Assets
Palo Alto Networks is the developer of a unique security platform consisting of three elements: firewall advanced endpoint protection and the detection cloud. cyber threats The latter component provides. anti-virus software SaaS Customers of Palo Alto are large organizations working in the fields of production, and health care formations financial services.
Performance indicators
2019: Revenue - $2.9 billion, losses - $81.9 million
In fiscal 2019, which ended July 31, 2019, Palo Alto Networks' revenue reached $2.9 billion against $2.27 billion a year earlier. For the first time, sales of products from the company exceeded $1 billion and amounted to $1.1 billion, while in 2018 the figure was measured at $879.8 million.
The implementation of subscriptions and support services brought the manufacturer of information security solutions $1.8 billion in annual revenue, which is more than a year ago, equal to $1.39 billion.
The turnover of Palo Alto Networks is growing from year to year, but the company remains unprofitable. In fiscal 2019, the vendor's net losses were $81.9 million, although they decreased relative to cash losses a year earlier ($122.2 million).
After the publication of financial statements, shares of Palo Alto Networks fell 6.7% in electronic trading after the exchange closed, although the company's revenues exceeded market expectations. Since the beginning of 2019, vendor quotes have risen by 6.5% by the time the report is released.
The company noted that by September 2019, since the beginning of 2018, it had made seven acquisitions, as a result of which more than a dozen founders of the purchased companies began to work in the product division of Palo Alto Networks.
 | This year, we acquired and released important new technologies and created a solid foundation for our own promotion in the market. It is good to see that all the hard work of the team has led to strong market results, "said Nikesh Arora, Chairman of the Board of Directors and CEO of Palo Alto Networks, commenting on the financial results. |  |
At a conference on the publication of annual results, the management of Palo Alto Networks outlined a strategy that the company will adhere to. It is associated with further market acquisitions, the creation of integrated Solutions SaaS and technologies for protecting the Internet of Things and ensuring cloud security.[1]
Business in Russia
In September 2011, a representative office of Palo Alto Networks opened in Moscow. Palo Alto Networks products were represented in Russia by the official distributor - Landata.
As of February 2017, the official distributors of Palo Alto Networks in the Russian Federation are companies Netwell IT Guard and (), Axoft in the territory of former CIS countries - Tiger Optics and Bakotek.
History
2025: $25 billion CyberArk purchase
American cybersecurity solution developer Palo Alto Networks bought Israeli CyberArk Software for $25 billion. This is stated in a press release from Palo Alto in July 2025. CyberArk shareholders will receive $45 in cash and 2,2005 shares of Palo Alto for each of their securities. The amount of the transaction provides for a premium of 26% to the market price of CyberArk. This is the largest merger on the information security market in recent years. The parties plan to close the deal in the second half of 2026 (February-July 2026). Read more here
2021: Purchase of Bridgecrew cloud infrastructure security software developer for $156 million
In mid-February 2021, Palo Alto Networks announced the acquisition of an Israeli developer of solutions for automating the protection of enterprise cloud infrastructure. Bridgecrew The deal is estimated at $156 million, it is expected that it will be completed by the end of April 2021. More. here
2020
Purchase of cyber threat analysis solutions developer Expanse
On November 11, 2020, Palo Alto Networks announced the acquisition of Expanse. The deal to sell a developer of solutions for analyzing vulnerabilities in companies' IT systems and ensuring protection in cyberspace is estimated at $800 million, the settlement will be carried out in cash ($670 million) and securities ($130 million) of the buyer. Read more here.
Purchase of Crypsis Group consulting company
On August 24, 2020, The Crypsis Group announced the sale of its Palo Alto Networks business. The transaction amount amounted to $265 million. The buyer will pay for the transaction with the help of funds (without attracting its own shares). Read more here.
Purchase of SD-WAN technology developer CloudGenix for $420 million
On March 31, 2020, Palo Alto Networks announced the acquisition of CloudGenix for $420 million. The buyer intends to integrate the SD-WAN products that the American startup is developing with its Prisma Access platform, which belongs to the so-called Secure Access Service Edge (SASE). Ultimately, Palo Alto Networks wants to move the market from SD-WAN to SASE, according to a press release. Read more here.
2019
Former IT administrator sold company secrets and made millions of dollars
In mid-December 2019, former Palo Alto Networks IT administrator Janardhan Nellore was charged with selling company secrets while making millions of dollars. Read more here.
