.Fiscal first quarter revenue developed 14% year over year to $2.1 billion.Next-Generation Security ARR increased 40% year over year to $4.5 billion.Staying performance responsibility increased 20% year over year to $12.6 billion.SANTA CLARA, Calif., Nov. 20, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the international cybersecurity leader, announced today monetary end results for its monetary 1st one-fourth 2025, finished Oct 31, 2024.Overall income for the monetary very first one-fourth 2025 expanded 14% year over year to $2.1 billion, compared to overall income of $1.9 billion for the budgetary 1st fourth 2024. GAAP net income for the economic 1st fourth 2025 was $350.7 thousand, or even $0.99 every diluted portion, compared with GAAP net income of $194.2 million, or $0.56 per diluted allotment, for the financial initial one-fourth 2024.Non-GAAP income for the fiscal 1st quarter 2025 was actually $544.9 thousand, or $1.56 every watered down allotment, compared to non-GAAP net income of $466.3 thousand, or $1.38 every diluted portion, for the monetary first one-fourth 2024.
A getting back together between GAAP and non-GAAP info is actually included in the tables listed below.” Our Q1 leads bolstered our view in our varied platformization tactic,” claimed Nikesh Arora, chairman as well as chief executive officer of Palo Alto Networks. “Our team observe a developing market awareness that platformization is actually the video game changer that will certainly solve surveillance and enable better artificial intelligence outcomes. I anticipate this will definitely be a multiyear style for which our experts are actually best positioned to deliver to our clients.”.” Our platformization progress proceeded in Q1, steering solid monetary end results,” pointed out Dipak Golechha, main economic policeman of Palo Alto Networks.
“As a result, our company are raising our NGS ARR, earnings and non-GAAP EPS support for the year.”.Stock SplitPalo Alto Networks declared that its own panel of directors has actually authorized a two-for-one forward equity split of the firm’s impressive reveals of common stock. The assets split is to become performed with a modification to the company’s reiterated certification of incorporation, which are going to additionally perform an in proportion boost in the amount of legitimate shares of ordinary shares coming from 1.0 billion to 2.0 billion. Each stockholder of file since the shut of investing on December 12, 2024 (the “record time”), will definitely get, after the close of trading on December 13, 2024, one added share for each reveal held on the report day.
Investing is actually anticipated to start on a split-adjusted basis on December 16, 2024.Financial OutlookPalo Alto Networks delivers advice based on present market conditions and also requirements.For the financial 2nd quarter 2025, our experts assume:.Next-Generation Surveillance ARR of $4.70 billion to $4.75 billion, exemplifying year-over-year growth of between 35% and also 36%.Remaining performance responsibility of $12.9 billion to $13.0 billion, exemplifying year-over-year development of in between 20% and also 21%.Overall profits in the stable of $2.22 billion to $2.25 billion, representing year-over-year growth of in between 12% and 14%.Thinned down non-GAAP earnings every share in the series of $1.54 to $1.56, using 350 million to 352 million allotments impressive.For the fiscal year 2025, our team expect:.Next-Generation Safety And Security ARR of $5.52 billion to $5.57 billion, working with year-over-year growth of between 31% and 32%.Remaining performance obligation of $15.2 billion to $15.3 billion, representing year-over-year growth of between 19% and also twenty%.Overall income in the range of $9.12 billion to $9.17 billion, working with year-over-year development of 14%.Non-GAAP operating margin in the range of 27.5% to 28.0%.Watered down non-GAAP income per cooperate the series of $6.26 to $6.39, using 350 million to 354 thousand portions excellent.Readjusted free cash flow margin in the range of 37% to 38%.Advice for non-GAAP financial steps leaves out share-based compensation-related fees, consisting of share-based pay-roll tax obligation expense, acquisition-related costs, consisting of improvement in reasonable market value of dependent point to consider obligation, amount expense of obtained intangible assets, litigation-related charges, non-cash fees connected to exchangeable notes, and profit tax obligation and also other tax adjustments associated with our lasting non-GAAP successful income tax price, together with certain non-recurring expenses and also specific non-recurring capital. We have actually certainly not integrated non-GAAP operating margin assistance to GAAP operating margin, weakened non-GAAP earnings every allotment advice to GAAP take-home pay every watered down portion or adjusted free of charge cash flow frame support to GAAP net cash coming from working activities given that our experts carry out certainly not deliver support on GAAP operating margin, GAAP take-home pay or even net cash coming from running activities as well as would certainly not have the capacity to offer the a variety of reconciling money and non-cash things in between GAAP and also non-GAAP economic actions since specific items that influence these steps doubt or even away from our control, or can not be moderately anticipated, including share-based compensation cost, without silly initiative. The actual quantities of such resolving things are going to have a significant impact on the company’s GAAP net income per watered down allotment and GAAP internet cash coming from functioning tasks.Profits Contact InformationPalo Alto Networks will certainly host a video clip webcast for experts and capitalists to discuss the firm’s monetary very first one-fourth 2025 results as well as the overview for its monetary second one-fourth as well as fiscal year 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific time. Available to everyone, investors might access the webcast, extra monetary info and profits slides coming from the “Financiers” part of the company’s site at investors.paloaltonetworks.com.
