.Fiscal 1st one-fourth earnings developed 14% year over year to $2.1 billion.Next-Generation Protection ARR increased 40% year over year to $4.5 billion.Staying performance obligation expanded 20% year over year to $12.6 billion.SANTA CLAM CLARA, Calif., Nov. 20, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the international cybersecurity forerunner, announced today financial results for its monetary first fourth 2025, ended Oct 31, 2024.Complete revenue for the economic first fourth 2025 expanded 14% year over year to $2.1 billion, compared to overall earnings of $1.9 billion for the financial initial fourth 2024. GAAP income for the financial very first one-fourth 2025 was $350.7 thousand, or even $0.99 per diluted portion, compared with GAAP take-home pay of $194.2 million, or even $0.56 per watered down allotment, for the economic very first quarter 2024.Non-GAAP net income for the economic initial fourth 2025 was actually $544.9 million, or $1.56 per diluted reveal, compared to non-GAAP income of $466.3 thousand, or $1.38 every watered down reveal, for the budgetary 1st quarter 2024.
A reconciliation in between GAAP as well as non-GAAP relevant information is actually consisted of in the dining tables listed below.” Our Q1 results improved our conviction in our varied platformization approach,” said Nikesh Arora, chairman and also CEO of Palo Alto Networks. “Our company find a growing market realization that platformization is the activity changer that will certainly handle security as well as permit much better artificial intelligence outcomes. I expect this will definitely be actually a multiyear style for which we are well placed to provide to our customers.”.” Our platformization progression continued in Q1, driving strong monetary end results,” mentioned Dipak Golechha, main economic officer of Palo Alto Networks.
“Consequently, our experts are increasing our NGS ARR, earnings as well as non-GAAP EPS advice for the year.”.Equity SplitPalo Alto Networks revealed that its panel of supervisors has actually approved a two-for-one aggressive assets split of the company’s superior reveals of common stock. The stock split is actually to become performed through an amendment to the company’s reiterated certification of unification, which will definitely likewise impact a proportionate increase in the variety of certified allotments of common stock coming from 1.0 billion to 2.0 billion. Each investor of document as of the shut of trading on December 12, 2024 (the “file time”), will certainly receive, after the close of exchanging on December thirteen, 2024, one added portion for each allotment hung on the file date.
Investing is expected to begin on a split-adjusted manner on December 16, 2024.Financial OutlookPalo Alto Networks delivers guidance based on present market situations and also expectations.For the fiscal second fourth 2025, we anticipate:.Next-Generation Security ARR of $4.70 billion to $4.75 billion, exemplifying year-over-year growth of between 35% and also 36%.Staying efficiency commitment of $12.9 billion to $13.0 billion, working with year-over-year development of between 20% as well as 21%.Overall income in the series of $2.22 billion to $2.25 billion, embodying year-over-year growth of between 12% and 14%.Thinned down non-GAAP earnings per cooperate the range of $1.54 to $1.56, using 350 million to 352 million portions impressive.For the fiscal year 2025, we anticipate:.Next-Generation Safety ARR of $5.52 billion to $5.57 billion, representing year-over-year development of between 31% and also 32%.Staying efficiency responsibility of $15.2 billion to $15.3 billion, embodying year-over-year development of between 19% as well as 20%.Complete earnings in the variety of $9.12 billion to $9.17 billion, standing for year-over-year development of 14%.Non-GAAP operating scope in the range of 27.5% to 28.0%.Weakened non-GAAP earnings per share in the series of $6.26 to $6.39, making use of 350 million to 354 thousand shares excellent.Changed free capital scope in the series of 37% to 38%.Guidance for non-GAAP monetary steps leaves out share-based compensation-related costs, including share-based payroll tax obligation cost, acquisition-related costs, featuring improvement in fair value of contingent factor to consider obligation, amortization expenditure of obtained unobservable possessions, litigation-related fees, non-cash charges connected to modifiable details, and profit tax obligation and also other tax obligation corrections associated with our long-lasting non-GAAP helpful income tax price, in addition to particular non-recurring costs and also specific non-recurring capital. Our experts have actually not fixed up non-GAAP operating scope direction to GAAP operating scope, diluted non-GAAP take-home pay every allotment advice to GAAP income every watered down allotment or changed free cash flow margin guidance to GAAP internet money coming from operating activities considering that our experts perform certainly not offer support on GAAP operating margin, GAAP income or even internet money from working activities and also would certainly not manage to offer the numerous resolving money and non-cash products in between GAAP as well as non-GAAP financial steps because particular products that affect these solutions are uncertain or out of our management, or may certainly not be actually evenly forecasted, including share-based settlement expense, without unreasonable attempt. The genuine quantities of such fixing up products will definitely have a substantial influence on the business’s GAAP take-home pay every watered down portion as well as GAAP web money from running tasks.Earnings Contact InformationPalo Alto Networks will definitely hold a video recording webcast for experts as well as clients to go over the company’s monetary initial fourth 2025 leads as well as the outlook for its own financial 2nd fourth and fiscal year 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific time. Available to the public, investors might access the webcast, extra economic information and revenues slides coming from the “Real estate investors” part of the company’s internet site at investors.paloaltonetworks.com.
