SANTA CLARA, Calif.,
Nov. 20, 2017 /PRNewswire/ -- Palo
Alto Networks® (NYSE: PANW), the next-generation
security company, today announced financial results for its fiscal
first quarter 2018 ended October 31,
2017.
Total revenue for the fiscal first quarter 2018 grew 27 percent
year over year to $505.5 million,
compared with total revenue of $398.1
million for the fiscal first quarter 2017. GAAP net loss for
the fiscal first quarter 2018 was $64.0
million, or $0.70 per diluted
share, compared with GAAP net loss of $56.9
million, or $0.63 per diluted
share, for the fiscal first quarter 2017.
Non-GAAP net income for the fiscal first quarter 2018 was
$69.8 million, or $0.74 per diluted share, compared with non-GAAP
net income of $51.2 million, or
$0.55 per diluted share, for the
fiscal first quarter 2017. A reconciliation between GAAP and
non-GAAP information is contained in the tables below.
"I am pleased with our start to fiscal year 2018 as we delivered
record first quarter revenue of $505.5
million, growing 27 percent year over year, and added more
than 2,500 new customers, bringing the total number of customers we
now serve to more than 45,000," said Mark McLaughlin, chief executive officer of Palo
Alto Networks. "We continue to drive disruptive evolutions in a
large and growing market by delivering highly automated and
orchestrated security capabilities that increase prevention rates
and simplify consumption models."
"Execution of our 'land and expand' go-to-market model resulted
in strong first quarter performance with very strong new customer
acquisition and broad adoption of our Next-Generation Security
Platform," said Steffan Tomlinson,
chief financial officer of Palo Alto Networks. "Once again, we grew
significantly faster than the market and our competition while
delivering record deferred revenue, increasing year-over-year GAAP
and non-GAAP operating margins, and generating robust cash flow. We
ended the quarter with approximately $2.3
billion in cash, cash equivalents and investments."
Chief Financial Officer Appointed
This afternoon, the company announced the appointment of
Kathy Bonanno as the company's next
chief financial officer. Kathy has held senior finance positions at
Palo Alto Networks since 2014 and, most recently, had
responsibility for financial planning, treasury, enterprise risk
management and facilities. In her 30 years of business experience,
she has held a variety of senior finance positions, including at
Symantec Corporation and American Airlines. She holds a B.S. in
finance from Arizona State University
and an MBA from Texas Christian
University.
"I am very pleased to welcome Kathy as our next chief financial
officer," said McLaughlin. "With more than three years at Palo Alto
Networks and a decade in cybersecurity, she has an intimate
knowledge of our company, the industry, and broad expertise across
finance disciplines, as well as a proven track record of building
world-class organizations. Her knowledge of the company and team
helps ensure a seamless transition, and I look forward to
continuing to work with Kathy as we drive the next evolution in
cybersecurity."
"I'm excited about the growth potential in front of Palo Alto
Networks," said Bonanno. "As the market disruptor, we have a unique
opportunity to continue to take share at scale, while increasing
operating leverage. I look forward to continuing to work with our
team to realize the company's potential."
Recent Highlights
- Released Traps version 4.1 – Traps™, our advanced
endpoint protection offering, now offers additional features that
enable customers to prevent malware and kernel exploit attacks by
monitoring for new techniques and ransomware behavior, and upon
detection, prevents the attack and resulting encryption of the
data.
- Expanded Aperture SaaS security service –
Aperture™, our Cloud Access Security Broker offering, now provides
application protection for several Amazon® Web Services
(AWS®) solutions, including Amazon Elastic Compute
Cloud, AWS Identity and Access Management and Amazon Simple Storage
Service. These new capabilities enable organizations to achieve
even more protection for AWS, as well as address critical cloud
security needs. In addition, Aperture support for Office
365® and Google® applications has been
enhanced to include cloud-based email services and G Suite
Marketplace applications.
- Earned the NSS Labs' "Recommended" rating in its Next
Generation Intrusion Prevention System test – In the NSS Labs
2017 Next Generation Intrusion Prevention System (NGIPS) test, our
platform achieved a "Recommended" rating for its block rate,
resistance to evasions, and performance.
