The Biggest Takeaway From Palo Alto's Earnings
Palo Alto Networks (PANW) - Get Palo Alto Networks Inc. 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 Zscaler Inc. Report and CrowdStrike (CRWD) - Get CrowdStrike Holdings Inc. 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.
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