.Fiscal first one-fourth revenue expanded 14% year over year to $2.1 billion.Next-Generation Security ARR grew 40% year over year to $4.5 billion.Staying functionality obligation grew 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, introduced today financial end results for its financial initial fourth 2025, finished Oct 31, 2024.Total income for the budgetary 1st one-fourth 2025 expanded 14% year over year to $2.1 billion, compared to total earnings of $1.9 billion for the financial initial quarter 2024. GAAP income for the fiscal 1st one-fourth 2025 was actually $350.7 million, or even $0.99 per diluted share, compared with GAAP net income of $194.2 million, or $0.56 per watered down share, for the fiscal very first fourth 2024.Non-GAAP take-home pay for the fiscal 1st fourth 2025 was actually $544.9 million, or even $1.56 per watered down portion, compared to non-GAAP earnings of $466.3 thousand, or $1.38 per watered down allotment, for the budgetary very first one-fourth 2024.
A reconciliation between GAAP as well as non-GAAP relevant information is actually consisted of in the tables below.” Our Q1 results improved our view in our separated platformization approach,” pointed out Nikesh Arora, chairman as well as chief executive officer of Palo Alto Networks. “We observe a growing market awareness that platformization is the game changer that will resolve safety and also make it possible for much better artificial intelligence outcomes. I anticipate this will certainly be a multiyear trend for which we are better placed to deliver to our customers.”.” Our platformization progress continued in Q1, driving powerful economic outcomes,” mentioned Dipak Golechha, chief monetary police officer of Palo Alto Networks.
“As a result, our company are raising our NGS ARR, earnings and also non-GAAP EPS guidance for the year.”.Stock SplitPalo Alto Networks announced that its board of directors has actually authorized a two-for-one aggressive equity split of the firm’s superior portions of ordinary shares. The share split is actually to be performed via an amendment to the company’s reiterated certification of incorporation, which are going to additionally impact a proportional increase in the lot of legitimate shares of common stock from 1.0 billion to 2.0 billion. Each investor of report since the close of exchanging on December 12, 2024 (the “document time”), are going to acquire, after the shut of trading on December 13, 2024, one additional allotment for every share hung on the file time.
Exchanging is actually expected to begin on a split-adjusted manner on December 16, 2024.Financial OutlookPalo Alto Networks supplies direction based upon present market situations and assumptions.For the monetary 2nd one-fourth 2025, we anticipate:.Next-Generation Surveillance ARR of $4.70 billion to $4.75 billion, standing for year-over-year development of between 35% and 36%.Continuing to be efficiency commitment of $12.9 billion to $13.0 billion, representing year-over-year growth of between twenty% as well as 21%.Complete income in the stable of $2.22 billion to $2.25 billion, embodying year-over-year growth of between 12% and 14%.Diluted non-GAAP take-home pay every cooperate the series of $1.54 to $1.56, making use of 350 million to 352 million shares exceptional.For the fiscal year 2025, our company assume:.Next-Generation Safety And Security ARR of $5.52 billion to $5.57 billion, embodying year-over-year growth of in between 31% as well as 32%.Staying efficiency responsibility of $15.2 billion to $15.3 billion, representing year-over-year growth of in between 19% and 20%.Complete income in the series of $9.12 billion to $9.17 billion, standing for year-over-year growth of 14%.Non-GAAP operating margin in the range of 27.5% to 28.0%.Weakened non-GAAP net income per share in the variety of $6.26 to $6.39, utilizing 350 thousand to 354 million reveals exceptional.Changed complimentary cash flow scope in the series of 37% to 38%.Advice for non-GAAP economic actions excludes share-based compensation-related charges, consisting of share-based payroll tax obligation expense, acquisition-related expenses, consisting of improvement in decent market value of contingent point to consider obligation, amount cost of acquired unobservable properties, litigation-related fees, non-cash charges connected to exchangeable keep in minds, as well as revenue tax obligation and various other tax obligation corrections associated with our long-lasting non-GAAP efficient tax fee, together with particular non-recurring expenses and also particular non-recurring capital. We have actually not integrated non-GAAP operating margin support to GAAP operating margin, weakened non-GAAP earnings per portion direction to GAAP earnings every watered down allotment or even readjusted free capital scope guidance to GAAP web cash coming from operating activities because our experts carry out not supply support on GAAP operating margin, GAAP earnings or net money from functioning tasks as well as will not have the ability to provide the several integrating cash money and also non-cash items between GAAP and non-GAAP monetary solutions given that certain items that impact these solutions doubt or even away from our command, or even may not be actually fairly forecasted, featuring share-based remuneration expense, without unreasonable attempt. The true volumes of such integrating products will have a considerable influence on the firm’s GAAP earnings every diluted reveal and also GAAP net cash coming from operating activities.Incomes Get In Touch With InformationPalo Alto Networks are going to host a video webcast for analysts and also entrepreneurs to talk about the firm’s monetary first one-fourth 2025 results along with the outlook for its own economic second one-fourth as well as fiscal year 2025 today at 4:30 p.m.