A replay will be actually available three hrs after the closure of the webcast and archived for one year.Forward-Looking StatementsThis press release has positive claims that include risks, unpredictabilities, and expectations including claims concerning our platformization method and financial outlook for the monetary 2nd fourth 2025 and 2025. There are a considerable number of variables that can cause real end results to vary materially coming from positive statements helped make or signified in this press release, consisting of: progressions and also adjustments as a whole market, political, economical, as well as business disorders failing of our platformization item offerings breakdown to accomplish the assumed perks of our key alliances and also accomplishments changes in the decent market value of our dependent factor obligation connected with acquisitions risks connected with managing our development threats linked with brand new item, subscription and help offerings, including our product offerings that take advantage of AI changes in top priorities or hold-ups in the growth or even release of new item or even registration or various other offerings, or the failing to well-timed cultivate and achieve market acceptance of new items and also memberships in addition to existing items, subscriptions and assistance offerings failing of our service techniques swiftly progressing technological growths on the market for security products, subscriptions and also help offerings defects, errors, or even susceptabilities in our items, memberships or even support offerings our customers’ getting selections as well as the length of sales patterns our competition our capacity to entice and preserve new customers our potential to acquire and include various other firms, products, or innovations in a productive way our personal debt payment responsibilities as well as our portion redeemed course, which may not be actually entirely consummated or enrich shareholder worth, and also any kind of share repurchases which might have an effect on the cost of our common stock.Extra risks and anxieties on these and also various other variables that could possibly influence our economic end results and the progressive claims our company create within this press release are actually consisted of under the inscriptions “Risk Aspects” and also “Control’s Discussion and also Evaluation of Financial Condition and also End Results of Procedures” as well as somewhere else in our Annual Document on Form 10-K submitted with the united state Stocks and Substitution Payment (” SEC”) on September 6, 2024, which is actually readily available on our website at investors.paloaltonetworks.com as well as on the SEC’s internet site at www.sec.gov. Added info is going to additionally be actually set forth in other files that we submit with or even furnish to the SEC every so often.
All progressive claims in this press release are based on our views and also info offered to control as of the day hereof, as well as our experts do certainly not assume any type of commitment to update the positive statements given to reflect events that occur or even instances that exist after the time on which they were actually produced.Non-GAAP Financial Steps and also Various Other Secret MetricsPalo Alto Networks has delivered in this particular news release economic details that has certainly not been actually prepared based on normally accepted accounting principles in the United States (GAAP). The business uses these non-GAAP monetary actions as well as other crucial metrics inside in analyzing its own financial results and strongly believes that making use of these non-GAAP financial procedures and also vital metrics are actually beneficial to financiers as an added tool to evaluate ongoing operating end results and also trends, as well as in contrasting the business’s monetary end results with various other companies in its own sector, much of which present identical non-GAAP monetary actions or vital metrics.The discussion of these non-GAAP financial solutions as well as crucial metrics are not implied to be looked at in isolation or even as a substitute for comparable GAAP financial procedures as well as ought to be read simply together with the provider’s consolidated economic declarations prepped based on GAAP. A getting back together of the company’s historic non-GAAP monetary solutions to their very most directly similar GAAP procedures has actually been given in the economic statement dining tables consisted of in this particular press release, and investors are encouraged to evaluate these reconciliations.Non-GAAP operating frame.
