Palo Alto Networks beats Q2 expectations despite a few losses

Summary:Palo Alto's CFO defended that the company's business model is benefiting from "higher attach rates of our SaaS-based subscription services."

Palo Alto Networks reported fiscal second quarter earnings before the bell on Monday morning.

The network security company reported a net loss of $39.9 million, or 55 cents per share (statement).

Non-GAAP earnings were 10 cents per share on a revenue of $141.1 million, up 46 percent year-over-year.

Wall Street was looking for earnings of nine cents per share and revenue of $135.63 million.

In prepared remarks, CEO and president Mark McLaughlin seemed satisfied by the second quarter results:

We reported very good Q2 results, driven by strong customer demand for our integrated and automated enterprise security platform. Enterprises around the world are accelerating their investments in security to enable them to improve their business and protect them against the risks stemming from cyber attacks. We see evidence of this in continued new customer adoption and rapid expansion of our platform among existing customers.

Palo Alto Networks chief financial officer Steffan Tomlinson added that the company's business model is benefiting from "higher attach rates of our SaaS-based subscription services, which, combined with continued strong product growth, contributed to record billings, revenue and deferred revenue."

For the current quarter, Wall Street expects Palo Alto Networks to return with earnings of 11 cents per share and $142.01 million in revenue.

Topics: Security, Data Management, Enterprise 2.0, Networking, Privacy

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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