Early Access

10-QPeriod: Q3 FY2023

Palo Alto Networks Inc Quarterly Report for Q3 Ended Apr 30, 2023

Filed May 24, 2023For Securities:PANW

Summary

Palo Alto Networks Inc. (PANW) reported a strong third quarter for fiscal year 2023, demonstrating robust top-line growth and a significant improvement in profitability compared to the prior year period. Total revenue increased by 24.1% year-over-year to $1.72 billion, driven by broad adoption across its cybersecurity portfolio, with subscription and support revenue showing particular strength, growing by 28.7%. The company achieved operating income of $78.7 million, a substantial turnaround from the operating loss of $47.6 million in the same quarter last year, indicating improving operational efficiency and cost management. Key financial metrics highlight the company's healthy financial position. Billings grew by 25.6% to $2.26 billion, and operating cash flow surged to $2.36 billion for the nine-month period. The company also maintained a strong liquidity position with $6.7 billion in cash, cash equivalents, and investments. These results reflect the ongoing demand for advanced cybersecurity solutions and Palo Alto Networks' ability to capitalize on market trends, despite broader macroeconomic uncertainties.

Financial Highlights

50 data points
Beta

Revenue

$1.72B

0.7% Gross Margin

Net Income

$107.80M

0.1% Net Margin

EPS (Diluted)

$0.15

Total Assets

$14.17B

Cash & Equivalents

$1.99B

Free Cash Flow

$432.10M

Financial Statements
Beta
Revenue$1.72B
Cost of Revenue$474.80M
Gross Profit$1.25B
R&D Expenses$413.70M
Operating Expenses$1.17B
Operating Income$78.70M
Interest Expense$6.80M
Net Income$107.80M
EPS (Basic)$0.17
EPS (Diluted)$0.15
Shares Outstanding (Basic)607.80M
Shares Outstanding (Diluted)689.40M

Key Highlights

  • 1Total revenue for the third quarter of fiscal year 2023 reached $1.72 billion, a 24.1% increase year-over-year.
  • 2Subscription and support revenue grew by 28.7% year-over-year to $1.33 billion, now representing 77.4% of total revenue.
  • 3The company achieved operating income of $78.7 million, a significant improvement from an operating loss of $47.6 million in the prior year's quarter.
  • 4Billings increased by 25.6% year-over-year to $2.26 billion for the third quarter.
  • 5Net income turned positive to $107.8 million for the quarter, compared to a net loss of $73.2 million in the prior year.
  • 6Total cash, cash equivalents, and investments stood at a healthy $6.7 billion as of April 30, 2023.
  • 7Remaining performance obligations (RPO) were $9.2 billion, indicating strong future revenue visibility.

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