Palo Alto Networks specifies non-GAAP operating margin as non-GAAP operating profit split through complete profits. The provider determines non-GAAP operating profit as functioning income plus share-based compensation-related costs, including share-based pay-roll tax cost, acquisition-related expenses, featuring adjustment in reasonable market value of contingent point to consider responsibility, amortization expense of acquired intangible properties, as well as litigation-related fees. The company strongly believes that non-GAAP operating margin offers control as well as entrepreneurs with higher exposure in to the rooting efficiency of the company’s primary business operating end results.Non-GAAP take-home pay as well as earnings per allotment, thinned down.
Palo Alto Networks specifies non-GAAP income as net income plus share-based compensation-related charges, including share-based pay-roll tax expense, acquisition-related costs, including change in decent market value of dependent consideration liability, amount cost of acquired unobservable properties, litigation-related costs, featuring lawful negotiations, and also non-cash fees related to convertible keep in minds. The firm additionally omits from non-GAAP earnings tax modifications related to our long-term non-GAAP helpful tax rate in order to supply a complete picture of the firm’s recurring center company operating outcomes. The firm determines non-GAAP net income per allotment, weakened, as non-GAAP net income partitioned due to the weighted-average watered down reveals superior, which includes the potentially dilutive result of the provider’s employee equity motivation planning honors and the company’s convertible senior notes exceptional and associated warrants, after giving effect to the anti-dilutive impact of the business’s details hedge deals, which lowers the potential economic dip that otherwise will occur upon sale of the firm’s convertible senior keep in minds.
Under GAAP, the anti-dilutive influence of the keep in mind bush is actually certainly not shown in watered down portions outstanding. The firm thinks about these non-GAAP monetary solutions to be beneficial metrics for administration as well as financiers for the same main reasons that it utilizes non-GAAP operating margin.Next-Generation Surveillance ARR. Palo Alto Networks describes Next-Generation Surveillance ARR as the annualized allocated income of all active arrangements as of the final day of the coverage period for Prisma and Cortex offerings broad of the VM-Series and also similar solutions, and also particular cloud-delivered safety companies.
Starting the financial initial one-fourth 2025, Next-Generation Security ARR consists of revenue attributable to QRadar software program as a service contracts that our experts lately acquired coming from International Service Machines Organization. The provider looks at Next-Generation Surveillance ARR to be a useful metric for monitoring and also real estate investors to evaluate the performance of the company since Next-Generation Protection is where the business has actually centered its innovation and the provider anticipates its own general revenue to become overmuch driven by this Next-Generation Protection collection. Given That Next-Generation Safety ARR carries out certainly not have the impact of providing a mathematical action that is actually various from any kind of equivalent GAAP measure, the company does rule out it a non-GAAP solution.Real estate investors are cautioned that there are a lot of limits linked with the use of non-GAAP economic procedures as well as essential metrics as logical tools.
Many of the corrections to the firm’s GAAP monetary procedures demonstrate the omission of items that are recurring and are going to be demonstrated in the firm’s economic results for the foreseeable future, such as share-based compensation, which is a vital part of Palo Alto Networks workers’ remuneration and also effects their performance. Furthermore, these non-GAAP financial measures are actually not based on any sort of standardized technique prescribed by GAAP, as well as the parts that Palo Alto Networks omits in its estimate of non-GAAP economic solutions may differ coming from the elements that its own peer providers exclude when they disclose their non-GAAP results of procedures. Palo Alto Networks makes up for these restrictions through supplying certain info relating to the GAAP totals left out from these non-GAAP economic steps.
