Palo Alto Networks Skyrockets After Earnings

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Palo Alto Networks
PANW
reported its fourth quarter earnings on Wednesday. Shares of the company are up 10%. Below are some key highlights from the company's conference call: Growth and Results: We continue to see a large amount of momentum in the business and Q4 was strong across the board. The enterprise security market is $16 billion growing to over $19 billion in 2017 We delivered record billings and revenue, with revenue for the fourth quarter growing 18% sequentially and 59% year-over-year to $178 million, along with Q4 non-GAAP earnings per share of $0.11. Q4 total revenue grew 59% over the prior year and 18% sequentially to another record of $178.2 million. Total deferred revenue in Q4 was $422.6 million, Growth in recurring services billings positively impacts deferred revenue. We finished July with cash, cash equivalents and investments of $974.4 million. Our results continue to demonstrate our ability to significantly outgrow both our competitors and the market. In Q4, we added a record number of new customers by a wide margin, and we are now privileged to serve more than 19,000 global customers, up from 13,500 at the beginning of the fiscal year. In Q4, we added a record number of paid customers, bringing our total paid base to over 3,000. The newest addition to our platform is TRAPS, the advanced endpoint protection offering we acquired with Cyvera in the spring. We have ambitious and aggressive plan for TRAPS and we're very happy to report they were hitting all our milestones. Our sustainable growth is not only driven by unique and differentiated technology, but also by highly productive and meaningful distribution partnerships. Our recurring services revenue of $78.5 million increased 67% over the prior year and 18% sequentially, and accounted for a 44% share of total revenue. Looking at the two components of recurring services, the first component is our SaaS-based subscription revenue of $37.6 million, which increased 74% over the prior year and 18% sequentially. Billings in Q4 were $232.9 million, an increase of 64% year-over-year and 20% sequentially. Our effective non-GAAP tax rate for Q4 and fiscal 2014 was 38%, and net income for the quarter was approximately $9.1 million Guidance: Billings in Q4 were $232.9 million, an increase of 64% year-over-year and 20% sequentially. Turning to guidance, in Q1 2015, we expect revenue to be in the range of $178 million to $182 million. Represents 39% to 42% growth year-over-year. We expect non-GAAP EPS to be approximately $0.12 per share using 83 million to 85 million shares.
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Posted In: EarningsNews
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