Palo Alto Networks (PANW 144.40, +11.71) has spiked 8.8% in pre-market after beating quarterly expectations.
The provider of enterprise network security solutions reported above-consensus fourth quarter earnings of $0.92 per share on a 27.0% year-over-year spike in revenue to $509 million, which also exceeded expectations.
Product revenue jumped 11.1% year-over-year to $212.30 million while Subscription and Support revenue surged 41.5% to $296.80 million. Gross margin decreased to 72.8% from 74.6% one year ago.
Billings increased 17.2% to $670.80 million. This was below the full-year billings growth rate of 20.4%.
Net cash from operating activities spiked 31.9% to $868.50 million.
The company added roughly 3,000 new customers during the quarter, increasing its customer base to more than 42,500. Gartner's Magic Quadrant for Enterprise Network Firewalls report named Palo Alto Networks as a class leader for the sixth consecutive time.
Looking ahead, Palo Alto Networks expects that first quarter earnings will be between $0.67 and $0.69 per share on revenue between $482 and $492 million. Product revenue is expected to be between $170 and $173 million while total billings are expected between $580 and $600 million.
For the full year, the company expects earnings between $3.24 and $3.34 per share on revenue between $2.125 and $2.165 billion. Full year product revenue is expected between $735 and $750 million while billings are expected between $2.64 and $2.70 billion.