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Oct 31, 2020
Palo Alto Networks Q1 2021 Earnings Report
Palo Alto Networks reported strong Q1 2021 results with revenue growth and raised full-year guidance.
Key Takeaways
Palo Alto Networks announced its fiscal first quarter 2021 financial results, with total revenue growing 23% year over year to $946.0 million. The company reported a GAAP net loss of $92.2 million, or $0.97 per diluted share, and a non-GAAP net income of $158.1 million, or $1.62 per diluted share. The company also raised its full-year guidance.
Fiscal first quarter revenue grew 23% year over year to $946.0 million.
Fiscal first quarter billings grew 21% year over year to $1.1 billion.
Deferred revenue grew 31% year over year to $3.9 billion.
The company raised previously issued guidance for the year.
Palo Alto Networks
Palo Alto Networks
Palo Alto Networks Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comSubscription and Support Revenue
CapyFin.com Forward Guidance
Palo Alto Networks provides guidance based on current market conditions and expectations.
Positive Outlook
- Total billings in the range of $1.17 billion to $1.19 billion, representing year-over-year growth of between 17% and 19%.
- Total revenue in the range of $975 million to $990 million, representing year-over-year growth of between 19% and 21%.
- Diluted non-GAAP net income per share in the range of $1.42 to $1.44, using 98 million to 100 million shares.
- Total billings in the range of $5.08 billion to $5.13 billion, representing year-over-year growth of between 18% and 19%.
- Total revenue in the range of $4.09 billion to $4.14 billion, representing year-over-year growth of between 20% and 21%.
Challenges Ahead
- Diluted non-GAAP net income per share in the range of $5.70 to $5.80, using 99 million to 101 million shares.
- Adjusted free cash flow margin of approximately 29%.
- Our fiscal year 2021 guidance includes the expected impact from the proposed acquisition of Expanse, Inc.
- We expect Expanse to contribute approximately 100 basis points of billings growth and approximately 50 basis points of revenue growth, after acquisition accounting adjustments.
- Guidance for non-GAAP financial measures excludes share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, gains (losses) related to facility exit, non-cash charges related to convertible notes, foreign currency gains (losses), and income and other tax effects associated with these items, along with certain non-recurring expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income