Palo Alto Networks Inc. (NYSE: PANW) released fiscal first-quarter financial results before markets opened Monday. The firm said that it had $1.62 in earnings per share (EPS) and $946.0 million in revenue, which exceeded consensus estimates of $1.33 in EPS and $921.64 million in revenue. The same period from last year had $1.05 in EPS and $771.9 million in revenue.
Management noted that the firm delivered another consecutive strong quarter of solid results. Both the firewall transformation and the Next-Generation Security services continue to make great progress, giving management confidence in the future.
Overall revenues grew 23% year over year. Product revenues increased 2.6% year over year to $237.3 million, while subscription and support revenues grew 31.1% to $708.7 million.
During the quarter, billings grew 21% year over year to $1.1 billion. Deferred revenue increased 31% year over year to $3.9 billion.
Palo Alto Networks cash, cash equivalents and short-term investments totaled $2.14 billion at the end of the quarter, down from $2.96 billion at the end of the previous fiscal year.
Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $1.42 to $1.44 and revenue between $975 million and $990 million. Analysts are calling for $1.35 in EPS and $970.96 million in revenue for the quarter.
Shares of Palo Alto Networks traded up more than 5% early Monday to $272.66, in a 52-week range of $125.47 to $275.03. The consensus price target is $297.53.