Despite the slip of 2% from after-hours trading that was triggered by the weak billings guidance, Nikesh Arora, the CEO of Palo Alto Networks assured investors. Arora said that this was only a cosmetic issue, indicating robust demand for information and cybersecurity solution services. Its Q1 earnings overcame the street’s expectation due to emerging clients’ pay pattern as a result of high interests rate.
Arora noted that these factors contributed to the so called “billing” issues associated with payment schemes of an annual and upfront basis covering of multiple year periods. He advised the people to concentrate more on the strong profitability indicators of their operations. Arora advised Wall street on RPO that is the leading Indicator, which skyrocketed 26% signifying a promising revenue future. As part of the cybersecurity landscape challenges, Palo Alto Networks is tough in meeting market expectations and predicting future growth.
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