.Fiscal initial quarter revenue increased 14% year over year to $2.1 billion.Next-Generation Safety ARR expanded 40% year over year to $4.5 billion.Remaining functionality obligation grew twenty% year over year to $12.6 billion.SANTA CLARA, Calif., Nov. twenty, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the international cybersecurity innovator, revealed today financial results for its own budgetary 1st one-fourth 2025, finished October 31, 2024.Total income for the budgetary 1st one-fourth 2025 increased 14% year over year to $2.1 billion, compared to overall income of $1.9 billion for the budgetary initial quarter 2024. GAAP income for the monetary first quarter 2025 was $350.7 thousand, or $0.99 every diluted share, compared to GAAP income of $194.2 million, or $0.56 per diluted share, for the monetary 1st fourth 2024.Non-GAAP net income for the economic first one-fourth 2025 was $544.9 thousand, or even $1.56 per watered down share, compared to non-GAAP earnings of $466.3 thousand, or $1.38 per diluted reveal, for the financial very first fourth 2024.
A settlement in between GAAP and also non-GAAP relevant information is actually had in the dining tables below.” Our Q1 results strengthened our conviction in our separated platformization approach,” pointed out Nikesh Arora, leader and CEO of Palo Alto Networks. “We observe a growing market realization that platformization is actually the video game changer that are going to handle surveillance as well as make it possible for better artificial intelligence outcomes. I anticipate this are going to be actually a multiyear style for which we are better set up to deliver to our customers.”.” Our platformization progress continued in Q1, driving sturdy financial results,” mentioned Dipak Golechha, chief economic police officer of Palo Alto Networks.
“As a result, our team are raising our NGS ARR, profits and also non-GAAP EPS direction for the year.”.Equity SplitPalo Alto Networks revealed that its own panel of supervisors has permitted a two-for-one forward stock crack of the provider’s impressive allotments of common stock. The stock split is actually to become effected by means of a modification to the firm’s restated certification of incorporation, which will likewise perform a proportional boost in the lot of legitimate portions of common stock coming from 1.0 billion to 2.0 billion. Each stockholder of file as of the close of exchanging on December 12, 2024 (the “record time”), will definitely get, after the shut of investing on December 13, 2024, one extra portion for every share held on the record time.
Investing is actually assumed to start on a split-adjusted manner on December 16, 2024.Financial OutlookPalo Alto Networks offers support based upon current market situations and also requirements.For the financial 2nd one-fourth 2025, our company assume:.Next-Generation Security ARR of $4.70 billion to $4.75 billion, working with year-over-year growth of in between 35% and also 36%.Staying efficiency commitment of $12.9 billion to $13.0 billion, exemplifying year-over-year development of in between twenty% as well as 21%.Total revenue in the series of $2.22 billion to $2.25 billion, exemplifying year-over-year growth of in between 12% and also 14%.Thinned down non-GAAP net income per cooperate the range of $1.54 to $1.56, using 350 million to 352 million reveals superior.For the fiscal year 2025, our experts anticipate:.Next-Generation Surveillance ARR of $5.52 billion to $5.57 billion, embodying year-over-year growth of in between 31% and also 32%.Staying performance obligation of $15.2 billion to $15.3 billion, exemplifying year-over-year growth of between 19% as well as twenty%.Overall earnings in the variety of $9.12 billion to $9.17 billion, exemplifying year-over-year growth of 14%.Non-GAAP operating frame in the stable of 27.5% to 28.0%.Weakened non-GAAP income every cooperate the range of $6.26 to $6.39, using 350 million to 354 million portions outstanding.Readjusted free capital frame in the variety of 37% to 38%.Guidance for non-GAAP monetary actions omits share-based compensation-related fees, consisting of share-based payroll income tax expenditure, acquisition-related expenses, including change in reasonable market value of dependent point to consider liability, amortization cost of gotten unobservable resources, litigation-related charges, non-cash charges associated with convertible details, and earnings tax and various other income tax corrections associated with our long-lasting non-GAAP helpful tax