A replay is going to be accessible three hours after the outcome of the webcast as well as archived for one year.Positive StatementsThis news release contains positive declarations that involve dangers, anxieties, and beliefs consisting of declarations concerning our platformization strategy and financial overview for the monetary 2nd one-fourth 2025 as well as fiscal year 2025. There are actually a considerable number of aspects that could possibly create true end results to differ materially coming from positive declarations created or indicated in this news release, consisting of: advancements and modifications typically market, political, economic, and also business ailments failing of our platformization item offerings breakdown to accomplish the expected perks of our critical alliances and also achievements changes in the reasonable market value of our dependent consideration liability associated with accomplishments threats linked with managing our development dangers connected with new product, subscription and help offerings, featuring our item offerings that make use of AI shifts in priorities or even delays in the growth or even launch of brand-new item or subscription or even various other offerings, or the failing to prompt cultivate and accomplish market acceptance of brand new items and memberships in addition to existing products, registrations and also support offerings breakdown of our organization tactics quickly evolving technological advancements in the marketplace for safety products, subscriptions as well as support offerings issues, inaccuracies, or susceptabilities in our products, registrations or assistance offerings our customers’ getting selections as well as the span of sales patterns our competition our capacity to attract as well as preserve brand new clients our ability to get and also integrate various other firms, products, or even innovations in a prosperous way our financial obligation settlement obligations and also our reveal redeemed system, which may not be fully consummated or even boost shareholder worth, as well as any type of allotment repurchases which can influence the cost of our ordinary shares.Additional dangers and uncertainties on these and various other aspects that could influence our monetary end results and also the progressive statements our team make in this particular press release are actually included under the subtitles “Threat Variables” and also “Management’s Conversation and also Study of Financial Ailment and End Results of Functions” and also elsewhere in our Annual Record on Form 10-K filed with the united state Securities and also Exchange Commission (” SEC”) on September 6, 2024, which is actually readily available on our website at investors.paloaltonetworks.com and on the SEC’s internet site at www.sec.gov. Added info will additionally be actually set forth in other files that we submit with or even equip to the SEC from time to time.
All positive declarations within this news release are based upon our opinions as well as details accessible to control since the date hereof, as well as our experts do not presume any kind of responsibility to upgrade the forward-looking claims delivered to mirror celebrations that take place or even instances that exist after the time on which they were created.Non-GAAP Financial Actions as well as Other Key MetricsPalo Alto Networks has actually supplied in this news release financial details that has certainly not been actually readied according to usually approved accountancy concepts in the United States (GAAP). The firm uses these non-GAAP economic measures and various other essential metrics inside in studying its own financial outcomes and feels that the use of these non-GAAP monetary solutions and key metrics are actually handy to entrepreneurs as an additional resource to analyze on-going operating end results as well as trends, and also in comparing the company’s economic end results along with other business in its own sector, much of which found comparable non-GAAP monetary steps or even key metrics.The presentation of these non-GAAP monetary procedures and also crucial metrics are actually not suggested to be looked at alone or even alternatively for comparable GAAP monetary actions and need to be read merely along with the company’s consolidated economic claims prepped according to GAAP. A reconciliation of the business’s historic non-GAAP monetary actions to their most straight similar GAAP solutions has actually been given in the financial claim dining tables consisted of within this press release, as well as clients are promoted to assess these reconciliations.Non-GAAP operating scope.
