I'll share here the earnings that surprised me the most yesterday. On this ocassion, $PANW.

Fourth Quarter Highlights:

Revenue came in at 1.6bn, up 27% YoY.

Billings grew 44% to 2.7bn.

GAAP Net Income was 3.3M, compared to a GAAP loss of 119M last year.

Guidance for:

1Q: Revenue of 1.54bn, or 23% growth. Billings of 1.69bn, or 22% growth.

Full Year: Revenue of 6.87bn, or 25% growth and an Adjusted free cash flow margin of 34%.

Personal commentary:

Full year guidance is impressive given the uncertainty the world is immersed in. Not only high growth but also the expected fcf margin.

(Of course non gaap metrics look much better, Non gaap net income was 254M, up from 161M last year)

$PANW is currently trading at a market cap of 50bn, or 21 times their expected adjusted free cash flow for this new fiscal year. This is very interesting in my opinion, given the stock is barely below its highs.