Palo Alto Networks Inc. (NYSE: PANW)reported its first quarter financial results for fiscal year 2018 and beat analysts’ estimates in both revenue and earnings. Shares were trading 6.9 percent higher during Monday’s after hours.
For the first quarter, the security company reported a revenue of $505.5 million, increasing 27 percent year over year, and beating analysts’ estimates by $16.5 million. The company reported an EPS of $0.74, higher than the previous year’s same quarter of $0.55, and beating analysts’ estimates by $0.05.
Palo Alto added more than 2,500 customers, bringing the total to more than 45,000, said Mark McLaughlin, chief executive officer of Palo Alto Networks.
"We continue to drive disruptive evolutions in a large and growing market by delivering highly automated and orchestrated security capabilities that increase prevention rates and simplify consumption models." said McLaughlin.
CFO, Steffan Tomlinson said the execution of its “land and expand” go-to-market model resulted in the strong first quarter results with new customers adopting its Next-Generation Security platform.
After its financial results, Palo Alto announced its new CFO, Kathy Bonanno. Bonanno has previously held the senior finance positions since 2017.
"With more than three years at Palo Alto Networks and a decade in cybersecurity, she has an intimate knowledge of our company, the industry, and broad expertise across finance disciplines, as well as a proven track record of building world-class organizations.” said McLaughlin.
Within the first quarter, Palo Alto has also improved upon its cybersecurity network. The company released Traps 4.1 and expanded upon its Aperture security services.
For the second quarter, Palo Alto is estimating revenue in the range of $518 to $528 million, representing a 23 to 25 percent growth year over year. The company expects diluted non-GAAP EPS of $0.78 to $0.80 using 94 to 96 million shares.
Cybersecurity has been becoming a growing industry due to the number of data breaches and the changing methods of approach. As the industry continues to grow, the number of cyber attacks will also grow, calling for an increase in the development of technology.
Especially with the recent data breach by Equifax Inc., the concern for stronger cybersecurity is growing. But yet, the workforce for the industry still remains one of the smallest.
Last year, Ginni Rometty, IBM's chairman, president and CEO, said, "Cyber crime is the greatest threat to every company in the world."
Not only is cybersecurity needed for business alone, but as well as any consumer that use Internet accessible products. Analysts’ are projecting cyberattacks to cause nearly up to $6 trillion in damages annually by 2021.