The Biggest Takeaway From Palo Alto's Earnings

Palo Alto Networks (PANW) - Get Reportposted adjusted earnings of $1.47 a share, 5 cents better than analysts' estimates, and said it can achieve a compounded annual growth rate of 20% by 2022 for both billings and revenue from its cloud-based security products.

Revenue was $805.8 million, up from $658.5 million a year earlier and ahead of forecasts of $803 million. Billings in Palo Alto's fourth quarter rose rose 22% to $1.1 billion. Analysts had expected billings of $995 million.

For Jim Cramer the biggest takeaway is, "there was a strategy all along and the strategy was to be king of both the firewall and the cloud. Right now, ZScaler (ZS) - Get Report and CrowdStrike (CRWD) - Get Report are the cloud. What Nikesh is saying, you can't just have the cloud and no enterprise. You have to have them both. He's got that strategy. I know that Cisco does too. That strategy is a winner."

Watch the video above to see what else Jim had to say about Palo Alto's Earnings.

Palo Alto Networks is a holding in Jim Cramer's Charitable Trust portfolio, ActionAlertsPLUS. Want to find out when Jim buys or sells PANW? Sign up for a free trial here.

More from Cramer Today

Full Replay: Jim Cramer Breaks Down U.S.-China Trade Talks and Palo Alto's Earnings

Jim Cramer: It's Still a China Market

Jim Cramer: There Are No China Stocks

Premium Pick: Choppy Market Action on Hong Kong News

Latest News: Three Things Coca-Cola's Doing Right and What That Means for the Stock

Apple News: Apple's iPhone Launch -- 3 Key Things to Know

Ask the Expert: How to Use the Trade War to Make Money

TheStreet Explains:What Are Gross Margins?

Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud

Catch Up: Today's Top News Videos Below