obligation cost, along with certain non-recurring expenditures and also particular non-recurring capital. Our company have not resolved non-GAAP operating margin assistance to GAAP operating scope, thinned down non-GAAP income per portion guidance to GAAP net income every diluted reveal or adjusted complimentary cash flow margin guidance to GAAP web cash from running activities given that we perform certainly not deliver guidance on GAAP operating margin, GAAP earnings or net cash coming from running activities as well as would certainly not have the ability to present the different fixing up money and non-cash products between GAAP and also non-GAAP monetary steps considering that specific products that impact these procedures doubt or out of our control, or may certainly not be actually fairly anticipated, including share-based settlement expense, without weird initiative. The real amounts of such reconciling products are going to possess a substantial effect on the provider’s GAAP earnings per watered down allotment and also GAAP web cash money from working tasks.Profits Get In Touch With InformationPalo Alto Networks will definitely host a video clip webcast for analysts and also capitalists to cover the firm’s economic initial fourth 2025 leads in addition to the overview for its fiscal 2nd one-fourth as well as 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific opportunity. Available to the general public, clients might access the webcast, supplemental monetary details as well as incomes slides coming from the “Real estate investors” area of the firm’s site at investors.paloaltonetworks.com.
A replay is going to be actually available 3 hours after the closure of the webcast as well as archived for one year.Progressive StatementsThis news release includes positive claims that entail threats, unpredictabilities, and presumptions consisting of statements concerning our platformization tactic as well as monetary expectation for the economic 2nd one-fourth 2025 and also 2025. There are a considerable number of aspects that could possibly cause actual outcomes to differ materially coming from progressive claims created or even implied in this press release, consisting of: advancements and also changes in general market, political, financial, and also service conditions failure of our platformization item offerings breakdown to attain the expected advantages of our calculated alliances and also achievements changes in the decent market value of our dependent factor obligation associated with acquisitions threats connected with managing our development risks related to brand-new item, subscription and also support offerings, featuring our item offerings that make use of AI changes in concerns or even delays in the development or release of new product or membership or even various other offerings, or even the failing to quick cultivate as well as obtain market recognition of brand new products as well as memberships along with existing items, subscriptions and support offerings failing of our company approaches swiftly growing technological developments in the marketplace for safety products, memberships as well as assistance offerings issues, inaccuracies, or even susceptibilities in our items, subscriptions or assistance offerings our consumers’ investing in selections as well as the duration of sales patterns our competitors our capability to attract and also retain brand new clients our capacity to obtain and also incorporate various other companies, items, or even technologies in a successful manner our debt monthly payment obligations and our allotment bought system, which might not be completely consummated or even enhance investor worth, and any type of portion repurchases which can influence the price of our common stock.Additional risks and also anxieties on these and other variables that can influence our monetary outcomes and the positive statements we create in this particular press release are actually included under the captions “Threat Factors” and also “Administration’s Discussion as well as Review of Financial Ailment as well as Results of Operations” as well as in other places in our Annual Document on Form 10-K filed with the USA Securities as well as Swap Payment (” SEC”) on September 6, 2024, which is actually accessible on our website at investors.paloaltonetworks.com and on the SEC’s web site at www.sec.gov. Added information will certainly likewise be actually stated in other records that our company file along with or even decorate to the SEC every so often.
