Cybersecurity giant Palo Alto Networks may be reaping the benefits of new customers looking to cut costs, according to Chief Executive Officer Nikesh Arora. Many companies are trying to balance security consolidation with a need to protect their bottom line, and Arora’s company is poised to deliver. While layoffs abound amid economic turbulence, the cybersecurity company is experiencing better-than-expected fiscal first-quarter revenue, and its stock price has reflected it with an overall uptick since the beginning of November.
According to Arora, Palo Alto Networks provides numerous advantages to potential new clients, such as eliminating the need for multiple vendors, delivering security outcomes, and delivering it all at a lower cost. The company’s revenue reflects these tailwinds, reporting a 25% year-over-year increase in revenue to $1.56 billion.
At the same time, the company continues to grow through acquisitions, reaching an agreement in November to buy Cider Security, an innovator of application security (AppSec) and software supply chain security, for approximately $195 million in cash (and a total value of $300 million, per sources). Clearly, the CEO’s strategy to evade a potential economic recession seems to be working.