.Fiscal 1st one-fourth revenue increased 14% year over year to $2.1 billion.Next-Generation Security ARR grew 40% year over year to $4.5 billion.Staying efficiency obligation increased 20% year over year to $12.6 billion.SANTA CLAM CLARA, Calif., Nov. twenty, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the worldwide cybersecurity forerunner, introduced today financial end results for its monetary 1st one-fourth 2025, ended October 31, 2024.Overall income for the budgetary very first quarter 2025 increased 14% year over year to $2.1 billion, compared with total income of $1.9 billion for the budgetary initial one-fourth 2024. GAAP income for the monetary very first one-fourth 2025 was actually $350.7 million, or $0.99 per watered down portion, compared to GAAP take-home pay of $194.2 million, or even $0.56 every diluted portion, for the budgetary 1st one-fourth 2024.Non-GAAP earnings for the monetary first fourth 2025 was actually $544.9 million, or $1.56 per watered down portion, compared with non-GAAP earnings of $466.3 thousand, or even $1.38 every diluted share, for the fiscal very first quarter 2024.
A settlement in between GAAP and non-GAAP information is had in the dining tables below.” Our Q1 leads improved our view in our differentiated platformization tactic,” claimed Nikesh Arora, chairman and CEO of Palo Alto Networks. “Our experts view an expanding market understanding that platformization is actually the activity changer that will definitely fix safety and security and also allow far better AI outcomes. I expect this will be a multiyear trend for which our team are actually well set up to supply to our consumers.”.” Our platformization progression continued in Q1, steering powerful economic results,” pointed out Dipak Golechha, chief financial police officer of Palo Alto Networks.
“As a result, our team are actually raising our NGS ARR, revenue and also non-GAAP EPS assistance for the year.”.Share SplitPalo Alto Networks introduced that its own board of supervisors has authorized a two-for-one forward equity split of the company’s superior shares of common stock. The equity split is to be impacted by means of a modification to the business’s reiterated certification of incorporation, which will certainly also perform a proportional increase in the amount of certified allotments of common stock coming from 1.0 billion to 2.0 billion. Each investor of report as of the close of investing on December 12, 2024 (the “document date”), are going to obtain, after the close of trading on December thirteen, 2024, one additional allotment for every single allotment hung on the document day.
Investing is actually assumed to begin on a split-adjusted manner on December 16, 2024.Financial OutlookPalo Alto Networks offers direction based on current market situations and assumptions.For the fiscal 2nd quarter 2025, our team anticipate:.Next-Generation Safety ARR of $4.70 billion to $4.75 billion, standing for year-over-year development of between 35% and 36%.Remaining functionality commitment of $12.9 billion to $13.0 billion, exemplifying year-over-year growth of in between 20% as well as 21%.Overall earnings in the stable of $2.22 billion to $2.25 billion, working with year-over-year development of in between 12% and also 14%.Diluted non-GAAP net income every share in the series of $1.54 to $1.56, making use of 350 million to 352 million reveals superior.For the 2025, our experts assume:.Next-Generation Surveillance ARR of $5.52 billion to $5.57 billion, exemplifying year-over-year growth of between 31% and 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 earnings in the range of $9.12 billion to $9.17 billion, standing for year-over-year growth of 14%.Non-GAAP operating frame in the stable of 27.5% to 28.0%.Diluted non-GAAP net income every share in the range of $6.26 to $6.39, using 350 million to 354 thousand allotments outstanding.Readjusted free capital margin in the variety of 37% to 38%.Support for non-GAAP financial measures excludes share-based compensation-related fees, consisting of share-based payroll tax expenditure, acquisition-related prices, consisting of adjustment in decent value of dependent consideration liability, amortization cost of obtained abstract possessions, litigation-related fees, non-cash charges associated with exchangeable keep in minds, and revenue tax obligation and other tax obligation changes connected to our long-lasting non-GAAP successful income tax cost, along with particular non-recurring expenditures and also certain non-recurring cash flows. Our team have actually certainly not fixed up non-GAAP operating frame support to GAAP operating frame, diluted non-GAAP earnings every portion assistance to GAAP take-home pay per watered down allotment or even adjusted free of cost cash flow scope direction to GAAP net cash money coming from functioning tasks considering that we perform not offer assistance on GAAP operating scope, GAAP income or net cash coming from running activities and would certainly certainly not have the capacity to show the a variety of reconciling cash money as well as non-cash things between GAAP and also non-GAAP financial procedures because particular products that affect these procedures are uncertain or even away from our management, or can certainly not be fairly anticipated, including share-based compensation cost, without unreasonable effort. The real amounts of such integrating things will definitely possess a considerable effect on the business’s GAAP earnings every diluted portion and also GAAP net cash from working tasks.Incomes Call InformationPalo Alto Networks will organize a video clip webcast for analysts and also clients to review the company’s fiscal very first one-fourth 2025 results and also the expectation for its own monetary 2nd fourth and also 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific opportunity. Open to the public, investors might access the webcast, extra financial relevant information and incomes slides from the “Capitalists” section of the provider’s website at investors.paloaltonetworks.com.
