Palo Alto Networks grows 20% on strong cybersecurity demand>
TechMarketView –
Shares of Palo Alto Networks, a cybersecurity supplier, dropped approximately 6% in after-hours trading as customers demand more flexibility in cybersecurity spending.
Despite this, the company’s growth expectations remain consistent with previous forecasts.
In Q1 FY24, Palo Alto Networks reported a 20% year-over-year revenue growth to $1.9 billion, with a net income of $194 million.
The company’s recurring revenue now accounts for 83% of its total revenue.
Palo Alto Networks attributes the strong demand in the cybersecurity market to an unprecedented level of cyber attacks.
The company continues to execute its strategy of consolidating customers’ security estates and transitioning them to its own security platforms.
Palo Alto Networks highlighted several significant customer deals, including the adoption of its SASE and XSIAM platforms, which have been further enhanced by AI.
The recent acquisition of Talon Cyber Security, an Israeli-based pioneer of Enterprise Browser technology, was also announced.
For FY24, Palo Alto Networks expects revenue growth of 18-19% and total billings in the range of $10.7-10.8 billion, representing year-over-year growth of 16-17%.
The company considers billings an important metric that includes subscription and support revenue.
Palo Alto Networks acknowledges an escalating threat landscape, with an increase in ransomware attacks, ransoms paid, and data exfiltration speeds.
The company shared an incident where hackers managed to steal 2.4 terabytes of data within the first four hours of an attack.
Despite a slight slowdown in growth compared to the previous year, Palo Alto Networks aims to address the evolving cybersecurity landscape and capitalize on the strong demand for its services.
Link: https://www.techmarketview.com/ukhotviews/archive/2023/11/16/unprecedented-level-of-cyber-attacks-drives-palo-alto-networks-up-20