Eastern time/1:30 p.m. Pacific opportunity. Open up to everyone, entrepreneurs might access the webcast, additional economic relevant information and also revenues slides coming from the “Real estate investors” section of the provider’s web site at investors.paloaltonetworks.com.
A replay will certainly be actually on call 3 hours after the outcome of the webcast and archived for one year.Progressive StatementsThis press release has progressive claims that include risks, anxieties, and assumptions including statements concerning our platformization tactic and financial outlook for the financial second quarter 2025 as well as fiscal year 2025. There are a substantial lot of elements that could lead to genuine results to vary materially coming from forward-looking statements created or even suggested within this press release, including: advancements as well as modifications generally market, political, financial, and also organization disorders failure of our platformization item offerings failing to achieve the anticipated advantages of our tactical collaborations as well as acquisitions improvements in the fair value of our contingent point to consider responsibility associated with acquisitions dangers connected with managing our growth dangers connected with brand new product, membership and also help offerings, featuring our item offerings that utilize AI changes in concerns or even problems in the growth or launch of brand-new item or even membership or various other offerings, or even the failing to timely create and obtain market recognition of brand new products and memberships as well as existing items, subscriptions and help offerings failure of our company approaches swiftly growing technological advancements in the market for protection items, registrations and help offerings problems, errors, or vulnerabilities in our items, memberships or support offerings our customers’ purchasing choices and also the span of purchases cycles our competition our capability to bring in as well as keep brand-new customers our ability to get and incorporate other providers, items, or even technologies in a prosperous fashion our financial debt payment commitments as well as our reveal bought course, which might not be actually entirely consummated or boost investor value, and any sort of portion repurchases which could have an effect on the cost of our common stock.Additional dangers as well as anxieties on these and also various other factors that could impact our economic results and also the progressive statements we make within this news release are included under the inscriptions “Risk Factors” as well as “Management’s Discussion and also Evaluation of Financial Ailment and Outcomes of Functions” and also in other places in our Annual Document on Kind 10-K submitted along with the U.S. Securities and also Exchange Percentage (” SEC”) on September 6, 2024, which is actually readily available on our internet site at investors.paloaltonetworks.com as well as on the SEC’s internet site at www.sec.gov.
Additional information will certainly likewise be actually set forth in various other files that our company file along with or even provide to the SEC every now and then. All progressive claims in this particular news release are actually based upon our opinions and info accessible to monitoring since the day in this regard, and also our team perform certainly not assume any type of obligation to improve the forward-looking statements given to show events that happen or even situations that exist after the time on which they were helped make.Non-GAAP Financial Steps and Various Other Secret MetricsPalo Alto Networks has provided in this news release economic info that has certainly not been prepped according to commonly accepted bookkeeping concepts in the United States (GAAP). The firm makes use of these non-GAAP economic procedures as well as various other vital metrics inside in evaluating its economic end results and thinks that the use of these non-GAAP monetary measures and also vital metrics are actually practical to capitalists as an added tool to assess ongoing operating outcomes and also trends, and in contrasting the business’s financial outcomes along with other companies in its own sector, a lot of which current comparable non-GAAP financial procedures or essential metrics.The presentation of these non-GAAP monetary solutions and also crucial metrics are not implied to become looked at alone or alternatively for comparable GAAP economic solutions and need to read only along with the business’s consolidated economic statements readied in accordance with GAAP.
