.Fiscal first quarter earnings increased 14% year over year to $2.1 billion.Next-Generation Safety and security ARR grew 40% year over year to $4.5 billion.Staying efficiency commitment increased twenty% year over year to $12.6 billion.SANTA CLARA, Calif., Nov. twenty, 2024/ PRNewswire/– Palo Alto Networks (NASDAQ: PANW), the international cybersecurity forerunner, introduced today monetary results for its fiscal 1st quarter 2025, finished October 31, 2024.Overall profits for the financial 1st one-fourth 2025 expanded 14% year over year to $2.1 billion, compared with overall income of $1.9 billion for the economic first quarter 2024. GAAP earnings for the financial initial one-fourth 2025 was actually $350.7 million, or even $0.99 every watered down share, compared to GAAP earnings of $194.2 million, or even $0.56 per diluted allotment, for the fiscal 1st fourth 2024.Non-GAAP income for the financial first quarter 2025 was actually $544.9 million, or $1.56 per diluted reveal, compared to non-GAAP income of $466.3 thousand, or even $1.38 every watered down allotment, for the financial 1st quarter 2024.
A settlement in between GAAP and also non-GAAP information is actually consisted of in the dining tables listed below.” Our Q1 leads enhanced our view in our differentiated platformization method,” stated Nikesh Arora, leader and also CEO of Palo Alto Networks. “We find a growing market understanding that platformization is the video game changer that will solve protection as well as make it possible for far better AI end results. I anticipate this are going to be actually a multiyear style for which our company are well placed to supply to our customers.”.” Our platformization progression continued in Q1, driving sturdy monetary results,” said Dipak Golechha, primary economic policeman of Palo Alto Networks.
“As a result, our team are actually elevating our NGS ARR, revenue and non-GAAP EPS advice for the year.”.Equity SplitPalo Alto Networks introduced that its board of directors has authorized a two-for-one aggressive assets crack of the company’s excellent allotments of common stock. The share crack is actually to be impacted by means of an amendment to the business’s restated certificate of incorporation, which are going to also impact a proportionate increase in the variety of certified reveals of common stock coming from 1.0 billion to 2.0 billion. Each stockholder of document since the shut of investing on December 12, 2024 (the “report day”), will receive, after the shut of trading on December thirteen, 2024, one additional allotment for every reveal hung on the record time.
Trading is expected to start on a split-adjusted manner on December 16, 2024.Financial OutlookPalo Alto Networks offers advice based upon present market situations and also requirements.For the budgetary second quarter 2025, our company expect:.Next-Generation Safety ARR of $4.70 billion to $4.75 billion, embodying year-over-year development of in between 35% as well as 36%.Continuing to be functionality obligation of $12.9 billion to $13.0 billion, working with year-over-year development of in between twenty% as well as 21%.Total profits in the stable of $2.22 billion to $2.25 billion, standing for year-over-year development of between 12% and also 14%.Watered down non-GAAP income per cooperate the stable of $1.54 to $1.56, utilizing 350 million to 352 million reveals outstanding.For the 2025, our company expect:.Next-Generation Surveillance ARR of $5.52 billion to $5.57 billion, embodying year-over-year growth of between 31% and also 32%.Remaining functionality commitment of $15.2 billion to $15.3 billion, representing year-over-year growth of in between 19% and also twenty%.Complete revenue in the range of $9.12 billion to $9.17 billion, working with year-over-year growth of 14%.Non-GAAP operating margin in the variety of 27.5% to 28.0%.Weakened non-GAAP earnings per cooperate the stable of $6.26 to $6.39, making use of 350 thousand to 354 million reveals exceptional.Adjusted free of cost cash flow margin in the variety of 37% to 38%.Direction for non-GAAP economic procedures excludes share-based compensation-related charges, including share-based pay-roll income tax cost, acquisition-related costs, consisting of improvement in reasonable value of dependent consideration obligation, amortization expense of obtained intangible possessions, litigation-related fees, non-cash costs connected to convertible details, and revenue tax obligation as well as other income tax adjustments connected to our lasting non-GAAP helpful income tax cost, along with specific non-recurring expenses as well as certain non-recurring cash flows. Our experts have actually certainly not fixed up non-GAAP operating margin support to GAAP operating scope, thinned down non-GAAP take-home pay per share assistance to GAAP net income per diluted allotment or adjusted free of cost capital margin advice to GAAP net cash coming from operating activities given that our company perform certainly not give guidance on GAAP operating scope, GAAP income or web money from working tasks and also would certainly not have the ability to provide the various fixing up cash as well as non-cash things in between GAAP as well as non-GAAP financial solutions considering that certain items that affect these actions are uncertain or away from our command, or can certainly not be actually reasonably predicted, consisting of share-based settlement cost, without weird initiative. The genuine amounts of such fixing up products will possess a substantial effect on the business’s GAAP earnings per watered down reveal and GAAP internet money coming from working activities.Profits Contact InformationPalo Alto Networks are going to host a video webcast for professionals and capitalists to explain the provider’s economic first one-fourth 2025 results in addition to the expectation for its economic 2nd quarter and also fiscal year 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific time. Open to the public, entrepreneurs might access the webcast, supplementary financial relevant information and earnings slides coming from the “Investors” area of the provider’s internet site at investors.paloaltonetworks.com.
