Palo Alto Networks has raised its annual forecasts for revenue and profit as enterprise customers enhance IT spending for their cybersecurity needs.
Palo Alto has 325 cyber security accounts in the >$1 million range; 72 accounts in the >$5 million range and 25 accounts in the >$10 million range.
Palo Alto has achieved 29 percent growth in bookings from accounts in the >$1 million range; 62 percent growth in bookings from accounts in the >$5 million range and 136 percent growth in bookings from accounts in the >$10 million range.
Each day, Palo Alto analyzes 750 million new and unique objects; detect 1.5 million new and unique attacks and block 8.6 billion attacks.
“Our strategy of delivering best-of-breed products within our three platforms is helping customers simplify their security architectures and consolidate vendors,” Nikesh Arora, chairman and CEO of Palo Alto Networks, said in its earnings report.
The Santa Clara, California-based company is also working on embedding generative AI, the technology behind chatbot sensation ChatGPT, into products and workflows.
“Raised guidance for Q4 billings growth gives us more confidence to expect demand headwinds to ease incrementally as we set up for stronger performance in FY24,” said Janice Quek, equity analyst at CFRA Research.
Palo Alto, which counts Accenture and Salesforce among its clients, expects 2023 adjusted net income per share of $4.25 to $4.29, from $3.97 to $4.03 estimated earlier.
It increased the lower end of its full-year revenue outlook to between $6.88 billion and $6.91 billion, compared with a prior forecast of $6.85 billion to $6.91 billion.
The company also forecast fourth-quarter revenue between $1.94 billion and $1.97 billion.
Palo Alto Networks, the global cybersecurity leader, said revenue grew 24 percent to $1.7 billion for its fiscal third quarter 2023, ended April 30, 2023.
Net income of Palo Alto Networks for the fiscal third quarter 2023 was $107.8 million, or $0.31 per diluted share, compared with GAAP net loss of $73.2 million, or $0.25 per diluted share, for the fiscal third quarter 2022.
Palo Alto Networks is expecting billings in the range of $3.15 billion to $3.20 billion, representing growth of between 17 percent and 19 percent for the fiscal fourth quarter 2023.
Palo Alto Networks is expecting revenue in the range of $1.937 billion to $1.967 billion, representing growth of between 25 percent and 27 percent for the fiscal fourth quarter 2023.
Palo Alto Networks is expecting billings in the range of $9.18 billion to $9.23 billion, representing growth of between 23 percent and 24 percent, for the fiscal year 2023.
Palo Alto Networks is expecting revenue in the range of $6.88 billion to $6.91 billion, representing year-over-year growth of between 25 percent and 26 percent, for the fiscal year 2023.