A replay will be available three hrs after the closure of the webcast and archived for one year.Forward-Looking StatementsThis news release consists of positive claims that include risks, unpredictabilities, as well as expectations featuring claims concerning our platformization approach as well as economic outlook for the fiscal second fourth 2025 and also fiscal year 2025. There are actually a significant amount of aspects that can create genuine results to contrast materially coming from progressive declarations produced or even implied in this news release, including: advancements as well as improvements in general market, political, financial, and service conditions failing of our platformization product offerings breakdown to obtain the assumed perks of our important collaborations and also acquisitions modifications in the decent worth of our contingent consideration liability related to achievements dangers associated with handling our growth dangers linked with brand-new item, registration and support offerings, including our product offerings that take advantage of AI switches in priorities or even hold-ups in the development or even launch of brand-new product or membership or even various other offerings, or the failing to well-timed build as well as achieve market approval of brand-new products and registrations in addition to existing items, subscriptions and also help offerings failing of our organization techniques quickly advancing technical developments on the market for safety and security items, memberships and also help offerings flaws, mistakes, or susceptabilities in our items, memberships or assistance offerings our customers’ acquiring selections and also the span of sales patterns our competitors our potential to entice as well as keep new clients our potential to acquire and also combine other providers, products, or innovations in an effective manner our financial obligation payment obligations and our reveal redeemed course, which may not be fully consummated or improve investor value, and also any kind of share repurchases which might have an effect on the price of our common stock.Added risks and uncertainties on these and various other variables that could impact our economic results as well as the progressive declarations our team make in this press release are actually consisted of under the inscriptions “Risk Elements” and also “Administration’s Conversation and also Study of Financial Problem and also End Results of Workflow” and also elsewhere in our Annual File on Kind 10-K submitted with the U.S. Securities and also Exchange Commission (” SEC”) on September 6, 2024, which is actually accessible on our site at investors.paloaltonetworks.com as well as on the SEC’s website at www.sec.gov.
Additional details is going to additionally be stated in other papers that we submit with or even decorate to the SEC every so often. All positive claims within this press release are actually based upon our ideas and also relevant information on call to administration as of the time in this regard, and our company do certainly not presume any type of commitment to improve the positive declarations provided to demonstrate celebrations that develop or even instances that exist after the day on which they were made.Non-GAAP Financial Solutions as well as Other Trick MetricsPalo Alto Networks has supplied within this news release financial info that has actually not been actually readied in accordance with typically allowed accounting principles in the United States (GAAP). The business uses these non-GAAP financial solutions and also other crucial metrics inside in evaluating its economic results and also feels that using these non-GAAP economic procedures and also vital metrics are practical to capitalists as an extra tool to assess on-going operating end results and also patterns, and in contrasting the business’s financial results with other business in its own business, much of which current comparable non-GAAP financial actions or even essential metrics.The presentation of these non-GAAP economic solutions and essential metrics are actually not suggested to be taken into consideration in isolation or even as a substitute for similar GAAP financial procedures and also must be read merely combined with the business’s consolidated economic statements prepared based on GAAP.
