Palo Networks Shares Spike Over 15% in 24 Hours
Palo, Cyber Security Solution Provider
In the midst of a cybersecurity crisis, Palo Networks has emerged as a solution provider. Palo Alto Networks is a cybersecurity company based in the US. The company provides security solutions for enterprises and government systems against cyber attacks and ransomwares. Ransomwares pose threats to victims by threatening to publish personal data or preventing access to the victim’s personal data unless a ransom is paid. Earlier during the week, the company released their results for the just concluded financial year (FY 2021). We have simplified them here.
Palo Alto recorded growth in revenue across all regions, with the Americas region growing the most at 29%.
The company reported $4.26 billion in revenue. This figure represents a 28% year-on-year growth.
The company’s product innovation was a major contributor to revenue growth.This year alone, Palo Alto made 29 major product releases, compared to 22 in 2020, and 13 in 2019.
For the quarter period alone, active millionaire customers grew by over 80 million customers to 986 million from 901 customers in the quarter before. Active millionaire customers refer to customers who have spent nothing less than $1 million in bookings over the last 4 quarters.
Palo’s Share Price Surge
On Monday when the company announced their results for the financial year, the shares spiked as high as 16.73 %. Palo Alto share price went from $373 per share as at close of business on Monday, to $424 per share by the start of business on Tuesday. Year-to-date, the company’s shares have gained an impressive 25.8%,
The Palo Alto Network research team reported that ransomware payments have spiked as high as 82% year-on-year to $570,000 in the first half of this year alone. This in turn results in increased demand for cybersecurity solutions from companies such as Palo Alto. The company did not rely on demand alone, but also banked on product innovation to drive an impressive FY 2021 result.
During the last quarter of the financial year (Q4 FY 2021), the company repurchased 846,00 shares from the public. Share repurchases usually have an incremental effect on the company’s share price.
What do you think about the company’s share price surge? Do you think it’s an effect of the share repurchases, or as a result of the company’s impressive performance? Please share with us in the comments sections. Let us know your thoughts.