In the future, the firm might likewise leave out non-recurring expenses and also other expenditures that do not mirror the company’s core business operating outcomes.About Palo Alto NetworksPalo Alto Networks is actually the worldwide cybersecurity forerunner, devoted to creating each day more secure than the one before along with industry-leading, AI-powered remedies in network surveillance, cloud safety and security and also safety functions. Powered through Preciseness artificial intelligence, our innovations deliver specific danger diagnosis as well as quick reaction, decreasing misleading positives and enhancing security performance. Our platformization method combines varied safety solutions right into an unified, scalable platform, simplifying control and supplying operational efficiencies along with detailed security.
Coming from fighting for system borders to guarding cloud atmospheres as well as making certain rapid case action, Palo Alto Networks inspires companies to accomplish Zero Leave protection as well as with certainty take advantage of digital change in an ever-evolving threat yard. This undeviating devotion to protection and also technology makes our company the cybersecurity partner of choice.At Palo Alto Networks, our company are actually committed to uniting the greatest people operational of our objective, so our team are actually likewise happy to be the cybersecurity work environment of option, realized amongst Newsweek’s The majority of Liked Place of work (2021-2024), with a score of 100 on the Impairment Equality Mark (2024, 2023, 2022), as well as HRC Ideal Places for LGBTQ+ Equal Rights (2022 ). For additional information, check out www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks logo design, and Accuracy AI are hallmarks of Palo Alto Networks, Inc.
in the USA and also in jurisdictions throughout the planet. All other hallmarks, trade names, or registered trademark used or mentioned within belong to their respective owners. Any sort of unreleased solutions or even features (as well as any kind of companies or components certainly not typically available to consumers) referenced in this particular or other news release or even public claims are actually certainly not presently available (or even are actually certainly not yet generally available to customers) and may certainly not be actually supplied when expected or even at all.
Consumers that acquire Palo Alto Networks uses ought to produce their investment decisions based upon solutions and features currently normally on call. Palo Alto Networks, Inc. Preliminary Condensed Consolidated Statements of Workflow.( In millions, except every reveal data).( Unaudited).
3 Months Ended. October 31,. 2024.2023.Earnings:.
Item.$ 353.8.$ 341.1.Membership and also support.1,785.0.1,537.0.Complete earnings.2,138.8.1,878.1.Cost of income:. Item.75.0.77.4.Subscription and also support.479.1.395.4.Complete expense of revenue.554.1.472.8.Complete markup.1,584.7.1,405.3.General expenses:. Trial and error.480.4.409.5.Purchases as well as marketing.720.1.660.5.General as well as management.97.7.120.1.Total overhead.1,298.2.1,190.1.Operating earnings.286.5.215.2.Enthusiasm cost.( 1.2 ).( 2.9 ).Other profit, web.83.3.70.3.Revenue just before earnings tax obligations.368.6.282.6.Provision for income tax obligations.17.9.88.4.Take-home pay.$ 350.7.$ 194.2.
Income every reveal, basic.$ 1.07.$ 0.63.Net income per allotment, diluted.$ 0.99.$ 0.56. Weighted-average reveals used to figure out earnings per share, standard.326.8.310.1.Weighted-average portions made use of to figure out income per allotment, diluted.354.5.349.8. Palo Alto Networks, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures.( In millions, apart from every reveal quantities).( Unaudited). 3 Months Ended. October 31,.
2024.2023. GAAP operating revenue.$ 286.5.$ 215.2.Share-based compensation-related costs.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amortization cost of acquired unobservable assets.40.7.24.5.Litigation-related fees( 2 ).( 41.2 ).1.8.Non-GAAP operating profit.$ 616.2.$ 529.3.Non-GAAP operating margin.28.8 %.28.2 %. GAAP income.$ 350.7.$ 194.2.Share-based compensation-related charges.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amount expense of acquired abstract properties.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-cash costs related to modifiable details( 3 ).0.5.1.0.Earnings tax as well as various other income tax changes( 4 ).( 136.0 ).( 43.0 ).Non-GAAP take-home pay.$ 544.9.$ 466.3.
