But amid mounting costs, losses at the company also grew, to $30 million for the quarter ending Oct. 31 from $7.9 million year prior. Excluding some items, earnings per share hit 15 cents, beating the Thompson Reuters consensus estimate of 12 cents.
“Security continues to be a critical business imperative,” Palo Alto CEO Mark McLaughlin said on a call with investors, attributing the company’s surging sales to rising demand, an increased enterprise interest in network security prevention, and the company’s effort to build a global sales structure.
Sales and marketing costs took the biggest bite out of Palo Alto’s $162.4 million operating budget last quarter, rising 45 percent year-over-year to $106.4 million.
On the call, McLaughlin touted the recent expansion of Palo Alto’s partnership with VMware to include that company’s vCloud Air platform, which supports the migration of on-site virtual machines to the cloud. The partnership allows VMware customers to deploy Palo Alto’s virtual firewalls within their cloud-based virtual data centers.
“All the policies you have today, you can move them over to AWS,” said Samantha Madrid, Palo Alto’s head of infrastructure product marketing, in an interview with SDxCentral last week.
The company projects continued sales growth for the current quarter, with revenues of $200 million to $204 million.
“The security market is very strong right now,” McLaughlin said Monday. “It’s a good market to be in.”