- Joined forces with Telefónica Business Solutions
– Telefónica Business Solutions, a leading provider of a
wide range of integrated communication solutions for the B2B
market, announced the launch of Clean Pipes 2.0, a software-based
security service jointly designed by Telefónica Business Solutions;
ElevenPaths, Telefónica's cybersecurity unit; and Palo Alto
Networks. The Palo Alto Networks security platform safely enables
all applications and enables Clean Pipes 2.0 to deliver highly
automated, preventive protection against cyberthreats at all stages
in the attack lifecycle without compromising performance.
- Recognized by Fortune Magazine for innovation –
We were recently honored to be named to Fortune®
Magazine's Top 50 Companies Changing the World and Future 50 lists,
recognizing the work we are doing to "empower businesses to fend
off cyberattacks" with our security platform and the extension
thereof to build security applications on top of it. This
acknowledgement by Fortune underscores our commitment to innovation
and our dedication to improving security outcomes for our
customers.
- Opened new Santa Clara,
Calif. headquarters – On September 21, we announced the grand opening of
our new state-of-the-art LEED Silver U.S. headquarters. The new
campus was designed to foster a culture of innovation and teamwork
among employees in pursuit of achieving the company's mission to
prevent successful cyberattacks and maintain trust in the digital
age.
Financial Outlook
Palo Alto Networks provides guidance based on current market
conditions and expectations.
For the fiscal second quarter 2018, we expect:
- Total revenue in the range of $518 to
$528 million, representing year-over-year growth between 23
percent and 25 percent. Product revenue in the range of
$185 to $188 million, representing
year-over-year growth between 10 percent and 11 percent.
- Total billings in the range of $640 to
$655 million, representing year-over-year growth between 14
percent and 17 percent.
- Diluted non-GAAP net income per share in the range of
$0.78 to $0.80 using 94 to 96 million
shares.
For the fiscal year 2018, we expect:
- Total revenue in the range of $2.145 to
$2.185 billion, representing year-over-year growth between
22 percent and 24 percent. Product revenue in the range of
$755 to $770 million, representing
year-over-year growth between 6 percent and 9 percent.
- Total billings in the range of $2.650 to
$2.710 billion, representing year-over-year growth between
16 percent and 18 percent.
- Diluted non-GAAP net income per share in the range of
$3.35 to $3.41 using 96 to 98 million
shares.
Guidance for non-GAAP financial measures excludes share-based
compensation related charges including share-based payroll tax
expense, acquisition related costs, amortization expense of
acquired intangible assets, litigation-related charges including
legal settlements, facility exit costs, non-cash interest expense
related to our convertible senior notes, foreign currency gains
(losses) and income and other tax effects associated with these
items, and certain non-recurring expenses. We have not reconciled
diluted non-GAAP net income per share guidance to GAAP net income
(loss) per diluted share because we do not provide guidance on GAAP
net income (loss) and would not be able to present the various
reconciling cash and non-cash items between GAAP net income (loss)
and non-GAAP net income, including share-based compensation
expense, without unreasonable effort. Share-based compensation
expense is impacted by the company's future hiring and retention
needs and, to a lesser extent, the future fair market value of the
company's common stock, all of which is difficult to predict and
subject to constant change. The actual amounts of such reconciling
items will have a significant impact on the company's GAAP net
income (loss) per diluted share.
Conference Call Information
Palo Alto Networks will host a conference call for analysts and
investors to discuss its fiscal first quarter 2018 results and
outlook for its fiscal second quarter and full fiscal year 2018
today at 4:30 p.m. Eastern
time/1:30 p.m. Pacific time.
Open to the public, investors may access the call by dialing
1-888-737-3628 or 1-719-325-4793 and using conference ID 2061951. A
live audio webcast of the conference call, along with supplemental
financial information, will also be accessible from the "Investors"
section of our website at investors.paloaltonetworks.com.