A replay will definitely be actually offered 3 hrs after the end of the webcast as well as archived for one year.Positive StatementsThis press release contains positive claims that involve dangers, unpredictabilities, and assumptions including claims concerning our platformization technique and also financial overview for the financial 2nd one-fourth 2025 and fiscal year 2025. There are actually a substantial amount of elements that can trigger real end results to differ materially coming from positive declarations produced or even implied within this news release, featuring: developments and improvements generally market, political, financial, and organization conditions failing of our platformization product offerings failing to achieve the assumed advantages of our important alliances and also acquisitions modifications in the fair value of our contingent consideration responsibility linked with acquisitions threats linked with handling our development threats linked with brand-new product, subscription as well as help offerings, including our item offerings that leverage AI changes in concerns or problems in the development or even launch of brand new product or membership or even various other offerings, or the failure to well-timed develop and also accomplish market acceptance of new items and subscriptions in addition to existing products, memberships as well as help offerings failure of our service techniques rapidly growing technical advancements on the market for security products, registrations and help offerings defects, inaccuracies, or susceptibilities in our items, subscriptions or support offerings our customers’ purchasing choices and the duration of sales patterns our competitors our ability to bring in and retain brand-new consumers our capability to get and combine other firms, products, or even technologies in an effective fashion our debt payment obligations and also our share repurchase program, which might certainly not be completely consummated or boost investor market value, as well as any reveal repurchases which can impact the rate of our ordinary shares.Added dangers and unpredictabilities on these and various other aspects that can affect our economic results and the positive claims our experts help make in this particular press release are included under the inscriptions “Risk Aspects” and “Administration’s Conversation and also Study of Financial Ailment and also Results of Procedures” as well as elsewhere in our Annual Record on Type 10-K filed along with the united state Stocks and also Substitution Compensation (” SEC”) on September 6, 2024, which is available on our website at investors.paloaltonetworks.com and also on the SEC’s web site at www.sec.gov. Additional details is going to likewise be actually stated in other papers that our experts submit with or equip to the SEC once in a while.
All forward-looking statements in this news release are based on our opinions and information offered to control since the time hereof, and also our experts do not think any responsibility to improve the progressive claims given to reflect occasions that take place or situations that exist after the date on which they were actually made.Non-GAAP Financial Solutions as well as Various Other Trick MetricsPalo Alto Networks has given in this press release economic information that has certainly not been prepped in accordance with typically allowed bookkeeping guidelines in the United States (GAAP). The company makes use of these non-GAAP financial solutions and various other crucial metrics inside in analyzing its monetary end results and also strongly believes that making use of these non-GAAP monetary actions as well as crucial metrics are useful to capitalists as an extra device to evaluate on-going operating results and trends, and in contrasting the firm’s financial results along with various other providers in its own sector, a lot of which found similar non-GAAP economic solutions or crucial metrics.The presentation of these non-GAAP monetary actions as well as essential metrics are certainly not implied to become thought about in isolation or alternatively for equivalent GAAP financial measures as well as need to know simply in conjunction with the firm’s consolidated economic statements readied according to GAAP. A getting back together of the company’s historic non-GAAP financial steps to their very most directly comparable GAAP steps has been supplied in the economic claim dining tables featured in this press release, and real estate investors are promoted to evaluate these settlements.Non-GAAP operating frame.