Palo Alto Networks determines non-GAAP operating frame as non-GAAP operating earnings separated by overall profits. The firm defines non-GAAP operating revenue as operating profit plus share-based compensation-related costs, featuring share-based pay-roll tax cost, acquisition-related costs, consisting of improvement in decent worth of dependent consideration liability, amortization cost of acquired abstract resources, and also litigation-related charges. The firm feels that non-GAAP operating scope supplies control and clients along with higher presence in to the rooting efficiency of the business’s center organization operating results.Non-GAAP take-home pay as well as earnings per portion, watered down.
Palo Alto Networks determines non-GAAP take-home pay as net income plus share-based compensation-related fees, including share-based pay-roll tax expenditure, acquisition-related prices, consisting of adjustment in decent market value of contingent consideration responsibility, amount cost of obtained abstract properties, litigation-related fees, consisting of legal resolutions, and also non-cash charges associated with modifiable notes. The business additionally omits from non-GAAP earnings tax modifications associated with our long-term non-GAAP helpful income tax fee to offer a comprehensive picture of the business’s repeating primary company operating outcomes. The provider specifies non-GAAP net income per share, thinned down, as non-GAAP earnings partitioned by the weighted-average diluted allotments excellent, that includes the likely dilutive effect of the provider’s employee equity reward strategy awards and the provider’s exchangeable senior keep in minds superior and also related warrants, after giving effect to the anti-dilutive effect of the business’s note hedge agreements, which minimizes the potential financial dilution that otherwise will take place upon transformation of the company’s convertible senior details.
Under GAAP, the anti-dilutive impact of the note hedge is actually certainly not reflected in watered down portions impressive. The firm takes into consideration these non-GAAP financial measures to become practical metrics for administration and also capitalists for the very same explanations that it uses non-GAAP operating scope.Next-Generation Safety ARR. Palo Alto Networks describes Next-Generation Safety and security ARR as the annualized allocated earnings of all active agreements as of the ultimate time of the reporting time period for Prisma as well as Pallium offerings broad of the VM-Series and also relevant companies, and also certain cloud-delivered safety solutions.
Beginning the budgetary initial fourth 2025, Next-Generation Protection ARR includes profits derivable to QRadar software as a solution agreements that our experts just recently acquired from International Business Machines Corporation. The business thinks about Next-Generation Security ARR to be a beneficial measurement for management and also real estate investors to assess the efficiency of the business due to the fact that Next-Generation Safety and security is actually where the firm has actually centered its development and the business anticipates its overall income to be disproportionately steered through this Next-Generation Security profile. Since Next-Generation Protection ARR does certainly not have the result of supplying a mathematical step that is different from any sort of equivalent GAAP procedure, the company performs rule out it a non-GAAP action.Investors are actually warned that there are actually an amount of limitations related to the use of non-GAAP economic procedures as well as vital metrics as rational resources.
Most of the corrections to the firm’s GAAP economic actions show the exemption of items that are actually persisting as well as will definitely be reflected in the provider’s monetary end results for the near future, including share-based compensation, which is actually an important part of Palo Alto Networks employees’ remuneration and impacts their performance. In addition, these non-GAAP financial measures are not based on any type of standard strategy recommended through GAAP, and also the parts that Palo Alto Networks leaves out in its estimation of non-GAAP economic actions may vary from the parts that its peer business exclude when they mention their non-GAAP outcomes of functions. Palo Alto Networks compensates for these restrictions through supplying specific information relating to the GAAP totals left out coming from these non-GAAP financial measures.
