take-home pay every share in the stable of $6.26 to $6.39, using 350 thousand to 354 million reveals superior.Adjusted free cash flow frame in the range of 37% to 38%.Direction for non-GAAP economic procedures excludes share-based compensation-related costs, including share-based pay-roll tax obligation expenditure, acquisition-related prices, consisting of improvement in decent worth of dependent point to consider obligation, amount cost of acquired abstract properties, litigation-related charges, non-cash fees associated with convertible keep in minds, and also profit tax obligation as well as other income tax changes related to our lasting non-GAAP efficient income tax rate, along with certain non-recurring expenditures and also particular non-recurring cash flows. We have actually not resolved non-GAAP operating frame assistance to GAAP operating margin, weakened non-GAAP net income per share support to GAAP income every diluted share or even changed free cash flow frame advice to GAAP internet cash money from operating activities due to the fact that our team carry out not supply guidance on GAAP operating margin, GAAP net income or net cash coming from operating activities as well as would not have the capacity to present the various reconciling money and also non-cash items between GAAP as well as non-GAAP monetary actions because specific items that influence these steps doubt or out of our management, or even can easily not be reasonably forecasted, consisting of share-based compensation cost, without weird attempt. The actual amounts of such fixing up things will possess a notable influence on the company’s GAAP earnings every watered down allotment and GAAP internet cash coming from functioning activities.Earnings Get In Touch With InformationPalo Alto Networks will host a video webcast for analysts and also capitalists to review the business’s fiscal 1st fourth 2025 leads in addition to the overview for its own budgetary second fourth as well as fiscal year 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific time. Open up to the public, capitalists might access the webcast, extra financial information and earnings slides coming from the “Investors” area of the provider’s web site at investors.paloaltonetworks.com.
A replay is going to be actually offered three hrs after the conclusion of the webcast and archived for one year.Progressive StatementsThis press release contains progressive declarations that include threats, uncertainties, as well as assumptions consisting of declarations concerning our platformization method as well as monetary overview for the economic second quarter 2025 and also fiscal year 2025. There are actually a significant number of elements that might induce genuine outcomes to differ materially from forward-looking claims created or even signified within this news release, including: progressions and also modifications as a whole market, political, economic, as well as service health conditions failure of our platformization product offerings failing to obtain the anticipated advantages of our strategic partnerships as well as achievements adjustments in the decent market value of our contingent factor responsibility related to acquisitions risks linked with handling our growth dangers related to brand-new item, registration as well as help offerings, featuring our item offerings that take advantage of AI changes in priorities or hold-ups in the growth or even release of new product or even subscription or even various other offerings, or even the failure to quick cultivate and attain market recognition of new products and also memberships in addition to existing items, subscriptions as well as assistance offerings failure of our business techniques swiftly growing technological advancements out there for safety and security products, memberships as well as help offerings defects, inaccuracies, or vulnerabilities in our items, memberships or support offerings our clients’ acquiring selections as well as the duration of purchases cycles our competitors our capacity to bring in as well as maintain brand-new consumers our capacity to obtain and also incorporate other business, items, or modern technologies in a successful way our personal debt monthly payment commitments and our share redeemed program, which may not be completely consummated or even enhance investor value, and any type of allotment repurchases which could impact the cost of our common stock.Additional threats and anxieties on these and other aspects that could possibly affect our financial end results and also the progressive declarations we create within this news release are included under the captions “Risk Variables” as well as “Monitoring’s Conversation and also Analysis of Financial Condition as well as Outcomes of Workflow” as well as somewhere else in our Yearly Record on Kind 10-K submitted with the USA Securities and also Exchange Percentage (” SEC”) on September 6, 2024, which is on call on our web site at investors.paloaltonetworks.com as well as on the SEC’s web site at www.sec.gov. Added details will certainly also be stated in various other documentations that our team file along with or even furnish to the SEC every so often.