Palo Alto Networks determines non-GAAP operating scope as non-GAAP operating profit split through complete earnings. The company defines non-GAAP operating revenue as operating revenue plus share-based compensation-related costs, featuring share-based payroll income tax expense, acquisition-related expenses, consisting of improvement in fair market value of dependent factor to consider liability, amount expense of obtained abstract resources, as well as litigation-related fees. The business believes that non-GAAP operating margin gives management as well as financiers with greater presence right into the rooting performance of the provider’s core company operating outcomes.Non-GAAP take-home pay and also net income every allotment, watered down.
Palo Alto Networks determines non-GAAP take-home pay as earnings plus share-based compensation-related charges, featuring share-based payroll tax expense, acquisition-related prices, consisting of modification in fair worth of contingent factor to consider obligation, amount expense of gotten intangible resources, litigation-related costs, consisting of lawful settlements, as well as non-cash fees connected to exchangeable keep in minds. The business likewise leaves out from non-GAAP net income tax obligation changes related to our long-term non-GAAP successful income tax price so as to provide a full photo of the firm’s reoccuring primary business operating results. The firm describes non-GAAP take-home pay per reveal, thinned down, as non-GAAP earnings partitioned by the weighted-average watered down portions impressive, which includes the likely dilutive impact of the company’s staff member equity motivation strategy honors and the firm’s modifiable senior notes exceptional and similar warrants, after giving impact to the anti-dilutive effect of the provider’s note hedge contracts, which lowers the possible economical dilution that or else will occur upon sale of the provider’s modifiable elderly notes.
Under GAAP, the anti-dilutive influence of the keep in mind hedge is actually certainly not reflected in diluted reveals superior. The firm thinks about these non-GAAP economic measures to be useful metrics for administration and real estate investors for the very same causes that it utilizes non-GAAP operating margin.Next-Generation Protection ARR. Palo Alto Networks determines Next-Generation Protection ARR as the annualized designated profits of all active deals as of the last day of the reporting time period for Prisma and Pallium offerings comprehensive of the VM-Series as well as relevant solutions, and also certain cloud-delivered safety and security companies.
Beginning the budgetary initial one-fourth 2025, Next-Generation Safety ARR consists of income derivable to QRadar software program as a solution agreements that our team lately acquired coming from International Service Machines Company. The business takes into consideration Next-Generation Security ARR to become a useful metric for control and investors to examine the efficiency of the company since Next-Generation Protection is actually where the firm has actually concentrated its own technology as well as the firm anticipates its own general revenue to become disproportionately steered through this Next-Generation Security profile. Considering That Next-Generation Protection ARR does not possess the result of delivering a numerical procedure that is actually different coming from any kind of similar GAAP measure, the firm does not consider it a non-GAAP measure.Capitalists are actually warned that there are actually a lot of constraints associated with the use of non-GAAP monetary steps and key metrics as logical tools.
Much of the adjustments to the company’s GAAP financial measures show the exemption of items that are actually reoccuring as well as will be actually demonstrated in the firm’s economic end results for the foreseeable future, including share-based compensation, which is actually a vital part of Palo Alto Networks staff members’ remuneration and effects their efficiency. Additionally, these non-GAAP financial solutions are not based upon any kind of standard methodology recommended by GAAP, and also the parts that Palo Alto Networks omits in its own estimate of non-GAAP financial solutions may vary from the components that its peer companies leave out when they disclose their non-GAAP end results of operations. Palo Alto Networks compensates for these limits by giving particular details pertaining to the GAAP amounts omitted coming from these non-GAAP financial steps.