Purchase of IoT software developer Zingbox
In early September 2019, Palo Alto Networks announced the acquisition of Zingbox for $75 million. The deal's perimeter includes all of Zingbox's startup developments, including the Guardian's IoT toolkit, which allows companies to set multiple layers of security for their network devices. Read more here.
Purchase of the developer of the PureSec information security platform
In late May 2019, Palo Alto Networks announced the acquisition of information security platform developer PureSec. Read more here.
Purchase of software developer for security of serverless and container applications Twistlock
On May 29, 2019, Palo Alto Networks announced the acquisition of a developer ON for the security of serverless and container applications Twistlock for $410 million. The deal is scheduled to close in the fiscal fourth quarter, which ends on July 31, 2019. More. here
Purchase Demisto Automated Cyber Threat Software Developer
In February 2019, Palo Alto Networks announced the acquisition of Demisto for $560 million to expand its cyber incident prevention and response technology units. Read more here.
2018
Purchase of a developer of software for safe work in the public cloud RedLock for $173 million
In early October 2018, Palo Alto Networks announced the acquisition of a developer ON for secure work in the public cloud RedLock for $173 million. The deal, which is planned to be closed by the end of November, will be paid by the buyer's own funds, that is, without attracting his shares. More. here
Buying a software developer to search for hidden cyber attacks Secdo
In April 2018, Palo Alto Networks announced the purchase of Secdo to improve the ability to collect and visualize cyber threat data. With this acquisition, Palo Alto Networks products will be able to detect and stop hidden cyber attacks faster. Read more here.
Palo Alto Networks buys cloud cybersecurity software developer Evident.io
In mid-March 2018, Palo Alto Networks announced the acquisition of a developer ON for cyber defense of cloud infrastructure Evident.io for $300 million, which the buyer will pay out of his own funds, that is, without providing his shares. More. here
2017
Revenue growth of 28%
In fiscal 2017, Palo Alto Networks' revenue grew 28% thanks to companies and government agencies spending more money on information security in the wake of global cyber attacks.
According to the results of the 12-month reporting period, which ended July 31, 2017, Palo Alto Networks sales amounted to $1.76 billion against $1.38 billion a year earlier. At the same time, net losses increased - from 192.7 to 216.6 million dollars.
The volume of the service business, which brings the company more than half of the income, for the first time exceeded $1 billion. This was facilitated by the active growth of the client base, which was provoked by large-scale hacker attacks using ransomware viruses such as WannaCry.
According to Mark McLaughlin, CEO of Palo Alto Networks , in fiscal 2017, the number of company customers increased by a record high of 42.5 thousand. In addition, during this period, the manufacturer announced the largest launch of products and functions in its history, the head noted.
Interestingly, despite the growing revenues at Palo Alto Networks, the CFO is changing, which was announced in late August 2017. Steffan Tomlinson will resign after a successor is found. The reason for the departure of the top manager is not called.
After the release of financial results, Palo Alto Networks shares rose 6.5% and exceeded the $141 mark. By the opening of the exchange on September 4, 2017, the value of Palo Alto securities increased to $144.8, during the day the growth continued. This was helped by the fact that the company's quarterly revenue and profit exceeded Wall Street expectations.
Analysts raised their forecast for Palo Alto Networks' share price target to $160-180.[2]
Finam "recommends
The analytical department of Finam Group of Companies has prepared a study of the potential dynamics of shares in Palo Alto Networks, a California-based IT company that provides cybersecurity solutions to enterprises, organizations and government departments. According to the conclusions of experts, the target price of shares will be $160 at the current market price of $139.5. The shares were assigned the recommendation to "buy" (growth potential in the future of this year - 14.7%).
In the third fiscal quarter of 2017, Palo Alto Networks revenue increased by 24.9% YoY to $431.8 million. Revenue from the sale of Palo Alto products for the last quarter increased by 1.3%, from paid subscription to services and support - by 45.7%. In particular, revenue from SaaS increased by 55% YoY.
The market capitalization of Palo Alto is $12.7 billion, over the past 3 months, the company's shares have risen in price by 27.8%, compared with the growth of the Nasdaq Composite index of high-tech industries in the United States - by 8%.
According to experts, in the next 5 years, global spending on combating cybercrime will exceed $1 trillion, and Palo Alto Networks has every chance of getting its share of these potential revenue streams, because the company's products have a good reputation in the market and are in demand. According to the "magic quadrant" of the research firm Gartner, in the corporate-class firewalls market for 2017, Palo Alto Networks was in the leadership section for the sixth time in a row. The report stated that in the corporate firewall segment, Palo Alto has a high level of customer satisfaction with its business solutions.
