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Tuesday 23 February 2021

SolarStorm drives more double digit growth for Palo Alto

SolarStorm drives more double digit growth for Palo AltoThere doesn’t appear to have been any pandemic-related disruption or indeed any other negative impact on demand for Palo Alto Networks cyber security products and services in Q221. Total revenue for the quarter ending January 2021 expanded 25% yoy to US$1bn, though GAAP net losses almost doubled to US$142m over the same period. Billings grew by a similar double digit margin (22%) to US$1.2bn with deferred revenue up 30% to US$4.2bn.

Those figures are equally impressive given their consistency compared to the previous quarter, when revenue, billings and deferred revenue all grew by almost identical amounts. As ever, a string of acquisitions made a significant contribution with deals for Aporeto (US$150m), CloudGenix (US$420m), Crypsis Group (US$265m) and Expanse (US$800m) all completed since the start of Q220.

Management previously pointed to “work from home headwinds” as a driver for FY20 growth and we expect that same trend to have kept up enterprise demand for Palo Alto’s secure access service edge (SASE), cloud and AI solutions (subscribers to TechSectorViews can read our latest Cyber Security Market Trends and Forecasts to 2023 report here).

The SolarStorm supply chain attack which injected a Trojan Horse into SolarWinds’ software products last December also led some organisations to hastily upgrade their defences. And Palo Alto quickly capitalised with the launch of a SolarStorm Rapid Assessment and Cybersecure Engagement programmes using its newly acquired Expanse attack surface scanning and Crypsis incident response and risk management platforms.

Expectations for the rest of the year are high, with 22-22% yoy growth expected for the third quarter and 19-20% for the full fiscal year. With Palo Alto’s record on consistent double digit growth over the last few years, its hard to see the company coming up short.

Posted by: Martin Courtney at 09:02

Tags: results   firewall   q2   cybersecurity   SASE   SolarStorm  

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