Palo Alto Networks revenue and billings beat, $500 million stock buyback planned

Palo Alto Networks Inc. reported quarterly revenue of more than $400 million for the first time Tuesday, and said it plans to buy back $500 million in stock. The security-software company reported a net loss of $54.5 million, or 61 cents a share, on revenue of $400.8 million, a 41% gain from the same quarter a year ago. After adjustments for share-based compensation and other factors, Palo Alto Networks reported profit of 50 cents a share. Analysts expected on average for Palo Alto Networks to report adjusted earnings of 50 cents a share on revenue of $390 million, according to FactSet. The company also said its billings, an important metric for cloud-software firms representing deferred revenue, were $572.4 million; analysts polled by FactSet expected billings of $561.8 million. Palo Alto Networks, which went public in 2012, also announced a $500 million share repurchase plan was approved by the board of directors. The stock, which closed with a 1.4% gain at $143.45, gained as much as 4% in after-hours trading, but later fell to a loss.

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