Palo Alto Networks Hits Record Revenue of $151M, up 49%

Palo Alto Networks reported record quarterly revenue of $150.7 million for its Q3 ended 30-April-2014,  up 49% compared with $101.3 million for the same period in 2013. GAAP net loss for the fiscal third quarter was $139.1 million, or $1.86 per diluted share, compared with a net loss of $7.3 million, or $0.10 per diluted share, in the fiscal third quarter of 2013.

"We reported record revenue in our third quarter driven by strong customer demand for our next-generation enterprise security platform. We achieved the highest rate of new customer acquisition in our history and now serve more than 17,000 customers globally to address their security needs and prevent increasingly sophisticated and complex cyber attacks from compromising an organization's critical assets," said Mark McLaughlin, president and chief executive officer of Palo Alto Networks. "We also announced this afternoon that we have reached a settlement with Juniper Networks of all litigation matters between us; this allows us to further focus our resources and time on our customers and growing our business."

"Year-over-year revenue growth of 49 percent was driven by our land, expand and retain model, as product, recurring subscription and support revenue all delivered substantial growth," said Steffan Tomlinson, chief financial officer of Palo Alto Networks. "Additionally, we continue to demonstrate the power of our hybrid SaaS model as gross margin and operating margin improved sequentially, and we generated $28.4 million of free cash flow in the quarter, bringing our fiscal year to date total to $83.2 million."

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