Investing.com -- Shares in Palo Alto Networks Inc (N:PANW) surged more than 3% in after-hours trading after the Silicon Valley based next-generation security company posted record revenues and topped analysts' forecasts with its first quarter results on Monday evening.
For the company's first quarter of Fiscal Year 2016, which ended on October 31, Palo Alto Networks finished with revenue of $297.2 million, an increase of 55% on a year-over-year basis. The company also reported a GAAP loss of $38.7 million or 0.45 per share, as well as a non-GAAP gain of $31.6 million or 0.35 per share for the period. Last year, Palo Alto Networks reported non-GAAP net income of $12.8 million or 0.15 per diluted share for the first quarter of fiscal year 2015. Analysts expected the company to report sales of $284 million on adjusted per share earnings of 0.32.
"We had a very strong start to fiscal year 2016 that included achieving our highest fiscal first quarter revenue and billings year-over-year growth rates since going public," said Mark McLaughlin, president and chief executive officer of Palo Alto Networks. "We believe that our success is due to our unwavering commitment to solving our customers' most complex security challenges with the industry's most innovative technology. Security remains a strategic consideration for companies globally, and it is clear from our results that our natively integrated and automated next-generation platform is resonating very well as the long-term strategic answer for customers' security needs."
In addition, Palo Alto Networks said its cash flows increased to $146.7 million over the first quarter of the fiscal year, $127.2 million of which is considered free cash flows. The company's reported billings or deals that will soon appear on its books will swell to $388 million, above expectations of $361.5 million. Moving forward, Palo Alto Networks expects to report adjusted earnings of 0.38 to 0.39 over its second quarter on revenue of $314 to $318 million.
"We reported record revenue in the fiscal first quarter as robust new customer acquisition and expansion within our existing customer base drove strong demand for our appliances and subscription services," Palo Alto Networks CFO Steffan Tomlinson said in a statement. "As the business scales, the power of our hybrid-SaaS model is becoming increasingly evident."
Shares in Palo Alto Networks gained 5.42 or 3.15% to 177.39 in after-hours trading.