A reconciliation of the company’s historic non-GAAP financial procedures to their most straight similar GAAP actions has actually been actually supplied in the monetary statement dining tables consisted of within this news release, as well as capitalists are actually motivated to assess these reconciliations.Non-GAAP operating margin. Palo Alto Networks defines non-GAAP operating margin as non-GAAP operating earnings split through overall earnings. The provider describes non-GAAP operating revenue as running income plus share-based compensation-related charges, consisting of share-based pay-roll tax obligation expenditure, acquisition-related costs, consisting of improvement in decent market value of dependent point to consider obligation, amortization expense of obtained unobservable properties, as well as litigation-related costs.
The company feels that non-GAAP operating margin delivers management and also clients along with better exposure right into the underlying performance of the company’s core organization operating results.Non-GAAP take-home pay and also income per share, diluted. Palo Alto Networks defines non-GAAP earnings as earnings plus share-based compensation-related fees, including share-based payroll income tax expenditure, acquisition-related prices, featuring change in decent value of contingent point to consider responsibility, amount expense of acquired unobservable assets, litigation-related charges, including legal settlements, and also non-cash charges related to modifiable details. The business likewise leaves out from non-GAAP income tax changes connected to our long-lasting non-GAAP reliable tax obligation rate so as to deliver a full picture of the provider’s repeating core company operating end results.
The firm specifies non-GAAP income every portion, diluted, as non-GAAP income divided by the weighted-average watered down allotments excellent, that includes the possibly dilutive impact of the firm’s worker equity incentive strategy awards as well as the business’s exchangeable senior keep in minds impressive and also associated warrants, after offering impact to the anti-dilutive effect of the provider’s keep in mind hedge contracts, which lessens the prospective economical dip that typically would certainly take place upon conversion of the business’s modifiable elderly notes. Under GAAP, the anti-dilutive impact of the note hedge is certainly not mirrored in diluted shares excellent. The firm takes into consideration these non-GAAP monetary measures to become helpful metrics for management and financiers for the exact same main reasons that it uses non-GAAP operating frame.Next-Generation Safety And Security ARR.
Palo Alto Networks determines Next-Generation Safety ARR as the annualized allocated revenue of all active deals as of the final day of the coverage time period for Prisma and Cerebral cortex offerings inclusive of the VM-Series and related companies, as well as particular cloud-delivered safety and security companies. Starting the budgetary very first fourth 2025, Next-Generation Surveillance ARR includes income derivable to QRadar software as a company arrangements that our team just recently acquired from International Service Machines Corporation. The business thinks about Next-Generation Protection ARR to be a helpful statistics for control as well as real estate investors to review the functionality of the provider since Next-Generation Surveillance is actually where the company has centered its advancement as well as the company expects its overall profits to be overmuch steered by this Next-Generation Safety profile.
Since Next-Generation Safety ARR carries out not have the impact of providing a numerical step that is actually various coming from any type of similar GAAP procedure, the firm carries out rule out it a non-GAAP step.Financiers are actually forewarned that there are actually an amount of constraints associated with making use of non-GAAP financial solutions and also essential metrics as logical resources. Many of the adjustments to the business’s GAAP economic measures mirror the exclusion of products that are actually recurring and will be mirrored in the company’s economic outcomes for the not far off future, including share-based settlement, which is a vital part of Palo Alto Networks employees’ settlement and also effects their functionality. Additionally, these non-GAAP monetary solutions are not based upon any sort of standardized approach suggested through GAAP, as well as the parts that Palo Alto Networks leaves out in its estimation of non-GAAP monetary measures might differ from the elements that its peer providers leave out when they state their non-GAAP end results of procedures.
