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Apr 30, 2020

Palo Alto Networks Q3 2020 Earnings Report

Palo Alto Networks' financial performance showed revenue growth and strategic positioning amidst market transitions.

Key Takeaways

Palo Alto Networks reported a 20% year-over-year increase in revenue for the fiscal third quarter of 2020, reaching $869.4 million. While GAAP net loss was $74.8 million, non-GAAP net income stood at $114.6 million. The company is focusing on leveraging trends such as remote working and cloud adoption to drive cybersecurity outcomes.

Fiscal third quarter revenue grew 20% year over year to $869.4 million.

Billings increased 24% year over year to $1.0 billion.

Deferred revenue grew 28% year over year to $3.4 billion.

Non-GAAP net income was $114.6 million, or $1.17 per diluted share.

Total Revenue
$869M
Previous year: $727M
+19.7%
EPS
$0.39
Previous year: $0.44
-11.4%
Cash and Equivalents
$1.48B
Total Assets
$6.5B

Palo Alto Networks

Palo Alto Networks

Palo Alto Networks Revenue by Segment

Forward Guidance

Palo Alto Networks expects total revenue between $915 million and $925 million, representing year-over-year growth between 14% and 15%. Diluted non-GAAP net income per share is expected to be in the range of $1.37 to $1.40.

Positive Outlook

  • Total billings in the range of $1.190 billion to $1.210 billion, representing year-over-year growth of between 13% and 14%.
  • Total revenue in the range of $915 million to $925 million, representing year-over-year growth between 14% and 15%.
  • Diluted non-GAAP net income per share in the range of $1.37 to $1.40.