Palo Alto Networks Impresses Again with Quarterly Report

 | Mar 04, 2015 08:34AM ET

Palo Alto Networks Inc (NYSE:PANW) posted their fiscal second quarter 2015 report on March 2nd. The cyber security company’s report topped estimates following large-scale breaches at Sony and Target that garnered media attention.

The cyber security company now has over 22,000 customers, or 6%-7% of the market share as stated by CEO Mark McLaughin on CNBC. Palo Alto Networks enjoyed a successful quarter in which they introduced new hardware and launched a global user group intended to share best security practices across a variety of industries.

In the fiscal second quarter of 2015, the cyber security company posted total revenue of $217.7 billion, beating estimates of $204 million and representing a 54% year-over-year increase from $141.1 million. The GAAP net loss per share was ($0.53) for the quarter on a diluted basis, narrowing the gap from a loss of ($0.55) from the same quarter of last year.

Looking forward, Palo Alto Networks expects to post its fiscal third quarter 2015 total revenue between $219 million and $223 million; a year-over-year increase between 45% and 48% and above the average analyst estimate of $214 million. The company also expects to post diluted non-GAAP earnings per share between $0.19 and $0.20, in-line with the average analyst estimate.

CEO Mark McLaughlin noted, “Given the increasing rate and severity of today’s highly sophisticated cyber-attacks, enterprises worldwide are turning to us to help them solve their most complex security challenges.” Additionally, CFO Steffan Tomlinson noted that about 47% of quarterly revenue came from recurring customers, allowing the company to ramp up “economies of scale [and] continue to drive leverage in the business.”

Analysts were bullish following Palo Alto’s report. According to TipRanks is Strong Buy.

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