SANTA CLARA — Cyber security company Palo Alto Networks (NYSE: PANW) reported upbeat financial results for its fiscal third quarter 2017 ended April 30, 2017.
Total revenue for the fiscal third quarter 2017 grew 25% year over year to $431.8 million, compared with total revenue of $345.8 million for the fiscal third quarter 2016. GAAP net loss for the fiscal third quarter 2017 was $60.9 million, or $0.67 per diluted share, compared with GAAP net loss of $64.1 million, or $0.73 per diluted share, for the fiscal third quarter 2016.
Shares in Palo Alto were up on the news nearly 15% in after-hours trading Wednesday.
“We reported record revenue of $432 million in our fiscal third quarter and added the second highest number of new customers in the company’s history,” said Mark McLaughlin, chief executive officer of Palo Alto Networks. “The integrated and highly automated prevention capabilities of our Next-Generation Security Platform continue to differentiate us in the market as we help our customers protect our digital way of life.”
“Expansion within our existing customer base and new customer acquisitions in the quarter drove growth in revenue, billings and deferred revenue,” added Steffan Tomlinson, chief financial officer of Palo Alto Networks. “In addition, we continue to balance growth and profitability, as cash flow from operations totaled $211.2 million in the quarter, free cash flow totaled $162.6 million, and we ended the quarter with cash, cash equivalents and investments of $2.1 billion.”
The company expects total revenue in the range of $481 to $491 million, representing year-over-year growth between 20 percent and 23 percent.