.Fiscal very first one-fourth revenue grew 14% year over year to $2.1 billion.Next-Generation Safety and security ARR increased 40% year over year to $4.5 billion.Remaining performance obligation developed twenty% year over year to $12.6 billion.SANTA CLAM CLARA, Calif., Nov. twenty, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the global cybersecurity forerunner, introduced today economic results for its own financial initial one-fourth 2025, ended October 31, 2024.Total earnings for the financial 1st quarter 2025 developed 14% year over year to $2.1 billion, compared with overall earnings of $1.9 billion for the fiscal first fourth 2024. GAAP income for the budgetary 1st one-fourth 2025 was $350.7 million, or even $0.99 every diluted reveal, compared with GAAP net income of $194.2 million, or even $0.56 every diluted share, for the budgetary initial fourth 2024.Non-GAAP net income for the economic 1st quarter 2025 was $544.9 thousand, or even $1.56 every watered down share, compared to non-GAAP earnings of $466.3 thousand, or even $1.38 every watered down share, for the economic 1st quarter 2024.
A settlement in between GAAP as well as non-GAAP information is had in the dining tables below.” Our Q1 leads enhanced our conviction in our separated platformization strategy,” stated Nikesh Arora, chairman and also chief executive officer of Palo Alto Networks. “Our team view a growing market realization that platformization is actually the activity changer that are going to address surveillance and permit far better artificial intelligence end results. I expect this are going to be a multiyear fad for which our team are actually most ideal installed to deliver to our customers.”.” Our platformization progress continued in Q1, steering powerful economic end results,” said Dipak Golechha, primary monetary police officer of Palo Alto Networks.
“Consequently, our company are elevating our NGS ARR, income as well as non-GAAP EPS support for the year.”.Share SplitPalo Alto Networks announced that its board of directors has actually authorized a two-for-one aggressive share crack of the business’s impressive portions of common stock. The equity split is actually to become impacted by means of a modification to the business’s reiterated certification of unification, which will additionally impact a proportional boost in the variety of authorized portions of common stock coming from 1.0 billion to 2.0 billion. Each shareholder of document as of the shut of trading on December 12, 2024 (the “record time”), will certainly receive, after the close of exchanging on December 13, 2024, one extra allotment for each share hung on the report date.
Investing is actually expected to begin on a split-adjusted basis on December 16, 2024.Financial OutlookPalo Alto Networks gives support based upon present market situations and expectations.For the financial second quarter 2025, our company anticipate:.Next-Generation Safety And Security ARR of $4.70 billion to $4.75 billion, working with year-over-year development of between 35% and also 36%.Staying performance obligation of $12.9 billion to $13.0 billion, embodying year-over-year growth of between twenty% and 21%.Total revenue in the range of $2.22 billion to $2.25 billion, standing for year-over-year growth of between 12% and also 14%.Thinned down non-GAAP income every share in the variety of $1.54 to $1.56, making use of 350 million to 352 thousand shares exceptional.For the 2025, our company expect:.Next-Generation Protection ARR of $5.52 billion to $5.57 billion, standing for year-over-year development of between 31% and also 32%.Remaining performance responsibility of $15.2 billion to $15.3 billion, embodying year-over-year growth of between 19% and twenty%.Total income in the series of $9.12 billion to $9.17 billion, exemplifying year-over-year development of 14%.Non-GAAP operating frame in the variety of 27.5% to 28.0%.Weakened non-GAAP earnings per share in the variety of $6.26 to $6.39, making use of 350 thousand to 354 thousand allotments superior.Adjusted complimentary capital margin in the stable of 37% to 38%.Support for non-GAAP economic steps excludes share-based compensation-related costs, including share-based payroll tax obligation cost, acquisition-related expenses, featuring modification in reasonable market value of dependent consideration liability, amount expense of obtained intangible resources, litigation-related charges, non-cash costs connected to exchangeable keep in minds, and profit tax as well as other tax corrections associated with our long-lasting non-GAAP efficient tax obligation fee, along with specific non-recurring costs as well as particular non-recurring cash flows. Our company have actually certainly not reconciled non-GAAP operating scope direction to GAAP operating scope, diluted non-GAAP earnings every allotment support to GAAP earnings per diluted share or even changed free of cost capital margin direction to GAAP net cash from working activities given that our company carry out not provide guidance on GAAP operating frame, GAAP take-home pay or internet money from running tasks and also would certainly not have the capacity to offer the several integrating cash and also non-cash products in between GAAP as well as non-GAAP economic solutions given that certain products that influence these actions are uncertain or away from our command, or may not be fairly anticipated, featuring share-based remuneration expense, without unreasonable initiative. The actual volumes of such integrating things will certainly possess a significant effect on the company’s GAAP net income per diluted portion and also GAAP web cash money from working activities.Revenues Contact InformationPalo Alto Networks will certainly throw a video recording webcast for professionals and capitalists to talk about the business’s monetary very first fourth 2025 leads as well as the overview for its own fiscal second quarter and also 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific time. Open up to the public, clients may access the webcast, supplementary financial details as well as profits slides coming from the “Entrepreneurs” section of the firm’s site at investors.paloaltonetworks.com.
