Turning things around
Cybersecurity firm Palo Alto Networks is witnessing a financial turnaround, and made a profit for the first time.
19 April 2023
Despite its name, Palo Alto Networks is not a networking company, but a software company that provides cybersecurity solutions. It offers endpoint protection, and network and cloud security through ‘next generation firewalls’ and management platforms. It also provides a range of subscription- based cyber protection and detection services as well as consulting and professional services in the space.
My reason for selecting Palo Alto is the recent financial turnaround it has undergone. Its Q2 2023 revenues put it on target for annual revenues of between $6.8 and $6.9 billion for its financial year. In the 2022 financial year, its annual revenues were $5.5 billion, up from $4.3 billion in 2021. Alongside the gradually increasing revenues, net income has also been steadily turning around from an ongoing negative; in FY2022, it was positive for the first time, albeit at just $34 000. I think a large part of the gradual growth can be attributed to the appointment in 2018 of its current CEO and chair Nikesh Arora. Prior to joining Palo Alto, Arora served as president and COO of Softbank Group, held a number of positions at Google, including president for Middle East and Africa, and spent time at T-Mobile, so he comes with good pedigree.
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