Q1 2024 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$125.00July 31, 2023
Final Price$121.51October 31, 2023
Price Change$-3.49
% Change-2.79%
- Palo Alto Networks is guiding for approximately 17% billings growth, significantly outpacing competitors who are guiding for negative growth, demonstrating strong demand across multiple business segments.
- Strong pipeline for new products like XSIAM, with over $1 billion in pipeline, including $500 million generated in the past quarter, indicating robust future growth opportunities in security operations transformation.
- Increasing ransomware attacks and new SEC disclosure requirements are driving greater demand for cybersecurity solutions, positioning Palo Alto Networks favorably to capitalize on this heightened need for advanced security offerings.
- Intense competition is causing pricing pressure, as competitors are willing to "do whatever it takes" to dislodge Palo Alto Networks' platforms, which can negatively impact margins.
- Some product pillars are reaching maturity, suggesting that future growth may be limited in these more penetrated areas, and the company relies on newer products like SASE and XSIAM for upside.
- Pressure on billings growth due to customer payment terms, with customers requesting deferred payments and financing options because of the higher cost of money, which could impact future billings forecasts.