A replay is going to be on call 3 hrs after the closure of the webcast and archived for one year.Forward-Looking StatementsThis press release includes positive declarations that entail dangers, unpredictabilities, and also assumptions including claims concerning our platformization method as well as monetary outlook for the budgetary second quarter 2025 as well as 2025. There are a substantial variety of factors that can induce true results to contrast materially coming from progressive statements made or signified within this press release, featuring: progressions and also modifications generally market, political, economic, and service ailments failure of our platformization product offerings failure to attain the anticipated benefits of our tactical partnerships and also accomplishments adjustments in the fair market value of our dependent factor to consider obligation associated with accomplishments threats related to handling our development dangers related to brand-new product, subscription as well as support offerings, including our product offerings that leverage AI shifts in top priorities or delays in the advancement or even launch of brand-new item or even subscription or various other offerings, or even the failing to well-timed develop and also achieve market approval of new items as well as subscriptions along with existing items, registrations and assistance offerings failing of our service techniques rapidly developing technological developments in the market for surveillance items, registrations as well as help offerings flaws, inaccuracies, or susceptibilities in our items, memberships or help offerings our customers’ purchasing decisions as well as the span of sales patterns our competitors our capability to bring in and also retain brand-new consumers our potential to obtain and also include other companies, items, or even modern technologies in a prosperous method our debt monthly payment obligations as well as our allotment redeemed program, which might certainly not be completely consummated or improve shareholder market value, and also any sort of share repurchases which could possibly have an effect on the price of our common stock.Extra threats as well as anxieties on these as well as various other variables that could affect our financial end results as well as the forward-looking statements our team make in this particular news release are included under the inscriptions “Danger Elements” and “Control’s Discussion and Analysis of Financial Problem as well as End Results of Procedures” as well as in other places in our Yearly Record on Kind 10-K filed along with the USA Stocks and Substitution Percentage (” SEC”) on September 6, 2024, which is actually on call on our internet site at investors.paloaltonetworks.com as well as on the SEC’s website at www.sec.gov. Extra information will definitely likewise be actually stated in various other documents that our company submit along with or even equip to the SEC once in a while.
All forward-looking statements in this particular news release are based on our opinions and also info readily available to control as of the day in this regard, and we carry out not presume any kind of responsibility to update the progressive statements offered to show activities that develop or even circumstances that exist after the time on which they were helped make.Non-GAAP Financial Steps and Various Other Trick MetricsPalo Alto Networks has actually offered in this particular press release monetary info that has actually not been prepared in accordance with usually approved accountancy concepts in the USA (GAAP). The business makes use of these non-GAAP economic measures as well as other crucial metrics internally in assessing its own financial outcomes as well as feels that making use of these non-GAAP financial steps and vital metrics are useful to financiers as an added device to examine recurring operating end results and also patterns, and also in comparing the business’s economic end results with other providers in its field, a number of which current comparable non-GAAP financial steps or key metrics.The presentation of these non-GAAP financial steps and also key metrics are not suggested to become looked at alone or as a substitute for equivalent GAAP financial steps as well as must read just in conjunction with the firm’s combined monetary claims readied based on GAAP. A reconciliation of the firm’s historical non-GAAP economic steps to their most directly equivalent GAAP procedures has been offered in the economic declaration dining tables featured in this particular news release, as well as clients are actually encouraged to assess these getting backs together.Non-GAAP operating scope.
