Nikesh Arora

The $1 billion quarter: Palo Alto revenues up 25%

23 February 2021 | Melanie Mingas

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The three-platform strategy implemented by Palo Alto Networks "is paying off", according to chairman and CEO Nikesh Arora, as he confirmed Q2 revenues reached US$1 billion for the first time.

Released 22 February, the firm reported a 25% leap in revenues compared to Q2 FY20, when revenue for the quarter stood at $816.7 million. It also exceeded the outlook of $975 million to $990 million.

It's a trend Arora hopes will continue; in its Q3 guidance, Palo Alto is targeting revenues of $1.05 billion to $1.06 billion, representing year on year growth of 21% to 22%.

Non-GAAP net income for the fiscal second quarter 2021 was $154.2 million, or $1.55 per diluted share, compared with non-GAAP net income of $120.3 million, or $1.19 per diluted share, for the fiscal second quarter 2020.

Arora said: "The momentum in the business continues to be strong, with second quarter revenue growth of 25% year over year to over 1 billion USD, driven by strong execution across the board,"

"Events like the SolarStorm attack highlight the importance of cybersecurity, and Palo Alto Networks is well positioned to protect our customers with best-of-breed solutions. We are excited about the bets that we have made in SASE, cloud and AI. Our three-platform strategy is paying off," Arora added.

The firm's SolarStorm Rapid Response programme received more than 1,000 assessment requests after its launch in December. SolarStorm is the name Palo Alto assigned to the spate of attacks connected to a suspected nation state actor behind the SolarWinds SUNBURST malware.

Announcing the programme, Palo Alto Networks said that its Cortex XDR™ platform instantly blocked an attempted SolarStorm attack, when the company's systems deployed a set of indicators of compromise to customer-facing Palo Alto Networks' products.

At the time, Arora said: "SolarStorm is one of the most serious cyberattacks in history, and we must come together as a security community with our customers and partners to help enterprises and governments defend themselves,"

"While Cortex XDR protected Palo Alto Networks and our XDR customers from attack, many other security teams are now working through this. We need to work together, and swiftly."