Investors, however, are more interested in the fact Palo Alto's deferred revenue balance rose 12% Q/Q and 74% Y/Y in FQ1 to $279M. The Y/Y growth rate was well above FQ1's 49% revenue growth rate.
The deferred revenue growth highlights Palo Alto's strong focus (relative to some peers) on security services subscriptions, which only get recognized a quarter at a time (even if an entire subscription is paid up-front). Services revenue rose 73% Y/Y, and made up 41% of total revenue. Product revenue rose 36%.
Opex rose 56% Y/Y, thanks in large part to a 58% increase in sales/marketing spend to $67.4M (53% of revenue).