All progressive statements in this press release are based on our opinions and information readily available to monitoring since the date in this regard, and our experts perform certainly not assume any kind of commitment to update the positive declarations supplied to mirror celebrations that develop or even instances that exist after the date on which they were made.Non-GAAP Financial Solutions as well as Other Secret MetricsPalo Alto Networks has actually supplied within this news release monetary details that has actually not been actually prepared in accordance with typically accepted accounting concepts in the United States (GAAP). The provider utilizes these non-GAAP monetary procedures as well as various other crucial metrics internally in assessing its own economic end results as well as believes that the use of these non-GAAP financial actions and also essential metrics are valuable to real estate investors as an added tool to examine recurring operating results and also fads, and in reviewing the business’s monetary outcomes with other providers in its own field, many of which current identical non-GAAP monetary procedures or essential metrics.The discussion of these non-GAAP monetary solutions as well as essential metrics are certainly not meant to become taken into consideration in isolation or even alternatively for similar GAAP economic steps as well as ought to be read only in conjunction with the business’s combined economic statements readied based on GAAP. A getting back together of the company’s historical non-GAAP financial steps to their very most straight similar GAAP procedures has actually been actually supplied in the financial claim tables featured in this press release, and also clients are promoted to review these reconciliations.Non-GAAP operating frame.
Palo Alto Networks defines non-GAAP operating margin as non-GAAP operating profit divided by total revenue. The business defines non-GAAP operating earnings as working income plus share-based compensation-related charges, featuring share-based pay-roll tax obligation cost, acquisition-related costs, including adjustment in reasonable worth of contingent point to consider obligation, amortization expenditure of acquired unobservable possessions, and also litigation-related costs. The provider feels that non-GAAP operating frame offers monitoring and clients with higher presence in to the underlying efficiency of the business’s center company operating outcomes.Non-GAAP income and earnings every share, diluted.
Palo Alto Networks defines non-GAAP take-home pay as net income plus share-based compensation-related fees, featuring share-based pay-roll tax obligation expense, acquisition-related expenses, including modification in decent value of dependent factor to consider obligation, amortization expense of obtained unobservable possessions, litigation-related fees, featuring legal resolutions, as well as non-cash fees related to exchangeable keep in minds. The business also omits coming from non-GAAP earnings tax modifications associated with our lasting non-GAAP reliable tax obligation price in order to give a full photo of the business’s repeating primary company operating end results. The company determines non-GAAP net income every reveal, weakened, as non-GAAP income split due to the weighted-average diluted shares impressive, which includes the possibly dilutive effect of the company’s employee equity incentive planning honors and the company’s modifiable senior keep in minds excellent and also related warrants, after giving result to the anti-dilutive influence of the company’s note bush deals, which reduces the potential economical dip that or else would develop upon transformation of the provider’s convertible elderly details.
Under GAAP, the anti-dilutive influence of the note bush is actually certainly not demonstrated in diluted allotments superior. The firm takes into consideration these non-GAAP monetary steps to become helpful metrics for management and also investors for the very same reasons that it uses non-GAAP operating margin.Next-Generation Surveillance ARR. Palo Alto Networks describes Next-Generation Safety and security ARR as the annualized assigned earnings of all active contracts as of the last time of the coverage period for Prisma as well as Pallium offerings broad of the VM-Series and also relevant companies, as well as certain cloud-delivered security services.
Beginning the fiscal first one-fourth 2025, Next-Generation Protection ARR consists of income derivable to QRadar software as a service contracts that our team recently got from International Company Machines Enterprise. The firm looks at Next-Generation Security ARR to become a valuable metric for control as well as entrepreneurs to analyze the efficiency of the business considering that Next-Generation Security is actually where the company has focused its own technology and also the business expects its own total income to become overmuch driven by this Next-Generation Protection profile. Given That Next-Generation Surveillance ARR carries out certainly not possess the result of offering a mathematical solution that is actually various from any kind of comparable GAAP measure, the firm does not consider it a non-GAAP procedure.Capitalists are cautioned that there are an amount of restrictions associated with making use of non-GAAP financial steps and also essential metrics as analytical tools.