Palo Alto Networks describes non-GAAP operating scope as non-GAAP operating profit split by overall profits. The company determines non-GAAP operating income as operating profit plus share-based compensation-related charges, consisting of share-based pay-roll income tax cost, acquisition-related expenses, featuring improvement in decent value of dependent consideration liability, amortization expense of acquired unobservable properties, and also litigation-related fees. The business feels that non-GAAP operating scope supplies management and real estate investors along with higher presence right into the underlying efficiency of the provider’s center company operating outcomes.Non-GAAP take-home pay and earnings every reveal, diluted.
Palo Alto Networks defines non-GAAP take-home pay as earnings plus share-based compensation-related costs, consisting of share-based payroll tax expenditure, acquisition-related costs, including modification in fair market value of dependent consideration obligation, amortization expense of gotten intangible resources, litigation-related fees, featuring legal settlements, as well as non-cash fees associated with modifiable notes. The provider also omits from non-GAAP income tax obligation modifications connected to our long-term non-GAAP effective income tax fee in order to deliver a comprehensive photo of the firm’s recurring core organization operating outcomes. The provider describes non-GAAP earnings per allotment, watered down, as non-GAAP income split due to the weighted-average diluted reveals superior, which includes the likely dilutive result of the business’s staff member equity reward plan honors and also the provider’s exchangeable elderly keep in minds excellent and also related warrants, after providing impact to the anti-dilutive impact of the provider’s keep in mind hedge arrangements, which decreases the possible economic dilution that typically would occur upon sale of the firm’s modifiable elderly details.
Under GAAP, the anti-dilutive influence of the details bush is not mirrored in watered down allotments superior. The provider considers these non-GAAP financial steps to be helpful metrics for monitoring and also clients for the exact same explanations that it makes use of non-GAAP operating frame.Next-Generation Safety ARR. Palo Alto Networks defines Next-Generation Protection ARR as the annualized alloted earnings of all active deals since the ultimate time of the coverage period for Prisma and also Peridium offerings comprehensive of the VM-Series and also relevant companies, and also particular cloud-delivered protection services.
Starting the economic initial fourth 2025, Next-Generation Safety ARR includes profits derivable to QRadar software as a company agreements that our experts lately obtained from International Business Machines Firm. The company thinks about Next-Generation Protection ARR to become a useful measurement for control as well as clients to evaluate the functionality of the provider since Next-Generation Safety is actually where the provider has focused its own innovation and the firm expects its own total income to become disproportionately steered by this Next-Generation Protection portfolio. Since Next-Generation Security ARR performs not possess the result of offering a mathematical procedure that is actually various coming from any kind of similar GAAP action, the company performs rule out it a non-GAAP procedure.Real estate investors are actually forewarned that there are a number of limitations linked with making use of non-GAAP monetary actions and essential metrics as analytical tools.
A lot of the modifications to the provider’s GAAP monetary steps demonstrate the omission of products that are actually repeating and will definitely be mirrored in the company’s monetary outcomes for the direct future, including share-based settlement, which is actually a vital part of Palo Alto Networks employees’ remuneration and influences their efficiency. On top of that, these non-GAAP monetary actions are actually not based on any kind of standardized strategy recommended by GAAP, and the components that Palo Alto Networks omits in its own estimation of non-GAAP financial procedures may contrast coming from the elements that its own peer firms omit when they report their non-GAAP results of operations. Palo Alto Networks makes up for these limits through offering specific information relating to the GAAP totals omitted from these non-GAAP economic measures.
