Palo Alto Networks Inc. (NYSE: PANW) announced the second quarter financial results on Thursday, and stock price jumped up from $125.99 to Friday morning $142.00.
Total revenue for the second quarter increased 54% to a record $334.7 million, compared with total revenue of $217.7 million for the same quarter last year. Net loss for the second quarter was $62.5 million, or $0.72 diluted per share, compared with net loss of $43.0 million, or $0.53 diluted per share, for the same quarter last year.
"We reported strong fiscal second quarter results across all metrics, including record revenue of $334.7 million, which increased 54 percent year-over-year. We are proud to now be serving more than 30,000 customers globally who are rapidly adopting the prevention capabilities of our Next-Generation Platform to achieve superior security, simplify their networks and greatly improve total cost of ownership," said Mark McLaughlin, president and chief executive officer of Palo Alto Networks. "Security is a critical aspect of the digital age and a strategic priority embedded in all technology decisions for enterprises and organizations around the world."
"During the quarter we saw broad adoption of all aspects of our Next-Generation Security Platform with particular strength in our subscription services," said Steffan Tomlinson, chief financial officer of Palo Alto Networks. "Our results demonstrate our commitment to balancing high growth and profitability as well as the increasing strength in free cash flow from our hybrid-SaaS model."
Palo Alto Networks outlook for the next quarter that total revenue to range between $335 million to $339 million which account for year over year increase of 43% to 45%. Diluted earnings per share estimate to be in the range of $0.41 to $0.42. Moreover, the company also expected free cash flow margin represent around 40%.
Palo Alto Networks, which was IPO in 2012 and offers malware analysis and internet security products, has been grabbing market share from traditional firewall providers.
Recently, Palo Alto Networks partnered with Honeywell International Inc. (NYSE: HON) to protect industrial facilities and also signed a deal with peer Proofpoint Inc. (NASDAQ: PFPT) to jointly provide security services to clients.