Palo Alto Networks said total revenue for the first quarter of fiscal 2025 was $2.1 billion, up 13.9% from $1.9 billion a year earlier. Subscription and support revenue rose 16.1% to $1.8 billion, or 83.5% of total revenue, and product revenue rose 3.7% to $353.8 million.

1. 01

   Palo Alto Networks said total revenue for the first quarter of fiscal 2025 was $2.1 billion, up 13.9% from $1.9 billion a year earlier. Subscription and support revenue rose 16.1% to $1.8 billion, or 83.5% of total revenue, and product revenue rose 3.7% to $353.8 million.

2. 02

   The company said cloud hosting service costs rose $39.8 million and personnel costs rose $11.3 million over the 3 months ended October 31, 2024, driving the increase in subscription and support cost of revenue. It cited higher costs for its cloud-based offerings as the factor behind the decline in subscription and support gross margin.

3. 03

   The company said it repaid $319.0 million in aggregate principal amount of its 2025 Notes in cash during the 3 months ended October 31, 2024, and that $646.6 million remained outstanding as of October 31, 2024. It said holders may convert their notes in the quarter ended January 31, 2025 because the sale price condition was met.

4. 04

   The company said net cash provided by operating activities was $1.5 billion and net cash used in investing activities was $543.8 million for the 3 months ended October 31, 2024. It disclosed that the contingent consideration obligation related to its IBM QRadar asset acquisition was $655.2 million as of October 31, 2024.

Key figures

Quarter ended October 31, 2024

Revenue

$2.1B

Operating income

$287M

Net income

$351M

EPS

$0.99

Gross profit

$1.6B

Operating cash flow

$1.5B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.