The high expectations produced by steep multiples are once more leading Palo Alto (PANW) to sell off post-earnings (for now at least). The latest drop comes even though Palo Alto reported a 14% Q/Q increase in deferred revenue to $249.2M (it rose 17% Q/Q in FQ3). Strong demand for the cloud-based security services attached to Palo Alto's next-gen firewalls drove the increase.
Though FQ4 revenue beat estimates, a 53% Y/Y increase in opex (eclipsed rev. growth of 49%) led EPS to be only in-line. Sales/marketing spend surged 58% to $59.6M. R&D +50% to $17.6M, G&A +33% to $11.7M.
Product revenue +33% Y/Y to $65.5M. Services revenue +79% to $46.9M. Gross margin was a healthy 73%, +30 bps Q/Q.
CC underway, guidance should be provided.
Palo Alto dove 3 months ago after providing light FQ4 guidance.
FQ4 results, PR