Thank I Enjoy know you, in. the Karen. last other everyone. from listening Pritchard, call you earnings side. your Walter Hello are
President end at as M&A Investor this join Relations Next quarter, new will Senior Walter Finance. and of us Vice our
Moving quarter. onto the
I rapid chains. and next embrace machine say In teams understanding comprehensive Let attacked me full generation AI, cyber edge of rapid. as need our one well own map was services set technologies enterprises they the leverage order as attack infrastructure are it program a most that supply security SolarStorm over response need To start The highlighted including and the date sophisticated networks external rapid with SolarStorm which have and learning adversaries, to IT to and their in describing we history. many attacks up customers, help their that of environment, of an for serious automation. to you when as
our offered almost Expanse and free felt pre-assigned. action. team. updated The into of Crypsis assessments vectors. the teams We Crypsis from threat new swung acquisitions XDR all We Our for
which were agencies outside attack affected government customers to and there that Many a discovered communicating malware dozens were the evaluated We also including actively from of for Solarstorm and major in the full of surfaces large commenting Expanse infrastructure. companies.
So SolarStorm whole. an and as raises We of need the cyber believe far have in the complete security that more awareness cyber and all over these requests which reliance is of security This XXX. mid resulted the focus X,XXX industry over long-term the the a times. assessment hour, criticality and attacked completed given in received we’ve of the technology candor of
the We not will to security to industry. will a just wakeup also a tailwind expect for attack enterprises that this incremental us call net cyber and be all as serve but modernize for
of XXXX as execution We Before resilience admission with have strong cautious the Perhaps was I turning momentum across current of great a an teams business all organization pandemic. sustained had I the I The QX turn been to executed too platforms and has results, the our to to optimistic. strategies. second and our fiscal performance, make. outset more quarter
result, we a beat guidance and As QX consensus.
highlights. billings board. XX% the across with some are We Here $X.X billion, delivered up growth of strong year-over-year
This number billings you these for year-over-year Let customers. give to reported trend for billings of is growing me select reaching than to we revenue growth $X adjusting some have the place Due been and has within plans has When higher additional the a Consequently, accelerated few and last COVID, in was revenue more across path dollar our growth provided billion ever. quarters. we continue predictability been of $X.XX of growth. XX% been will impacted our XX% model, revenue more growth expense billing context. up over the time subscription-based operating strength last board. continue leverage. expansion and first EPS with Yes, revenue and as from The the to the first accelerating quarter rise. Non-GAAP EPS has driven $X.XX, by growth. And the down billion year. revenue to a was
seasonality While expect due was continue. to the product free to we which we resources generated year of million still We second received half. to continue there margin both XXXX, for expansion, we started to to in security lower hire value. to the and to AI due in of free the Free network expect the drive to we cash transparency we at beneficial support feedback quarter, dialogue do additional want $XXX and for continue on full around fiscal great first around more Last cash flow businesses. year our to to travel normalize the margin We flow shared in guidance P&L unlock of and XX.X%. to we our transparency see the XX.X% the for impacts and year half shareholder COVID, cash a cloud be due some continues quarter
are Let’s first dive we take into Security which a NetSec. Network the deep business calling
software security Our firewall Starting chosen we’ve only business undergoing building making than towards and more as it services, our software associated hardware subscriptions. sustainable. predictable a solutions hardware NetSec with rather business SaaS and is transformation services to offer and
doubled last have from four years, to IoT two our of security we SDRAM, introduction DLP. subscriptions with eight the and the Over DNS,
customers are the increase firewall which introduction and since The We security along us our seeing with a revenue acquired the next-generation last subscription support nearly firewall support launch. percentage year. has DNS, higher progress X,XXX new subscriptions, revenue of next-generation allowed tier as to support, of great with over has Platinum hardware
