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Palo Alto Networks
🇺🇸 NYSE:PANW
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Jul 31, 2024

Palo Alto Networks Q4 2024 Earnings Report

Palo Alto Networks' Q4 2024 financial results showed revenue growth and increased profitability.

Key Takeaways

Palo Alto Networks reported a 12% year-over-year increase in revenue for Q4 2024, reaching $2.2 billion. GAAP net income increased to $357.7 million, or $1.01 per diluted share, while non-GAAP net income reached $522.2 million, or $1.51 per diluted share. The company's Next-Generation Security ARR grew 43% year-over-year to $4.2 billion, and remaining performance obligation grew 20% year-over-year to $12.7 billion.

Q4 revenue increased by 12% year-over-year to $2.2 billion.

Next-Generation Security ARR grew by 43% year-over-year to $4.2 billion.

Remaining performance obligation (RPO) increased by 20% year-over-year to $12.7 billion.

GAAP net income was $357.7 million, or $1.01 per diluted share.

Total Revenue
$2.19B
Previous year: $1.95B
+12.1%
EPS
$1.51
Previous year: $1.44
+4.9%
Gross Profit
$1.62B
Previous year: $1.45B
+11.7%
Cash and Equivalents
$2.58B
Previous year: $1.14B
+127.1%
Total Assets
$20B
Previous year: $14.5B
+37.9%

Palo Alto Networks

Palo Alto Networks

Palo Alto Networks Revenue by Segment

Forward Guidance

Palo Alto Networks provided guidance for the fiscal first quarter 2025 and fiscal year 2025, taking into account the expected financial impact of the pending acquisition of IBM’s QRadar SaaS assets.

Positive Outlook

  • Total revenue in the range of $2.10 billion to $2.13 billion for fiscal first quarter 2025, representing year-over-year growth of between 12% and 13%.
  • Diluted non-GAAP net income per share in the range of $1.47 to $1.49 for fiscal first quarter 2025, representing year-over-year growth of between 7% and 8%.
  • Total revenue in the range of $9.10 billion to $9.15 billion for fiscal year 2025, representing year-over-year growth of between 13% and 14%.
  • Non-GAAP operating margin in the range of 27.5% to 28.0% for fiscal year 2025.
  • Diluted non-GAAP net income per share in the range of $6.18 to $6.31 for fiscal year 2025, representing year-over-year growth of between 9% and 11%.

Challenges Ahead

  • Guidance takes into account the expected financial impact of the pending acquisition of IBM’s QRadar SaaS assets.
  • Guidance for non-GAAP financial measures excludes share-based compensation-related charges, acquisition-related costs, and other items.
  • The actual amounts of reconciling items will have a significant impact on the company's GAAP net income per diluted share and GAAP net cash from operating activities.
  • Forward-looking statements involve risks, uncertainties, and assumptions.
  • The financial outlook assumes consummation of the pending acquisition of IBM’s QRadar SaaS assets during the fiscal first quarter of 2025.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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