With management remaining confident in their strategy to continue to win these larger, more recurring, and stickier enterprise deals, I believe their revenue may be less susceptible to macro volatility compared to other vendors who focus on small and middle-sized companies.įor Q1, the company is expecting revenue of $1.54-1.56 billion (23-25% yoy growth), compared to consensus estimates of $1.54 billion. Just a few years ago, PANW was usually in the running for large enterprise contracts, but only sparingly won those deals. You know what, hopefully if we can win half the deals that we're in, we'll be growing at big numbers like we did this year.Īgain, PANW's ability to not only put themselves in a more competitive position, but actually win these large enterprise deals has better insulated the company's revenue from any extreme volatility. And our aspiration is next year to be in 10 out of 10 deals. Now we think we're in 5 to 6 out of 10 deals. Two years ago we're getting 1 or 2 deals out of 10. And three years ago we're not showing up at a party. It doesn't take a lot to guess who the second vendor is. I'd say in the most, the largest enterprise deal is head-to-head with two vendors. What has happened in the last year-and-a-half or two, we've become a force to reckon with. When asked about the recent enterprise strength on the company's earnings call, management pointed at the fact they have become much more competitive against other vendors and are winning more deals. On top of that, PANW now has 50% of the Global 2000 customers who has purchased the company's Strata, Prisma, and Cortex solutions.īy moving further up the market towards larger enterprises, PANW has been able to demonstrate consistently strong growth with high customer retention. With security spend likely to remain at the top of almost all company's minds over the coming years, it's no surprise to see PANW stock only down $1 million in TTM bookings, growing an impressive 26% yoy. So far this year, investors have favored stocks who have been able to demonstrate some sort of counter-cyclicality and demonstrate consistent profitability. While the macro environment remains complicated and uncertain, the company continues to believe the underlying trend of strong security spend is here to stay long-term. And while this initially sent the stock up over 10%, recent macro volatility and rising interest rates has caused the stock to pullback over recent weeks.įor FY23, the company is expecting revenue growth of 25% yoy, and this takes into consideration some longer sales cycles and some customers extending the life of existing hardware. Palo Alto Networks ( NASDAQ: PANW) recently reported a good end to their fiscal year and provided FY23 guidance above expectations.
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