A reconciliation of the firm’s historic non-GAAP economic measures to their very most straight equivalent GAAP solutions has actually been provided in the economic claim tables featured in this particular news release, as well as entrepreneurs are encouraged to evaluate these reconciliations.Non-GAAP operating margin. Palo Alto Networks describes non-GAAP operating frame as non-GAAP operating profit separated through complete profits. The business describes non-GAAP operating profit as working revenue plus share-based compensation-related costs, consisting of share-based payroll income tax expense, acquisition-related prices, including improvement in reasonable worth of contingent point to consider liability, amortization expenditure of acquired intangible possessions, and also litigation-related costs.
The business strongly believes that non-GAAP operating margin supplies monitoring and also clients with higher exposure in to the rooting efficiency of the provider’s primary business operating end results.Non-GAAP earnings and also net income per portion, watered down. Palo Alto Networks defines non-GAAP take-home pay as income plus share-based compensation-related charges, consisting of share-based pay-roll income tax expense, acquisition-related prices, featuring modification in decent market value of contingent factor liability, amortization expenditure of obtained intangible resources, litigation-related charges, including lawful settlements, and non-cash fees related to exchangeable notes. The business likewise excludes from non-GAAP income tax obligation changes related to our lasting non-GAAP efficient tax cost to offer a comprehensive image of the firm’s persisting center organization operating outcomes.
The provider specifies non-GAAP earnings per reveal, thinned down, as non-GAAP take-home pay portioned by the weighted-average diluted allotments exceptional, which includes the potentially dilutive impact of the business’s worker equity incentive planning awards as well as the firm’s modifiable elderly details outstanding as well as similar warrants, after offering effect to the anti-dilutive effect of the business’s note hedge agreements, which lessens the prospective financial dip that or else will occur upon sale of the firm’s exchangeable senior notes. Under GAAP, the anti-dilutive influence of the keep in mind hedge is actually not shown in diluted portions outstanding. The company considers these non-GAAP monetary measures to be beneficial metrics for monitoring as well as entrepreneurs for the exact same main reasons that it makes use of non-GAAP operating frame.Next-Generation Safety And Security ARR.
Palo Alto Networks describes Next-Generation Surveillance ARR as the annualized alloted income of all active contracts since the ultimate day of the coverage time period for Prisma as well as Peridium offerings comprehensive of the VM-Series and similar companies, as well as specific cloud-delivered protection solutions. Beginning the economic very first quarter 2025, Next-Generation Surveillance ARR consists of earnings derivable to QRadar software program as a solution contracts that our experts just recently acquired coming from International Business Machines Organization. The company thinks about Next-Generation Safety and security ARR to become a valuable statistics for management and clients to review the performance of the business considering that Next-Generation Surveillance is where the provider has focused its own innovation and also the provider expects its total income to be disproportionately steered through this Next-Generation Surveillance collection.
Since Next-Generation Safety ARR does certainly not have the impact of delivering a mathematical measure that is actually various from any type of comparable GAAP action, the company carries out not consider it a non-GAAP action.Clients are actually forewarned that there are actually an amount of constraints related to making use of non-GAAP financial solutions as well as key metrics as logical devices. Most of the corrections to the provider’s GAAP monetary measures show the omission of items that are actually persisting and are going to be actually mirrored in the business’s monetary end results for the near future, including share-based remuneration, which is actually an important part of Palo Alto Networks employees’ settlement and influences their performance. Additionally, these non-GAAP monetary actions are not based upon any type of standardized methodology recommended by GAAP, as well as the parts that Palo Alto Networks omits in its estimation of non-GAAP economic steps might vary coming from the components that its peer providers leave out when they disclose their non-GAAP outcomes of procedures.