Palo Alto Networks makes up for these constraints through giving particular details pertaining to the GAAP totals left out coming from these non-GAAP monetary solutions. In the future, the company might additionally omit non-recurring expenses as well as various other costs that do certainly not show the provider’s primary business operating outcomes.About Palo Alto NetworksPalo Alto Networks is actually the global cybersecurity innovator, devoted to helping make each day safer than the one just before along with industry-leading, AI-powered remedies in system protection, cloud protection and also safety operations. Powered by Preciseness artificial intelligence, our innovations supply precise risk discovery and also fast response, decreasing inaccurate positives as well as enhancing safety and security effectiveness.
Our platformization approach includes diverse protection remedies in to a linked, scalable platform, enhancing monitoring and supplying working effectiveness with thorough defense. From shielding system borders to guarding cloud environments as well as making certain swift happening feedback, Palo Alto Networks equips organizations to attain Zero Count on safety and security and with certainty embrace digital change in an ever-evolving hazard garden. This unwavering commitment to security and also technology produces us the cybersecurity companion of selection.At Palo Alto Networks, our company’re committed to bringing together the very best folks in service of our objective, so our experts are actually additionally honored to become the cybersecurity office of selection, identified one of Newsweek’s Most Really loved Workplaces (2021-2024), with a score of one hundred on the Special Needs Impartiality Index (2024, 2023, 2022), and also HRC Absolute Best Places for LGBTQ+ Equal Rights (2022 ).
For more details, browse through www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks logo design, and also Precision artificial intelligence are hallmarks of Palo Alto Networks, Inc. in the United States and also in jurisdictions throughout the world. All other hallmarks, brand name, or even registered trademark used or mentioned within concern their respective managers.
Any unreleased services or even functions (as well as any sort of solutions or even features certainly not normally readily available to customers) referenced within this or various other press releases or even social claims are certainly not presently available (or even are certainly not however typically offered to customers) as well as may not be actually supplied when counted on or even at all. Consumers who purchase Palo Alto Networks treatments ought to produce their investment choices based on companies and components currently generally available. Palo Alto Networks, Inc.
Preliminary Condensed Consolidated Statements of Workflow.( In millions, except every portion information).( Unaudited). Three Months Finished. October 31,.
2024.2023.Profits:. Item.$ 353.8.$ 341.1.Membership as well as support.1,785.0.1,537.0.Complete income.2,138.8.1,878.1.Cost of income:. Item.75.0.77.4.Subscription as well as support.479.1.395.4.Total price of profits.554.1.472.8.Total markup.1,584.7.1,405.3.General expenses:.
Research and development.480.4.409.5.Purchases and advertising and marketing.720.1.660.5.General as well as administrative.97.7.120.1.Total business expenses.1,298.2.1,190.1.Operating earnings.286.5.215.2.Enthusiasm cost.( 1.2 ).( 2.9 ).Other profit, internet.83.3.70.3.Profit prior to revenue taxes.368.6.282.6.Arrangement for income taxes.17.9.88.4.Income.$ 350.7.$ 194.2. Earnings per share, fundamental.$ 1.07.$ 0.63.Income every share, weakened.$ 0.99.$ 0.56. Weighted-average shares utilized to compute net income per share, simple.326.8.310.1.Weighted-average portions made use of to calculate net income per reveal, diluted.354.5.349.8.
Palo Alto Networks, Inc. Getting back together of GAAP to Non-GAAP Financial Measures.( In millions, except per share volumes).( Unaudited). 3 Months Finished.
October 31,. 2024.2023. GAAP operating revenue.$ 286.5.$ 215.2.Share-based compensation-related fees.315.1.287.8.Acquisition-related expenses( 1 ).15.1.–.Amortization expense of gotten unobservable assets.40.7.24.5.Litigation-related fees( 2 ).( 41.2 ).1.8.Non-GAAP operating earnings.$ 616.2.$ 529.3.Non-GAAP operating margin.28.8 %.28.2 %.
