Palo Alto Networks (PANW) Q4 Earnings Top Estimates, Rise Y/Y
Zacks Investment Research | Sep 04, 2019 11:08PM ET
Palo Alto Networks (NYSE:PANW) reported fourth-quarter fiscal 2019 non-GAAP earnings of $1.47 per share, which not only improved 14.8% year over year but also surpassed the Zacks Consensus Estimate of $1.45.
Moreover, the company’s revenues of $805.8 million increased 22% year over year, outpacing the consensus estimate of $803 million.
The impressive results were mainly driven by several deal wins and the increasing adoption of the company’s next-generation security platforms. Growing traction in newer Prisma and Cortex offerings was another tailwind.
In a parallel announcement, Palo Alto clarified its intent to acquire the IoT security start-up Zingbox for $75 million.
Quarterly Details
Product revenues increased approximately 12.3% to $305.7 million. The company also witnessed a 29.4% jump in subscription and support revenues to $500.1 million.
Further, billings improved 22% year over year to $1.1 billion. Deferred revenues rose 27% to $2.9 billion as well.
Region wise, revenues from the Americas climbed 24.7% while revenues from Europe, the Middle East and Africa, and Asia Pacific were up 17.6% and 16.8%, respectively.
During the quarter, the company added nearly 3,000 customers. It boasts 65,000 customers currently.
Additionally, Palo Alto’s non-GAAP gross margin expanded 130 basis points (bps) on a year-over-year basis to 77.5%.
While non-GAAP operating expense of $450.4 million as a percentage of revenues expanded 400 bps to 55.9%, non-GAAP operating margin contracted 270 bps to 21.6%.
Palo Alto Networks, Inc. Price, Consensus and EPS Surprise
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