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Apr 30, 2022

Palo Alto Networks Q3 2022 Earnings Report

Palo Alto Networks' fiscal third quarter revenue grew, driven by strong cybersecurity demand.

Key Takeaways

Palo Alto Networks reported a strong fiscal third quarter with revenue growth of 29% year over year to $1.4 billion. The company raised its guidance for the year across revenue, billings and earnings per share.

Fiscal third quarter revenue grew 29% year over year to $1.4 billion

Fiscal third quarter billings grew 40% year over year to $1.8 billion

Remaining performance obligation grew 40% year over year to $6.9 billion

The company is raising its guidance for the year across revenue, billings and earnings per share.

Total Revenue
$1.39B
Previous year: $1.07B
+29.1%
EPS
$0.6
Previous year: $0.46
+30.4%
Gross Profit
$946M
Previous year: $743M
+27.3%
Cash and Equivalents
$2.42B
Previous year: $1.89B
+28.3%
Free Cash Flow
$390M
Total Assets
$11.1B
Previous year: $9.56B
+16.1%

Palo Alto Networks

Palo Alto Networks

Palo Alto Networks Revenue by Segment

Forward Guidance

For the fiscal fourth quarter 2022, Palo Alto Networks expects total revenue in the range of $1.53 billion to $1.55 billion, representing year over year growth of between 25% and 27%, and diluted non-GAAP net income per share in the range of $2.26 to $2.29.

Positive Outlook

  • Total billings in the range of $2.32 billion to $2.35 billion, representing year over year growth of between 24% and 26%.
  • Total revenue in the range of $1.53 billion to $1.55 billion, representing year over year growth of between 25% and 27%.
  • Diluted non-GAAP net income per share in the range of $2.26 to $2.29, using 106 million to 108 million shares outstanding.
  • Total billings in the range of $7.106 billion to $7.136 billion, representing year over year growth of between 30% and 31% for fiscal year 2022.
  • Total revenue in the range of $5.481 billion to $5.501 billion, representing year over year growth of approximately 29% for fiscal year 2022.

Challenges Ahead

  • Guidance excludes share-based compensation-related charges.
  • Guidance excludes acquisition-related costs.
  • Guidance excludes amortization expense of acquired intangible assets.
  • Guidance excludes litigation-related charges, including legal settlements.
  • Guidance excludes non-cash charges related to convertible notes.

Revenue & Expenses

Visualization of income flow from segment revenue to net income