Page 1

paloaltoⓇ Palo Alto Networks Reports Fiscal First Quarter 2022 Financial Results November 18 , 2021 - Fiscal first quarter revenue grew 32 % year over year to $ 1.2 billion - Fiscal first quarter billings grew 28 % year over year to $ 1.4 billion Remaining performance obligation grew 37 % year over year to $ 6.0 billion SANTA CLARA , Calif . , Nov. 18 , 2021 / PRNewswire / -- Palo Alto Networks ( NASDAQ : PANW ) , the global cybersecurity leader , announced today financial results for its fiscal first quarter 2022 , ended October 31 , 2021 . Total revenue for the fiscal first quarter 2022 grew 32 % year over year to $ 1.2 billion , compared with total revenue of $ 946.0 million for the fiscal first quarter 2021. GAAP net loss for the fiscal first quarter 2022 was $ 103.6 million , or $ 1.06 per diluted share , compared with GAAP net loss of $ 92.2 million , or $ 0.97 per diluted share , for the fiscal first quarter 2021 . Non - GAAP net income for the fiscal first quarter 2022 was $ 170.3 million , or $ 1.64 per diluted share , compared with non - GAAP net income of $ 158.1 million , or $ 1.62 per diluted share , for the fiscal first quarter 2021. A reconciliation between GAAP and non - GAAP information is contained in the tables below . " Q1 was a strong start to fiscal year 2022 , driven by strength in both our product and Next - Generation Security businesses , giving us confidence to raise our revenue and billings guidance for the year , " said Nikesh Arora , chairman and CEO of Palo Alto Networks . " We continue to see strong customer demand and have continued to release key innovations which give us confidence in the durable growth we presented at our September Analyst Day . " " The combination of strong top - line metrics , upside to our profitability goals , and cash conversion for Q1 showcase our focus on total shareholder return , " said Dipak Golechha , chief financial officer of Palo Alto Networks . Financial Outlook Palo Alto Networks provides guidance based on current market conditions and expectations . For the fiscal second quarter 2022 , we expect : • Total billings in the range of $ 1.51 billion to $ 1.53 billion , representing year - over - year growth of between 24 % and 26 % . • Total revenue in the range of $ 1.265 billion to $ 1.285 billion , representing year - over - year growth of between 24 % and 26 % . • Diluted non - GAAP net income per share in the range of $ 1.63 to $ 1.66 , using 105 million to 107 million shares outstanding . For the fiscal year 2022 , we are raising guidance for most metrics and expect : • Total billings in the range of $ 6.675 billion to $ 6.725 billion , representing year - over - year growth of between 22 % and 23 % . • Total revenue in the range of $ 5.35 billion to $ 5.40 billion , representing year - over - year growth of between 26 % and 27 % . • Diluted non - GAAP net income per share in the range of $ 7.15 to $ 7.25 , using 106 million to 108 million shares . • Adjusted free cash flow margin in the range of 32 % to 33 % . 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 , 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 and certain non - recurring cash flows . We have not reconciled diluted non - GAAP net income per share guidance to GAAP net income ( loss ) per diluted share or adjusted free cash flow margin guidance to GAAP net cash from operating activities because we do not provide guidance on GAAP net income ( loss ) or net cash from operating activities and would not be able to present the various reconciling cash and non - cash items between GAAP and non - GAAP financial measures because certain items that impact these measures are uncertain or out of our control , or cannot be reasonably predicted , including share - based compensation expense , without unreasonable effort . The actual amounts of such reconciling items will have a significant impact on the company's GAAP net income ( loss ) per diluted share and GAAP net cash from operating activities . Earnings Call Information Palo Alto Networks will host a video webcast for analysts and investors to discuss the company's fiscal first quarter 2022 results as well as the outlook for its fiscal second quarter 2022 today at 4:30 p.m. Eastern time / 1 : 30 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 financial outlook for the fiscal second quarter 2022 and fiscal year 2022. 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 ; risks associated with managing our growth ; risks associated with new products and subscription and support offerings , including the discovery of software bugs ; shifts in priorities or delays in the development or release of new