Following the webcast, an archived version will be available on our
website for one year. A telephonic replay of the call will be
available three hours after the call, will run for ten days, and
may be accessed by dialing 1-888-203-1112 or 1-719-457-0820 and
entering the passcode 2061951.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties, including statements regarding our
future financial and operating performance, including our financial
outlook for the fiscal second quarter and full fiscal year 2018,
our expectations regarding the benefits of new subscription
offerings and the effectiveness of our offerings to perform as
intended, our continued delivery of highly automated and
orchestrated security capabilities that increase prevention rates
and simplify consumption models, our opportunity to continue to
take market share at scale, while increasing operating
leverage, and our plans to use the upfront cash reimbursement
received from our landlords against future rental payments. There
are a significant number of factors that could cause actual results
to differ materially from statements made in this press release,
including: our limited operating history; our ability to identify
and effectively implement the necessary changes to address
execution challenges; risks associated with managing our rapid
growth; organizational changes; the risks associated with new
products and subscription and support offerings, including the
discovery of software bugs; our ability to attract and retain new
customers; delays in the development or release of new subscription
offerings, or the failure to timely develop and achieve market
acceptance of new products and subscriptions as well as existing
products and subscription and support offerings; rapidly evolving
technological developments in the market for network security
products and subscription and support offerings; length of sales
cycles; and general market, political, economic and business
conditions.
Additional risks and uncertainties that could affect our
financial results are included under the captions "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in our Annual Report on Form 10-K filed
with the SEC on September 7, 2017,
which is available on our website at investors.paloaltonetworks.com
and on the SEC's website at www.sec.gov. Additional information
will also be set forth in other filings that we make with the SEC
from time to time. All forward-looking statements in this press
release are based on information available to us as of the date
hereof, and we do not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were
made.
Non-GAAP Financial Measures and Other Key Metrics
Palo Alto Networks has provided in this press release financial
information that has not been prepared in accordance with generally
accepted accounting principles in the
United States (GAAP). The company uses these non-GAAP
financial measures and key metrics internally in analyzing its
financial results and believes that the use of these non-GAAP
financial measures and key metrics is useful to investors as an
additional tool to evaluate ongoing operating results and trends,
and in comparing the company's financial results with other
companies in its industry, many of which present similar non-GAAP
financial measures or key metrics.
The presentation of these non-GAAP financial measures and key
metrics are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures, and should be
read only in conjunction with the company's consolidated financial
statements prepared in accordance with GAAP. A reconciliation of
the company's historical non-GAAP financial measures and key
metrics to their most directly comparable GAAP measures has been
provided in the financial statement tables included in this press
release, and investors are encouraged to review these
reconciliations.
Non-GAAP net income and net income per share,
diluted. Palo Alto Networks defines non-GAAP net income as
net income (loss) plus share-based compensation related charges
including share-based payroll tax expense, acquisition related
costs, amortization expense of acquired intangible assets,
litigation related charges including legal settlements, facility
exit costs, non-cash interest expense related to the company's
convertible senior notes, and intellectual property restructuring
related charges. The company also excludes from non-GAAP net income
the foreign currency gains (losses) and tax effects associated with
these items in order to provide a complete picture of the company's
recurring core business operating results. The company defines
non-GAAP net income per share, diluted, as non-GAAP net income
divided by the weighted average diluted shares outstanding, which
includes the potentially dilutive effect of the company's employee
equity incentive plan awards and the company's convertible senior
notes outstanding, after giving effect to the anti-dilutive impact
of the company's note hedge agreements, which reduces the potential
economic dilution that otherwise would occur upon conversion of the
company's convertible senior notes. Under GAAP, the anti-dilutive
impact of the note hedge is not reflected in diluted shares
outstanding. The company believes that excluding these items from
non-GAAP net income and non-GAAP net income per share, diluted,
provides management and investors with greater visibility into the
underlying performance of the company's core business operating
results, meaning its operating performance excluding these items
and, from time to time, other discrete charges that are infrequent
in nature, over multiple periods.
Billings. Palo Alto Networks defines billings as total
revenue plus the change in total deferred revenue, net of acquired
deferred revenue, during the period. The company considers billings
to be a key metric used by management to manage the company's
business given the company's hybrid-SaaS revenue model, and
believes billings provides investors with an important indicator of
the health and visibility of the company's business because it
includes subscription and support revenue, which is recognized
ratably over the contractual service period, and product revenue,
which is recognized at the time of shipment, provided that all
other revenue recognition criteria have been met. The company
considers billings to be a useful metric for management and
investors, particularly if sales of subscriptions continue to
increase and the company experiences strong renewal rates for
subscriptions and support.
Free cash flow. Palo Alto Networks defines free cash flow
as cash provided by operating activities less purchases of
property, equipment, and other assets. The company considers free
cash flow to be a profitability and liquidity measure that provides
useful information to management and investors about the amount of
cash generated by the business after necessary capital
expenditures.
