The American market
Palo Alto Networks (PANW) has continued to expand its business globally, driven by its strong product portfolio. Its acquisition of Evident.io and Secdo in fiscal 2018 enhanced its high-demand cloud and endpoint security services.
In the American market, which comprises ~68% of Palo Alto’s total revenue, the company has continued to generate strong compound annual revenue growth in the last five quarters, of 4.1%. This growth has been supported by its strong sales team and channel partners.
The graph above shows Palo Alto’s American revenue growth in the last five quarters. In fiscal Q4 2018, its revenue grew 17.3% YoY (year-over-year) to $388 million. Meanwhile, security service peer Fortinet (FTNT) has seen its American revenue grow at a lower compound annual rate, of 3.5%.
Despite having a smaller sales force and fewer channel partners in the EMEA (Europe, the Middle East, and Africa) region, Palo Alto has seen revenue growth there.
Palo Alto’s EMEA revenue grew 8% YoY to $110 million in Q4 2018, and has grown at a compound annual rate of 2% in the last five quarters. Meanwhile, its Asia-Pacific revenue fell 8.3% YoY to $70 million in Q4 2018, and has fallen at a compound annual rate of 2.2%.