NYSE$PANW

Palo Alto Networks · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Palo Alto Networks reported strong Q4 2023 results with revenue growth and increased profitability.

Palo Alto Networks announced its fiscal fourth quarter and fiscal year 2023 financial results. The company's Q4 revenue grew 26% year-over-year to $2.0 billion. GAAP net income for the quarter was $227.7 million, or $0.64 per diluted share, while non-GAAP net income was $482.5 million, or $1.44 per diluted share. The company's remaining performance obligation grew 30% year-over-year to $10.6 billion.

  • Fiscal fourth quarter revenue grew 26% year over year to $2.0 billion.
  • Fiscal fourth quarter billings grew 18% year over year to $3.2 billion.
  • Remaining performance obligation grew 30% year over year to $10.6 billion.
  • GAAP net income for the fiscal fourth quarter 2023 was $227.7 million, or $0.64 per diluted share.

Headline financials

Total Revenue

$1.95B

Previous: $1.55B+25.9%
EPS (adj)

$1.44

Previous: $0.80+80.0%
Net Income

$228M

Previous: $3.3M+6800.0%
Operating Income

$254M

Previous: $15.4M+1546.1%
Gross Profit

$1.45B

Previous: $1.06B+36.7%
Cash & Equivalents

$1.14B

Previous: $2.12B-46.4%
Total Assets

$14.5B

Previous: $12.3B+18.3%
Stock-Based Comp

$254M

Previous: $240M+6.1%

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$1.95B

Q4 2023+25.9%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $1.95B total across 2 segments · Q4 2023

  • Subscription and Support
    $1.45B+26.6%
  • Product
    $507M+24.3%

Forward guidance

Palo Alto Networks provided guidance for the fiscal first quarter 2024 and fiscal year 2024. For the fiscal first quarter 2024, the company expects total revenue in the range of $1.82 billion to $1.85 billion, representing year-over-year growth of between 16% and 18%. For the fiscal year 2024, the company expects total revenue in the range of $8.15 billion to $8.20 billion, representing year-over-year growth of 18% and 19%.

Tailwinds

  • Total billings in the range of $2.05 billion to $2.08 billion, representing year-over-year growth of between 17% and 19% for Q1 2024.
  • Total revenue in the range of $1.82 billion to $1.85 billion, representing year-over-year growth of between 16% and 18% for Q1 2024.
  • Diluted non-GAAP net income per share in the range of $1.15 to $1.17, representing year-over-year growth of between 39% and 41% for Q1 2024.
  • Total billings in the range of $10.9 billion to $11.0 billion, representing year-over-year growth of between 19% and 20% for fiscal year 2024.
  • Total revenue in the range of $8.15 billion to $8.20 billion, representing year-over-year growth of 18% and 19% for fiscal year 2024.

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 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 2023

Historical avgQ4 2023

+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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