Palo Alto Networks chief executive Nikesh Arora
BENGALURU: Palo Alto Networks has forecast annual billings above market estimates, in a sign that more businesses were turning to its integrated cybersecurity offerings to combat rising digital threats.
Shares of the company jumped more than 8% in extended trading, lifting rivals Zscaler and Fortinet by 3.5% and 1.5%, respectively.
Rising cyber crime, privacy concerns and high-profile hacks have in the past year fuelled demand for cybersecurity products as businesses and governments grow their digital presence.
The biggest winners of that have been the companies that serve as a one-stop shop for cybersecurity solutions, helping clients be more efficient and improve risk management.
Palo Alto projected full-year billings to be between US$10.9bil (RM51bil) and US$11bil, compared with the Visible Alpha consensus estimate of US$10.8bil.
“We finished off the year with strong execution and the changing environment drove more customers towards platformisation,” said chief executive Nikesh Arora.
Global average weekly cyber attacks rose 8% in the second quarter of 2023, according to Check Point Research, with the average number of attacks per organisation per week hitting a two-year high.
Shares of Santa Clara, California-based Palo Alto have declined around 17% since it set last Friday as its earnings date earlier this month – a move some analysts termed as “head scratching”.
Its fourth-quarter revenue grew about 26% to US$1.95bil, roughly in line with analysts’ expectations. — Reuters
