Palo Alto Networks Inc PANW shares are falling despite reporting a fourth-quarter earnings beat.

Adjusted earnings came in at $1.47, beating estimates by 5 cents. Sales came in at $805.8 million, beating estimates by $3.64 million.

The company is also set to acquire Zingbox for $75 million.

"We had a strong fourth quarter, surpassing a billion dollars in billings within the quarter for the first time, and achieving approximately 180% year-over-year growth in our newer Prisma and Cortex offerings. This year we acquired and released important new technologies and built a robust go-to-market framework for driving their success in the market. It's gratifying to see all the team's hard work translate into strong market results," said Nikesh Arora, chairman, and CEO of Palo Alto Networks.

"Zingbox will add to the capabilities of our Next-Generation Firewall by offering a first-of-its-kind subscription that will make it easier for organizations to protect IoT devices from attackers. It will also be available as a service on our Cortex platform."

Highlights

• Total revenue grew 22% year-over-year
• GAAP net loss was $20.8 million

Palo Alto Networks shares traded lower by 5.7% in Wednesday's after-hours session. The stock closed at $200.49.