Palo Alto Networks, Inc. (NASDAQ:PANW) Q1 2024 Earnings Conference Call November 15, 2023 4:30 PM ET Company Participants Walter Pritchard - SVP, IR Nikesh Arora - Chairman and CEO Dipak Golechha - CFO Lee Klarich - Chief Product Officer Conference Call Participants Saket Kalia - Barclays Hamza Fodderwala - Morgan Stanley Brian Essex - JPMorgan Gabriela Borges - Goldman Sachs Roger Boyd - UBS Brad Zelnick - Deutsche Bank Fatima Boolani - Citibank Joel Fishbein - Truist Joe Gallo - Jefferies Gray Powell - BT ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-K _____________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35594 Palo Alto Networks, Inc. (Exact name of registrant as specified in its charter) Delawar ...

Palo Alto Networks, Inc. (NASDAQ:PANW) Q4 2023 Earnings Conference Call August 18, 2023 4:30 PM ET Company Participants Walter Pritchard - SVP, IR Nikesh Arora - Chairman and CEO Dipak Golechha - CFO Lee Klarich - Chief Product Officer Anand Oswal - Zero Trust Network Security Ankur Shah - Prisma Cloud Gonen Fink - Cortex BJ Jenkins - President Conference Call Participants Matt Hedberg - RBC Saket Kalia - Barclays Rob Owens - Piper Sandler Brad Zelnick - Deutsche Bank Andrew Nowinski - Wells Fargo Brian Es ...

Q4 Fiscal Year 2023 Earnings Call & ...

Palo Alto Networks, Inc. (NASDAQ:PANW) Bank of America 2023 Global Technology Conference June 6, 2023 11:40 AM ET Company Participants Nikesh Arora - Chairman and CEO Conference Call Participants Tal Liani - Bank of America Tal Liani [Call Starts Abruptly] time, and everyone knows Nikesh. So that’s -- we start high this time. I want to start with a question that everyone has on its mind when it comes to the sector, not specifically to Palo Alto. We have companies who are doing great, like our company, we ha ...

Q3 Fiscal Year 2023 Earnings Call Safe Harbor This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements related to our financial guidance for the fourth quarter of fiscal 2023 and fiscal year 2023 regarding total revenue, total billings, Next-Gen Security ARR, product revenue, non-GAAP operating margin, non-GAAP EPS, GAAP net income, GAAP profitability and non-GAAP adjusted free cash flow margin, ...

Palo Alto Networks, Inc. (NASDAQ:PANW) Q3 2023 Earnings Conference Call May 23, 2023 4:30 PM ET Company Participants Walter Pritchard - SVP, IR Nikesh Arora - Chairman & CEO Dipak Golechha - CFO Lee Klarich - Chief Product Officer Conference Call Participants Saket Kalia - Barclays Hamza Fodderwala - Morgan Stanley Brian Essex - JPMorgan Brad Zelnick - Deutsche Bank Andrew Nowinski - Wells Fargo Matt Hedberg - RBC Gabriela Borges - Goldman Sachs Adam Tindle - Raymond James Gregg Moskowitz - Mizuho Shaul Eya ...

