NYSE$PANW

Palo Alto Networks · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported revenue growth of 30% year over year to $1.3 billion.

Palo Alto Networks announced financial results for its fiscal second quarter 2022, ended January 31, 2022. Total revenue for the fiscal second quarter 2022 grew 30% year over year to $1.3 billion. Non-GAAP net income for the fiscal second quarter 2022 was $185.0 million, or $1.74 per diluted share.

  • Fiscal second quarter revenue grew 30% year over year to $1.3 billion
  • Fiscal second quarter billings grew 32% year over year to $1.6 billion
  • Remaining performance obligation grew 36% year over year to $6.3 billion
  • Raising guidance for the year across revenue, billings, and earnings per share

Headline financials

Total Revenue

$1.32B

Previous: $1.02B+29.5%
EPS (adj)

$0.58

Previous: $0.52+11.5%
Capital Expenditures

-$39.5M

No prior period
Free Cash Flow

$1.03B

No prior period
Net Income

-$93.5M

Previous: -$142M+34.3%
Operating Income

-$73.9M

Previous: -$88.8M+16.8%
Gross Profit

$912M

Previous: $709M+28.5%
Cash & Equivalents

$1.92B

Previous: $2.11B-9.0%
Total Assets

$10.4B

Previous: $9.49B+9.6%
Stock-Based Comp

$265M

No prior period

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$1.32B

Q2 2022+29.5%vs Q2 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $1.32B total across 2 segments · Q2 2022

  • Subscription and Support
    $1.01B+32.4%
  • Product
    $308M+20.9%

Forward guidance

For the fiscal third quarter 2022, we expect: Total billings in the range of $1.59 billion to $1.61 billion, representing year-over-year growth of between 24% and 25%. Total revenue in the range of $1.345 billion to $1.365 billion, representing year-over-year growth of between 25% and 27%. Diluted non-GAAP net income per share in the range of $1.65 to $1.68, using 106 million to 108 million shares outstanding.

Tailwinds

  • Total billings in the range of $1.59 billion to $1.61 billion, representing year-over-year growth of between 24% and 25%.
  • Total revenue in the range of $1.345 billion to $1.365 billion, representing year-over-year growth of between 25% and 27%.
  • Diluted non-GAAP net income per share in the range of $1.65 to $1.68, using 106 million to 108 million shares outstanding.
  • Total billings in the range of $6.80 billion to $6.85 billion, representing year-over-year growth of between 25% and 26%.
  • Total revenue in the range of $5.425 billion to $5.475 billion, representing year-over-year growth of between 27% and 29%.

Headwinds

  • developments and changes in general market, political, economic, and business conditions
  • the duration and global impact of COVID-19
  • risks associated with managing our growth
  • risks associated with new products and subscription and support offerings, including the discovery of software bugs
  • shifts in priorities or delays in the development or release of new subscription offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support offerings

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 2022

Historical avgQ2 2022

+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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