•
Jan 31, 2020

Palo Alto Networks Q2 2020 Earnings Report

Palo Alto Networks' fiscal second quarter revenue grew, but GAAP net loss increased compared to the previous year.

Key Takeaways

Palo Alto Networks reported a 15% year-over-year increase in revenue for the fiscal second quarter of 2020, reaching $816.7 million. However, the company experienced a GAAP net loss of $73.7 million, compared to a net loss of $2.6 million in the same quarter of the previous year. Non-GAAP net income was $120.3 million, down from $147.0 million year-over-year. The company announced a proposed $1 billion accelerated share repurchase transaction.

Fiscal second quarter revenue increased 15% year-over-year to $816.7 million.

Billings grew 17% year-over-year to $998.9 million.

Deferred revenue increased 27% year-over-year to $3.2 billion.

Announced a proposed $1 billion accelerated share repurchase transaction.

Total Revenue
$817M
Previous year: $711M
+14.8%
EPS
$0.4
Previous year: $0.5
-20.0%
Cash and Equivalents
$2B
Total Assets
$7.18B

Palo Alto Networks

Palo Alto Networks

Palo Alto Networks Revenue by Segment

Forward Guidance

Palo Alto Networks expects revenue between $835 to $850 million, billings between $980 million and $1.000 billion, and diluted non-GAAP net income per share between $0.96 and $0.98 for the fiscal third quarter 2020. For the full fiscal year 2020, they expect revenue between $3.350 to $3.390 billion, billings between $4.075 to $4.125 billion, and diluted non-GAAP net income per share between $4.55 and $4.65.

Positive Outlook

  • Expects revenue between $835 to $850 million for Q3 2020, representing year-over-year growth between 15% and 17%.
  • Expects billings between $980 million and $1.000 billion for Q3 2020, representing year-over-year growth between 19% and 22%.
  • Expects diluted non-GAAP net income per share in the range of $0.96 to $0.98 for Q3 2020.
  • Expects revenue between $3.350 to $3.390 billion for fiscal year 2020, representing year-over-year growth between 16% and 17%.
  • Expects billings between $4.075 to $4.125 billion for fiscal year 2020, representing year-over-year growth between 17% and 18%.