According to a Grand View Research report published earlier this year, the global cybersecurity market is estimated to grow 10% annually to reach $300.32 billion by 2025 from $139.67 billion in 2017. Leading player Palo Alto Networks (NYSE: PANW) recently announced its fourth-quarter results.

Palo Alto Network’s Financials

For the fourth quarter, Palo Alto Network’s revenues grew 22% to $805.8 million. Net loss of $0.22 per share compared with earnings of $0.07 per share reported a year ago. Adjusted EPS was $1.47 compared with $1.34 a year ago. The market was looking for revenues of $802.4 million with an EPS of $1.42. Billings grew 22% to $1.1 billion.

By segment, Product revenues grew 12% to $305.7 million and Subscription and Support revenues grew 29% to $500.1 million.

It ended the year with revenues growing 28% to $2.90 billion and adjusted earnings growing 30% to $5.45 per share. Billings for the year grew 22% to $3.49 billion.

Palo Alto Network’s Acquisitions

Palo Alto Networks continued its acquisition spree this quarter as well. Earlier this month, it announced the $75 million acquisition of IoT security player Zingbox. Mountain View-based Zingbox was founded in 2014 by Jianlin Zeng, May Wang, and Xu Zou to secure the growing IoT network. Current security measures for IoT devices focus on device profiling and inventory management and tend to neglect the need to detect and prevent advanced attacks. Zingbox’s technology for device and threat identification capabilities helps organizations deliver a more robust security environment for these connected devices.

Palo Alto Networks plans to integrate Zingbox’s offerings with its products to enhance visibility and security of its customer’s IoT landscape. It also plans to implement Zingbox’s cloud-based service and advanced AI and ML technology into Palo Alto’s Next-Generation Firewall and AI-based security platform called Cortex. Prior to the acquisition, Zingbox was privately held and had raised $23.5 million in funding at an undisclosed valuation. Its annual revenue is estimated to be $5 million.

Palo Alto Networks believes that it will be able to achieve $6 billion in total billings and $5 billion in total revenue by fiscal 2022. It expects $1.75 billion of these billings and $1 billion of the revenues to come from its next-generation security services by fiscal 2022. To achieve this target, it has been acquiring other vendors. As its acquisition strategy, Palo Alto is avoiding overlapping products and is instead targeting “blue oceans”, “areas where there’s not enough people”. It is acquiring products that are different and integrating them across its platform.

Besides acquisitions, it is also investing in its product innovation. Recently, it released updates to Prisma Access so that the service now provides over 100 network onboarding locations around the globe and Clean Pipes for service providers. It has strengthened its endpoint offering with the release of Traps 6.1 to include expanded support for macOS and Linux. In a bid to expand its market reach within the Federal Government sector, the company received FedRAMP certification for WildFire cloud.

Palo Alto swung to a loss in the quarter, sending its stock tumbling 9% in the after-hours session. Its stock is currently trading at $214.41 with a market capitalization of $20.8 billion. It touched a 52-week high of $260.63 in March this year. It was trading at a 52-week low of $160.08 in November last year.