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Jul 31, 2020

Palo Alto Networks Q4 2020 Earnings Report

Palo Alto Networks reported strong Q4 2020 results with revenue growth driven by strong execution and success in next-gen security.

Key Takeaways

Palo Alto Networks' fiscal fourth quarter revenue grew 18% year over year to $950.4 million. The company's billings grew 32% year over year to $1.4 billion. GAAP net loss for the quarter was $58.9 million, or $0.61 per diluted share, while non-GAAP net income was $144.9 million, or $1.48 per diluted share.

Fiscal fourth quarter revenue grew 18% year over year to $950.4 million.

Fiscal fourth quarter billings grew 32% year over year to $1.4 billion.

GAAP net loss for the fiscal fourth quarter was $58.9 million, or $0.61 per diluted share.

Non-GAAP net income for the fiscal fourth quarter was $144.9 million, or $1.48 per diluted share.

Total Revenue
$950M
Previous year: $806M
+17.9%
EPS
$0.49
Previous year: $0.49
+0.0%
Gross Profit
$660M
Previous year: $588M
+12.2%
Cash and Equivalents
$2.96B
Previous year: $961M
+207.7%
Total Assets
$9.07B
Previous year: $6.59B
+37.5%

Palo Alto Networks

Palo Alto Networks

Palo Alto Networks Revenue by Segment

Forward Guidance

For the fiscal first quarter 2021, Palo Alto Networks expects total billings in the range of $1.03 billion to $1.05 billion, representing year-over-year growth of between 15% and 17%. Total revenue is expected to be in the range of $915 million to $925 million, representing year-over-year growth of between 19% and 20%. Diluted non-GAAP net income per share is expected to be in the range of $1.32 to $1.35, using 99.0 million to 101.0 million shares.

Positive Outlook

  • Total billings are expected to grow between 15% and 17% year-over-year.
  • Total revenue is expected to grow between 19% and 20% year-over-year.
  • Diluted non-GAAP net income per share is expected to be in the range of $1.32 to $1.35.
  • The company anticipates continued success in next-gen security.
  • The acquisition of The Crypsis Group will enhance the Cortex XDR platform.

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.
  • Guidance excludes non-cash charges related to convertible notes.