Palo Alto Networks has reported its financial results for the third quarter of fiscal 2024, showcasing strong year-over-year growth. The company's total revenue for the quarter was $2.0 billion, reflecting a 15.3% increase compared to the same period in the previous year when it was $1.7 billion. This growth is attributed to the increased adoption of their portfolio, which includes product, subscriptions, and support services.
The breakdown of the revenue shows that product revenue reached $391.0 million, representing 19.7% of the total revenue and marking a 19.7% increase year-over-year. The company's subscription and support revenue grew to $1.6 billion, accounting for 80.3% of the total revenue and reflecting a 19.6% increase compared to the same quarter in the previous year.
Palo Alto Networks has end-customers in over 180 countries, spanning various industries such as education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. Notably, the company's end-customers include almost all of the Fortune 100 companies and a majority of the Global 2000 companies.
The company's gross margin for the quarter was 74.1%, showing an improvement from the 72.4% gross margin reported in the same quarter the previous year. Additionally, the operating income for the quarter was $176.7 million, which is a significant increase from the $78.7 million reported in the third quarter of fiscal 2023.
Looking at the company's financial position, as of April 30, 2024, Palo Alto Networks had total deferred revenue of $10,167.6 million, reflecting growth from the $9,296.4 million reported as of July 31, 2023. Furthermore, the company's cash, cash equivalents, and investments stood at $6,394.8 million as of April 30, 2024, showing an increase from the $5,437.9 million reported as of July 31, 2023.
Palo Alto Networks continues to focus on innovation, aiming to extend the capabilities of its portfolio to meet the evolving needs of its end-customers and improve its competitive position. The company's growth and success are dependent on factors such as extending its technology leadership, expanding its base of end-customers, and addressing any product vulnerabilities.
However, Palo Alto Networks is mindful of the potential impact of worldwide economic and geopolitical conditions on its business. The company is monitoring factors such as inflationary pressures, hostilities in Israel and the surrounding region, and tensions between China and Taiwan, which could affect its business or results of operations in the future.
Today the company's shares have moved -3.6% to a price of $311.97. For more information, read the company's full 10-Q submission here.
