Palo Alto Networks Inc (NYSE: PANW) stock rose over 3% on 22nd May, 2020 (as of 12:21 pm GMT-4; Source: Google finance) as the company has posted better than expected results for the third quarter of FY 20. The company has offered extended payment terms and financing options to some of its customers that were financially affected due to COVID-19. In the same vein, the company has launched Palo Alto Networks Financial Services, LLC, or PANFS, which is a financing company within Palo Alto Networks created to provide flexible financial solutions for the company’s products and services, supporting enterprise customers looking for large, multi-year engagements. the company has closed its first ever financing transaction at the end of the third quarter, with a large multinational customer, providing the customer with flexible payment terms.
Moreover, for the third quarter, the company posted the billings of $1.02 billion, which reflects an increase of 24% year-over-year. In the third quarter, the company has won another seven figure deal as a part of their continuous large-scale transformation project, where they purchased enterprise agreements for VM-Series, additional Cortex XSOAR licenses, again validating their selection of XSOAR for the security operation center.
Meanwhile, in April, the company had completed the acquisition of CloudGenix, which was a strategic decision to provide the industry’s most comprehensive SASE platform, SASE, the convergence of network and security capabilities in the cloud delivered as a service.
PANW in the third quarter of FY 20 has reported the adjusted earnings per share of $1.17, beating the analysts’ estimates for the adjusted earnings per share of 94 cents, according to analysts polled by FactSet. The company had reported the adjusted revenue growth of 20 percent to $869.4 million in the third quarter of FY 20, beating the analysts’ estimates for revenue of $831.1 million. Geographically, the Americas grew 19%, EMEA grew 24% and APAC grew 15%. Q3 product revenue rose 1% to $280.9 million Q3 SaaS based subscription revenue grew 37% to $354.3 million and Support revenue rose 24% to $234.2 million.
The company expects adjusted fiscal fourth-quarter earnings to be in the range of $1.37 to $1.40 a share on revenue expected to be in the range of $915 million to $925 million, while analysts had forecast adjusted earnings to be of $1.31 a share on revenue to be of $916.8 million.