Palo Alto Networks, a cybersecurity company, has reported its fiscal 2024 results in its latest 10-K filing with the Securities and Exchange Commission. The company's total revenue for fiscal 2024 was $8.0 billion, reflecting a year-over-year growth of 16.5% from the $6.9 billion in fiscal 2023. The growth is attributed to increased adoption of its portfolio, which includes products, subscriptions, and support.
The company's end-customers are spread across over 180 countries, representing a diverse range of industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. Notably, Palo Alto Networks has almost all of the Fortune 100 companies and a majority of the Global 2000 companies as its customers.
In terms of revenue breakdown, product revenue grew to $1.6 billion, accounting for 20.0% of total revenue in fiscal 2024, with a year-over-year growth of 1.6%. This revenue is derived from the sales of appliances, primarily the ML-Powered Next-Generation Firewall, software licenses of Panorama, SD-WAN, and the VM-Series.
The subscription and support revenue grew to $6.4 billion, representing 80.0% of total revenue for fiscal 2024, with a year-over-year growth of 20.9%. Subscriptions provide end-customers with access to the latest antivirus, intrusion prevention, web filtering, modern malware prevention, data loss prevention, CASB, and AI security capabilities across the network, endpoints, and the cloud.
The company has continued to invest in innovation, introducing new offerings such as Prisma Cloud Darwin release, PAN-OS 11.2 Quasar, Cortex XSIAM 2.0, new Cortex XSIAM features, Prisma SASE 3.0, and Precision AI. Additionally, Palo Alto Networks has made strategic acquisitions to enhance its capabilities, such as the acquisitions of Dig and Talon, which are expected to bolster its Prisma Cloud and Prisma SASE offerings.
Financially, the company reported a gross margin of 74.3% in fiscal 2024, up from 72.3% in the previous year. Its operating income was $683.9 million, representing an operating margin of 8.5%. The company also reported billings of $10.2 billion, a year-over-year increase of 11.0%, and cash flow provided by operating activities of $3.3 billion.
Palo Alto Networks closely monitors key financial metrics such as deferred revenue, billings, cash flow provided by operating activities, and free cash flow. The company's total deferred revenue stood at $11.5 billion as of July 31, 2024, reflecting the amount that has been invoiced but not yet recognized as revenue. Additionally, the company defines billings as total revenue plus the change in total deferred revenue, net of acquired deferred revenue, during the period.
The company's strong financial performance in fiscal 2024 reflects its ability to meet the evolving cybersecurity needs of its global customer base while continuing to invest in innovation and strategic acquisitions to enhance its product offerings. Following these announcements, the company's shares moved -2.3%, and are now trading at a price of $335.82. Check out the company's full 10-K submission here.