Down the road, the firm may also omit non-recurring expenses and also other costs that do not mirror the firm’s primary business operating end results.About Palo Alto NetworksPalo Alto Networks is the international cybersecurity forerunner, committed to helping make daily more secure than the one before with industry-leading, AI-powered solutions in system safety and security, cloud safety and safety and security procedures. Powered through Accuracy AI, our modern technologies deliver exact danger diagnosis and quick action, reducing untrue positives and also improving security performance. Our platformization method includes varied surveillance remedies right into an unified, scalable platform, enhancing management and also delivering working productivities along with thorough defense.
From fighting for system borders to guarding cloud atmospheres and making certain swift event reaction, Palo Alto Networks empowers companies to obtain No Depend on safety and security and also with certainty welcome digital makeover in an ever-evolving danger garden. This steadfast commitment to safety and security as well as development makes our team the cybersecurity companion of option.At Palo Alto Networks, our team’re committed to bringing together the greatest people in service of our mission, so our experts are actually also happy to become the cybersecurity workplace of selection, recognized among Newsweek’s Most Adored Offices (2021-2024), along with a score of 100 on the Disability Impartiality Index (2024, 2023, 2022), as well as HRC Absolute Best Places for LGBTQ+ Equality (2022 ). For more information, go to www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks logo design, as well as Precision artificial intelligence are trademarks of Palo Alto Networks, Inc.
in the United States as well as in jurisdictions throughout the globe. All other trademarks, trade names, or service marks utilized or even mentioned herein concern their particular proprietors. Any sort of unreleased solutions or attributes (as well as any services or even components certainly not typically on call to clients) referenced within this or other press releases or even social declarations are certainly not currently readily available (or are actually not yet normally readily available to consumers) and also may certainly not be actually provided when expected or at all.
Consumers that buy Palo Alto Networks uses ought to produce their investment choices based on services and functions currently usually on call. Palo Alto Networks, Inc. Preparatory Short Consolidated Statements of Operations.( In millions, except every allotment information).( Unaudited).
3 Months Finished. Oct 31,. 2024.2023.Revenue:.
Product.$ 353.8.$ 341.1.Subscription as well as assistance.1,785.0.1,537.0.Overall profits.2,138.8.1,878.1.Expense of earnings:. Product.75.0.77.4.Registration and also assistance.479.1.395.4.Overall price of earnings.554.1.472.8.Overall gross profit.1,584.7.1,405.3.Operating budget:. Trial and error.480.4.409.5.Sales and also marketing.720.1.660.5.General and also administrative.97.7.120.1.Total general expenses.1,298.2.1,190.1.Functioning income.286.5.215.2.Interest expense.( 1.2 ).( 2.9 ).Other earnings, internet.83.3.70.3.Earnings prior to income tax obligations.368.6.282.6.Arrangement for earnings tax obligations.17.9.88.4.Take-home pay.$ 350.7.$ 194.2.
Take-home pay per reveal, general.$ 1.07.$ 0.63.Earnings per share, watered down.$ 0.99.$ 0.56. Weighted-average reveals used to figure out income per portion, essential.326.8.310.1.Weighted-average shares used to figure out take-home pay per portion, weakened.354.5.349.8. Palo Alto Networks, Inc.
Getting back together of GAAP to Non-GAAP Financial Measures.( In millions, apart from every allotment quantities).( Unaudited). 3 Months Ended. October 31,.
2024.2023. GAAP operating profit.$ 286.5.$ 215.2.Share-based compensation-related charges.315.1.287.8.Acquisition-related prices( 1 ).15.1.–.Amount expenditure of acquired abstract assets.40.7.24.5.Litigation-related fees( 2 ).( 41.2 ).1.8.Non-GAAP operating earnings.$ 616.2.$ 529.3.Non-GAAP operating margin.28.8 %.28.2 %. GAAP income.$ 350.7.$ 194.2.Share-based compensation-related charges.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amortization expense of obtained abstract assets.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-cash fees connected to exchangeable keep in minds( 3 ).0.5.1.0.Income tax as well as other tax modifications( 4 ).( 136.0 ).( 43.0 ).Non-GAAP take-home pay.$ 544.9.$ 466.3.
