Palo Alto Networks Tops Forecasts
February 27, 2019
Alto Networks reported financial results for its fiscal second quarter
2019, ended January 31, 2019.
Total revenue for the fiscal second quarter 2019 grew 30 percent year
over year to $711.2 million, compared with total revenue of $545.6
million for the fiscal second quarter 2018. GAAP net loss for the fiscal
second quarter 2019 was $2.6 million, or $0.03 per diluted share,
compared with GAAP net loss of $25.6 million, or $0.28 per diluted
share, for the fiscal second quarter 2018.
Non-GAAP net income for the fiscal second quarter 2019 was $147.0
million, or $1.51 per diluted share, compared with non-GAAP net income
of $98.7 million, or $1.05 per diluted share, for the fiscal second
Investors were only looking for Non-GAAP
net income of $1.22 per share, and revenue of $682 million.
"We remain focused on delivering to our customers the best security in
the market," said Nikesh Arora, chief executive officer of Palo Alto
Networks. "Our recently introduced products and services, including
Cortex XDR, Traps 6.0, PAN-OS 9.0, the DNS Security Service
subscription, and our fastest ever Next-Generation Firewall, coupled
with the proposed acquisition of Demisto, further enhance and expand our
capabilities, making security simpler and more effective through the use
of artificial intelligence, analytics, automation and orchestration."
In a separate news release issued today, the company announced Cortex,
the industry's only open and integrated AI-based continuous security
platform, as well as Cortex XDR and Traps 6.0 Endpoint Protection.
$1.0 Billion Share Repurchase Authorization
On February 22, 2019, our board of directors authorized a $1.0 billion
share repurchase. This authorization allows the company to repurchase
its shares opportunistically and will be funded from available working
capital. Repurchases may be made at management's discretion from time to
time on the open market, through privately negotiated transactions,
transactions structured through investment banking institutions, block
purchase techniques, 10b5-1 trading plans, or a combination of the
foregoing. The repurchase authorization will expire on December 31,
2020, and may be suspended or discontinued by the company at any time
without prior notice. The company had approximately 93.7 million shares
of common stock outstanding as of January 31, 2019.
Alto Networks provided guidance based on current market conditions and
For the fiscal third quarter 2019:
Total revenue in the range of $697 to $707 million, representing
year-over-year growth between 23 percent and 25 percent on an ASC 606
Diluted non-GAAP net income per share in the range of $1.23 to $1.25,
which includes expenses related to the proposed Demisto acquisition,
using 99 to 101 million shares on an ASC 606 basis.