Acquisitions And Product Upgrades Are The Mantra For Palo Alto Networks

According to a recent market report, the global cybersecurity market is expected to expand 10% annually over the period 2020 to 2027. Security player Palo Alto Networks (NYSE: PANW) recently announced its milestone quarter where it crossed a billion dollars in revenues.

Palo Alto Network’s Financials
Second-quarter revenues grew 25% over the year to $1 billion, significantly ahead of the Street’s estimate of $985.648 million. Net loss was $142.3 million or $1.48 per share compared with a loss of $73.7 million or $0.75 per share a year ago. On an adjusted basis, net income was $1.55 per share compared with a net income of $1.19 per share a year ago. The market was looking for a net income of $1.43 per share.

By segment, Product revenues grew 3.3% to $254.7 million. Subscription and support revenues grew 33.7% to $762.2 million.

Among other metrics, billings improved 22% to $1.2 billion and Deferred revenues grew 30% to $4.2 billion.

For the third quarter of fiscal 2021, Palo Alto expects revenues of $1.05-$1.06 billion with an EPS of $1.27-$1.29. For the year, Palo Alto expects revenues between $4.15-$4.2 billion and an EPS of $5.80-$5.90. The market was looking for revenues of $1.05 billion for the quarter with EPS of $1.28 and revenues of $4.18 billion for the year with an EPS of $5.86.

Palo Alto Network’s Acquisitions

During the quarter, Palo Alto continued its acquisition spree and announced the acquisition of The Crypsis Group for $265 million. Founded in 2015 by Justin Jordan, Virginia-based Crypsis fights cybercrime by defending against and responding to cybersecurity threats. It will integrate Crypsis’s technology to enhance Cortex XDR to further enhance its ability to safeguard organizations. Crypsis’s funding details are not disclosed.

The Crypsis acquisition will allow Palo Alto to strengthen Cortex XDR’s ability to collect rich security telemetry as well as manage breaches and initiate rapid response sequences. It will also be able to fuel Cortex XDR with a continuous feedback loop between incident response engagements.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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