• Fiscal fourth quarter income grew 27% yr over yr to $1.6 billion. Fiscal yr 2022 income grew 29% yr over yr to $5.5 billion.

• Fiscal fourth quarter billings grew 44% yr over yr to $2.7 billion. Fiscal yr 2022 billings grew 37% yr over yr to $7.5 billion.

• Remaining efficiency obligation grew 40% yr over yr to $8.2 billion.

• Board of administrators accepted a three-for-one inventory cut up.

SANTA CLARA, Calif., Aug. 22, 2022 /PRNewswire/ — Palo Alto Networks (NASDAQ: PANW), the worldwide cybersecurity chief, introduced at the moment monetary outcomes for its fiscal fourth quarter and financial yr 2022, ended July 31, 2022.

Complete income for the fiscal fourth quarter 2022 grew 27% yr over yr to $1.6 billion, in contrast with whole income of $1.2 billion for the fiscal fourth quarter 2021. GAAP web revenue for the fiscal fourth quarter 2022 was $3.Three million, or $0.03 per fundamental and diluted share, in contrast with GAAP web lack of $119.Three million, or $1.23 per diluted share, for the fiscal fourth quarter 2021.

Non-GAAP web revenue for the fiscal fourth quarter 2022 was $254.1 million, or $2.39 per diluted share, in contrast with non-GAAP web revenue of $161.9 million, or $1.60 per diluted share, for the fiscal fourth quarter 2021. A reconciliation between GAAP and non-GAAP data is contained within the tables under.

“We had been happy by our fourth quarter outcomes, which included GAAP profitability for the primary time in 4 years. Subsequent-Era Safety development, pushed by our fast tempo of innovation and powerful gross sales execution, drove our outcomes,” mentioned Nikesh Arora, chairman and CEO of Palo Alto Networks. “As cybersecurity posture stays important, our built-in three-platform technique continues to drive massive deal momentum as we consolidate and simplify our clients’ safety architectures.”

“Our deal with maximizing whole shareholder return in any atmosphere was exhibited by robust income and billings development, paired with non-GAAP working margin and non-GAAP adjusted free money movement margin growth in fiscal yr 2022,” mentioned Dipak Golechha, chief monetary officer of Palo Alto Networks. “As we enter fiscal yr 2023, we sit up for once more delivering this steadiness of development and margin growth, whereas additionally attaining GAAP profitability for the yr.”

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Inventory Cut up Authorization
Palo Alto Networks introduced that the board of administrators has accepted and declared a three-for-one cut up of Palo Alto Networks’ frequent inventory within the type of a inventory dividend. Every stockholder of report on the shut of enterprise on September 6, 2022 (the “report date”), will obtain, after the shut of enterprise on September 13, 2022, two extra shares for each share held on the report date, and buying and selling will start on a split-adjusted foundation on September 14, 2022.

Monetary Outlook
Palo Alto Networks supplies steerage based mostly on present market situations and expectations.

For the fiscal first quarter 2023, we count on:

• Complete billings within the vary of $1.68 billion to $1.70 billion, representing year-over-year development of between 22% and 23%.

• Complete income within the vary of $1.535 billion to $1.555 billion, representing year-over-year development of between 23% and 25%.

• Diluted non-GAAP web revenue per share within the vary of $2.03 to $2.06, utilizing 108 million to 110 million shares excellent.

For the fiscal yr 2023, we count on:

• Complete billings within the vary of $8.95 billion to $9.05 billion, representing year-over-year development of between 20% and 21%.

• Complete income within the vary of $6.85 billion to $6.90 billion, representing year-over-year development of 25%.

• Diluted non-GAAP web revenue per share within the vary of $9.40 to $9.50, utilizing 111 million to 113 million shares excellent.

• Adjusted free money movement margin within the vary of 33.5% to 34.5%.

• Obtain optimistic GAAP web revenue.

The board of administrators approved a further $915 million for share repurchase, growing the remaining authorization for future share repurchases to $1 billion, expiring December 31, 2023.

