NYSE$PANW

Palo Alto Networks · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong second quarter with revenue growth driven by strong execution.

Palo Alto Networks announced financial results for its fiscal second quarter 2021, ended January 31, 2021. Total revenue for the fiscal second quarter 2021 grew 25% year over year to $1.0 billion.

  • Fiscal second quarter revenue grew 25% year over year to $1.0 billion
  • Fiscal second quarter billings grew 22% year over year to $1.2 billion
  • Deferred revenue grew 30% year over year to $4.2 billion
  • The company is raising guidance and expects total revenue in the range of $4.15 billion to $4.20 billion

Headline financials

Total Revenue

$1.02B

Previous: $817M+24.5%
EPS (adj)

$0.52

Previous: $0.40+30.0%
Net Income

-$142M

Previous: -$73.7M-93.1%
Operating Income

-$88.8M

Previous: -$52.9M-67.9%
Gross Profit

$709M

Previous: $584M+21.5%
Cash & Equivalents

$2.11B

Previous: $2B+5.7%
Total Assets

$9.49B

Previous: $7.18B+32.1%

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$1.02B

Q2 2021+24.5%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $1.02B total across 2 segments · Q2 2021

  • Subscription and Support
    $762M+33.7%
  • Product
    $255M+3.3%

Forward guidance

Palo Alto Networks provides guidance based on current market conditions and expectations. For the fiscal third quarter 2021, the company expects: Total revenue in the range of $1.05 billion to $1.06 billion, representing year-over-year growth of between 21% and 22%.

Tailwinds

  • Total billings in the range of $1.22 billion to $1.24 billion, representing year-over-year growth of between 20% and 22%.
  • Total revenue in the range of $1.05 billion to $1.06 billion, representing year-over-year growth of between 21% and 22%.
  • Diluted non-GAAP net income per share in the range of $1.27 to $1.29, which incorporates net expenses related to the proposed acquisition of Bridgecrew, using 100 million to 102 million shares.
  • Total billings in the range of $5.13 billion to $5.18 billion, representing year-over-year growth of between 19% and 20%.
  • Total revenue in the range of $4.15 billion to $4.20 billion, representing year-over-year growth of between 22% and 23%.

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 Q2 2021

Historical avgQ2 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

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