Palo Alto Networks (PANW) Tops Q1 EPS by 29c, Revenues Beat; Raises FY21 EPS/Revenue Guidance Above Consensus, 2Q EPS/Revenues Views Above Consensus

Palo Alto Networks (NYSE: PANW) reported Q1 EPS of $1.62, $0.29 better than the analyst estimate of $1.33. Revenue for the quarter came in at $946 million versus the consensus estimate of $921.64 million.

Total revenue for the fiscal first quarter 2021 grew 23% year over year to $946.0 million, compared with total revenue of $771.9 million for the fiscal first quarter 2020. GAAP net loss for the fiscal first quarter 2021 was $92.2 million, or $0.97 per diluted share, compared with GAAP net loss of $59.6 million, or $0.62 per diluted share, for the fiscal first quarter 2020.

Non-GAAP net income for the fiscal first quarter 2021 was $158.1 million, or $1.62 per diluted share, compared with non-GAAP net income of $104.8 million, or $1.05 per diluted share, for the fiscal first quarter 2020. A reconciliation between GAAP and non-GAAP information is contained in the tables below.

"We delivered another consecutive strong quarter of solid results, with first quarter billings of 21% year-over-year growth; both our firewall transformation and our Next-Generation Security services continue to make great progress, giving us confidence to raise previously issued guidance for the year," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "We introduced several significant product enhancements across the portfolio and were recognized by industry analysts as a leader in two Gartner Magic Quadrants as well as Zero Trust. Additionally, we are excited about our proposed acquisition of Expanse, Inc., which we announced last week."

GUIDANCE:

Palo Alto Networks sees Q2 2021 EPS of $1.42-$1.44, versus the consensus of $1.35. Palo Alto Networks sees Q2 2021 revenue of $975-990 million, versus the consensus of $970.96 million.

Palo Alto Networks sees FY2021 EPS of $5.70-$5.80, versus the consensus of $5.60. Palo Alto Networks sees FY2021 revenue of $4.09-4.14 billion, versus the consensus of $4.02 billion.

Palo Alto Networks provides guidance based on current market conditions and expectations.For the fiscal second quarter 2021, we expect:

• Total billings in the range of $1.17 billion to $1.19 billion, representing year-over-year growth of between 17% and 19%.
• Total revenue in the range of $975 million to $990 million, representing year-over-year growth of between 19% and 21%.
• Diluted non-GAAP net income per share in the range of $1.42 to $1.44, using 98 million to 100 million shares.

For the fiscal year 2021, we are raising guidance and expect:

• Total billings in the range of $5.08 billion to $5.13 billion, representing year-over-year growth of between 18% and 19%.
• Total revenue in the range of $4.09 billion to $4.14 billion, representing year-over-year growth of between 20% and 21%.
• Diluted non-GAAP net income per share in the range of $5.70 to $5.80, using 99 million to 101 million shares.
• Adjusted free cash flow margin of approximately 29%.

Our fiscal year 2021 guidance includes the expected impact from the proposed acquisition of Expanse, Inc. We expect Expanse to contribute approximately 100 basis points of billings growth and approximately 50 basis points of revenue growth, after acquisition accounting adjustments.

For earnings history and earnings-related data on Palo Alto Networks (PANW) click here.

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