Diversification: Why Palo Alto Networks Stands Out from Its Peers
Palo Alto seems sort of untouched by the recurrent tremors that shake the cyber security space from time to time.
Palo Alto’s focus is on “unknown unknowns,” unlike the traditional approach of “known knowns”.
Palo Alto acquired Cyvera, a cyber security company, in 2014. It entered the endpoint protection market with TRAPS.
Palo Alto Networks, which operates in the cyber security space, is growing fast. The industry is expected to grow from $77 billion in 2015 to $170 billion in 2020.
If we look at Palo Alto shares in the last five and three years, we see they’ve surged ~190% and 200%, respectively.
Deferred revenue rose 71% on year-over-year basis to $804.5 million while billings rose 61% to $388 million.
Jayson Noland, an analyst with Baird, believes Palo Alto’s integrated and automated platform is “a key differentiator” compared to its peers.
With nearly 1,200 security firms still independent, there’s a strong chance of acquisition, driving consolidation in the cyber security space.
Palo Alto Networks’ revenues and EPS once again exceeded analysts’ expectations by $12.8 million and 3 cents per share, respectively.
Facebook (FB) has a current ratio of 10.68x, which is higher than the industry median of 2.08x. Its quick ratio is also 10.68x, higher than the industry median of 1.98x.
LinkedIn’s (LNKD) revenue per share in 3Q15 was $5.96, compared to $5.55 in 2Q15, $4.60 in 3Q14, and $3.45 in 3Q13.
In 3Q15, Facebook’s (FB) return on equity or ROE was 8.8%, compared to 16.2% in the same period last year and 13.3% in 3Q13.
In 3Q15, Twitter’s (TWTR) R&D expenses rose year-over-year to $208 million from $183 million in 3Q14 and $87 million in 3Q13.
LinkedIn’s (LNKD) gross margin has been more or less flat year-over-year from 86.4% in 3Q13 to 86.8% in 3Q14 and 85.71% in 3Q15.
Twitter’s (TWTR) revenues rose 199% from $106 million in fiscal 2011 to $317 million in fiscal 2012. Revenues then rose 109.78% year-over-year in fiscal 2013…
Mark Zuckerberg, Facebook’s CEO, announced that he’ll consider monetizing the service when the number of users crosses the 1 billion mark.
Tech Data expects its revenues to be in the range of $7.05 billion–$7.25 billion in 4Q16, assuming that its YoY constant currency sales growth holds strong.
In 3Q16, Tech Data Corporation reported non-GAAP a net income of $45.2 million, which was flat YoY compared to its net income of $45.3 million in 3Q15.
Tech Data’s non-GAAP operating income for 3Q16 was $70.9 million, or 1.10% of net sales. This figure was $70.8 million, or 1.05% of net sales, in 3Q15.
Tech Data’s Americas business segment reported net sales of $2.6 billion—a decline of 3% sequentially, compared to its sales of $2.7 billion in 2Q16.