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Jan 31, 2023
Palo Alto Networks Q2 2023 Earnings Report
Palo Alto Networks' financial performance improved with revenue and billings increasing, and GAAP net income turning positive.
Key Takeaways
Palo Alto Networks reported a strong fiscal second quarter 2023, with revenue increasing by 26% year over year to $1.7 billion. The company's GAAP net income was $84.2 million, a significant improvement from the previous year's net loss. The remaining performance obligation grew 39% year over year to $8.8 billion.
Fiscal second quarter revenue and billings each grew 26% year over year.
Trailing 12-months GAAP net income was positive for the period ending January 31, 2023.
Remaining performance obligation grew 39% year over year.
Company raised its billings and NGS ARR guidance.
Revenue by Segment
Forward Guidance
Palo Alto Networks provided guidance for the fiscal third quarter 2023 and updated guidance for the full fiscal year 2023.
Positive Outlook
- Total billings in the range of $2.20 billion to $2.25 billion for Q3 2023.
- Total revenue in the range of $1.695 billion to $1.725 billion for Q3 2023.
- Diluted non-GAAP net income per share in the range of $0.90 to $0.94 for Q3 2023.
- Total billings in the range of $9.10 billion to $9.20 billion for fiscal year 2023.
- Total revenue in the range of $6.85 billion to $6.91 billion for fiscal year 2023.
Challenges Ahead
- Diluted non-GAAP net income per share in the range of $3.97 to $4.03 for fiscal year 2023.
- Adjusted free cash flow margin in the range of 36.5% to 37.5% for fiscal year 2023.
- Guidance excludes share-based compensation-related charges.
- Guidance excludes acquisition-related costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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