Palo Alto Networks makes up for these restrictions through delivering specific relevant information concerning the GAAP amounts left out from these non-GAAP economic procedures. In the future, the company might additionally leave out non-recurring expenditures and also other expenses that do not reflect the company’s core company operating end results.Concerning Palo Alto NetworksPalo Alto Networks is the worldwide cybersecurity forerunner, committed to helping make daily much safer than the one before with industry-leading, AI-powered solutions in network surveillance, cloud surveillance as well as protection operations. Powered through Precision AI, our technologies provide exact danger diagnosis and also fast response, decreasing misleading positives as well as boosting safety effectiveness.
Our platformization approach integrates diverse safety solutions into a combined, scalable platform, streamlining administration as well as providing working efficiencies with comprehensive security. From shielding system boundaries to safeguarding cloud atmospheres as well as making certain rapid happening response, Palo Alto Networks equips companies to accomplish Zero Rely on safety and security as well as confidently embrace electronic improvement in an ever-evolving danger garden. This undeviating devotion to security and also development produces our team the cybersecurity partner of option.At Palo Alto Networks, our company’re devoted to combining the greatest folks in service of our objective, so our team are actually also glad to become the cybersecurity office of selection, realized among Newsweek’s Many Enjoyed Place of work (2021-2024), along with a rating of 100 on the Handicap Equal Rights Index (2024, 2023, 2022), and also HRC Best Places for LGBTQ+ Equal Rights (2022 ).
To learn more, visit www.paloaltonetworks.com.Palo Alto Networks, the Palo Alto Networks company logo, as well as Accuracy AI are trademarks of Palo Alto Networks, Inc. in the United States as well as in territories throughout the globe. All other hallmarks, brand name, or registered trademark made use of or even stated within concern their respective managers.
Any type of unreleased solutions or attributes (as well as any kind of companies or even components certainly not usually offered to consumers) referenced in this or even other press releases or even social declarations are actually certainly not currently offered (or are certainly not yet usually on call to clients) and might not be actually supplied when counted on or whatsoever. Customers who acquire Palo Alto Networks requests ought to produce their purchase decisions based on solutions as well as functions presently commonly available. Palo Alto Networks, Inc.
Preparatory Condensed Consolidated Statements of Operations.( In millions, apart from per reveal data).( Unaudited). 3 Months Finished. October 31,.
2024.2023.Income:. Product.$ 353.8.$ 341.1.Membership and help.1,785.0.1,537.0.Total earnings.2,138.8.1,878.1.Price of income:. Product.75.0.77.4.Registration and assistance.479.1.395.4.Total cost of earnings.554.1.472.8.Overall markup.1,584.7.1,405.3.Operating budget:.
R & d.480.4.409.5.Sales and advertising.720.1.660.5.General and management.97.7.120.1.Overall operating expenses.1,298.2.1,190.1.Operating income.286.5.215.2.Rate of interest cost.( 1.2 ).( 2.9 ).Various other earnings, net.83.3.70.3.Earnings just before earnings tax obligations.368.6.282.6.Stipulation for profit taxes.17.9.88.4.Income.$ 350.7.$ 194.2. Earnings every reveal, standard.$ 1.07.$ 0.63.Earnings every reveal, thinned down.$ 0.99.$ 0.56. Weighted-average portions utilized to calculate net income every portion, essential.326.8.310.1.Weighted-average allotments used to figure out income every reveal, weakened.354.5.349.8.
Palo Alto Networks, Inc. Settlement of GAAP to Non-GAAP Financial Measures.( In thousands, except per share quantities).( Unaudited). Three Months Finished.