Investors are cautioned that there are a number of limitations
associated with the use of non-GAAP financial measures and key
metrics as analytical tools. In particular, the billings metric
reported by the company includes amounts that have not yet been
recognized as revenue, and free cash flow does not represent the
total increase or decrease in our cash balance for the period. In
addition, many of the adjustments to the company's GAAP financial
measures reflect the exclusion of items that are recurring and will
be reflected in the company's financial results for the foreseeable
future, such as share-based compensation, which is an important
part of Palo Alto Networks employees' compensation and impacts
their performance. Furthermore, these non-GAAP financial measures
are not based on any standardized methodology prescribed by GAAP,
and the components that Palo Alto Networks excludes in its
calculation of non-GAAP financial measures may differ from the
components that its peer companies exclude when they report their
non-GAAP results of operations. Palo Alto Networks compensates for
these limitations by providing specific information regarding the
GAAP amounts excluded from these non-GAAP financial measures. In
the future, the company may also exclude non-recurring expenses and
other expenses that do not reflect the company's core business
operating results.
About Palo Alto Networks
Palo Alto Networks is the next-generation security company,
leading a new era in cybersecurity by safely enabling applications
and preventing cyber breaches for tens of thousands of
organizations worldwide. Built with an innovative approach and
highly differentiated cyberthreat prevention capabilities, our
game-changing security platform delivers security far superior to
legacy or point products, safely enables daily business operations,
and protects an organization's most valuable assets. Find out
more at www.paloaltonetworks.com.
Palo Alto Networks and the Palo Alto Networks logo are
trademarks of Palo Alto Networks, Inc. in the United States and in jurisdictions
throughout the world. All other trademarks, trade names or service
marks used or mentioned herein belong to their respective
owners.
Palo Alto
Networks, Inc.
|
Preliminary
Condensed Consolidated Statements of Operations
|
(In millions,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
2017
|
|
2016(1)
|
Revenue:
|
|
|
|
Product
|
$
|
186.5
|
|
|
$
|
163.8
|
|
Subscription and
support
|
319.0
|
|
|
234.3
|
|
Total
revenue
|
505.5
|
|
|
398.1
|
|
Cost of
revenue:
|
|
|
|
Product
|
57.6
|
|
|
42.2
|
|
Subscription and
support
|
83.8
|
|
|
59.0
|
|
Total cost of
revenue
|
141.4
|
|
|
101.2
|
|
Total gross
profit
|
364.1
|
|
|
296.9
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
94.2
|
|
|
84.2
|
|
Sales and
marketing
|
258.5
|
|
|
220.1
|
|
General and
administrative
|
65.7
|
|
|
41.6
|
|
Total operating
expenses
|
418.4
|
|
|
345.9
|
|
Operating
loss
|
(54.3)
|
|
|
(49.0)
|
|
Interest
expense
|
(6.3)
|
|
|
(6.0)
|
|
Other income,
net
|
4.8
|
|
|
2.5
|
|
Loss before income
taxes
|
(55.8)
|
|
|
(52.5)
|
|
Provision for income
taxes
|
8.2
|
|
|
4.4
|
|
Net loss
|
$
|
(64.0)
|
|
|
$
|
(56.9)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.70)
|
|
|
$
|
(0.63)
|
|
Weighted-average
shares used to compute net loss per share, basic and
diluted
|
90.9
|
|
|
89.8
|
|
___________
|
|
|
(1)
|
Certain amounts have
been adjusted due to the Company's early adoption of new
share-based payment accounting guidance in its second quarter of
fiscal 2017.
