- Fiscal fourth quarter revenue grew 27% year over year to $1.6 billion. Fiscal year 2022 revenue grew 29% year over year to $5.5 billion.
- Fiscal fourth quarter billings grew 44% year over year to $2.7 billion. Fiscal year 2022 billings grew 37% year over year to $7.5 billion.
- Remaining performance obligation grew 40% year over year to $8.2 billion.
- Board of directors approved a three-for-one stock split.
SANTA CLARA, Calif., Aug. 22, 2022 /PRNewswire/ — Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today financial results for its fiscal fourth quarter and fiscal year 2022, ended July 31, 2022.
Total revenue for the fiscal fourth quarter 2022 grew 27% year over year to $1.6 billion, compared with total revenue of $1.2 billion for the fiscal fourth quarter 2021. GAAP net income for the fiscal fourth quarter 2022 was $3.3 million, or $0.03 per basic and diluted share, compared with GAAP net loss of $119.3 million, or $1.23 per diluted share, for the fiscal fourth quarter 2021.
Non-GAAP net income for the fiscal fourth quarter 2022 was $254.1 million, or $2.39 per diluted share, compared with non-GAAP net income of $161.9 million, or $1.60 per diluted share, for the fiscal fourth quarter 2021. A reconciliation between GAAP and non-GAAP information is contained in the tables below.
“We were pleased by our fourth quarter results, which included GAAP profitability for the first time in four years. Next-Generation Security growth, driven by our rapid pace of innovation and strong sales execution, drove our results,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “As cybersecurity posture remains critical, our integrated three-platform strategy continues to drive large deal momentum as we consolidate and simplify our customers’ security architectures.”
“Our focus on maximizing total shareholder return in any environment was exhibited by strong revenue and billings growth, paired with non-GAAP operating margin and non-GAAP adjusted free cash flow margin expansion in fiscal year 2022,” said Dipak Golechha, chief financial officer of Palo Alto Networks. “As we enter fiscal year 2023, we look forward to again delivering this balance of growth and margin expansion, while also achieving GAAP profitability for the year.”
Stock Split Authorization
Palo Alto Networks announced that the board of directors has approved and declared a three-for-one split of Palo Alto Networks’ common stock in the form of a stock dividend. Each stockholder of record at the close of business on September 6, 2022 (the “record date”), will receive, after the close of business on September 13, 2022, two additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on September 14, 2022.
Financial Outlook
Palo Alto Networks provides guidance based on current market conditions and expectations.
For the fiscal first quarter 2023, we expect:
- Total billings in the range of $1.68 billion to $1.70 billion, representing year-over-year growth of between 22% and 23%.
- Total revenue in the range of $1.535 billion to $1.555 billion, representing year-over-year growth of between 23% and 25%.
- Diluted non-GAAP net income per share in the range of $2.03 to $2.06, using 108 million to 110 million shares outstanding.
For the fiscal year 2023, we expect:
- Total billings in the range of $8.95 billion to $9.05 billion, representing year-over-year growth of between 20% and 21%.
- Total revenue in the range of $6.85 billion to $6.90 billion, representing year-over-year growth of 25%.
- Diluted non-GAAP net income per share in the range of $9.40 to $9.50, using 111 million to 113 million shares outstanding.
- Adjusted free cash flow margin in the range of 33.5% to 34.5%.
- Achieve positive GAAP net income.
The board of directors authorized an additional $915 million for share repurchase, increasing the remaining authorization for future share repurchases to $1 billion, expiring December 31, 2023.
Guidance for non-GAAP financial measures excludes share-based compensation-related charges (including share-based payroll tax expense), acquisition-related costs, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, restructuring and other costs, non-cash charges related to convertible notes, and foreign currency gains (losses) and income and other tax effects associated with these items, along with certain non-recurring expenses and certain non-recurring cash flows. We have not reconciled diluted non-GAAP net income per share guidance to GAAP net income (loss) per diluted share or adjusted free cash flow margin guidance to GAAP net cash from operating activities because we do not provide guidance on GAAP net income (loss) or net cash from operating activities and would not be able to present the various reconciling cash and non-cash items between GAAP and non-GAAP financial measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted, including share-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items will have a significant impact on the company’s GAAP net income (loss) per diluted share and GAAP net cash from operating activities.