GAAP take-home pay every share, weakened.$ 0.99.$ 0.56.Share-based compensation-related costs.0.92.0.86.Acquisition-related expenses( 1 ).0.04.0.00.Amortization expenditure of obtained abstract possessions.0.11.0.07.Litigation-related fees( 2 ).( 0.12 ).0.01.Non-cash charges connected to modifiable notes( 3 ).0.00.0.00.Profit tax as well as other tax obligation changes( 4 ).( 0.38 ).( 0.12 ).Non-GAAP take-home pay per share, weakened.$ 1.56.$ 1.38. GAAP weighted-average reveals utilized to compute take-home pay every share, weakened.354.5.349.8.Weighted-average anti-dilutive impact of note bush arrangements.( 5.9 ).( 11.6 ).Non-GAAP weighted-average allotments utilized to compute take-home pay per portion, watered down.348.6.338.2. ( 1 ).Consists of accomplishment deal expenses, share-based payment pertaining to the cash resolution of certain equity awards, adjustment in decent market value of dependent factor to consider responsibility, and also expenses to end particular work, operating lease, and also various other agreements of the gotten companies.( 2 ).Consists of the amortization of patent licenses and covenant not to file suit.
During the course of the three months finished Oct 31, 2024, it additionally consists of a launch of earlier built up legal contingency charge.( 3 ).Contain non-cash enthusiasm expenditure for amount of financial obligation issuance expenses connected to the firm’s modifiable senior notes.( 4 ).Feature income tax corrections related to our long-term non-GAAP reliable tax rate. Palo Alto Networks, Inc. Preparatory Compressed Consolidated Equilibrium Linens.( In thousands).
October 31, 2024.July 31, 2024. ( unaudited). Resources.
Present possessions:. Cash and money equivalents.$ 2,282.8.$ 1,535.2.Temporary investments.1,108.2.1,043.6.Accounts receivable, internet.1,132.9.2,618.6.Short-term lending receivables, internet.805.1.725.9.Short-term deferred arrangement prices.367.6.369.0.Prepaid costs and also other existing resources.546.1.557.4.Overall present possessions.6,242.7.6,849.7.Home and also devices, net.361.0.361.1.Functioning lease right-of-use properties.389.0.385.9.Long-lasting assets.4,119.7.4,173.2.Long-lasting funding receivables, web.1,092.2.1,182.1.Long-lasting put off agreement expenses.531.9.562.0.Goodwill.4,050.8.3,350.1.Unobservable possessions, internet.809.6.374.9.Deferred tax properties.2,397.5.2,399.0.Various other possessions.380.2.352.9.Total properties.$ 20,374.6.$ 19,990.9.Responsibilities as well as shareholders’ equity. Present liabilities:.
Funds payable.$ 211.6.$ 116.3.Accumulated settlement.354.5.554.7.Accrued and various other responsibilities.683.1.506.7.Deferred profits.5,507.7.5,541.1.Convertible elderly keep in minds, web.645.8.963.9.Total present responsibilities.7,402.7.7,682.7.Long-term deferred earnings.5,585.9.5,939.4.Deferred income tax responsibilities.250.8.387.7.Lasting operating lease responsibilities.379.6.380.5.Various other long-term responsibilities.843.8.430.9.Total obligations.14,462.8.14,821.2.Shareholders’ equity:. Participating preferred stock.–.–.Ordinary shares and also added paid-in funds.4,214.9.3,821.1.Accumulated other comprehensive reduction.( 4.0 ).( 1.6 ).Preserved profits.1,700.9.1,350.2.Complete shareholders’ equity.5,911.8.5,169.7.Complete responsibilities as well as stockholders’ equity.$ 20,374.6.$ 19,990.9. Resource Palo Alto Networks, Inc
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