Palo Alto reports 51% billings growth, offers strong guidance < link back
In addition to beating FQ2 estimates, Palo Alto Networks (NYSE:PANW) is guiding for FQ3 revenue of $219M-$223M (+45-48% Y/Y) and EPS of $0.19-$0.20, mostly above a consensus of $214.2M and $0.19 and possibly conservative given the company's history. Nonetheless, with shares having risen 29% since Palo Alto's Nov. 24 FQ1 beat as of today's close (and up over 150% from their 52-week low), investors are taking the numbers in stride for now.
FQ2 billings totaled $282.8M, +51% Y/Y and well above revenue of $217.7M; growth was nearly even with FQ1's 52%. The deferred revenue balance (inc. long-term deferred revenue) rose 65% Y/Y to $535.8M.
Product revenue (revolves around next-gen firewalls) +43% Y/Y to $115.6M. Services revenue (boosted by WildFire and other subscription services) +29% to $102M. 47% of all revenue came from recurring services.
Not counting a $20M year-ago legal payment, GAAP operating expenses rose 63% Y/Y to $196.8M (compares with 54% revenue growth). Sales/marketing spend totaled $122.9M, R&D $46.9M, and G&A $27M.
PANW -0.7% AH to $145.00.
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