🛡️ In the evolving world of cybersecurity, companies are moving from isolated solutions to fully integrated platforms. Palo Alto Networks (NASDAQ:PANW) is at the forefront of this shift, driving significant growth. A prime example of this is a high 8-figure deal with Schlumberger, expanding their firewall services and adding Prisma Access and Prisma Cloud. This shift highlights how customers are trusting Palo Alto’s platformization strategy to deliver both efficiency and savings.
💼 In Q4 2024 alone, Palo Alto Networks added 90 new platform customers, bringing their total to over 1,000. These conversions are more than just strategic wins—each new platform customer generates higher annual recurring revenue (ARR), which has grown by over 10% since the start of the year. This consistent increase in revenue per platformized customer shows the clear financial benefit of adopting their integrated security model.
💻 A critical driver for Palo Alto’s success is their ability to reduce costs for customers. For instance, their Prisma Access Browser cuts total ownership costs by up to 80%, a huge draw for companies looking to streamline cybersecurity. Moreover, the company’s innovation in the SASE sector is paying off, with over a third of its new SASE customers in FY 2024 being first-time buyers, showing Palo Alto’s ability to penetrate new markets.
🚀 Platformization is central to Palo Alto’s growth strategy, and the company is focused on reaching its ambitious goal of $15 billion in next-generation security ARR by 2030. By turning single-point customers into multi-platform adopters, the company continues to drive up ARR, making each client more valuable in the long term.
đź’ˇ For investors, Palo Alto Networks offers growth potential, backed by strong financials and a customer base eager to adopt new technologies. The company is well-positioned for future success.
What do you think about it? Tag me on your favourite social media (Facebook / Instagram / LinkedIn / X).
P.S. I research and interview economists, NZ investors and profitable companies to find tools & tactics that you can use to achieve financial freedom.
➔ Join my private newsletter to be the first one to learn insider tips! Here are examples of what you’ll get. It’s FREE. You can unsubscribe at any time. I treat your email as my top secret.
IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.