Steerage for non-GAAP monetary measures excludes share-based compensation-related costs (together with share-based payroll tax expense), acquisition-related prices, amortization expense of acquired intangible property, litigation-related costs, together with authorized settlements, restructuring and different prices, non-cash costs associated to convertible notes, and overseas forex beneficial properties (losses) and revenue and different tax results related to this stuff, together with sure non-recurring bills and sure non-recurring money flows. We now have not reconciled diluted non-GAAP web revenue per share steerage to GAAP web revenue (loss) per diluted share or adjusted free money movement margin steerage to GAAP web money from working actions as a result of we don’t present steerage on GAAP web revenue (loss) or web money from working actions and wouldn’t be capable of current the assorted reconciling money and non-cash objects between GAAP and non-GAAP monetary measures as a result of sure objects that impression these measures are unsure or out of our management, or can’t be fairly predicted, together with share-based compensation expense, with out unreasonable effort. The precise quantities of such reconciling objects may have a big impression on the corporate’s GAAP web revenue (loss) per diluted share and GAAP web money from working actions.

Earnings Name Data
Palo Alto Networks will host a video webcast for analysts and buyers to debate the corporate’s fiscal fourth quarter and financial yr 2022 outcomes in addition to the outlook for its fiscal first quarter and financial yr 2023 at the moment at 4:30 p.m. Japanese time/1:30 p.m. Pacific time. Open to the general public, buyers might entry the webcast, supplemental monetary data and earnings slides from the “Buyers” part of the corporate’s web site at buyers.paloaltonetworks.com. A replay might be accessible three hours after the conclusion of the webcast and archived for one yr.

Ahead-Trying Statements
This press launch comprises forward-looking statements that contain dangers, uncertainties, and assumptions together with statements concerning our capability to steadiness future income development with working margin and free money movement margin growth, obtain GAAP profitability for the yr and our monetary outlook for the fiscal first quarter 2023 and financial yr 2023. There are a big variety of components that would trigger precise outcomes to vary materially from statements made on this press launch, together with: the results of provide chain constraints and the worldwide chip and element shortages and different components affecting the manufacture, supply, and price of sure of our merchandise; developments and adjustments normally market, political, financial, and enterprise situations; the period and world impression of COVID-19; dangers related to managing our development; dangers related to new merchandise and subscription and assist choices, together with the invention of software program bugs; shifts in priorities or delays within the growth or launch of latest subscription choices, or the failure to well timed develop and obtain market acceptance of latest merchandise and subscriptions in addition to current merchandise and subscription and assist choices; quickly evolving technological developments available in the market for safety merchandise and subscription and assist choices; our clients’ buying selections and the size of gross sales cycles; our competitors; our capability to draw and retain new clients; our capability as a company to amass and combine different firms, merchandise, or applied sciences in a profitable method; our debt reimbursement obligations; and our share repurchase program, which is probably not totally consummated or improve shareholder worth, and any share repurchases which might have an effect on the worth of our frequent inventory.

Extra dangers and uncertainties that would have an effect on our monetary outcomes are included beneath the captions “Threat Elements” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” in our Quarterly Report on Kind 10-Q filed with the SEC on Could 19, 2022, which is offered on our web site at buyers.paloaltonetworks.com and on the SEC’s web site at www.sec.gov. Extra data can even be set forth in different filings that we make with the SEC occasionally. All forward-looking statements on this press launch are based mostly on data accessible to us as of the date hereof, and we don’t assume any obligation to replace the forward-looking statements supplied to replicate occasions that happen or circumstances that exist after the date on which they had been made.

Non-GAAP Monetary Measures and Different Key Metrics
Palo Alto Networks has supplied on this press launch monetary data that has not been ready in accordance with usually accepted accounting ideas in the USA (GAAP). The corporate makes use of these non-GAAP monetary measures and different key metrics internally in analyzing its monetary outcomes and believes that the usage of these non-GAAP monetary measures and key metrics are helpful to buyers as a further instrument to judge ongoing working outcomes and tendencies, and in evaluating the corporate’s monetary outcomes with different firms in its {industry}, lots of which current related non-GAAP monetary measures or key metrics.

The presentation of those non-GAAP monetary measures and key metrics will not be meant to be thought of in isolation or as an alternative to comparable GAAP monetary measures and ought to be learn solely along with the corporate’s consolidated monetary statements ready in accordance with GAAP. A reconciliation of the corporate’s historic non-GAAP monetary measures to their most immediately comparable GAAP measures has been supplied within the monetary assertion tables included on this press launch, and buyers are inspired to overview these reconciliations.

