Palo Alto Networks, Inc. releases its annual report today. The cybersecurity solutions provider offers firewall appliances, security management solutions, and subscription services covering various threat prevention areas. The company serves medium to large enterprises, service providers, and government entities across industries such as education, financial services, healthcare, and telecommunications.
In the latest 10-Q report, Palo Alto Networks reported a total revenue of $1.98 billion for the second quarter of fiscal 2024, representing a year-over-year growth of 19.3%. The company's product revenue grew to $390.7 million, a 10.7% increase from the previous year, while subscription and support revenue reached $1.6 billion, showing a 21.7% year-over-year growth.
The company's total deferred revenue stood at $9.82 billion as of January 31, 2024, and it reported cash, cash equivalents, and investments of $6.99 billion. Additionally, Palo Alto Networks reported a gross margin of 74.7% and an operating income of $53.6 million for the second quarter of fiscal 2024.
In terms of operational metrics, the company's billings for the second quarter of fiscal 2024 reached $2.35 billion, reflecting a 15.7% year-over-year increase. The cash flow provided by operating activities was $2.21 billion, and the free cash flow (non-GAAP) was reported at $2.14 billion.
Palo Alto Networks emphasized its focus on innovation and the expansion of its cybersecurity portfolio to meet the needs of its end-customers. The company also highlighted the challenges and risks it faces, including the impact of worldwide economic and geopolitical conditions on its business performance.
Overall, Palo Alto Networks continues to experience growth in its revenue and key financial metrics, driven by the increased adoption of its cybersecurity solutions and services.
Today the company's shares have moved -26.3% to a price of $269.81. For more information, read the company's full 10-Q submission here.