Most of the adjustments to the business’s GAAP financial procedures reflect the exclusion of things that are reoccuring and also will certainly be actually mirrored in the business’s economic outcomes for the near future, including share-based payment, which is actually an important part of Palo Alto Networks workers’ compensation and also impacts their performance. On top of that, these non-GAAP economic measures are actually not based on any sort of standardized technique recommended by GAAP, as well as the parts that Palo Alto Networks leaves out in its estimation of non-GAAP economic steps may vary from the components that its own peer firms exclude when they state their non-GAAP outcomes of functions. Palo Alto Networks makes up for these constraints through providing details details regarding the GAAP totals left out from these non-GAAP monetary actions.
Later on, the provider might also leave out non-recurring expenditures and also other costs that do not mirror the company’s center service operating results.Concerning Palo Alto NetworksPalo Alto Networks is the international cybersecurity innovator, devoted to helping make on a daily basis more secure than the one before with industry-leading, AI-powered solutions in system safety, cloud safety and also protection procedures. Powered by Accuracy AI, our technologies deliver accurate risk detection and also swift response, minimizing inaccurate positives as well as enhancing protection efficiency. Our platformization method integrates assorted protection options right into a consolidated, scalable system, simplifying monitoring and giving functional performances with extensive defense.
Coming from guarding network borders to protecting cloud atmospheres as well as making certain quick occurrence response, Palo Alto Networks equips organizations to achieve Absolutely no Rely on protection and also confidently welcome electronic change in an ever-evolving threat garden. This steadfast commitment to safety and also development produces us the cybersecurity companion of option.At Palo Alto Networks, our company are actually committed to bringing together the best folks in service of our mission, so our experts are actually likewise pleased to become the cybersecurity office of choice, recognized one of Newsweek’s A lot of Adored Offices (2021-2024), with a score of one hundred on the Impairment Equality Index (2024, 2023, 2022), and also HRC Absolute Best Places for LGBTQ+ Equality (2022 ). To learn more, check out www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks logo, and also Accuracy artificial intelligence are trademarks of Palo Alto Networks, Inc.
in the United States and also in legal systems throughout the globe. All other hallmarks, brand name, or registered trademark used or stated here come from their respective owners. Any unreleased companies or functions (as well as any sort of services or even features certainly not generally accessible to customers) referenced within this or other news release or public declarations are actually certainly not presently available (or even are actually certainly not yet generally accessible to consumers) as well as may certainly not be actually provided when expected or even in any way.
Customers who obtain Palo Alto Networks requests ought to create their acquisition choices based on companies and also features presently commonly offered. Palo Alto Networks, Inc. Initial Condensed Consolidated Statements of Procedures.( In thousands, except per reveal information).( Unaudited).
Three Months Ended. Oct 31,. 2024.2023.Revenue:.
Product.$ 353.8.$ 341.1.Membership as well as assistance.1,785.0.1,537.0.Complete profits.2,138.8.1,878.1.Expense of profits:. Item.75.0.77.4.Membership and assistance.479.1.395.4.Overall cost of earnings.554.1.472.8.Total gross profit.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 also administrative.97.7.120.1.Overall operating budget.1,298.2.1,190.1.Operating income.286.5.215.2.Interest cost.( 1.2 ).( 2.9 ).Other profit, internet.83.3.70.3.Profit before profit tax obligations.368.6.282.6.Provision for revenue taxes.17.9.88.4.Income.$ 350.7.$ 194.2.
Income per reveal, simple.$ 1.07.$ 0.63.Income per portion, diluted.$ 0.99.$ 0.56. Weighted-average shares made use of to figure out earnings every reveal, standard.326.8.310.1.Weighted-average shares made use of to figure out take-home pay per share, watered down.354.5.349.8. Palo Alto Networks, Inc.
Reconciliation of GAAP to Non-GAAP Financial Amounts.( In thousands, apart from per portion volumes).( Unaudited). Three Months Ended. October 31,.
2024.2023. GAAP operating income.$ 286.5.$ 215.2.Share-based compensation-related costs.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amortization expense of acquired intangible properties.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 fees.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amount expense of acquired abstract possessions.40.7.24.5.Litigation-related costs( 2 ).( 41.2 ).1.8.Non-cash costs associated with exchangeable details( 3 ).0.5.1.0.Revenue tax obligation and also various other income tax corrections( 4 ).( 136.0 ).( 43.0 ).Non-GAAP net income.$ 544.9.$ 466.3.
