Palo Alto Networks Inc. reported its first $1 billion quarter of income as purchasers flocked to bolster community defenses within the aftermath of a refined cyber-attack by suspected Russian hackers that uncovered vulnerabilities throughout software program provide chains.
Gross sales jumped 25% to $1.02 billion within the interval ended Jan. 31, the largest year-over-year improve in seven quarters, based on information compiled by Bloomberg. The corporate’s outcomes didn’t reside as much as some investor expectations after a rally that despatched the top off 38% since Palo Alto Networks’ final earnings report in November. The shares fell as a lot as 5.8% in postmarket prolonged buying and selling, earlier than paring losses.
The corporate stated the malicious assault — which compromised common software program from Texas-based SolarWinds Corp. — has shaken purchasers and compelled firm boards to rethink their cybersecurity posture, serving as a gross sales catalyst for safety platforms.
“Each board out there’s doing their cyber assessments to ensure they gained’t be breached sooner or later,” stated Nikesh Arora, chairman and chief government officer of Palo Alto Networks. “What we’re noticing is a rethinking of the cybersecurity structure.”
As many as 18,000 SolarWinds purchasers had been uncovered to the Russian malware, which provided attackers a back-door into victims’ networks the place they had been in a position to transfer about disguised as approved customers. Nonetheless, far fewer had been really focused for additional assaults — 9 federal businesses and about 100 private-sector firms thus far, Deputy Nationwide Safety Advisor Anne Neuberger stated on Feb. 17.
A number of cybersecurity corporations had been focused by the hackers, together with Palo Alto Networks in October. The corporate stated it efficiently stopped the assault.
Palo Alto Networks projected fiscal third quarter earnings per share of $1.27 to $1.29 excluding some objects and income of $1.05 billion to $1.06 billion. Analysts estimated revenue of $1.29 a share and gross sales of $1.05 billion.
By Kartikay Mehrotra