Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today financial results for its fiscal third quarter 2022, ended April 30, 2022.
Total revenue for the fiscal third quarter 2022 grew 29% year over year to $1.4 billion, compared with total revenue of $1.1 billion for the fiscal third quarter 2021. GAAP net loss for the fiscal third quarter 2022 was $73.2 million, or $0.74 per diluted share, compared with GAAP net loss of $145.1 million, or $1.50 per diluted share, for the fiscal third quarter 2021.
Non-GAAP net income for the fiscal third quarter 2022 was $193.1 million, or $1.79 per diluted share, compared with non-GAAP net income of $139.5 million, or $1.38 per diluted share, for the fiscal third quarter 2021. A reconciliation between GAAP and non-GAAP information is contained in the tables 
below.
“We saw strong top-line growth in Q3, which is a testament to our teams’ consistent execution in capitalizing on the strong cybersecurity demand trends,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “On the back of this strength across our portfolio, we are again raising our guidance for the year 
across revenue, billings and earnings per share.”
“Our drive to deliver strong total shareholder return in Q3 was headlined by our revenue growth, while we also balanced operating margin expansion and free cash flow conversion,” said Dipak Golechha, chief financial officer of Palo Alto Networks. “We look forward to continuing this balance as we close out the year and look to FY23.”
Financial Outlook
Palo Alto Networks provides guidance based on current market conditions and expectations.
For the fiscal fourth quarter 2022, we expect:
- Total billings in the range of $2.32 billion to $2.35 billion, representing year over year growth of between 24% and 26%.
- Total revenue in the range of $1.53 billion to $1.55 billion, representing year over year growth of between 25% and 27%.
- Diluted non-GAAP net income per share in the range of $2.26 to $2.29, using 106 million to 108 million shares outstanding.
For the fiscal year 2022, we are broadly raising guidance and expect:
- Total billings in the range of $7.106 billion to $7.136 billion, representing year over year growth of between 30% and 31%.
- Total revenue in the range of $5.481 billion to $5.501 billion, representing year over year growth of approximately 29%.
- Diluted non-GAAP net income per share in the range of $7.43 to $7.46, using 106 million to 107 million shares.
- Adjusted free cash flow margin in the range of 32% to 33%.
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, non-cash charges related to convertible notes, and related foreign currency gains (losses) and income and other tax effects associated with these items, along with certain non-recurring expenses and certain non-recurring cash flows. We have not reconciled diluted non-GAAP net income per share guidance to GAAP net income (loss) per diluted share or adjusted free cash flow margin guidance to GAAP net cash from operating activities because we do not provide guidance on GAAP net income (loss) or net cash from operating activities and would not be able to present the various reconciling cash and non-cash items between GAAP and non-GAAP financial measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted, including share-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items will have a significant impact on the company’s GAAP net income (loss) per diluted share and GAAP net cash from operating activities.