In the future, the company might likewise exclude non-recurring expenses as well as various other costs that perform certainly not demonstrate the business’s center service operating results.Concerning Palo Alto NetworksPalo Alto Networks is actually the global cybersecurity forerunner, devoted to making daily much safer than the one prior to along with industry-leading, AI-powered options in network safety, cloud surveillance and also protection procedures. Powered by Accuracy AI, our technologies supply accurate threat discovery and quick feedback, decreasing untrue positives as well as improving safety and security effectiveness. Our platformization strategy combines unique surveillance solutions in to a merged, scalable platform, simplifying management as well as providing operational efficiencies along with thorough protection.
From fighting for system boundaries to securing cloud environments and also making certain fast event reaction, Palo Alto Networks encourages services to achieve Absolutely no Trust fund security and also with certainty take advantage of digital improvement in an ever-evolving threat yard. This steady devotion to security as well as innovation produces us the cybersecurity companion of choice.At Palo Alto Networks, we’re committed to uniting the absolute best folks in service of our goal, so our experts’re also glad to be the cybersecurity place of work of selection, recognized among Newsweek’s A lot of Really loved Work environments (2021-2024), along with a credit rating of 100 on the Special Needs Equality Index (2024, 2023, 2022), as well as HRC Greatest Places for LGBTQ+ Equality (2022 ). For more details, visit www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks logo, and Precision AI are actually hallmarks of Palo Alto Networks, Inc.
in the United States as well as in legal systems throughout the globe. All various other trademarks, brand, or even service marks used or even mentioned within come from their corresponding managers. Any type of unreleased services or even attributes (and any type of companies or features not commonly available to consumers) referenced within this or even other news release or social statements are actually certainly not currently offered (or are actually certainly not however normally readily available to consumers) and also may certainly not be actually supplied when expected or even at all.
Clients who buy Palo Alto Networks applications ought to make their acquisition choices based upon services and components currently normally readily available. Palo Alto Networks, Inc. Initial Compressed Consolidated Statements of Workflow.( In millions, except per allotment information).( Unaudited).
Three Months Ended. Oct 31,. 2024.2023.Earnings:.
Item.$ 353.8.$ 341.1.Registration and also help.1,785.0.1,537.0.Complete profits.2,138.8.1,878.1.Price of earnings:. Product.75.0.77.4.Membership as well as help.479.1.395.4.Complete cost of earnings.554.1.472.8.Complete gross profit.1,584.7.1,405.3.General expenses:. Research and development.480.4.409.5.Sales and also marketing.720.1.660.5.General and managerial.97.7.120.1.Total operating costs.1,298.2.1,190.1.Running earnings.286.5.215.2.Enthusiasm cost.( 1.2 ).( 2.9 ).Various other earnings, net.83.3.70.3.Profit just before earnings tax obligations.368.6.282.6.Regulation for earnings taxes.17.9.88.4.Net income.$ 350.7.$ 194.2.
Take-home pay every portion, general.$ 1.07.$ 0.63.Earnings per portion, diluted.$ 0.99.$ 0.56. Weighted-average allotments made use of to calculate net income per reveal, fundamental.326.8.310.1.Weighted-average allotments utilized to calculate net income per allotment, weakened.354.5.349.8. Palo Alto Networks, Inc.
Settlement of GAAP to Non-GAAP Financial Amounts.( In thousands, except every share quantities).( Unaudited). Three Months Ended. October 31,.
2024.2023. GAAP operating profit.$ 286.5.$ 215.2.Share-based compensation-related costs.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amount expenditure of gotten intangible assets.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 earnings.$ 350.7.$ 194.2.Share-based compensation-related costs.315.1.287.8.Acquisition-related prices( 1 ).15.1.–.Amortization expenditure of acquired unobservable properties.40.7.24.5.Litigation-related costs( 2 ).( 41.2 ).1.8.Non-cash charges connected to exchangeable details( 3 ).0.5.1.0.Income tax and also other tax modifications( 4 ).( 136.0 ).( 43.0 ).Non-GAAP take-home pay.$ 544.9.$ 466.3.