Non-GAAP web revenue and web revenue per share, diluted. Palo Alto Networks defines non-GAAP web revenue as web revenue (loss) plus share-based compensation-related costs, together with share-based payroll tax expense, acquisition-related prices, amortization expense of acquired intangible property, litigation-related costs, together with authorized settlements, restructuring and different prices, and non-cash costs associated to convertible notes. The corporate additionally excludes from non-GAAP web revenue overseas forex beneficial properties (losses) and tax results related to this stuff in an effort to present an entire image of the corporate’s recurring core enterprise working outcomes. The corporate defines non-GAAP web revenue per share, diluted, as non-GAAP web revenue divided by the weighted-average diluted shares excellent, which incorporates the possibly dilutive impact of the corporate’s worker fairness incentive plan awards and the corporate’s convertible senior notes excellent and associated warrants, after giving impact to the anti-dilutive impression of the corporate’s notice hedge agreements, which reduces the potential financial dilution that in any other case would happen upon conversion of the corporate’s convertible senior notes. Below GAAP, the anti-dilutive impression of the notice hedge just isn’t mirrored in diluted shares excellent. The corporate believes that excluding this stuff from non-GAAP web revenue and web revenue per share, diluted, supplies administration and buyers with better visibility into the underlying efficiency of the corporate’s core enterprise working outcomes, which means its working efficiency excluding this stuff and, occasionally, different discrete costs which might be rare in nature, over a number of durations.

Billings. Palo Alto Networks defines billings as whole income plus the change in whole deferred income, web of acquired deferred income, in the course of the interval. The corporate considers billings to be a key metric utilized by administration to handle the corporate’s enterprise and believes billings supplies buyers with an vital indicator of the well being and visibility of the corporate’s enterprise as a result of it contains subscription and assist income, which is acknowledged ratably over the contractual service interval, and product income, which is acknowledged on the time of cargo, supplied that each one different situations for income recognition have been met. The corporate considers billings to be a helpful metric for administration and buyers, notably if gross sales of subscriptions proceed to extend and the corporate experiences robust renewal charges for subscriptions and assist.

Buyers are cautioned that there are a variety of limitations related to the usage of non-GAAP monetary measures and key metrics as analytical instruments. Particularly, the billings metric reported by the corporate contains quantities that haven’t but been acknowledged as income. Moreover, lots of the changes to the corporate’s GAAP monetary measures replicate the exclusion of things which might be recurring and might be mirrored within the firm’s monetary outcomes for the foreseeable future, comparable to share-based compensation, which is a vital a part of Palo Alto Networks workers’ compensation and impacts their efficiency. Moreover, these non-GAAP monetary measures will not be based mostly on any standardized methodology prescribed by GAAP, and the elements that Palo Alto Networks excludes in its calculation of non-GAAP monetary measures might differ from the elements that its peer firms exclude after they report their non-GAAP outcomes of operations. Palo Alto Networks compensates for these limitations by offering particular data concerning the GAAP quantities excluded from these non-GAAP monetary measures. Sooner or later, the corporate can also exclude non-recurring bills and different bills that don’t replicate the corporate’s core enterprise working outcomes.

About Palo Alto Networks
Palo Alto Networks is the world’s cybersecurity chief. We innovate to outpace cyberthreats, so organizations can embrace expertise with confidence. We offer next-gen cybersecurity to hundreds of shoppers globally, throughout all sectors. Our greatest-in-class cybersecurity platforms and companies are backed by industry-leading risk intelligence and strengthened by state-of-the-art automation. Whether or not deploying our merchandise to allow the Zero Belief Enterprise, responding to a safety incident, or partnering to ship higher safety outcomes via a world-class companion ecosystem, we’re dedicated to serving to guarantee every day is safer than the one earlier than. It is what makes us the cybersecurity companion of alternative.

At Palo Alto Networks, we’re dedicated to bringing collectively the easiest individuals in service of our mission, so we’re additionally proud to be the cybersecurity office of alternative, acknowledged amongst Newsweek’s Most Liked Workplaces (2021), Comparably Finest Firms for Range (2021), and HRC Finest Locations for LGBTQ Equality (2022). For extra data, go to www.paloaltonetworks.com.

Palo Alto Networks and the Palo Alto Networks brand are logos of Palo Alto Networks, Inc. in the USA and in jurisdictions all through the world. All different logos, commerce names, or service marks used or talked about herein belong to their respective house owners.

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SOURCE Palo Alto Networks, Inc.