Shares of Palo Alto Networks surged after the company posted high earnings in its financial results for Q1 of fiscal 2014 and also beat Wall Street estimates.
On Monday, November 25, the network security company, which specializes in firewall platforms, made its earnings call for the quarter ended October 31. Palo Alto Networks announced total revenue increased by 49 percent from the same quarter last year. The company posted revenue of $128.2 million for Q1 of fiscal 2014, when compared to revenue of $85.9 million in Q1 of fiscal year 2013. The results beat Wall Street estimated revenue of $120.80 million for the quarter.
"Demand was strong across a wide range of theaters and verticals, resulting in 14 percent sequential revenue growth in our fiscal first quarter. We added over 1,000 new customers, steadily increased penetration of our existing customer base and made clear market share gains," said Mark McLaughlin, president and chief executive officer of Palo Alto Networks. "Our results continue to prove that our next-generation enterprise security platform is becoming the mainstream market choice for enterprise network security around the world. The success of our WildFire subscription for the APT market is continued evidence of how we can leverage the unique attributes of our platform to drive leadership in the fast growing cybersecurity market segment."
Palo Alto Networks also announced that its net loss increased to $7.9 million, or 11 cents per share, in Q1 of fiscal 2014 when compared to net loss of $3.5 million, or 5 cents per share, in Q1 of fiscal 2013.
The adjusted earnings for Q1 of fiscal 2014 rose to $0.08 per share from $0.05 per share when compared to the same quarter of 2013. Analysts had expected earnings of $0.07 per share for the quarter.
Palo Alto Networks confirmed that product revenues for Q1 of 2014 grew to $75.5 million when compared to $55.5 million in Q1 of 2013. Subscription and services revenue also grew 73 percent to $52.7 million.
The company's shares gained $3.80, or 8.2 percent, to $49.90 in extended trading after the results announcement on Monday.
The shares, which trade under the ticker PANW, were up 6.79 percent at $49.23 on the NYSE during early morning trade on Tuesday.