Later on, the company might additionally omit non-recurring expenses and also various other expenses that do not demonstrate the provider’s center service operating outcomes.Concerning Palo Alto NetworksPalo Alto Networks is the global cybersecurity innovator, dedicated to creating per day safer than the one just before with industry-leading, AI-powered services in system security, cloud safety and security and also safety procedures. Powered through Preciseness artificial intelligence, our modern technologies supply accurate risk discovery as well as quick feedback, lessening untrue positives as well as improving security performance. Our platformization strategy includes varied safety and security services into an unified, scalable system, simplifying management as well as delivering functional effectiveness with thorough protection.
Coming from safeguarding system boundaries to securing cloud settings as well as making sure swift case action, Palo Alto Networks empowers organizations to attain Absolutely no Trust security and with confidence welcome electronic transformation in an ever-evolving risk yard. This steady devotion to security as well as development produces our team the cybersecurity companion of selection.At Palo Alto Networks, we’re devoted to bringing together the very best folks operational of our purpose, so our experts’re also proud to be the cybersecurity office of choice, identified amongst Newsweek’s Most Really loved Work environments (2021-2024), along with a credit rating of 100 on the Handicap Impartiality Index (2024, 2023, 2022), as well as HRC Finest Places for LGBTQ+ Equal Rights (2022 ). To read more, see www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks company logo, and also Precision artificial intelligence are actually hallmarks of Palo Alto Networks, Inc.
in the USA and also in jurisdictions throughout the world. All various other hallmarks, brand name, or service marks utilized or pointed out here come from their particular proprietors. Any sort of unreleased companies or even attributes (as well as any solutions or functions certainly not typically available to customers) referenced in this particular or even various other press releases or even social statements are certainly not presently accessible (or even are certainly not yet generally readily available to consumers) and may certainly not be actually supplied when expected or even in all.
Customers that acquire Palo Alto Networks uses must create their purchase selections based upon solutions and also features presently typically on call. Palo Alto Networks, Inc. Preparatory Short Consolidated Statements of Operations.( In thousands, apart from every allotment records).( Unaudited).
3 Months Finished. Oct 31,. 2024.2023.Earnings:.
Item.$ 353.8.$ 341.1.Registration and also help.1,785.0.1,537.0.Total earnings.2,138.8.1,878.1.Expense of income:. Product.75.0.77.4.Membership and also help.479.1.395.4.Total cost of income.554.1.472.8.Total markup.1,584.7.1,405.3.Operating budget:. Research and development.480.4.409.5.Purchases as well as advertising and marketing.720.1.660.5.General and also managerial.97.7.120.1.Overall operating expenses.1,298.2.1,190.1.Functioning revenue.286.5.215.2.Passion expenditure.( 1.2 ).( 2.9 ).Other revenue, internet.83.3.70.3.Earnings before revenue tax obligations.368.6.282.6.Arrangement for earnings tax obligations.17.9.88.4.Net income.$ 350.7.$ 194.2.
Take-home pay every portion, standard.$ 1.07.$ 0.63.Income every reveal, diluted.$ 0.99.$ 0.56. Weighted-average reveals made use of to figure out net income every portion, essential.326.8.310.1.Weighted-average reveals made use of to compute income every allotment, watered down.354.5.349.8. Palo Alto Networks, Inc.
Reconciliation of GAAP to Non-GAAP Financial Amounts.( In thousands, except per reveal quantities).( Unaudited). Three Months Ended. October 31,.
2024.2023. GAAP operating profit.$ 286.5.$ 215.2.Share-based compensation-related fees.315.1.287.8.Acquisition-related expenses( 1 ).15.1.–.Amount expenditure of gotten abstract assets.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-GAAP operating earnings.$ 616.2.$ 529.3.Non-GAAP operating scope.28.8 %.28.2 %. GAAP take-home pay.$ 350.7.$ 194.2.Share-based compensation-related fees.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amortization expense of acquired abstract properties.40.7.24.5.Litigation-related costs( 2 ).( 41.2 ).1.8.Non-cash charges connected to convertible keep in minds( 3 ).0.5.1.0.Earnings income tax and other income tax changes( 4 ).( 136.0 ).( 43.0 ).Non-GAAP net income.$ 544.9.$ 466.3.
