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Palo Alto Networks, Inc. has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports total revenue of $2.1 billion for the quarter, representing a 13.9% increase compared to the same quarter in the previous year. Product revenue was $353.8 million, a 3.7% increase from the prior year, while subscription and support revenue grew by 16.1% to $1.8 billion.
Operating income for the quarter was $286.5 million, compared to $215.2 million in the previous year, with an operating margin of 13.4%. The company reported a net income of $350.7 million, up from $194.2 million in the previous year.
Cash provided by operating activities was $1,509.6 million, with free cash flow reported at $1,465.5 million. The company had a total of $7.5 billion in cash, cash equivalents, and investments as of October 31, 2024.
Palo Alto Networks completed the acquisition of certain QRadar assets from IBM (IBM+0.22%) on August 31, 2024, for a total purchase consideration of $1.1 billion, including contingent consideration.
The company reported a gross margin of 74.1% for the quarter, with product gross margin at 78.8% and subscription and support gross margin at 73.2%.
Research and development expenses increased by 17.3% to $480.4 million, while sales and marketing expenses grew by 9.0% to $720.1 million. General and administrative expenses decreased by 18.7% to $97.7 million.
The company noted that the sales price condition for its 2025 Notes was met, allowing holders to convert during the fiscal quarter ending January 31, 2025. As of October 31, 2024, $646.6 million of the 2025 Notes remained outstanding.
Palo Alto Networks continues to focus on expanding its global presence and increasing its sales force to support growth. The company also highlighted its ongoing investment in research and development to enhance its product offerings.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Palo Alto Networks Inc. quarterly 10-Q report dated November 21, 2024. To report an error, please email earnings@qz.com.