All forward-looking declarations in this press release are actually based upon our ideas as well as information offered to control since the date in this regard, and also we perform not assume any obligation to upgrade the progressive claims delivered to demonstrate activities that happen or even conditions that exist after the day on which they were actually helped make.Non-GAAP Financial Steps as well as Various Other Secret MetricsPalo Alto Networks has given within this press release financial info that has actually certainly not been prepared according to commonly accepted bookkeeping guidelines in the USA (GAAP). The firm uses these non-GAAP monetary procedures and also various other crucial metrics inside in assessing its financial outcomes and strongly believes that using these non-GAAP financial procedures and crucial metrics are useful to clients as an extra tool to review on-going operating outcomes as well as styles, and in reviewing the company’s financial end results along with various other firms in its sector, a lot of which current identical non-GAAP financial actions or even vital metrics.The discussion of these non-GAAP monetary steps and key metrics are actually not implied to be looked at in isolation or as a substitute for equivalent GAAP financial measures as well as should be read merely in conjunction with the provider’s consolidated monetary statements prepared according to GAAP. A reconciliation of the business’s historical non-GAAP financial procedures to their most straight equivalent GAAP actions has actually been delivered in the monetary declaration dining tables consisted of in this particular press release, as well as capitalists are promoted to evaluate these getting backs together.Non-GAAP operating frame.
Palo Alto Networks defines non-GAAP operating scope as non-GAAP operating revenue split through overall earnings. The provider determines non-GAAP operating income as working revenue plus share-based compensation-related charges, consisting of share-based pay-roll tax obligation expenditure, acquisition-related costs, including change in decent worth of contingent consideration obligation, amortization expenditure of obtained intangible resources, and also litigation-related costs. The company feels that non-GAAP operating margin offers control and clients along with greater presence right into the rooting functionality of the business’s core organization operating results.Non-GAAP take-home pay and take-home pay per allotment, weakened.
Palo Alto Networks describes non-GAAP income as income plus share-based compensation-related costs, consisting of share-based pay-roll tax expense, acquisition-related prices, featuring modification in fair value of contingent consideration obligation, amortization expense of gotten unobservable resources, litigation-related costs, including legal resolutions, as well as non-cash fees connected to exchangeable details. The company likewise excludes from non-GAAP net income tax changes related to our long-term non-GAAP successful tax obligation rate so as to deliver a complete image of the provider’s persisting primary organization operating end results. The company determines non-GAAP earnings per reveal, watered down, as non-GAAP take-home pay portioned by the weighted-average watered down shares impressive, that includes the possibly dilutive impact of the firm’s staff member equity reward planning honors as well as the provider’s modifiable elderly details excellent and similar warrants, after providing impact to the anti-dilutive influence of the provider’s details hedge arrangements, which minimizes the prospective economic dilution that or else will happen upon transformation of the provider’s convertible senior notes.
Under GAAP, the anti-dilutive impact of the note bush is actually certainly not demonstrated in watered down portions outstanding. The firm thinks about these non-GAAP economic steps to be beneficial metrics for control and also clients for the same causes that it uses non-GAAP operating scope.Next-Generation Surveillance ARR. Palo Alto Networks determines Next-Generation Security ARR as the annualized alloted revenue of all energetic contracts as of the last day of the coverage time frame for Prisma and also Peridium offerings comprehensive of the VM-Series and similar companies, and certain cloud-delivered safety and security solutions.
Starting the financial 1st quarter 2025, Next-Generation Surveillance ARR includes income derivable to QRadar program as a service deals that our team recently got coming from International Service Machines Firm. The provider takes into consideration Next-Generation Protection ARR to become a valuable statistics for monitoring and real estate investors to evaluate the performance of the firm because Next-Generation Safety is actually where the provider has concentrated its own advancement and also the business anticipates its general income to be overmuch driven by this Next-Generation Safety profile. Considering That Next-Generation Surveillance ARR does not have the impact of providing a numerical measure that is actually various coming from any sort of equivalent GAAP procedure, the business performs not consider it a non-GAAP action.Clients are actually forewarned that there are actually a number of constraints linked with the use of non-GAAP financial solutions as well as crucial metrics as logical tools.
