Palo Alto Networks has reported a net income of $357.7m for the fourth quarter of fiscal year 2024 (Q4 FY24), a 57.1% increase compared to $227.7m for the same quarter of the previous fiscal year. The cybersecurity firm’s total revenues for Q4 FY24 were also up by 12.1% year-on-year to $2.2bn, with shares rising by 2% in extended trading in the wake of the announcement. Its chief financial officer, Dipak Golechha, attributed the gains to the firm’s “next-generation security ARR.”
“At the same time,” added Goleccha, “we successfully balanced profitable growth, as our non-GAAP operating margins increased by more than 300 basis points for the year with strong cash generation, marking [FY 2024 as] one of the best years for Palo Alto Networks.”
For the 12 months ended 31 July 2024, Palo Alto Networks posted a net income of $2.57bn, a surge of 486% compared to $439.7m in the full FY 2023. Its total revenues for FY 2024 were $8.03bn, a 16.5% increase compared to $6.89bn in the corresponding period of the prior year.
The company’s total operating expenses increased to $5.3bn in FY24, compared to $4.6bn in FY23, with the firm stating that it expects its total revenue to be in the range of $2.1bn to $2.13bn for Q1 FY25 – representing year-over-year (YoY) growth of 12%-13%.
For the first quarter of FY25, the company’s net income per share is estimated to be in the range of $1.47-$1.49. The cybersecurity company aims to achieve a total revenue between $9.1bn and $9.15 billion for FY 2025. This will amount to a YoY growth of between 13% and 14%.
Palo Alto Networks’ platformisation pay-off
Palo Alto Networks’ financial success and growth have been attributed to the company’s strong execution of its platformisation strategy. The approach focuses on integrating its cybersecurity products into a unified, comprehensive platform to simplify and enhance security management for organisations.
It involves consolidating multiple security services, such as network security, cloud security, and AI-driven security operations, into a single, tightly integrated architecture.
Palo Alto Networks chairman and CEO Nikesh Arora said: “We finished off the year with strong execution on our platformisation strategy in Q4.
“As we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution.”
Palo Alto Networks’ platformisation strategy also emphasises the importance of modularity, allowing organisations to adopt components gradually without compromising on security efficacy.
The strategy aims to provide a seamless user experience, improve security outcomes, and increase operational efficiency by reducing the complexity of managing multiple standalone tools.
In a separate announcement, Palo Alto Networks has expanded its partnership with energy technology company SLB to bolster cybersecurity for the energy sector.
As part of the collaboration, SLB will integrate Palo Alto Networks’ Precision AI-driven cybersecurity platforms, including Prisma SASE, Prisma Cloud, and Cortex XSIAM into its technology stack.
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