Palo Alto Networks beats revenue expectations for Q4

After expanding its customer base and platform capabilities, the cybersecurity firm posted record revenues for Q4 of fiscal year 2016.
Written by Stephanie Condon, Senior Writer

Palo Alto Networks reported its fourth quarter earnings for fiscal year 2016 on Tuesday, besting revenue expectations.

The cybersecurity firm reported non-GAAP fourth quarter earnings of $46.2 million, or 50 cents a share, on revenue of $400.8 million, up 41 percent from a year ago.

Wall Street was expecting Palo Alto to report earnings of 50 cents a share on revenue of $389.89 million.

The security software vendor expanded its customer base to approximately 34,000 in the fourth quarter. It also extended its platform capabilities and secured new strategic partnerships.

"The security industry is seeing a rapid transformation from legacy hardware and point products to integrated and automated capabilities that seamlessly work together as a platform," CEO Mark McLaughlin said in a statement. "As the primary innovator driving this paradigm shift, customers are turning to our Next-Generation Security Platform in record numbers to more effectively prevent cyberattacks no matter where their data resides."

For the full fiscal year, the company reported non-GAAP earnings of $152.6 million, or $1.67 a share, on revenue of $1.4 billion, up 49 percent.

In terms of guidance for the first quarter of fiscal year 2017, Palo Alto expects EPS in the range of 51 cents to 52 cents and revenue in the range of $396 million to $402 million.

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