GAAP take-home pay.$ 350.7.$ 194.2.Share-based compensation-related costs.315.1.287.8.Acquisition-related expenses( 1 ).15.1.–.Amount cost of obtained abstract possessions.40.7.24.5.Litigation-related fees( 2 ).( 41.2 ).1.8.Non-cash costs connected to modifiable keep in minds( 3 ).0.5.1.0.Income tax obligation as well as various other tax obligation corrections( 4 ).( 136.0 ).( 43.0 ).Non-GAAP take-home pay.$ 544.9.$ 466.3. GAAP earnings per reveal, diluted.$ 0.99.$ 0.56.Share-based compensation-related fees.0.92.0.86.Acquisition-related costs( 1 ).0.04.0.00.Amortization expense of gotten abstract resources.0.11.0.07.Litigation-related charges( 2 ).( 0.12 ).0.01.Non-cash costs associated with modifiable notes( 3 ).0.00.0.00.Earnings income tax as well as other income tax corrections( 4 ).( 0.38 ).( 0.12 ).Non-GAAP net income per allotment, watered down.$ 1.56.$ 1.38. GAAP weighted-average allotments used to calculate net income per allotment, watered down.354.5.349.8.Weighted-average anti-dilutive effect newsworthy hedge deals.( 5.9 ).( 11.6 ).Non-GAAP weighted-average shares used to figure out net income every share, thinned down.348.6.338.2.
( 1 ).Be composed of accomplishment purchase prices, share-based compensation pertaining to the cash money negotiation of particular equity awards, modification in fair value of contingent factor to consider responsibility, as well as prices to end specific employment, operating lease, as well as other deals of the obtained companies.( 2 ).Feature the amount of copyright licenses and agreement not to file suit. Throughout the 3 months ended October 31, 2024, it additionally consists of a launch of formerly accrued lawful backup charge.( 3 ).Feature non-cash rate of interest cost for amount of debt issuance expenses associated with the business’s convertible elderly notes.( 4 ).Feature earnings tax obligation changes associated with our long-term non-GAAP successful tax obligation price. Palo Alto Networks, Inc.
Preparatory Compressed Consolidated Equilibrium Sheets.( In millions). Oct 31, 2024.July 31, 2024. ( unaudited).
Properties. Current possessions:. Money as well as money equivalents.$ 2,282.8.$ 1,535.2.Short-term financial investments.1,108.2.1,043.6.Accounts receivable, internet.1,132.9.2,618.6.Short-term finance receivables, net.805.1.725.9.Temporary deferred contract prices.367.6.369.0.Prepaid expenditures and also other present assets.546.1.557.4.Complete existing resources.6,242.7.6,849.7.Residential property as well as tools, web.361.0.361.1.Functioning lease right-of-use properties.389.0.385.9.Lasting investments.4,119.7.4,173.2.Long-lasting lending receivables, web.1,092.2.1,182.1.Long-term put off agreement expenses.531.9.562.0.A good reputation.4,050.8.3,350.1.Intangible possessions, web.809.6.374.9.Prolonged income tax assets.2,397.5.2,399.0.Other possessions.380.2.352.9.Total assets.$ 20,374.6.$ 19,990.9.Responsibilities and also stockholders’ equity.
Existing responsibilities:. Accounts payable.$ 211.6.$ 116.3.Accrued payment.354.5.554.7.Accumulated and other responsibilities.683.1.506.7.Prolonged revenue.5,507.7.5,541.1.Exchangeable senior details, net.645.8.963.9.Overall existing liabilities.7,402.7.7,682.7.Long-term deferred revenue.5,585.9.5,939.4.Deferred income tax responsibilities.250.8.387.7.Lasting operating lease liabilities.379.6.380.5.Various other long-term obligations.843.8.430.9.Overall obligations.14,462.8.14,821.2.Shareholders’ equity:. Participating preferred stock.–.–.Common stock as well as additional paid-in resources.4,214.9.3,821.1.Built up various other thorough loss.( 4.0 ).( 1.6 ).Maintained earnings.1,700.9.1,350.2.Complete shareholders’ equity.5,911.8.5,169.7.Total obligations as well as investors’ equity.$ 20,374.6.$ 19,990.9.
SOURCE Palo Alto Networks, Inc
. WANT YOUR BUSINESS’S INFORMATION INCLUDED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers.
9k+ Digital MediaOutlets. 270k+ JournalistsOpted In.