Today, security company Palo Alto Networks reported its first earnings since becoming a public company in July. Revenue for the fourth quarter grew 88 percent year-over-year to $75.6 million, compared with $40.2 million in the fiscal fourth quarter of 2011. The company saw a GAAP net loss for the fiscal fourth quarter of $4.6 million, or $0.18 per basic and diluted share, compared with a net loss of $6 million, or $0.40 per basic and diluted share, in the fiscal fourth quarter of 2011. Non-GAAP net income came in at $1.9 million, or $0.03 per diluted share, compared with a non-GAAP net loss of $5.1 million, or $0.34 per basic and diluted share, in the fiscal fourth quarter of 2011. Analysts expected revenue of $71.4 million, and for income per share to break even.
Founded by Nir Zuk, Palo Alto Networks has proprietary hardware and software technology that detects data threats as they come into an enterprise environment. It’s made for the new types of attacks that come through the web in the form of malware. The company’s offering is designed for all the ways people access the web, either through their laptops or their mobile devices.
As we wrote earlier this year, what makes Palo Alto Networks distinct is that it goes beyond what traditional firewalls are capable of doing. Most networking technology is meant for threats that come from basic email or web browsing. But today’s threats come in the form of botnet attacks and other modern techniques, such as phishing attacks.
“The fourth quarter was a strong finish to a great year for Palo Alto Networks,” said Mark McLaughlin, president and CEO of the company. “In our first quarter as a public company, we achieved record revenue and grew our customer base to over 9,000 customers. For the year, we grew revenue 115 percent, clearly outpacing the market and demonstrating the power of our technology.”
The company raised $215.4 million in an IPO in July. In total, Palo Alto Networks ended the quarter with $322.6 million in cash and equivalents.