2016: Sales and loss growth
In late August 2016, Palo Alto Networks released its Fiscal Year 2016 Performance Report. The company's revenue increased by almost half, but losses also rose.
For the reporting 12-month period, closed on July 31, 2016, Palo Alto sales amounted to $1.4 billion against $928.1 million a year earlier. Net loss reached $225.9 million, which is 36% more than cash losses a year ago. In the 2017 financial report, the company adjusted the data for 2016, indicating net losses of $192.7 million.
Excluding one-time expenses and income, there was a so-called adjusted profit of $152.6 million, which turned out to be twice as high as in fiscal year 2015.
In 2016, the service revenue of Palo Alto, which includes sales of software subscriptions, amounted to $707.7 million against $435.4 million a year earlier. This business generates more than half of the company's revenue. Equipment sales on an annualized basis rose from $492.7 million to $670.8 million.
Palo Alto's revenues in May-July 2016 exceeded the forecasts of analysts surveyed by Thomson Reuters I/B/E/S. This was due to the fact that companies and government agencies continue to spend heavily on cybersecurity after major attacks in past years, the Reuters news agency notes.[3]
However, Palo Alto's forecast for the first quarter of fiscal 2017 fell short of Wall Street expectations: the company predicts revenue of $396-402 million with adjusted earnings of 51-53 cents per share, and experts predict $402.2 million and 56 cents per security, respectively. At the end of the financial year, the company expects adjusted profit in the range from $2.75 to $2.8, which is above the average market forecast ($2.64).
Along with the publication of the financial results, Palo Alto announced an additional share buyback program approved by the board of directors in the amount of $500 million.[4]
2011: Creating a Next Generation Firewall
In the early 2010s, developers of network applications from the classic client-server architecture move to "clientless" web applications that do not work on a strictly defined port, but use standard web ports (80 and 443) or select a port dynamically. Under such conditions, a regular firewall becomes useless because its operation is based on allowing and disabling traffic on certain ports.
The result of Palo Alto's approach to developing network security systems was the creation of a new generation firewall. Next-generation firewall security policies do not apply to ports and zones (or IP addresses), but to specific directory service users and applications.
Palo Alto developers have patented 3 innovative technologies:
- App-ID is a technology that allows you to identify more than 900 applications on the network, regardless of their port and protocol (including web applications running on port 80). The technology can recognize applications even inside an SSL tunnel by decrypting it;
- User-ID is a technology that integrates a next-generation firewall with Active * Directory (as well as LDAP and Novell eDirectory), thereby identifying each user of each application;
- Content-ID is a technology that provides protection against many threats (viruses, Trojans, botnets, spyware), blocks unauthorized transfer of files over the network and controls web surfing.
The use of these technologies provides unprecedented control over network traffic and allows you to flexibly configure security policies, making the network transparent and manageable. All of these functions are performed at a speed of 10 Gbps with a very short delay. Even in virus scan mode, the device provides a speed of 5 Gbps.
The main idea of new generation firewalls, compared to traditional approaches, including UTM solutions, is to simplify the network security infrastructure, eliminate the need for various autonomous security devices, and also provide traffic acceleration through single-pass scanning. The Palo Alto Networks platform addresses a wide range of network security requirements for a variety of customer types, from a data center to an enterprise perimeter with conditional logical boundaries, including branch offices and mobile devices.
The main Palo Alto models have FSTEC certificates for the estimated level of trust OUD2 and level 4 of RD NDV, which allows you to use the next generation firewalls of Palo Alto Networks when creating automated systems up to the 1G security class and to protect information in personal data information systems up to and including class 1.
The development of Palo Alto Networks specialists allows you to apply the security policy not to ports and IP addresses, but to specific users and applications. "Traditional firewalls classify and restrict traffic by port, Internet protocol, and IP address. Previously, this method was quite effective, but in the lastNotes
- ↑ Palo Alto Networks Reports Fiscal Fourth Quarter and Fiscal Year 2019 Financial Results
- ↑ PALO ALTO NETWORKS REPORTS FISCAL FOURTH QUARTER AND FISCAL YEAR 2017 FINANCIAL RESULTS
- ↑ Palo Alto Networks’ Shares Fall 3% On Weaker-Than-Expected Forecast
- ↑ PALO ALTO NETWORKS REPORTS FISCAL FOURTH QUARTER AND FISCAL YEAR 2016 FINANCIAL RESULTS
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