Free Research Report as Palo Alto's Revenue Surged 31%; Non-GAAP EPS Soared 62%

LONDON, UK / ACCESSWIRE / July 2, 2018 / If you want access to our free earnings report on Palo Alto Networks, Inc. (NYSE: PANW) ("Palo Alto"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PANW. Palo Alto reported its third quarter fiscal 2018 operating and financial results on June 04, 2018. The security software outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Palo Alto Networks most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Palo Alto's total revenue for the fiscal third quarter 2018 surged 31% to $567.1 million compared to total revenue of $431.8 million for Q3 FY17. The Company's reported numbers beat analysts' estimates of $545.8 million

During Q3 FY18, Palo Alto's gross margin was 76.2%, reflecting a decline of 20 basis points (bps) compared to the year ago same period. The Company's operating expenses were $316.6 million, or 55.9% of revenue, in the reported quarter; representing a 210-bps improvement on a y-o-y basis, driven primarily by ongoing increasing leverage in sales and marketing. Palo Alto's operating margin was 20.3% in Q3 FY18, up 190 bps from the year ago comparable period.

Palo Alto's GAAP net loss was $46.7 million, or $0.51 per diluted share, for Q3 FY18 compared to GAAP net loss of $60.9 million, or $0.67 per diluted share, for Q3 FY17.

For Q3 FY18, Palo Alto reported non-GAAP net income of $95.1 million, or $0.99 per diluted share, compared with non-GAAP net income of $57.1 million, or $0.61 per diluted share, for Q3 FY17. The Company's earnings surpassed Wall street's estimates of $0.96 per share.

Revenue Details

For Q3 FY18, Palo Alto's product revenue of $215.2 million grew 31% on a y-o-y basis. The Company's reported quarter SaaS-based subscription revenue of $192.5 million advanced 38% from the year ago same period. Palo Alto's Support revenue of $159.4 million increased 25% on a y-o-y basis, and in total, subscription, and support revenue of $351.9 million increased 32% compared to the year ago corresponding period and accounted for a 62% share of total revenue in Q3 FY18.

Palo Alto's total billings of $721 million increased 33% in Q3 FY18. The Company's total deferred revenue at the end of the reported quarter was $2.2 billion, an increase of 34%.

Change in Leadership

On June 01, 2018, Palo Alto announced that its Board of Directors has named Nikesh Arora as its new Chief Executive Officer and Chairman of the Board of Directors, effective June 06, 2018. Mr. Arora succeeded Mark McLaughlin, who is transitioning to the role of Vice Chairman of the Board for Palo Alto Networks.

Mr. Arora formerly served as President and Chief Operating Officer at SoftBank and as Chief Business Officer at Alphabet Inc., which was formerly known as Google. At Google, Arora was instrumental in growing Google's search business from $2 billion in revenues to over $60 billion in revenues, led more than 20,000 employees, and developed a substantial track record of driving innovation and delivering business success.

Outlook

For the fiscal fourth quarter 2018, Palo Alto is forecasting total revenue in the range of $625 million to $635 million, representing y-o-y growth between 23% and 25%. The Company's Product revenue are estimates to be in the range of $246 million to $249 million, representing y-o-y growth in the range of 16% to 17%. Palo Alto's total billings for the upcoming quarter are estimated to be in the range of $815 million to $830 million. The Company is expecting non-GAAP net income to be in the band of $1.15 to $1.17 per diluted share.

For the fiscal year 2018, Palo Alto is projecting total revenue in the range of $2.240 billion to $2.250 billion, and Product revenue in the band of $850 million to $853 million. The Company's total billings for FY18 are expected to be in the range of $2.807 billion to $2.822 billion, representing y-o-y growth between 22% and 23%. Palo Alto is expecting earnings in the range of $3.86 to $3.89 per diluted share.

Stock Performance Snapshot

June 29, 2018 - At Friday's closing bell, Palo Alto Networks' stock slightly rose 0.27%, ending the trading session at $205.47.

Volume traded for the day: 799.06 thousand shares.

Stock performance in the last three-month – up 14.06%; previous six-month period – up 39.90%; past twelve-month period – up 52.54%; and year-to-date – up 41.76%

After last Friday's close, Palo Alto Networks' market cap was at $18.68 billion.

The stock is part of the Technology sector, categorized under the Networking & Communication Devices industry. This sector was up 0.2% at the end of the session.

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