A number of the changes to the provider’s GAAP economic steps reflect the exemption of products that are actually repeating and also will certainly be actually shown in the company’s monetary end results for the not far off future, including share-based compensation, which is actually a vital part of Palo Alto Networks staff members’ compensation and also effects their performance. Furthermore, these non-GAAP economic measures are certainly not based on any standardized methodology prescribed by GAAP, and also the parts that Palo Alto Networks leaves out in its estimation of non-GAAP financial procedures may vary from the elements that its peer companies omit when they mention their non-GAAP results of procedures. Palo Alto Networks makes up for these constraints through delivering certain details regarding the GAAP amounts omitted coming from these non-GAAP economic measures.
Later on, the company might also exclude non-recurring costs and also various other expenses that perform not show the company’s center company operating results.About Palo Alto NetworksPalo Alto Networks is actually the global cybersecurity innovator, devoted to creating on a daily basis safer than the one prior to along with industry-leading, AI-powered answers in system safety, cloud safety and also surveillance operations. Powered by Preciseness AI, our innovations supply exact danger diagnosis and also swift response, decreasing inaccurate positives as well as enriching security performance. Our platformization strategy incorporates varied security answers in to a consolidated, scalable platform, improving control as well as giving operational effectiveness with extensive defense.
Coming from protecting network boundaries to safeguarding cloud environments as well as making sure quick accident reaction, Palo Alto Networks empowers companies to achieve Absolutely no Depend on safety as well as confidently embrace electronic makeover in an ever-evolving hazard garden. This steady commitment to safety and security and also advancement creates our team the cybersecurity companion of option.At Palo Alto Networks, our experts are actually committed to uniting the very best individuals in service of our purpose, so we’re likewise pleased to become the cybersecurity place of work of option, recognized among Newsweek’s Many Enjoyed Place of work (2021-2024), along with a credit rating of 100 on the Disability Impartiality Index (2024, 2023, 2022), and also HRC Ideal Places for LGBTQ+ Equality (2022 ). For additional information, visit www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks logo, as well as Accuracy AI are trademarks of Palo Alto Networks, Inc.
in the United States and in legal systems throughout the planet. All other hallmarks, brand name, or even service marks utilized or even discussed here belong to their corresponding managers. Any type of unreleased services or even components (and also any kind of solutions or functions not generally accessible to customers) referenced in this particular or other press releases or even public claims are certainly not currently on call (or even are actually not yet normally on call to clients) and may not be actually supplied when anticipated or even whatsoever.
Clients who buy Palo Alto Networks applications must make their acquisition choices based on services as well as components presently usually readily available. Palo Alto Networks, Inc. Preparatory Compressed Consolidated Statements of Workflow.( In thousands, except every portion records).( Unaudited).
Three Months Ended. Oct 31,. 2024.2023.Earnings:.
Product.$ 353.8.$ 341.1.Registration and also help.1,785.0.1,537.0.Overall revenue.2,138.8.1,878.1.Cost of profits:. Product.75.0.77.4.Registration as well as help.479.1.395.4.Overall price of income.554.1.472.8.Complete markup.1,584.7.1,405.3.General expenses:. Experimentation.480.4.409.5.Purchases and marketing.720.1.660.5.General and also administrative.97.7.120.1.Total overhead.1,298.2.1,190.1.Running earnings.286.5.215.2.Rate of interest expense.( 1.2 ).( 2.9 ).Various other revenue, web.83.3.70.3.Income just before income taxes.368.6.282.6.Regulation for revenue taxes.17.9.88.4.Earnings.$ 350.7.$ 194.2.
Income every portion, essential.$ 1.07.$ 0.63.Earnings every portion, thinned down.$ 0.99.$ 0.56. Weighted-average portions made use of to calculate net income every allotment, general.326.8.310.1.Weighted-average portions utilized to calculate income per share, thinned down.354.5.349.8. Palo Alto Networks, Inc.
Getting back together of GAAP to Non-GAAP Financial Measures.( In millions, apart from per portion volumes).( Unaudited). Three Months Finished. Oct 31,.