Financial Performance - Total revenue for Q3 fiscal 2023 was $1.7 billion, a year-over-year increase of 24.1% compared to $1.4 billion in Q3 fiscal 2022[78]. - Total revenue for the three months ended April 30, 2023, was $1,720.9 million, representing a year-over-year increase of 24.1%[82]. - Product revenue reached $388.1 million, accounting for 22.6% of total revenue, with a year-over-year growth of 10.4%[79]. - Subscription and support revenue grew to $1.3 billion, representing 77.4% of total revenue, with a year-over-year increase of 28.7%[79]. - Billings for the three months ended April 30, 2023, totaled $2,256.2 million, reflecting a year-over-year increase of 25.6%[83]. - Revenue from the Americas for the three months ended April 30, 2023, was $1,179.2 million, a 24.3% increase from $948.7 million in the same period of 2022[95]. - Gross profit for the three months ended April 30, 2023, was $1,246.1 million, representing a gross margin of 72.4%, compared to 68.2% in the same period of 2022[95]. - Operating income for the three months ended April 30, 2023, was $78.7 million, compared to a loss of $(47.6) million in the same period of 2022[95]. - Net income for the three months ended April 30, 2023, was $107.8 million, compared to a loss of $(73.2) million in the same period of 2022[95]. - Total deferred revenue as of April 30, 2023, was $8,089.6 million, an increase from $6,994.0 million a year earlier[82]. Expenses and Costs - Research and development expenses for the three months ended April 30, 2023, were $413.7 million, representing 24.0% of total revenue[95]. - Total operating expenses for the three months ended April 30, 2023, were $1,167.4 million, compared to $993.8 million in the same period of 2022[95]. - Cost of subscription and support revenue increased by $66.9 million (21.3%) to $381.4 million for the three months ended April 30, 2023, compared to $314.5 million for the same period in 2022[98]. - Research and development expense rose by $58.3 million (16.4%) to $413.7 million for the three months ended April 30, 2023, compared to $355.4 million for the same period in 2022[103]. - Sales and marketing expense increased by $95.9 million (17.6%) to $639.5 million for the three months ended April 30, 2023, compared to $543.6 million for the same period in 2022[106]. - General and administrative expense increased by $19.4 million (20.5%) to $114.2 million for the three months ended April 30, 2023, compared to $94.8 million for the same period in 2022[107]. Cash Flow and Investments - Cash flow provided by operating activities for the nine months ended April 30, 2023, was $2,363.4 million, compared to $1,461.0 million in the previous year[86]. - Free cash flow (non-GAAP) for the nine months ended April 30, 2023, was $2,254.3 million, up from $1,307.4 million in the same period last year[86]. - Total cash, cash equivalents, and investments as of April 30, 2023, amounted to $6,668.0 million, compared to $4,686.4 million in the previous year[82]. - Cash provided by operating activities during the nine months ended April 30, 2023, was $2.4 billion, an increase of $902.4 million compared to $1.5 billion in the same period in 2022[119]. - Cash used in investing activities during the nine months ended April 30, 2023, was $2.4 billion, an increase of $1.9 billion compared to $461.3 million in the same period in 2022[120]. - Cash used in financing activities during the nine months ended April 30, 2023, was $91.5 million, a decrease of $362.0 million compared to $453.5 million in the same period in 2022[122]. - The company has a share repurchase program with a total authorization of $3.3 billion, of which $750.0 million remained available for future repurchases as of April 30, 2023[116]. - The company entered into a new credit agreement in April 2023, providing for a $400.0 million unsecured revolving credit facility[115]. Operational Insights - The company had end-customers in over 180 countries, including almost all Fortune 100 companies and a majority of Global 2000 companies[78]. - The company operates a two-tiered, indirect fulfillment model, selling products through distributors to resellers and then to end-customers[78]. - The company expects subscription and support revenue to increase over the long term as new subscriptions are introduced and existing contracts are renewed[90]. - The company emphasized the importance of billings as a key metric for assessing business health and visibility, particularly in relation to subscription and support revenue[82]. - The company expects operating expenses to generally increase in absolute dollars while decreasing as a percentage of revenue over the long term as it scales its business[102]. Market and Product Development - The introduction of Zero Trust Network Access (ZTNA) 2.0 aims to address shortcomings in previous ZTNA products, enhancing security for remote workforces[76]. - Prisma Cloud serves as a comprehensive Cloud Native Application Protection Platform (CNAPP), providing security across the application lifecycle[77]. - The company continues to invest in innovation, enhancing Prisma SASE capabilities with artificial intelligence to improve security outcomes[79]. - The growth strategy focuses on extending technology leadership, expanding the customer base, and improving customer satisfaction[79]. Employee and Tax Information - The number of employees at the end of the period increased to 141, a decrease of 4.1% from 147 employees at the end of the same period in 2022[97]. - The number of employees in research and development increased by 646 (21.2%) to 3,693 as of April 30, 2023, compared to 3,047 as of the same date in 2022[103]. - The provision for income taxes for the three months ended April 30, 2023, was $23.2 million, a 12.1% increase from $20.7 million in the same period in 2022, with an effective tax rate of 17.7% compared to (39.4)% in 2022[111]. Interest and Risk Management - Interest expense for the three months ended April 30, 2023, was $7.8 million, an increase of 14.7% compared to $6.8 million for the same period in 2022[108]. - The company maintains a full valuation allowance for certain deferred tax assets, with a reversal of this allowance in certain jurisdictions being reasonably possible due to recent profitability[110]. - The primary objectives of the company's investment activities are to preserve principal, provide liquidity, and maximize income without significantly increasing risk[125]. - The portfolio includes cash, cash equivalents, and a variety of securities such as commercial paper, money market funds, and corporate debt securities[125]. - A sensitivity analysis indicated that a hypothetical 100 basis point increase in interest rates would result in a $42.3 million decline in the fair market value of the portfolio[125]. - Conversely, a hypothetical 100 basis point decrease in interest rates would lead to a $42.3 million increase in the fair market value of the portfolio[125]. - Losses from interest rate risk would only be realized if investments were sold prior to maturity[125].

Q2 Fiscal Year 2023 Earnings Call Safe Harbor This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that are based on our management’s beliefs and assumptions and on information currently available to management, including statements related to our financial guidance for the third quarter of fiscal 2023 and fiscal year 2023 regarding total revenue, total billings, Next-Gen Security ARR, product revenue, non-GAAP op ...