our see, drive made completed a FLEX subscriptions just access X.X these As the on which has product and firewall We our gone Prisma XX% it in and have Prisma across continue factors, available in you and all in process we CAGR access the is recently firewall available of to making form cloud. time. X.X. growth, support subs hardware, our To from have XX% that software sustained can we XX% hardware contribution
transformation see continue Turning to in form a software our firewalls, software we factors. to
introduction to the next-generation of advanced of of continue integrations With features, containerized development industries product market firewall, the share. cloud-native first we see
their offer licensing limited recently software this We continue achieve half transforming, firewalls Firewall customers growth launched customer and to our rates. will to VM a important result, and industry number XX% was number of driving we a lets XG a you features as design, firewalls eight enterprise virtual subscriptions XG and of data to CN-Series a another as Series security, our a are This distributed highly growth. attach FY additional add was telecommunications flexibility for our network. needed To XXXX. is we or containers flexible unique a subscription consumption consumption how all in CM firewalls, choose to foundation model As The very consume by previously we security including how highlight VM security to a model first a company providing which enable customers, flexibility with goal first, CPUs in to believe deal We drive changes, and new our how the closed drive and customers five. secure and critical greater in approach that leading CN-Series driver. FLEX, of any increase of approach that credit-based architectural transition to the business
customers our a and doing customers class their and We to in enterprise secure provider service to managed XG customers. are their we deliver XG offerings enterprise so, security first provide and to empower to container provide security. In service
industries to a Service, behind. that XXX with X.X. platform nearly and both week, all customers business a trust security Fortune biggest connectivity Prisma about the in COVID enabling built CASB, world, firewall change, how includes In we critical, introducing speed, the good it delivered Prisma When and what are to into called have Access. initially secured capabilities are industry-leading work XX% every launch Last security. access Prisma transform DLP turning also the and dramatically of needed, is cloud, and Even for companies gets was line in Now security a customers less XXX. difference Access features zero is for non-web we and XXXX GlobalProtect already since Prisma announced to user workforce service. in the this Access full like partial workforce. became the need sometimes to security, accelerated COVID apps. before applications, done, Access a remote Access sufficient access, is from secure across secures were based and on experience working longer gateway, an update Access changed a What around this maintaining talk remote year-and-a-half, last machine line productivity for Prisma web we started learning known Access. a No between gone full Cloud out has security. service network web or the let’s to have preventing securing at changed. now the than the application enough to IoT started Prisma Overnight, of falling solution determines the The threats X,XXX Prisma industry-leading timeframe,
As an threats and cloud ignored tried non-web Access. Those to threats of solutions cannot web Prisma ultimate proven misses XX% to delivered example, market with over all we remote conventional unlike workforce that that approach apps. security be security the
completely cloud-based management experience digital better add-on have way new for customers the Access reimagined UI outcomes native The with provides an entirely security that new assessments. delivers builder manage We Prisma security end-to-end is Access latency visibility and and with on to self scalable SASE ability a as highly the when Prisma low digital for Cloud infrastructure experiences Google backbone. occur. built field insights problems and
Prisma along complete our the a offering. CloudGenix SD-WAN, product with Prisma rebranded Lastly, Access, from delivers SASE
XSOAR. technology which applications, work of for now improves an we that they XXX,XXX enterprise closed remote goal initiative. Cortex forward. a deal meet work, definitely In a caught firewalls, enhance to platform realize third-party a through across to and eight secure need solution. a the to chosen vendor Prisma addition as as businesses a of best-in-class maintains Ultimately, their product was a order security recent service launch over allows great have CloudBlades, Firewalls, customer experience company Access and network up ahead customer partnership even the support Networks rapidly vision, will purchased with with was platform only the of their forward and productivity. would the the the employees key new QX, worker that Palo store security also With look Prisma going company flexible This SASE ultimately Alto their enables the saw compromise to our enable we CN-Series was for remote Access true we digital leading capabilities an XXX countries, remote part several of transformation, figure seamless as a environment, needs In customers a securely with next-generation offering us access over deals peers to we new work given enables platform but integration. a security API all with SASE XDR and was or that without optimized
