Palo Alto Networks Inc. Q1 FY2024 results: revenue $1.9 billion, up 20.1% on the year

Palo Alto Networks Inc. (PANW) reported revenue of $1.9 billion for Q1 FY2024, the quarter ended 31 October 2023, up 20.1% on the same quarter a year earlier. Net income was $194 million, up 871.0% on the year, and diluted earnings per share $0.56. The figures are the company's own, from the 10-Q it filed with the SEC on 17 November 2023.

Revenue$1.9 billionup 20.1%

Net income$194 millionup 871.0%

Diluted EPS$0.56

QuarterQ1 FY2024ended 31 October 2023

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Quarter before	A year earlier	Change on the year
Revenue	1,878	n/a	n/a	n/a
Cost of revenue	473	n/a	n/a	n/a
Gross profit	1,405	n/a	n/a	n/a
Gross margin	74.8%	n/a	n/a
Research and development	410	n/a	n/a	n/a
Operating income	215	n/a	n/a	n/a
Operating margin	11.5%	n/a	n/a
Interest expense	2.9	n/a	n/a	n/a
Pre-tax income	283	n/a	n/a	n/a
Income tax	88.4	n/a	n/a	n/a
Effective tax rate	31.3%	n/a	n/a
Net income	194	n/a	n/a	n/a
Net margin	10.3%	n/a	n/a
Diluted EPS	$0.56	n/a	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2024	Quarter before	A year earlier	Change on the year
Operating cash flow	1,526	n/a	n/a	n/a
Capital expenditure	36.8	n/a	n/a	n/a
Free cash flow	1,489	n/a	n/a	n/a
Free cash flow margin	79.3%	n/a	n/a
Depreciation and amortisation	64.3	n/a	n/a	n/a
Share-based compensation	271	n/a	n/a	n/a
Buybacks	66.7	n/a	n/a	n/a
Diluted shares, weighted	350m	n/a	n/a	n/a
Shares outstanding at period end	314m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Quarter before	A year earlier	Change on the year
Total assets	14,808	n/a	n/a	n/a
Cash and equivalents	2,491	n/a	n/a	n/a
Receivables	1,413	n/a	n/a	n/a
Goodwill	2,927	n/a	n/a	n/a
Operating lease liabilities	276	n/a	n/a	n/a
Shareholders' equity	2,170	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *
Revenue	1,878	1,975	1,985	2,190	2,139	2,257	2,289	2,536	2,474	2,594	3,002	3,410
Cost of revenue	473	499	514	574	554	599	619	679	638	685	974	1,106
Gross profit	1,405	1,476	1,471	1,616	1,585	1,658	1,670	1,857	1,836	1,909	2,028	2,304
Gross margin	75%	75%	74%	74%	74%	73%	73%	73%	74%	74%	68%	68%
R&D	410	448	457	495	480	506	494	504	528	511	734	779
Operating income	215	53.6	177	238	286	240	219	497	309	397	-183	172
Operating margin	11%	3%	9%	11%	13%	11%	10%	20%	12%	15%	-6%	5%
Interest expense	2.9	2.8	2.3	0.3	1.2	0.9	0.7	0.2	0.0	0.0	0.0	0.0
Pre-tax income	283	136	251	319	369	325	310	592	412	549	-156	-269
Tax rate	31%	-1189%	-11%	-12%	5%	18%	16%	57%	19%	21%	n/a	n/a
Net income	194	1,747	279	358	351	267	262	254	334	432	-177	-282
Net margin	10%	88%	14%	16%	16%	12%	11%	10%	14%	17%	-6%	-8%
Diluted EPS	$0.56	$4.89	$0.79	$1.04	$0.99	$0.38	$0.37	n/a	$0.47	$0.61	-$0.22	-$0.46
Operating cash flow	1,526	690	529	513	1,510	557	629	1,021	1,771	554	871	1,357
Capital expenditure	36.8	35.2	37.4	47.4	44.1	47.5	68.3	86.3	84.0	170	83.0	103
Free cash flow	1,489	655	492	465	1,466	509	560	934	1,687	384	788	1,254
Buybacks	66.7	0.0	500	0.0	0.0	0.0	0.0	0.0	n/a	n/a	n/a	n/a
Shares outstanding	314m	323m	323m	325m	328m	660m	666m	668m	692m	703m	813m	815m
Filing	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 October 2023, filed 17 November 2023, accession 0001327567-23-000032: the filing on EDGAR. All of Palo Alto Networks Inc.'s filings: EDGAR company page.

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