GAAP net income per portion, thinned down.$ 0.99.$ 0.56.Share-based compensation-related fees.0.92.0.86.Acquisition-related expenses( 1 ).0.04.0.00.Amortization expense of gotten intangible properties.0.11.0.07.Litigation-related fees( 2 ).( 0.12 ).0.01.Non-cash charges related to modifiable details( 3 ).0.00.0.00.Revenue tax obligation as well as various other tax obligation adjustments( 4 ).( 0.38 ).( 0.12 ).Non-GAAP net income every portion, thinned down.$ 1.56.$ 1.38. GAAP weighted-average shares utilized to calculate take-home pay per reveal, watered down.354.5.349.8.Weighted-average anti-dilutive impact of note bush arrangements.( 5.9 ).( 11.6 ).Non-GAAP weighted-average reveals made use of to compute income per portion, weakened.348.6.338.2. ( 1 ).Consists of achievement transaction costs, share-based remuneration related to the cash money negotiation of certain equity awards, improvement in decent market value of dependent factor obligation, and also costs to terminate particular job, working lease, and also various other deals of the gotten firms.( 2 ).Contain the amortization of intellectual property licenses as well as commitment not to take legal action against.
In the course of the 3 months ended Oct 31, 2024, it also includes a release of formerly accrued lawful contingency charge.( 3 ).Feature non-cash enthusiasm cost for amount of debt issue prices connected to the firm’s convertible elderly details.( 4 ).Include profit tax adjustments associated with our lasting non-GAAP helpful income tax price. Palo Alto Networks, Inc. Preliminary Concise Consolidated Harmony Linens.( In millions).
Oct 31, 2024.July 31, 2024. ( unaudited). Resources.
Existing assets:. Cash and also cash equivalents.$ 2,282.8.$ 1,535.2.Temporary financial investments.1,108.2.1,043.6.Funds receivable, net.1,132.9.2,618.6.Temporary lending receivables, web.805.1.725.9.Short-term delayed contract expenses.367.6.369.0.Prepaid costs and also other present assets.546.1.557.4.Overall existing resources.6,242.7.6,849.7.Building as well as devices, web.361.0.361.1.Running lease right-of-use properties.389.0.385.9.Lasting financial investments.4,119.7.4,173.2.Long-lasting loan receivables, net.1,092.2.1,182.1.Long-lasting postponed arrangement prices.531.9.562.0.Goodwill.4,050.8.3,350.1.Unobservable assets, net.809.6.374.9.Deferred tax obligation properties.2,397.5.2,399.0.Other possessions.380.2.352.9.Total assets.$ 20,374.6.$ 19,990.9.Liabilities and also shareholders’ equity. Current obligations:.
Accounts owed.$ 211.6.$ 116.3.Accumulated remuneration.354.5.554.7.Accumulated and also other liabilities.683.1.506.7.Deferred profits.5,507.7.5,541.1.Convertible elderly notes, web.645.8.963.9.Total present liabilities.7,402.7.7,682.7.Lasting put off income.5,585.9.5,939.4.Prolonged tax obligations.250.8.387.7.Long-term operating lease liabilities.379.6.380.5.Other lasting obligations.843.8.430.9.Complete liabilities.14,462.8.14,821.2.Shareholders’ equity:. Participating preferred stock.–.–.Common stock as well as added paid-in resources.4,214.9.3,821.1.Gathered various other complete reduction.( 4.0 ).( 1.6 ).Retained incomes.1,700.9.1,350.2.Complete stockholders’ equity.5,911.8.5,169.7.Complete obligations as well as stockholders’ equity.$ 20,374.6.$ 19,990.9. Resource Palo Alto Networks, Inc
.
NEED YOUR PROVIDER’S HEADLINES FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers. 9k+ Digital MediaOutlets.
270k+ JournalistsOpted In.