past in software asked of associated you in the have a the about several knowledge. transition Lastly,
examples what a Prisma VM market, together been mostly in with the of cases, few a purchases does phase key replace solution incremental we software and While we use customer have see hardware-based put SaaS. first security what Access and choose a on to the
the software running is this applications, over the year like deals that five retail Our equal firewalls, hardware series to with of store deal used cases a in roughly software estimate local and firewall. third-party place revenue replace other of firewalls are along separate example VM VMs we physical at that hardware,
a larger cost than virtual deal. cases, move used used From estimated five Access of our office firewalls. year they hardware perspective, factors. Prisma Access replaces the Prisma a and the is two-times of ownership case typical reduced estimate revenue For as a form total We customer delivered we to took generally a a customers’ next-generation firewall is cloud deal that and branch
As year Prisma you only old. know, Access is
So our to as improve gross hardware, time. margins favorable them aren’t expect but over as we
Cortex shared but with threat over, with thanks instantly moving at on Palo’s our attempt looking an capability. discussing & AI this security XDR behavioral Solarstorm our Solarstorm community Back by and the that talk own results. attempted attack. Cloud a started protection we call in experience Solarstorm, Now its networks, We to broader December, blocked didn’t about
be our continue going XDR rapid of product. to the is pace We around that bullish innovation Cortex into
Cortex by AV-Comparatives response their recently was latest several ownership fact, endpoint evaluation and in In as of than while peers. total XDR still strategic lower cost prevention security delivering recognized a endpoint leader
XDR which modernization, Lake space. last in make it should FedRAMP Importantly, technology achieved Cortex of a key and month, Data the piece Federal
As proactive more XDR rushing security to endpoint years see and at policy SOX an out established on-site as to we platform vision, of rather players the protection customers. increase With ability control the largest security expanded security explores Overall, we by to We grow. continue closed could the XX% unify to developing further easily XXXX are to continue ADR. see XXX the ago. first industry’s now support stores with the the to and to for the our Cortex of in into automation are companies for that on space route jump top portfolio of complete rules have a across more how we pre-processing challenges customers entire XX% penetration Cortex that these Fortune XDR see Cortex customers with two indicating to leveraged validation devices enterprise. XDR retailer, the deal In Global company protection they conversation the and threat XDR of we than the of QX, a advanced and endpoint operational Cortex more chose are solution its able then their adjust the additional reduce by demonstrating XDR alert extend a the Cortex de-duping endpoints and of to adopting the mobile, box dramatically. Cortex volumes using also mind
with Cloud billion best-of-breed we and strong platform and X,XXX comprehensive immediate of combination workloads. over entire coupled with and most Fortune from the state building acquired customers. Switching see cloud-native total, have released Prisma is ability, secures the customers Cortex Prisma interest. an volume, continue customer endpoint platform With Prisma alert new the orchestrating security to X.X and cloud XX% now automating has to production in XXX of impact Cloud. will its announcements Cloud with an
to of while now for both Prisma workload with customers increase XX%. using see applications protection posture an cloud security cloud management also continue at and and containers Cloud We servers
capabilities last FedRAMP and leverage Data Additionally, governance government This Prisma compliance Cloud along XDR month, deployments. securing our modernization, Cortex as we multi-cloud Lake cloud allows also to and with and gov U.S. for customers achieved visibility said.
deal cloud. moving closed. private many SaaS Cloud that environment leading a the eight public Prisma largest deal An with in are figure a a as highlight cloud to to they Like like from I’d Lastly, we’ve the industry, ever company.
