NYSE$PANW

Palo Alto Networks · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Palo Alto Networks reported strong Q1 2021 results with revenue growth and raised full-year guidance.

Palo Alto Networks announced its fiscal first quarter 2021 financial results, with total revenue growing 23% year over year to $946.0 million. The company reported a GAAP net loss of $92.2 million, or $0.97 per diluted share, and a non-GAAP net income of $158.1 million, or $1.62 per diluted share. The company also raised its full-year guidance.

  • Fiscal first quarter revenue grew 23% year over year to $946.0 million.
  • Fiscal first quarter billings grew 21% year over year to $1.1 billion.
  • Deferred revenue grew 31% year over year to $3.9 billion.
  • The company raised previously issued guidance for the year.

Headline financials

Total Revenue

$946M

Previous: $772M+22.6%
EPS (adj)

$0.54

Previous: $0.35+54.3%
Net Income

-$92.2M

Previous: -$59.6M-54.7%
Operating Income

-$44.5M

Previous: -$51.8M+14.1%
Gross Profit

$668M

Previous: $554M+20.6%
Cash & Equivalents

$2.14B

Previous: $1.26B+69.5%
Total Assets

$8.73B

Previous: $6.82B+27.9%

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$946M

Q1 2021+22.6%vs Q1 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $946M total across 2 segments · Q1 2021

  • Subscription and Support
    $709M+31.1%
  • Product
    $237M+2.6%

Forward guidance

Palo Alto Networks provides guidance based on current market conditions and expectations.

Tailwinds

  • Total billings in the range of $1.17 billion to $1.19 billion, representing year-over-year growth of between 17% and 19%.
  • Total revenue in the range of $975 million to $990 million, representing year-over-year growth of between 19% and 21%.
  • Diluted non-GAAP net income per share in the range of $1.42 to $1.44, using 98 million to 100 million shares.
  • Total billings in the range of $5.08 billion to $5.13 billion, representing year-over-year growth of between 18% and 19%.
  • Total revenue in the range of $4.09 billion to $4.14 billion, representing year-over-year growth of between 20% and 21%.

Headwinds

  • Diluted non-GAAP net income per share in the range of $5.70 to $5.80, using 99 million to 101 million shares.
  • Adjusted free cash flow margin of approximately 29%.
  • Our fiscal year 2021 guidance includes the expected impact from the proposed acquisition of Expanse, Inc.
  • We expect Expanse to contribute approximately 100 basis points of billings growth and approximately 50 basis points of revenue growth, after acquisition accounting adjustments.
  • Guidance for non-GAAP financial measures excludes share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, gains (losses) related to facility exit, non-cash charges related to convertible notes, foreign currency gains (losses), and income and other tax effects associated with these items, along with certain non-recurring expenses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.4%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.7%

Avg return

30 days after

58%

32 / 55 earnings

Positive

+20.2%

Q4 2021

Best reaction

-28.5%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.9%-11.8%-0.3%
Q1 2026-4.9%-6.8%-6.5%
Q4 2025-1.3%+5.5%+16.8%
Q3 2025-6.9%-4.0%+2.4%
Q2 2025-0.9%+1.6%-9.7%
Q1 2025+2.5%-0.4%-3.7%
Q4 2024+10.1%+5.0%-1.3%
Q3 2024-2.0%+1.2%-0.3%
Q2 2024-28.5%-23.0%-21.5%
Q1 2024-7.2%-0.2%+17.7%
Q4 2023+16.0%+13.5%+15.7%
Q3 2023+6.4%+10.2%+29.7%
Q2 2023+10.9%+10.2%+14.5%
Q1 2023+5.3%+7.9%-5.1%
Q4 2022+10.9%+9.2%-0.0%
Q3 2022+9.1%+8.8%+8.4%
Q2 2022-0.9%+18.2%+29.0%
Q1 2022+3.2%+3.7%+3.2%
Q4 2021+20.2%+25.5%+29.5%
Q3 2021+8.0%+8.8%+10.8%
Q2 2021-4.8%-9.7%-19.1%
Q1 2021+13.5%+12.9%+25.0%
Q4 2020-3.1%-5.4%-11.2%
Q3 2020+1.5%-1.4%-1.6%
Q2 2020-18.9%-24.0%-31.7%
Q1 2020-10.7%-8.0%-6.1%
Q4 2019+6.5%+6.1%+5.7%
Q3 2019-4.8%-8.3%-5.0%
Q2 2019+9.0%+5.0%+1.9%
Q1 2019-2.0%+0.4%+4.3%
Q4 2018+2.4%+5.4%-2.9%
Q3 2018-2.5%-4.7%+0.2%
Q2 2018+4.6%+6.8%+6.9%
Q1 2018+4.7%+5.5%+3.3%
Q4 2017+10.4%+8.5%+8.5%
Q3 2017+18.8%+20.1%+14.4%
Q2 2017-25.2%-24.9%-26.3%
Q1 2017-13.4%-12.3%-21.8%
Q4 2016-5.9%+2.6%+10.3%
Q3 2016-10.9%-10.5%-16.4%
Q2 2016+15.4%
Q1 2016+6.9%
Q4 2015+6.6%
Q3 2015+1.5%
Q2 2015+4.7%
Q1 2015+10.4%
Q4 2014+9.7%
Q3 2014+5.1%
Q2 2014+1.8%
Q1 2014+9.3%
Q4 2013+7.0%
Q3 2013-11.4%
Q2 2013+1.1%
Q1 2013-1.5%
Q4 2012-5.9%
Q3 2012
Q2 2011
Q1 2011
Q4 2011
Q3 2011

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro