Palo Alto Networks Up on Stronger-Than-Expected Revenue

Palo Alto Networks  (PANW) - Get Report shares rose after the cybersecurity company reported stronger-than-expected fiscal-first-quarter revenue.

In the quarter ended Oct. 31, Palo Alto Networks had a net loss of $92.2 million, or 97 cents a share, widened from a loss of $59.6 million, or 62 cents, in the year-earlier quarter. The FactSet analyst consensus called for a loss of 49 cents a share in the latest quarter.

Revenue registered $946 million, up 23% from $771.9 million in the year-earlier quarter. The FactSet analyst consensus called for $921.7 million in the latest quarter. The revenue gain stemmed from a 21% rise in billings to $1.1 billion.

Operating expense jumped 18% to $712.7 million from $606 million.

Shares of the Santa Clara, Calif., company recently traded at $271.73, up 5.1%. They have climbed 12% year to date.

Chief Executive Nikesh Arora noted the first-quarter billings increase. “Both our firewall transformation and our next-generation security services continue to make great progress, giving us confidence to raise previously issued guidance for the year,” he said in a statement.

For the fiscal second quarter, Palo Alto forecast:

· Total billings of $1.17 billion to $1.19 billion, representing year-over-year growth of 17% to 19%;

· Total revenue of $975 million to $990 million, representing year-over-year growth of 19% to 21%;

· Net income per share of $1.42 to $1.44.

The FactSet estimate for Q2 is a GAAP net loss of 58 cents, or adjusted net income of $1.35 a share, on revenue of $970.6 million.

For fiscal 2021, the company predicted:

· Total revenue of $4.09 billion to $4.14 billion, or year-over-year growth of 20% to 21%;

· Net income per share of $5.70 to $5.80.

FactSet's call: a GAAP net loss of $1.99 a share, or adjusted net income of $5.60, on revenue of $4.02 billion.