{"id":85112,"date":"2023-11-16T00:39:38","date_gmt":"2023-11-16T05:39:38","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/customers-seek-wiggle-room-to-pay-for-cybersecurity-despite-unprecedented-level-of-attacks-palo-alto-networks-says\/"},"modified":"2023-11-16T00:39:40","modified_gmt":"2023-11-16T05:39:40","slug":"customers-seek-wiggle-room-to-pay-for-cybersecurity-despite-unprecedented-level-of-attacks-palo-alto-networks-says","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=85112","title":{"rendered":"Customers seek wiggle room to pay for cybersecurity, despite \u2018unprecedented\u2019 level of attacks, Palo Alto Networks says"},"content":{"rendered":"
\n

Shares of Palo Alto Networks Inc. slid after hours Wednesday after the cybersecurity company trimmed its full-year outlook for billings, as its customers seek more flexibility on cybersecurity spending. <\/p>\n

Executives tempered that forecast despite what they characterized as an an \u201cunprecedented level\u201d of cyberattacks driving demand for greater security. But a more cautious tack on the economy and higher interest rates have reshaped the way businesses craft their tech budgets. <\/p>\n

\n

Palo Alto Networks
\n PANW,
\n -1.91%<\/bg-quote>
\n said it expected total billings of between $10.7 billion\u00a0and\u00a0$10.8 billion, compared with a forecast given in August for $10.9 billion\u00a0to\u00a0$11 billion. The company considers billings a key metric that factors in subscription and support revenue. <\/p>\n

Management held to its full-year forecast for $8.15 billion\u00a0to\u00a0$8.20 billion in sales. But it raised its adjusted profit forecast to $5.40\u00a0to\u00a0$5.53 a share. <\/p>\n

Shares fell nearly 6% after hours on Wednesday. <\/p>\n

During Palo Alto Networks\u2019 earnings conference call, executives said the change in the billings forecast reflected more frequent customer demands for deferred payment terms or discounts. But they said it did not reflect a change in demand. <\/p>\n

\u201cSome customers are looking for additional discounts for upfront payments as they grapple with the cost of money,\u201d Chief Financial Officer Dipak Golechha said on the call. <\/p>\n

Palo Alto Networks also said it expected fiscal second-quarter billings in the range of $2.335 billion\u00a0to\u00a0$2.385 billion, below FactSet forecasts for $2.41 billion. It forecast second-quarter sales of $1.955 billion\u00a0to\u00a0$1.985 billion, with the midpoint in line with forecasts, and adjusted earnings per share of $1.29\u00a0to\u00a0$1.31, above estimates for $1.25. <\/p>\n

The company reported the results in the wake of massive recent cyberattacks on big companies. The results also follow regulatory efforts to hasten the disclosure of such attacks and increase transparency around them, and attackers\u2019 increased use of AI to steal sensitive data within a matter of hours. Those trends have driven greater demand for cybersecurity.<\/p>\n

\u201cAn unprecedented level of attacks is fueling strong demand in the cybersecurity market,\u201d\u00a0Nikesh Arora, Palo Alto Networks\u2019 chief executive, said in a statement Wednesday.<\/p>\n

During the call, Arora described an \u201cescalating threat landscape,\u201d with ransomware attacks and ransoms paid both on the rise, and cited a recent incident where hackers ran off with 2.4 terabytes of data in 14 hours. <\/p>\n

\u201cIf you look at what\u2019s going on from an overall cybersecurity perspective, we have never seen as much adversarial and consistent activity at scale as we have seen in the first quarter,\u201d he said. \u201cUnfortunately, we don\u2019t expect this to abate anytime soon.\u201d<\/p>\n

In its fiscal first quarter, Palo Alto Networks reported net income of $194.2 million, or\u00a056\u00a0cents a share, compared with net income of $20 million, or 6 cents a share, in the same period a year earlier. Adjusted for one-time items, the company earned $1.38 a share. <\/p>\n

Revenue rose 20% year over year to\u00a0$1.9 billion. <\/p>\n

Analysts polled by FactSet expected the company to report adjusted earnings of $1.16 a share on sales of $1.84 billion. <\/p>\n

Companies like Clorox Co.
\n CLX,
\n +1.08%<\/bg-quote>
\n and MGM Resorts International
\n MGM,
\n +0.92%<\/bg-quote>
\n have recently suffered breaches that disrupted operations. The Securities and Exchange Commission has voted to adopt new rules requiring publicly traded companies to disclose major cyberattacks within four days of determining whether such an attack will have a material impact on operations. <\/p>\n

Those rules take hold next month, amid concerns that companies aren\u2019t being as forthcoming as they could be in reporting data breaches. But some industry groups have said the rules harm investors by \u201cprematurely publicizing a company\u2019s vulnerabilities,\u201d and argued that companies need longer to determine the scope of an attack. <\/p>\n

The SEC last month charged software company SolarWinds Corp.
\n SWI,
\n -1.63%<\/bg-quote>
\n and its chief information-security officer with fraud and failure to sufficiently disclose and address cybersecurity gaps following a major cyberattack in 2020. SolarWinds called the charges \u201cunfounded\u201d and said\u00a0the allegations\u00a0\u201cshould alarm all public companies and committed cybersecurity professionals across the country.\u201d<\/p>\n

Palo Alto Networks\u2019 stock has risen 85.1% this year. By comparison, the S&P 500 index
\n SPX
\n is up 17.9% over that period.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Palo Alto Networks Inc. slid after hours Wednesday after the cybersecurity company trimmed its full-year outlook for billings, as its customers seek more flexibility on cybersecurity spending. Executives tempered that forecast despite what they characterized as an an \u201cunprecedented level\u201d of cyberattacks driving demand for greater security. But a more cautious tack on […]<\/p>\n","protected":false},"author":1,"featured_media":85113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-85112","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nCustomers seek wiggle room to pay for cybersecurity, despite \u2018unprecedented\u2019 level of attacks, Palo Alto Networks says | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Shares of Palo Alto Networks Inc. slid after hours Wednesday after the cybersecurity company trimmed its full-year outlook for billings, as its customers\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=85112\" \/>\n<meta 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