NYSE$PANW

Palo Alto Networks · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Palo Alto Networks reported strong Q4 2020 results with revenue growth driven by strong execution and success in next-gen security.

Palo Alto Networks' fiscal fourth quarter revenue grew 18% year over year to $950.4 million. The company's billings grew 32% year over year to $1.4 billion. GAAP net loss for the quarter was $58.9 million, or $0.61 per diluted share, while non-GAAP net income was $144.9 million, or $1.48 per diluted share.

  • Fiscal fourth quarter revenue grew 18% year over year to $950.4 million.
  • Fiscal fourth quarter billings grew 32% year over year to $1.4 billion.
  • GAAP net loss for the fiscal fourth quarter was $58.9 million, or $0.61 per diluted share.
  • Non-GAAP net income for the fiscal fourth quarter was $144.9 million, or $1.48 per diluted share.

Headline financials

Total Revenue

$950M

Previous: $806M+17.9%
EPS (adj)

$0.49

Previous: $0.49+0.0%
Net Income

-$58.9M

Previous: -$20.8M-183.2%
Operating Income

-$17.8M

Previous: -$9.9M-79.8%
Gross Profit

$660M

Previous: $588M+12.2%
Cash & Equivalents

$2.96B

Previous: $961M+207.7%
Total Assets

$9.07B

Previous: $6.59B+37.5%
Stock-Based Comp

$174M

Previous: $150M+16.0%

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$950M

Q4 2020+17.9%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $306M total across 1 segment · Q4 2020

  • Product
    $306M-0.0%

Forward guidance

For the fiscal first quarter 2021, Palo Alto Networks expects total billings in the range of $1.03 billion to $1.05 billion, representing year-over-year growth of between 15% and 17%. Total revenue is expected to be in the range of $915 million to $925 million, representing year-over-year growth of between 19% and 20%. Diluted non-GAAP net income per share is expected to be in the range of $1.32 to $1.35, using 99.0 million to 101.0 million shares.

Tailwinds

  • Total billings are expected to grow between 15% and 17% year-over-year.
  • Total revenue is expected to grow between 19% and 20% year-over-year.
  • Diluted non-GAAP net income per share is expected to be in the range of $1.32 to $1.35.
  • The company anticipates continued success in next-gen security.
  • The acquisition of The Crypsis Group will enhance the Cortex XDR platform.

Headwinds

  • Guidance excludes share-based compensation-related charges.
  • Guidance excludes acquisition-related costs.
  • Guidance excludes amortization expense of acquired intangible assets.
  • Guidance excludes litigation-related charges.
  • Guidance excludes non-cash charges related to convertible notes.

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 Q4 2020

Historical avgQ4 2020

+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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