Since CRWD is coming out with earnings tomorrow after market close I thought I would put a copy of my post on PANW’s recent quarterly report. Here it is for comparison. To me, the big question is whether they have pretty much handled the recent software update mess up, and most of the bad news is behind them or not.
Palo Alto Networks Reports Fiscal Fourth Quarter and Fiscal Year 2024 Financial Results
- Fiscal fourth quarter revenue grew 12% year over year to $2.2 billion. Fiscal year 2024 revenue grew 16% year over year to $8.0 billion.
- Next-Generation Security ARR grew 43% year over year to $4.2 billion.
- Remaining performance obligation grew 20% year over year to $12.7 billion.
“We finished off the year with strong execution on our platformization strategy in Q4,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “As we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution.”
“Our top-line strength showed through in our remaining performance obligation and Next-Generation Security ARR,” said Dipak Golechha, chief financial officer of Palo Alto Networks. “At the same time we successfully balanced profitable growth, as our non-GAAP operating margins increased by more than 300 basis points for the year with strong cash generation, marking one of the best years for Palo Alto Networks.”
Financial Outlook
Palo Alto Networks provides guidance based on current market conditions and expectations.
For the fiscal first quarter 2025, we expect:
- Total revenue in the range of $2.10 billion to $2.13 billion, representing year-over-year growth of between 12% and 13%.
- Diluted non-GAAP net income per share in the range of $1.47 to $1.49, representing year-over-year growth of between 7% and 8%.
For the fiscal year 2025, we expect:
- Total revenue in the range of $9.10 billion to $9.15 billion, representing year-over-year growth of between 13% and 14%.
- Non-GAAP operating margin in the range of 27.5% to 28.0%.
- Diluted non-GAAP net income per share in the range of $6.18 to $6.31, representing year-over-year growth of between 9% and 11%.
- Adjusted free cash flow margin in the range of 37% to 38%.
The board of directors authorized an additional $500 million for share repurchases, increasing the remaining authorization for future share repurchases to $1 billion, expiring December 31, 2025
Another good quarter with 43% ARR growth probably the most important number. But 37-38% Free cash flow margin guidance gives a lot of confidence that the good results will continue. In addition the added $500 Million buy-back authorization is further confidence building.
When the remaining cyber security companies report, I will follow up with my usual comparisons.
Here is a link to the Palo Alto Investor relations page which includes the release, presentation and web call transcript:
https://investors.paloaltonetworks.com/?mobile=1
Randy
Long PANW And CRWD as well as PANW Tickerguide.