GAAP net income per share, diluted.$ 0.99.$ 0.56.Share-based compensation-related charges.0.92.0.86.Acquisition-related costs( 1 ).0.04.0.00.Amortization expenditure of gotten abstract properties.0.11.0.07.Litigation-related fees( 2 ).( 0.12 ).0.01.Non-cash costs associated with convertible notes( 3 ).0.00.0.00.Earnings tax obligation and various other income tax changes( 4 ).( 0.38 ).( 0.12 ).Non-GAAP net income every reveal, thinned down.$ 1.56.$ 1.38. GAAP weighted-average allotments used to figure out earnings every portion, diluted.354.5.349.8.Weighted-average anti-dilutive influence of note hedge agreements.( 5.9 ).( 11.6 ).Non-GAAP weighted-average portions made use of to figure out take-home pay every reveal, watered down.348.6.338.2. ( 1 ).Include acquisition transaction costs, share-based compensation related to the money negotiation of specific equity awards, change in fair market value of contingent consideration liability, as well as prices to cancel certain work, running lease, and also various other arrangements of the obtained providers.( 2 ).Include the amount of intellectual property licenses and commitment certainly not to take legal action against.
Throughout the three months ended Oct 31, 2024, it additionally includes a launch of earlier accrued legal contingency cost.( 3 ).Include non-cash passion cost for amortization of personal debt issue expenses related to the firm’s exchangeable senior keep in minds.( 4 ).Feature earnings tax corrections associated with our long-term non-GAAP effective tax price. Palo Alto Networks, Inc. Preliminary Compressed Consolidated Harmony Sheets.( In millions).
Oct 31, 2024.July 31, 2024. ( unaudited). Possessions.
Current assets:. Cash and money equivalents.$ 2,282.8.$ 1,535.2.Temporary expenditures.1,108.2.1,043.6.Accounts receivable, web.1,132.9.2,618.6.Temporary financing receivables, web.805.1.725.9.Short-term postponed deal prices.367.6.369.0.Prepaid expenses and also other present possessions.546.1.557.4.Total existing assets.6,242.7.6,849.7.Building and tools, web.361.0.361.1.Running lease right-of-use properties.389.0.385.9.Long-term expenditures.4,119.7.4,173.2.Lasting lending receivables, net.1,092.2.1,182.1.Long-term delayed agreement expenses.531.9.562.0.Goodwill.4,050.8.3,350.1.Intangible assets, internet.809.6.374.9.Prolonged income tax resources.2,397.5.2,399.0.Various other possessions.380.2.352.9.Overall resources.$ 20,374.6.$ 19,990.9.Responsibilities as well as investors’ equity. Present liabilities:.
Funds payable.$ 211.6.$ 116.3.Built up compensation.354.5.554.7.Accumulated as well as various other responsibilities.683.1.506.7.Prolonged income.5,507.7.5,541.1.Convertible elderly notes, net.645.8.963.9.Total current responsibilities.7,402.7.7,682.7.Lasting postponed revenue.5,585.9.5,939.4.Deferred tax obligation obligations.250.8.387.7.Long-term operating lease obligations.379.6.380.5.Other long-lasting liabilities.843.8.430.9.Overall obligations.14,462.8.14,821.2.Investors’ equity:. Participating preferred stock.–.–.Common stock and additional paid-in financing.4,214.9.3,821.1.Built up various other thorough reduction.( 4.0 ).( 1.6 ).Kept earnings.1,700.9.1,350.2.Total stockholders’ equity.5,911.8.5,169.7.Total liabilities as well as investors’ equity.$ 20,374.6.$ 19,990.9. SOURCE Palo Alto Networks, Inc
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