|
Palo Alto
Networks, Inc.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(In millions,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
October
31,
|
|
2017
|
|
2016(1)
|
GAAP net
loss
|
$
|
(64.0)
|
|
|
$
|
(56.9)
|
|
Share-based
compensation related charges
|
128.9
|
|
|
115.6
|
|
Amortization expense
of acquired intangible assets
|
2.5
|
|
|
2.1
|
|
Litigation related
charges(2)
|
3.1
|
|
|
3.1
|
|
Facility exit
costs(3)
|
15.6
|
|
|
—
|
|
Non-cash interest
expense related to convertible notes
|
6.3
|
|
|
6.0
|
|
Foreign currency
(gain) loss associated with non-GAAP adjustments
|
0.5
|
|
|
(0.2)
|
|
Income tax and other
tax adjustments related to the above
|
(23.1)
|
|
|
(18.5)
|
|
Non-GAAP net
income
|
$
|
69.8
|
|
|
$
|
51.2
|
|
|
|
|
|
GAAP net loss per
share, diluted
|
$
|
(0.70)
|
|
|
$
|
(0.63)
|
|
Share-based
compensation related charges
|
1.38
|
|
|
1.27
|
|
Amortization expense
of acquired intangible assets
|
0.03
|
|
|
0.02
|
|
Litigation related
charges(2)
|
0.03
|
|
|
0.03
|
|
Facility exit
costs(3)
|
0.17
|
|
|
0.00
|
|
Non-cash interest
expense related to convertible notes
|
0.07
|
|
|
0.07
|
|
Foreign currency
(gain) loss associated with non-GAAP adjustments
|
0.01
|
|
|
0.00
|
|
Income tax and other
tax adjustments related to the above
|
(0.25)
|
|
|
(0.21)
|
|
Non-GAAP net income
per share, diluted
|
$
|
0.74
|
|
|
$
|
0.55
|
|
|
|
|
|
GAAP weighted-average
shares used to compute net loss per share, diluted
|
90.9
|
|
|
89.8
|
|
Weighted-average
effect of potentially dilutive securities(4)
|
2.8
|
|
|
3.9
|
|
Non-GAAP
weighted-average shares used to compute net income per share,
diluted
|
93.7
|
|
|
93.7
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
274.1
|
|
|
$
|
203.5
|
|
Less: purchases of
property, equipment, and other assets
|
32.2
|
|
|
20.9
|
|
Free cash flow
(non-GAAP)
|
$
|
241.9
|
|
|
$
|
182.6
|
|
Net cash used in
investing activities
|
$
|
(52.4)
|
|
|
$
|
(71.2)
|
|
Net cash used in
financing activities
|
$
|
(123.4)
|
|
|
$
|
(27.3)
|
|
___________
|
|
|
|
(1)
|
Certain amounts have
been adjusted due to the Company's early adoption of new
share-based payment accounting guidance in its second quarter of
fiscal 2017.
|
|
|
(2)
|
Consists of the
amortization of intellectual property licenses.
|
|
|
(3)
|
Consists of charges
related to the relocation of the Company's corporate headquarters,
including a cease-use loss of $15.4 million and accelerated
depreciation.
|
|
|
(4)
|
Non-GAAP net income
per share, diluted, includes the potentially dilutive effect of
employee equity incentive plan awards and convertible senior notes
outstanding. In addition, non-GAAP net income per share, diluted,
includes the anti-dilutive impact of the Company's note hedge
agreements, which reduced the potentially dilutive effect of the
convertible notes by 1.3 million shares and 1.5 million shares for
the three months ended October 31, 2017 and
October 31, 2016, respectively.
|
Palo Alto
Networks, Inc.
|
Calculation of
Billings
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
2017
|
|
2016
|
Total
revenue
|
$
|
505.5
|
|
|
$
|
398.1
|
|
Add: change in total
deferred revenue, net of acquired deferred revenue
|
91.0
|
|
|
118.8
|
|
Billings
|
$
|
596.5
|
|
|
$
|
516.9
|
|
Palo Alto
Networks, Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
October 31,
2017
|
|
July 31,
2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
842.6
|
|
|
$
|
744.3
|
|
Short-term
investments
|
660.6
|
|
|
630.7
|
|
Accounts receivable,
net
|
350.8
|
|
|
432.1
|
|
Prepaid expenses and
other current assets
|
185.5
|
|
|
169.2
|
|
Total current
assets
|
2,039.5
|
|
|
1,976.3
|
|
Property and
equipment, net
|
256.9
|
|
|
211.1
|
|
Long-term
investments
|
777.4
|
|
|
789.3
|
|
Goodwill
|
238.8
|
|
|
238.8
|
|
Intangible assets,
net
|
51.0
|
|
|
53.7
|
|
Other
assets
|
122.9
|
|
|
169.1
|
|
Total
assets
|
$
|
3,486.5
|
|
|
$
|
3,438.3
|
|
Liabilities,
temporary equity, and stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
38.8
|
|
|
$
|
35.5
|
|
Accrued
compensation
|
74.5
|
|
|
117.5
|
|
Accrued and other
liabilities
|
80.8
|
|
|
79.9
|
|
Deferred
revenue
|
1,017.9
|
|
|
968.4
|
|
Convertible senior
notes, net
|
531.0
|
|
|
—
|
|
Total current
liabilities
|
1,743.0
|
|
|
1,201.3
|
|
Convertible senior
notes, net
|
—
|
|
|
524.7
|
|
Long-term deferred
revenue
|
846.6
|
|
|
805.1
|
|
Other long-term
liabilities
|
192.2
|
|
|
147.6
|
|
Temporary
equity
|
39.2
|
|
|
—
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common stock and
additional paid-in capital
|
1,573.2
|
|
|
1,599.7
|
|
Accumulated other
comprehensive loss
|
(7.0)
|
|
|
(3.4)
|
|
Accumulated
deficit
|
(900.7)
|
|
|
(836.7)
|
|
Total stockholders'
equity
|
665.5
|
|
|
759.6
|
|
Liabilities,
temporary equity, and stockholders' equity
|
$
|
3,486.5
|
|
|
$
|
3,438.3
|
|
Palo Alto
Networks, Inc.