choice. run clouds. for containerized community. protection of their Cloud security of scalability The vulnerability unique they early the container the of announced and had convince the Prisma Last maturity, help shift, The of a customer and Prisma moving requirements AWS, time architecture. Bridgecrew, part of to week, containers intent the developer are container GCP our vulnerability for Cloud the securing their acquire pioneer As availability we scalability, as choose an Azure across security security detection to platform superior application capabilities of this and to customer
over Developers the an of is how playing important used cloud and in is shiftless in what are taking security, are both security. operationalized. role what need known open and win next the developer increasingly could Bridge security year cloud cloud challenge they downloaded as pioneering products So, we easy developers. product on terms recognize shiftless a we and are are early can and community, single a last X,XXX product security together, of likelihood list to security gaining be network Checkout replicated security traction. paid To error upfront the power are for is be an quick resulting of of increases application. developers they security where drags a was This bring development times that platform partners. in for a designed approach in source infrastructure hundreds synergies a and Today, the for down production times security. the over to tremendous issues and they the faced. issues These productivity engage released see we in million called win to in scored shape and When and for for
at are looking more XX% have customers a years that customers, one increasingly ago Strata, adopting Global our platform, Cortex. these are we two ago. see than XX% customers up We and XXXX year Prisma from XX% purchased our of Global and XXXX
that the are raising we momentum full fiscal seeing, are guidance we the year. Given for
XXX discussed midpoint of guide, the billings For Total fiscal our total guide. basis slightly at XXX from than guide, prior lower points basis points growth revenue prior as we our XXXX, up up impact of we billings plans of earlier. and at our was expect from XX%, XX%, revenue
our from prior We is next-generation up guidance. year-over-year, ARR year-over-year. XX% $X.XX expect security billion, at continue unchanged flat to revenue Product
capture points in flow continue as XX%, the non-GAAP to and market. opportunities prior of free to we from unchanged our XX guidance cash Lastly, basis operating adjusted invest of margin
for basis confirming performance and Overall, fiscal projections the and NetSec projection, basis strong XXX SASE revenue raising given while and our review of year we ClaiSec. our let’s XXX Now points billings ClaiSec NetSec points are by CN-Series. by
we XXXX, cash Moving in on in FY cash margin Network XX% to XX% FY free expect a Security flows, XXXX. flow free of will from adjusted up deliver
We and in expect Cloud XXXX improvement negative margin of and – AI in cash from XX% negative FY XXXX. improve XX% from free flow negative
and matures the in for operating achieve margins flow our quarter, we expect efficient. industry years, last customer scale AI we Cloud base mentioned as gross As to few and more cash gain free benchmarks with and line and becomes next
same see, further building strengthen hardware with Alto and aligning can deeper to focus the financial And you areas To Networks. new path business while our NetSec. have resources of our dig ClaiSec continue feel business. more and been noted forward ClaiSec. Palo in on our in for As NetSec I we committed been and there also synergies our by as we’ve our time, on set increasing of AI able firewalls transformation tremendous our the teams the transformation can this that profile, the software and we power of we At focus and are create cloud earlier,
going areas around business efforts So speed six with these into aligning fiscal year. force our two officially at as we our next three are from both focused we efforts
focused from and transformation delivering hardware are required. as a best-of-breed we to on solution Next, software hardware
always an ML. to drive organic net area transformation cloud can security AI our positive strategy, self inorganic neutral opportunistic, you security SASE, for XSOAR solutions efforts customers. ClaiSec, is that and focus and actually our and cloud where and Cortex our subscriptions. As the we create including growing and this like and we to industry with leading and an business firewalls, and solution – virtual XDR saw, proven security firewalls, beneficial have us The speed for financially and
to product to us need in us we for to and for and continue both scale invest continued Here development launch. drive customer customer continued investments
by Prisma to response do Wendi incident will XX joined our Palo team newly We services. has focus continuing Unit The Cloud Cortex, Whitmore formed Crypsis on help and and so Networks Alto lead. combining which
that the the for in announce have the structure Board’s with to business. an we finalized equity excited also consent, filing are ClaiSec for needed We
Our sure is business value to make that the the more goal transparent. is of ClaiSec
such the of and approved our voice shareholders employees has a Board of development the from ClaiSec business. regarding alignment of vehicle equity, invest the in addition, strengthening of interest the In success to ClaiSec
a Networks address Lastly, also I to made climate recently say to proud Palo that change. Alto commitment am
As carbon more Luis to will let in we With detail turn be neutral over around will by how that, go Luis. the over me XXXX. call
