Palo Alto Networks reports $8 billion in revenue in 2024

Palo Alto Networks, a cybersecurity company, has released its fiscal 2024 results in its latest Form 10-K filed with the Securities and Exchange Commission. The company’s total revenue for fiscal 2024 was $8.0 billion, a year-over-year increase of 16.5% compared to $6.9 billion in fiscal 2023. The increase is attributed to increased adoption of its portfolio, which includes products, subscriptions, and support.

The company’s end customers are spread across more than 180 countries, representing a variety of industries, including education, energy, financial services, government, healthcare, internet and media, manufacturing, public sector, and telecommunications. It is worth noting that Palo Alto Networks counts nearly all of the Fortune 100 and most of the Global 2000 as its customers.

In terms of revenue breakdown, product revenue grew to $1.6 billion, accounting for 20.0% of total revenue in fiscal 2024, with year-over-year growth of 1.6%. This revenue comes from appliance sales, primarily the next-generation machine learning-based firewall, Panorama software licenses, SD-WAN, and VM-Series.

Subscription and support revenue grew to $6.4 billion, representing 80.0% of total revenue in fiscal 2024, with year-over-year growth of 20.9%. Subscriptions provide end customers with access to the latest antivirus, intrusion prevention, web filtering, modern malware protection, data loss prevention, CASB, and AI security capabilities across the network, endpoints, and cloud.

The company continued to invest in innovation, introducing new offerings such as the Prisma Cloud Darwin release, PAN-OS 11.2 Quasar, Cortex XSIAM 2.0, new Cortex XSIAM features, Prisma SASE 3.0, and Precision AI. Additionally, Palo Alto Networks made strategic acquisitions to enhance its capabilities, such as the acquisitions of Dig and Talon, which are expected to strengthen the Prisma Cloud and Prisma SASE offerings.

Financially, the company reported a gross margin of 74.3% in fiscal 2024, up from 72.3% in the prior year. Its operating income was $683.9 million, representing an operating margin of 8.5%. The company also reported billings of $10.2 billion, up 11.0% year over year, and cash flow from operating activities of $3.3 billion.

Palo Alto Networks closely monitors key financial metrics such as deferred revenue, billings, operating cash flow and free cash flow. The company’s total deferred revenue was $11.5 billion as of July 31, 2024, which reflects the amount that has been billed but not yet recognized as revenue. The company further defines billings as total revenue plus the change in total deferred revenue, net of acquired deferred revenue, during the period.

The company’s strong fiscal 2024 financial performance reflects its ability to meet the evolving cybersecurity needs of its global customer base while continuing to invest in innovation and strategic acquisitions to enhance its product offerings. The company’s shares traded -2.3% on the announcements and are currently trading at $335.82. View the company’s full 10-K filing here.