GAAP take-home pay per share, weakened.$ 0.99.$ 0.56.Share-based compensation-related costs.0.92.0.86.Acquisition-related prices( 1 ).0.04.0.00.Amount expense of obtained intangible possessions.0.11.0.07.Litigation-related fees( 2 ).( 0.12 ).0.01.Non-cash charges related to modifiable keep in minds( 3 ).0.00.0.00.Revenue tax obligation as well as various other income tax adjustments( 4 ).( 0.38 ).( 0.12 ).Non-GAAP income every reveal, watered down.$ 1.56.$ 1.38. GAAP weighted-average portions used to calculate earnings per reveal, thinned down.354.5.349.8.Weighted-average anti-dilutive effect of note hedge deals.( 5.9 ).( 11.6 ).Non-GAAP weighted-average allotments used to compute take-home pay per allotment, weakened.348.6.338.2. ( 1 ).Feature acquisition transaction expenses, share-based compensation pertaining to the cash money negotiation of specific equity honors, adjustment in fair value of contingent point to consider liability, as well as prices to terminate certain job, running lease, as well as other agreements of the obtained providers.( 2 ).Feature the amortization of intellectual property licenses as well as covenant certainly not to file suit.
Throughout the three months finished October 31, 2024, it additionally consists of a release of formerly built up legal emergency cost.( 3 ).Contain non-cash rate of interest cost for amount of debt issue expenses connected to the firm’s convertible senior details.( 4 ).Be composed of income tax obligation changes related to our lasting non-GAAP helpful income tax rate. Palo Alto Networks, Inc. Preliminary Concise Consolidated Balance Linens.( In millions).
Oct 31, 2024.July 31, 2024. ( unaudited). Properties.
Present possessions:. Money and cash equivalents.$ 2,282.8.$ 1,535.2.Temporary financial investments.1,108.2.1,043.6.Accounts receivable, net.1,132.9.2,618.6.Temporary lending receivables, internet.805.1.725.9.Short-term deferred arrangement expenses.367.6.369.0.Prepaid expenses and other present possessions.546.1.557.4.Total existing assets.6,242.7.6,849.7.Home as well as equipment, internet.361.0.361.1.Operating lease right-of-use properties.389.0.385.9.Lasting financial investments.4,119.7.4,173.2.Lasting financing receivables, web.1,092.2.1,182.1.Long-lasting deferred arrangement costs.531.9.562.0.Goodwill.4,050.8.3,350.1.Unobservable assets, internet.809.6.374.9.Prolonged tax obligation assets.2,397.5.2,399.0.Various other properties.380.2.352.9.Overall possessions.$ 20,374.6.$ 19,990.9.Obligations and also investors’ equity. Present responsibilities:.
Accounts payable.$ 211.6.$ 116.3.Built up payment.354.5.554.7.Accumulated and various other responsibilities.683.1.506.7.Deferred profits.5,507.7.5,541.1.Convertible senior notes, web.645.8.963.9.Total current responsibilities.7,402.7.7,682.7.Long-lasting deferred income.5,585.9.5,939.4.Prolonged tax obligations.250.8.387.7.Long-lasting operating lease responsibilities.379.6.380.5.Various other long-term responsibilities.843.8.430.9.Overall responsibilities.14,462.8.14,821.2.Investors’ equity:. Preferred stock.–.–.Ordinary shares and also added paid-in financing.4,214.9.3,821.1.Accumulated other detailed reduction.( 4.0 ).( 1.6 ).Retained revenues.1,700.9.1,350.2.Complete investors’ equity.5,911.8.5,169.7.Complete obligations and shareholders’ equity.$ 20,374.6.$ 19,990.9. SOURCE Palo Alto Networks, Inc
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