According to a recent market report, the global cybersecurity market is projected to grow from $162.5 billion in 2020 at 12.5% CAGR to reach $418.3 billion by 2028. Security player Palo Alto Networks (NYSE: PANW) continues to grow in this market through acquisitions.

Palo Alto Network’s Financials

Its third-quarter revenues grew 24% to $1.07 billion, ahead of the Street’s estimate of $1.06 billion. Net loss was $145.1 million or $1.50 per share compared with a loss of $74.8 million or $0.77 per share a year ago. On an adjusted basis, net income was $1.38 per share. The market was looking for a net income of $1.28 per share.

By segment, Product revenues grew 2.9% to $288.9 million. Subscription and support revenues grew 33.4% to $785 million.

Among other metrics, billings improved 26.7% to $1.3 billion and Deferred revenues grew 30% to $4.4 billion.

For the fourth quarter of fiscal 2021, Palo Alto expects revenues of $1.165-$1.175 billion with an EPS of $1.42-$1.44. For the fiscal year 2021, Palo Alto expects revenues between $4.20-$4.21 billion and an EPS of $5.97-$5.99. The market was looking for revenues of $1.16 billion for the quarter with EPS of $1.42 and revenues of $4.18 billion for the year with an EPS of $5.87.

Palo Alto Network’s Bridgecrew Acquisition

During the quarter, Palo Alto announced the acquisition of San Francisco based Bridgecrew for $156 million. Founded in 2019 by Barak Schoster Gohiman, Guy Eisenkot, and Ian Tendler, Bridgecrew is a developer of a codified cloud security platform that assists companies in deploying cloud security engineering. Bridgecrew’s open-source infrastructure as code (IaC) scanner, Checkov, is well recognized in the industry and has gained significant early traction with developers, surpassing 1 million downloads within the first year of its availability.

Prisma Cloud is currently the industry’s only comprehensive Cloud Native Security Platform (CNSP) that delivers hybrid and multi-cloud security solutions. With the addition of Bridgecrew’s platform, Palo Alto Networks will enable Prisma Cloud to provide developers with security assessment and enforcement capabilities throughout the DevOps process. Once integrated, Prisma Cloud will offer a single platform for developers and DevOps teams to secure their cloud native applications and infrastructure throughout the software development lifecycle, while giving security teams visibility into security posture at every stage, from build to deploy to run.

Palo Alto will also accelerate its investment in the open-source community, Checkov, as a top priority for Prisma Cloud. It will build on Bridgecrew’s platform innovations to offer enhanced capabilities, including adding new frameworks, expanding the number of checks and increasing the depth of coverage.

Prior to the acquisition, Bridgecrew had raised $18.1 million in two rounds of funding, with the help of investors including DNX Ventures, David Hannigan, Kevin Mahaffey, Sorenson Ventures, Battery Ventures, David Tsao, Ely Kahn, Homeward Ventures, Techtonic Capital, and Srinath Kuruvadi.

Palo Alto’s stock is trading at $357.35 with a market capitalization of $34.2 billion. It was trading at a 52-week high of $403.00 in February. The stock was at a 52-week low of $217.48 in November last year.