Palo Alto Networks Reports Fiscal Third Quarter 2023 Financial Results.

SANTA CLARA, Calif: Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today financial results for its fiscal third quarter 2023, ended April 30, 2023.

Total revenue for the fiscal third quarter 2023 grew 24% year over year to $1.7 billion, compared with total revenue of $1.4 billion for the fiscal third quarter 2022. GAAP net income for the fiscal third quarter 2023 was $107.8 million, or $0.31 per diluted share, compared with GAAP net loss of $73.2 million, or $0.25 per diluted share, for the fiscal third quarter 2022.

Non-GAAP net income for the fiscal third quarter 2023 was $359.4 million, or $1.10 per diluted share, compared with non-GAAP net income of $193.1 million, or $0.60 per diluted share, for the fiscal third quarter 2022. A reconciliation between GAAP and non-GAAP information is contained in the tables below.

"Our team again executed well in a market that continues to become more challenging," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "Our strategy of delivering best-of-breed products within our three platforms is helping customers simplify their security architectures and consolidate vendors."

"We continued to demonstrate our commitment to profitable growth in Q3," said Dipak Golechha, chief financial officer of Palo Alto Networks. "As a result, we are raising our cash flow margin and operating margin guidance for FY'23 as we balance driving efficiency goals while investing for medium-term growth."

Financial Outlook

Palo Alto Networks provides guidance based on current market conditions and expectations.

For the fiscal fourth quarter 2023, we expect:

Total billings in the range of $3.15 billion to $3.20 billion, representing year-over-year growth of between 17% and 19%.

Total revenue in the range of $1.937 billion to $1.967 billion, representing year-over-year growth of between 25% and 27%.

Diluted non-GAAP net income per share in the range of $1.26 to $1.30, using 326 million to 332 million shares outstanding.

For the fiscal year 2023, we are updating guidance and expect:

Total billings in the range of $9.18 billion to $9.23 billion, representing...