2024.2023. GAAP operating income.$ 286.5.$ 215.2.Share-based compensation-related charges.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amortization expenditure of acquired abstract properties.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-GAAP operating income.$ 616.2.$ 529.3.Non-GAAP operating margin.28.8 %.28.2 %. GAAP net income.$ 350.7.$ 194.2.Share-based compensation-related costs.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amount cost of obtained unobservable properties.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-cash fees connected to modifiable details( 3 ).0.5.1.0.Profit tax obligation and also various other tax obligation corrections( 4 ).( 136.0 ).( 43.0 ).Non-GAAP income.$ 544.9.$ 466.3.
GAAP net income every share, thinned down.$ 0.99.$ 0.56.Share-based compensation-related charges.0.92.0.86.Acquisition-related costs( 1 ).0.04.0.00.Amortization expenditure of gotten abstract assets.0.11.0.07.Litigation-related costs( 2 ).( 0.12 ).0.01.Non-cash costs associated with exchangeable keep in minds( 3 ).0.00.0.00.Profit tax obligation and various other income tax changes( 4 ).( 0.38 ).( 0.12 ).Non-GAAP net income per share, diluted.$ 1.56.$ 1.38. GAAP weighted-average shares used to figure out net income every portion, diluted.354.5.349.8.Weighted-average anti-dilutive impact newsworthy hedge contracts.( 5.9 ).( 11.6 ).Non-GAAP weighted-average shares utilized to compute income every allotment, watered down.348.6.338.2. ( 1 ).Consists of accomplishment purchase prices, share-based compensation related to the cash money resolution of particular equity honors, improvement in fair value of dependent point to consider responsibility, and also costs to cancel specific work, functioning lease, as well as other agreements of the gotten business.( 2 ).Be composed of the amount of patent licenses as well as commitment not to file a claim against.
During the course of the three months ended Oct 31, 2024, it additionally consists of a release of earlier built up legal contingency fee.( 3 ).Be composed of non-cash rate of interest expense for amortization of financial obligation issue prices associated with the firm’s modifiable elderly notes.( 4 ).Contain profit tax obligation changes associated with our lasting non-GAAP successful income tax cost. Palo Alto Networks, Inc. Initial Concise Consolidated Balance Sheets.( In thousands).
October 31, 2024.July 31, 2024. ( unaudited). Assets.
Current possessions:. Cash money and cash matchings.$ 2,282.8.$ 1,535.2.Short-term assets.1,108.2.1,043.6.Accounts receivable, internet.1,132.9.2,618.6.Short-term finance receivables, web.805.1.725.9.Short-term put off deal costs.367.6.369.0.Prepaid expenditures and various other present assets.546.1.557.4.Total present assets.6,242.7.6,849.7.Building and tools, web.361.0.361.1.Functioning lease right-of-use properties.389.0.385.9.Long-lasting financial investments.4,119.7.4,173.2.Long-lasting lending receivables, web.1,092.2.1,182.1.Long-lasting delayed arrangement expenses.531.9.562.0.A good reputation.4,050.8.3,350.1.Unobservable assets, web.809.6.374.9.Deferred income tax resources.2,397.5.2,399.0.Other possessions.380.2.352.9.Overall resources.$ 20,374.6.$ 19,990.9.Obligations and stockholders’ equity. Current responsibilities:.
Accounts payable.$ 211.6.$ 116.3.Built up remuneration.354.5.554.7.Built up and also various other liabilities.683.1.506.7.Deferred profits.5,507.7.5,541.1.Convertible senior keep in minds, internet.645.8.963.9.Complete present obligations.7,402.7.7,682.7.Long-term put off profits.5,585.9.5,939.4.Prolonged tax liabilities.250.8.387.7.Lasting operating lease obligations.379.6.380.5.Various other long-term responsibilities.843.8.430.9.Complete liabilities.14,462.8.14,821.2.Investors’ equity:. Participating preferred stock.–.–.Ordinary shares and also extra paid-in funding.4,214.9.3,821.1.Built up various other extensive loss.( 4.0 ).( 1.6 ).Preserved revenues.1,700.9.1,350.2.Total shareholders’ equity.5,911.8.5,169.7.Overall obligations and shareholders’ equity.$ 20,374.6.$ 19,990.9. Resource Palo Alto Networks, Inc
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