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Palo Alto Networks Reports Fiscal Third Quarter 2021 Financial Results # investors.paloaltonetworks.com / investor - relations / news - releases / news - release - details / 2021 / Palo - Alto - Networks - Reports - Fiscal - Third - Quarter - 2021 - Financial Results / default.aspx View All News May 20 , 2021 - Fiscal third quarter revenue grows 24 % year over year to $ 1.1 billion - Fiscal third quarter billings grows 27 % year over year to $ 1.3 billion Deferred revenue grows 30 % year over year to $ 4.4 billion SANTA CLARA , Calif . , May 20 , 2021 / PRNewswire / -- Palo Alto Networks ( NYSE : PANW ) , the global cybersecurity leader , announced today financial results for its fiscal third quarter 2021 , ended April 30 , 2021 . Total revenue for the fiscal third quarter 2021 grew 24 % year over year to $ 1.1 billion , compared with total revenue of $ 869.4 million for the fiscal third quarter 2020. GAAP net loss for the fiscal third quarter 2021 was $ 145.1 million , or $ 1.50 per diluted share , compared with GAAP net loss of $ 74.8 million , or $ 0.77 per diluted share , for the fiscal third quarter 2020 . Non - GAAP net income for the fiscal third quarter 2021 was $ 139.5 million , or $ 1.38 per diluted share , compared with non - GAAP net income of $ 114.6 million , or $ 1.17 per diluted share , for the fiscal third quarter 2020. A reconciliation between GAAP and non - GAAP information is contained in the tables below . " The work - from - home shift earlier in the year and recent cybersecurity issues have increased the focus on security . Coupled with good execution , this has driven great strength across our business , with Q3 billings growth accelerating to 27 % year over year . In particular , we saw a number of customers make large commitments to Palo Alto Networks across our three major platforms , " said Nikesh Arora , chairman and CEO of Palo Alto Networks . " We are pleased to be raising our guidance for fiscal year 2021 as we see these trends continuing into our fiscal fourth quarter , bolstering our confidence in our pipeline . " Financial Outlook Palo Alto Networks provides guidance based on current market conditions and expectations . For the fiscal fourth quarter 2021 , the company expects : • Total billings in the range of $ 1.695 billion to $ 1.715 billion , representing year - over - year growth of between 22 % and 23 % . • Total revenue in the range of $ 1.165 billion to $ 1.175 billion , representing year - over - year growth of between 23 % and 24 % . • Diluted non - GAAP net income per share in the range of $ 1.42 to $ 1.44 , using 101 million to 103 million shares . For the fiscal year 2021 , the company is raising guidance and expects : • Total billings in the range of $ 5.28 billion to $ 5.30 billion , representing year - over - year growth of 23 % . • Total revenue in the range of $ 4.20 billion to $ 4.21 billion , representing year - over - year growth between 23 % and 24 % . • Diluted non - GAAP net income per share in the range of $ 5.97 to $ 5.99 , using 99 million to 101 million shares . Adjusted free cash flow margin of approximately 30 % . ● Guidance for non - GAAP financial measures excludes share - based compensation - related charges , including share - based payroll tax expense , acquisition - related costs , amortization expense of acquired intangible assets , litigation - related charges , including legal settlements , gains ( losses ) related to facility exit , non - cash charges related to convertible notes , foreign currency gains ( losses ) , and income and other tax effects associated with these items , along with certain non - recurring expenses . We have not reconciled diluted non GAAP net income per share guidance to GAAP net income ( loss ) per diluted share because we do not provide guidance on GAAP net income ( loss ) and would not be able to present the various reconciling cash and non - cash items between GAAP net income ( loss ) and non - GAAP net income , including share - based compensation expense , without unreasonable effort . Share - based compensation expense is impacted by the company's future hiring and retention needs and , to a lesser extent , the future fair market value of the company's common stock , all of which is difficult to predict and subject to constant change . The actual amounts of such reconciling items will have a significant impact on the company's GAAP net income ( loss ) per diluted share . Earnings Call Information Palo Alto Networks will host a video webcast for analysts and investors to discuss the company's fiscal third quarter 2021 results as well as the outlook for its fiscal fourth quarter 2021 today at 5 p.m. Eastern time / 2 p.m. Pacific time . Open to the public , investors may access the webcast , supplemental financial information and earnings slides from the " Investors " section of the company's website at investors.paloaltonetworks.com . A replay will be available three hours after the conclusion of the webcast and archived for one year . Forward - Looking Statements This press release contains forward - looking statements that involve risks , uncertainties , and assumptions including statements regarding our belief that third quarter trends will continue into the fourth quarter , and our financial outlook for the fiscal fourth quarter 2021 and fiscal year 2021. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release , including : developments and changes in general market , political , economic , and business conditions ; the duration and global impact of COVID - 19 , including the timeframes for and severity of social distancing and other mitigation requirements , the impact of COVID - 19 on our customers ' purchasing decisions ; our ability as an organization to acquire and integrate other companies , products or technologies in a successful manner ; risks associated with managing our growth ; the risks associated with new products and subscription and support offerings , including the discovery of software bugs ; our competitive position ; our ability to attract and retain new customers ; 1/7