|
Preliminary
Condensed Consolidated Statements of Cash Flows
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
2017
|
|
2016(1)
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
|
(64.0)
|
|
|
$
|
(56.9)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Share-based
compensation for equity based awards
|
125.7
|
|
|
113.3
|
|
Depreciation and
amortization
|
21.3
|
|
|
13.6
|
|
Cease-use loss
related to facility exit
|
15.4
|
|
|
—
|
|
Amortization of debt
discount and debt issuance costs
|
6.3
|
|
|
6.0
|
|
Amortization of
investment premiums, net of accretion of purchase
discounts
|
0.5
|
|
|
0.7
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
81.3
|
|
|
2.2
|
|
Prepaid expenses and
other assets
|
(6.4)
|
|
|
10.1
|
|
Accounts
payable
|
4.2
|
|
|
1.8
|
|
Accrued
compensation
|
(43.0)
|
|
|
(14.5)
|
|
Accrued and other
liabilities
|
41.8
|
|
|
8.4
|
|
Deferred
revenue
|
91.0
|
|
|
118.8
|
|
Net cash provided by
operating activities(2)
|
274.1
|
|
|
203.5
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of
investments
|
(226.8)
|
|
|
(285.7)
|
|
Proceeds from
maturities of investments
|
206.6
|
|
|
235.4
|
|
Purchases of
property, equipment, and other assets
|
(32.2)
|
|
|
(20.9)
|
|
Net cash used in
investing activities
|
(52.4)
|
|
|
(71.2)
|
|
Cash flows from
financing activities
|
|
|
|
Repurchases of common
stock
|
(134.1)
|
|
|
(50.0)
|
|
Proceeds from sales
of shares through employee equity incentive plans
|
22.1
|
|
|
22.7
|
|
Payments for taxes
related to net share settlement of equity awards
|
(11.4)
|
|
|
—
|
|
Net cash used in
financing activities
|
(123.4)
|
|
|
(27.3)
|
|
Net increase in cash
and cash equivalents
|
98.3
|
|
|
105.0
|
|
Cash and cash
equivalents - beginning of period
|
744.3
|
|
|
734.4
|
|
Cash and cash
equivalents - end of period
|
$
|
842.6
|
|
|
$
|
839.4
|
|
Non-cash investing
and financing activities
|
|
|
|
Property and
equipment acquired through lease incentives
|
$
|
37.8
|
|
|
$
|
—
|
|
___________
|
|
|
|
(1)
|
Certain amounts have
been adjusted due to the Company's early adoption of new
share-based payment accounting guidance in its second quarter of
fiscal 2017.
|
|
|
(2)
|
Cash provided by
operating activities for the three months ended October 31, 2017
includes the receipt of an upfront cash reimbursement of $38.2
million from the Company's landlords in connection with the
exercise of their option to amend the lease payment schedules and
eliminate the rent holiday periods under certain of the Company's
lease agreements. The upfront cash reimbursement will be applied
against rental payments due in fiscal years 2018 through 2020 under
the amended lease agreements.
|
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SOURCE Palo Alto Networks, Inc.