NYSE$PANW

Palo Alto Networks · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Palo Alto Networks' Q4 2022 financial results were released, revealing a strong performance marked by significant revenue growth and GAAP profitability.

Palo Alto Networks reported a 27% year-over-year increase in fiscal fourth-quarter revenue, reaching $1.6 billion. The company achieved GAAP profitability for the first time in four years, with net income of $3.3 million, or $0.03 per share. The board of directors approved a three-for-one stock split.

  • Fiscal fourth quarter revenue grew 27% year over year to $1.6 billion.
  • Fiscal fourth quarter billings grew 44% year over year to $2.7 billion.
  • Remaining performance obligation grew 40% year over year to $8.2 billion.
  • GAAP net income for the fiscal fourth quarter 2022 was $3.3 million, or $0.03 per basic and diluted share.

Headline financials

Total Revenue

$1.55B

Previous: $1.22B+27.2%
EPS (adj)

$0.80

Previous: $0.53+50.9%
Net Income

$3.3M

Previous: -$119M+102.8%
Operating Income

$15.4M

Previous: -$60.4M+125.5%
Gross Profit

$1.06B

Previous: $860M+23.0%
Cash & Equivalents

$2.12B

Previous: $1.87B+13.0%
Total Assets

$12.3B

Previous: $10.2B+19.6%
Stock-Based Comp

$240M

Previous: $230M+4.2%

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$1.55B

Q4 2022+27.2%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $1.55B total across 2 segments · Q4 2022

  • Subscription and Support
    $1.14B+29.8%
  • Product
    $408M+20.2%

Forward guidance

Palo Alto Networks provided financial outlook for the fiscal first quarter and fiscal year 2023. For the fiscal first quarter 2023, the company expects total revenue in the range of $1.535 billion to $1.555 billion, representing year-over-year growth of between 23% and 25%. For the fiscal year 2023, the company expects total revenue in the range of $6.85 billion to $6.90 billion, representing year-over-year growth of 25%.

Tailwinds

  • Total billings in the range of $1.68 billion to $1.70 billion, representing year-over-year growth of between 22% and 23% for Q1 2023.
  • Total revenue in the range of $1.535 billion to $1.555 billion, representing year-over-year growth of between 23% and 25% for Q1 2023.
  • Diluted non-GAAP net income per share in the range of $2.03 to $2.06, using 108 million to 110 million shares outstanding for Q1 2023.
  • Total billings in the range of $8.95 billion to $9.05 billion, representing year-over-year growth of between 20% and 21% for FY 2023.
  • Total revenue in the range of $6.85 billion to $6.90 billion, representing year-over-year growth of 25% for FY 2023.

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, including legal settlements.
  • Guidance excludes restructuring and other costs.

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 2022

Historical avgQ4 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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