Oct 31,. 2024.2023. GAAP operating income.$ 286.5.$ 215.2.Share-based compensation-related charges.315.1.287.8.Acquisition-related expenses( 1 ).15.1.–.Amortization expense of gotten unobservable resources.40.7.24.5.Litigation-related charges( 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 costs.315.1.287.8.Acquisition-related costs( 1 ).15.1.–.Amortization expense of gotten unobservable possessions.40.7.24.5.Litigation-related charges( 2 ).( 41.2 ).1.8.Non-cash costs related to modifiable notes( 3 ).0.5.1.0.Income tax as well as other tax adjustments( 4 ).( 136.0 ).( 43.0 ).Non-GAAP earnings.$ 544.9.$ 466.3. GAAP earnings per allotment, weakened.$ 0.99.$ 0.56.Share-based compensation-related charges.0.92.0.86.Acquisition-related costs( 1 ).0.04.0.00.Amount expenditure of gotten unobservable properties.0.11.0.07.Litigation-related charges( 2 ).( 0.12 ).0.01.Non-cash fees related to convertible keep in minds( 3 ).0.00.0.00.Income tax obligation and various other tax obligation changes( 4 ).( 0.38 ).( 0.12 ).Non-GAAP net income every reveal, thinned down.$ 1.56.$ 1.38. GAAP weighted-average portions used to figure out net income per allotment, thinned down.354.5.349.8.Weighted-average anti-dilutive effect of note hedge agreements.( 5.9 ).( 11.6 ).Non-GAAP weighted-average shares made use of to calculate income every share, diluted.348.6.338.2.
( 1 ).Feature achievement transaction prices, share-based settlement related to the cash negotiation of certain equity awards, adjustment in reasonable value of contingent point to consider responsibility, and expenses to cancel particular employment, operating lease, and various other agreements of the obtained business.( 2 ).Feature the amount of intellectual property licenses and also agreement not to file a claim against. In the course of the 3 months ended Oct 31, 2024, it also consists of a launch of earlier accrued legal backup cost.( 3 ).Feature non-cash rate of interest expense for amortization of financial obligation issuance prices related to the provider’s exchangeable senior notes.( 4 ).Feature profit tax corrections associated with our lasting non-GAAP effective tax rate. Palo Alto Networks, Inc.
Preliminary Concise Consolidated Harmony Sheets.( In thousands). Oct 31, 2024.July 31, 2024. ( unaudited).
Assets. Existing resources:. Cash money as well as cash matchings.$ 2,282.8.$ 1,535.2.Short-term expenditures.1,108.2.1,043.6.Accounts receivable, web.1,132.9.2,618.6.Short-term funding receivables, internet.805.1.725.9.Temporary postponed arrangement prices.367.6.369.0.Prepaid expenses as well as other existing possessions.546.1.557.4.Total current resources.6,242.7.6,849.7.Property as well as devices, internet.361.0.361.1.Operating lease right-of-use assets.389.0.385.9.Long-term expenditures.4,119.7.4,173.2.Long-term financing receivables, internet.1,092.2.1,182.1.Long-lasting put off arrangement costs.531.9.562.0.Goodwill.4,050.8.3,350.1.Intangible assets, internet.809.6.374.9.Prolonged income tax possessions.2,397.5.2,399.0.Other possessions.380.2.352.9.Overall properties.$ 20,374.6.$ 19,990.9.Responsibilities and also shareholders’ equity.
Current responsibilities:. Funds payable.$ 211.6.$ 116.3.Accrued settlement.354.5.554.7.Built up as well as various other liabilities.683.1.506.7.Prolonged earnings.5,507.7.5,541.1.Convertible elderly notes, web.645.8.963.9.Total existing responsibilities.7,402.7.7,682.7.Long-term put off revenue.5,585.9.5,939.4.Prolonged tax obligation responsibilities.250.8.387.7.Lasting operating lease obligations.379.6.380.5.Other long-term obligations.843.8.430.9.Total responsibilities.14,462.8.14,821.2.Stockholders’ equity:. Preferred stock.–.–.Ordinary shares and also added paid-in funds.4,214.9.3,821.1.Built up various other comprehensive loss.( 4.0 ).( 1.6 ).Retained revenues.1,700.9.1,350.2.Overall investors’ equity.5,911.8.5,169.7.Overall liabilities as well as stockholders’ equity.$ 20,374.6.$ 19,990.9.
SOURCE Palo Alto Networks, Inc
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