Summary
Palo Alto Networks Inc. (PANW) reported its first quarter fiscal year 2017 results for the period ending October 30, 2016. The company demonstrated robust top-line growth, with total revenue increasing by 34.0% year-over-year to $398.1 million, driven by a significant expansion in subscription and support revenue (up 56.7%). This strong revenue growth was accompanied by an improvement in gross margin to 74.6%, up from 73.3% in the prior year period. The company continues to invest heavily in sales and marketing, and research and development, leading to an operating loss of $49.9 million for the quarter. Despite the operating loss, cash flow from operations was positive at $203.3 million, and the company ended the quarter with a strong cash and investments position of $2.1 billion.
Financial Highlights
46 data points| Revenue | $398.10M |
| Cost of Revenue | $101.20M |
| Gross Profit | $296.90M |
| R&D Expenses | $84.20M |
| Operating Expenses | $345.90M |
| Operating Income | -$49.00M |
| Interest Expense | $6.00M |
| Net Income | -$56.90M |
| EPS (Basic) | $-0.10 |
| Shares Outstanding (Basic) | 538.80M |
Key Highlights
- 1Total revenue grew 34.0% year-over-year to $398.1 million.
- 2Subscription and support revenue increased by 56.7% year-over-year, indicating strong recurring revenue growth.
- 3Gross margin improved to 74.6% from 73.3% in the prior year period.
- 4The company generated positive cash flow from operations of $203.3 million.
- 5Total cash, cash equivalents, and investments stood at $2.1 billion as of October 31, 2016.
- 6The company announced a $500 million share repurchase program, of which $50 million was utilized in the quarter.
- 7Operating expenses, particularly sales and marketing and R&D, increased significantly, contributing to an operating loss of $49.9 million.