According to a recent report, the global cyber security market is estimated to grow at 10% CAGR from $216.11 billion industry in 2021 to reach $478.68 billion by the year 2030. Security player Palo Alto Networks (NYSE: PANW), which recently announced its quarterly results, continues to expand its presence through acquisitions.

Palo Alto Networks’ Financials

Its first quarter revenues grew 25% to $1.6 billion, significantly ahead of the Street’s estimate of $1.55 billion. It ended the quarter with a net income of $20 million or $0.06 per share compared with a loss of $103.6 million or $0.35 per share a year ago. Non GAAP net income was $0.83 per share compared with a net income of $0.55 per share a year ago. The market was looking for a net income of $0.68 per share.

By segment, Product revenues grew 11.7% to $330 million. Subscription and support revenues grew 29.6% to $1.233 million.

Among other metrics, billings improved 27% to $1.7 billion.

For the second quarter of fiscal 2021, Palo Alto expects revenues of $1.63-$1.66 billion and an EPS of $0.76-$0.78. The market was looking for revenues of $1.65 billion and EPS of $0.70. For the fiscal year, it expects revenues of $6.85-$6.91 billion and an EPS of $3.37-$3.44. The market was looking for revenues of $6.87 billion and an EPS of $3.16.

Palo Alto Networks’ Cider Security Acquisition

Recently, Palo Alto announced its plans to acquire Israel-based Cider Security. Founded in 2020 by Guy Fletcher, Cider Security is an AppSec Operating System that provides Security and Engineering teams with a single, consistent method to orchestrate and implement end-to-end CI/CD security through a single, unified platform. The company uses a holistic approach to deal with the security of the engineering processes and systems, from code to deployment. It gives security teams transparency and visibility needed to optimize AppSec and achieve full resilience by establishing a comprehensive Technical DNA of the engineering environment.

The acquisition will support Palo Alto’s Prisma Cloud’s platform approach to securing the entire application security lifecycle. Prior to the acquisition, Cider Security raised $38 million in three rounds of funding led by Glilot Capital Partners, Tiger Global Management, Travis McPeak, and Alon Arvatz. Its most recent round was held in March of this year, where it raised $32 million. The company will be acquired for $195 million in cash.

Palo Alto’s stock is trading at $167.48 with a market capitalization of $50.3 billion. It was trading at a 52-week high of $213.63 in April. The recent market turmoil had sent the stock to a 52-week low of $140.07 in October.

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