GAAP take-home pay per share, diluted.$ 0.99.$ 0.56.Share-based compensation-related fees.0.92.0.86.Acquisition-related costs( 1 ).0.04.0.00.Amount expenditure of obtained intangible resources.0.11.0.07.Litigation-related charges( 2 ).( 0.12 ).0.01.Non-cash charges associated with exchangeable keep in minds( 3 ).0.00.0.00.Earnings income tax and also other income tax changes( 4 ).( 0.38 ).( 0.12 ).Non-GAAP income per allotment, thinned down.$ 1.56.$ 1.38. GAAP weighted-average allotments used to compute net income per reveal, diluted.354.5.349.8.Weighted-average anti-dilutive effect newsworthy bush deals.( 5.9 ).( 11.6 ).Non-GAAP weighted-average portions made use of to figure out net income every allotment, watered down.348.6.338.2. ( 1 ).Be composed of acquisition transaction prices, share-based remuneration related to the cash resolution of particular equity awards, improvement in decent value of dependent point to consider obligation, as well as expenses to end certain job, operating lease, and also other agreements of the obtained firms.( 2 ).Include the amount of trademark licenses and also covenant certainly not to take legal action against.
Throughout the 3 months ended October 31, 2024, it additionally consists of a launch of previously accumulated legal contingency cost.( 3 ).Consists of non-cash enthusiasm expenditure for amortization of personal debt issue prices connected to the company’s convertible senior details.( 4 ).Feature earnings tax changes associated with our lasting non-GAAP effective tax obligation fee. Palo Alto Networks, Inc. Preparatory Condensed Consolidated Equilibrium Linens.( In thousands).
October 31, 2024.July 31, 2024. ( unaudited). Properties.
Current properties:. Cash and also money matchings.$ 2,282.8.$ 1,535.2.Short-term assets.1,108.2.1,043.6.Funds receivable, internet.1,132.9.2,618.6.Short-term funding receivables, web.805.1.725.9.Temporary put off deal expenses.367.6.369.0.Prepaid costs and other existing resources.546.1.557.4.Total present assets.6,242.7.6,849.7.Home and also equipment, internet.361.0.361.1.Running lease right-of-use assets.389.0.385.9.Lasting expenditures.4,119.7.4,173.2.Lasting loan receivables, net.1,092.2.1,182.1.Lasting put off deal costs.531.9.562.0.A good reputation.4,050.8.3,350.1.Abstract possessions, web.809.6.374.9.Prolonged tax obligation possessions.2,397.5.2,399.0.Various other properties.380.2.352.9.Total resources.$ 20,374.6.$ 19,990.9.Responsibilities as well as shareholders’ equity. Existing liabilities:.
Accounts payable.$ 211.6.$ 116.3.Accumulated remuneration.354.5.554.7.Accumulated and also various other obligations.683.1.506.7.Deferred income.5,507.7.5,541.1.Modifiable elderly keep in minds, internet.645.8.963.9.Overall current obligations.7,402.7.7,682.7.Lasting delayed earnings.5,585.9.5,939.4.Deferred tax obligations.250.8.387.7.Long-term operating lease responsibilities.379.6.380.5.Various other long-term responsibilities.843.8.430.9.Total liabilities.14,462.8.14,821.2.Stockholders’ equity:. Preferred stock.–.–.Ordinary shares and extra paid-in capital.4,214.9.3,821.1.Accumulated various other detailed reduction.( 4.0 ).( 1.6 ).Maintained incomes.1,700.9.1,350.2.Overall stockholders’ equity.5,911.8.5,169.7.Overall obligations and investors’ equity.$ 20,374.6.$ 19,990.9. SOURCE Palo Alto Networks, Inc
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