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Palo Alto Networks Inc. (PANW) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing total revenue of $2.3 billion, an increase from $2.0 billion in the same quarter the previous year. This growth is attributed to increased demand for the company's products and subscriptions.
Product revenue for the quarter was $421.5 million, representing 18.7% of total revenue, compared to 19.8% in the same quarter of the previous year. The increase in product revenue is driven by demand for new generation hardware products.
Subscription and support revenue grew to $1.8 billion, accounting for 81.3% of total revenue, up from 80.2% in the previous year. This growth is due to increased demand for the company's subscription and support offerings.
Cost of revenue for the quarter was $599.2 million, representing 26.5% of total revenue, compared to 25.3% in the same quarter of the previous year. The increase in cost of revenue is primarily due to higher inventory reserves and increased costs to support subscription and support offerings.
The company reported a gross profit of $1.7 billion for the quarter, compared to $1.5 billion in the previous year, with a gross margin of 73.5%, down from 74.7% in the previous year.
Operating expenses totaled $1.4 billion for the quarter, representing 62.9% of total revenue, compared to 72.0% in the previous year. The decrease in operating expenses as a percentage of revenue is due to a reduction in general and administrative expenses.
Net income for the quarter was $267.3 million, down from $1.7 billion in the previous year. The decrease in net income is primarily due to the release of a valuation allowance in the previous year.
Cash provided by operating activities was $2.1 billion for the six months ended January 31, 2025, compared to $2.2 billion in the previous year. The decrease is attributed to higher payments for business growth.
Palo Alto Networks continues to focus on expanding its global presence and investing in research and development to support future growth.
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 February 14, 2025. To report an error, please email earnings@qz.com.