and operating call. that and joining with Clay. thank pleased you, and our each margin cash of top you, XX% revenue I'm balance Billings we grew expansion the report earnings non-GAAP everyone, strong today significant Thank to had and afternoon, another for year-over-year. quarter for Good us strong growth, flow. line free
customers. Our to large RPO sign our deals multiyear XX% grew with continue as we
profitable our growth. we delivered QX on acceleration driving as in also in leverage an We operating focused
exceeded This quarter, over by another a Our of translated year-over-year, profitability basis. XXX a basis non-GAAP XX% operating margin, supported XX% year-over-year. which up grew to GAAP on quarter points non-GAAP the for income operating
over We been a profitable have basis last cumulative GAAP quarters. the four on now
track us In prior also addition, to generation free on cash this strong puts our outperform flow quarter guidance.
an start update of to its is tougher a crusade there. I as environment, cautious. macro are tame want about there There's emerging on with macro macro wondering The so I continues know leaders the out clearly business inflation. you many to Fed more the making clearly changing
of of impacted. a others signs less while are Some are customers slight our seeing slowdown
yet. continue shocks, think of their expect feel see that the on not that next making more We've continue maintained seen we're I cautious while quarters. is more And do activity delayed that. projects descoped, expecting more customers always we abundant, not scrutiny, I, be done few track. value partners. demand will Clearly, caution some driving cybersecurity however, get we or non-canceled evidence while to We've see and we to from resilient, over most
large behavior widespread. the deal front, definitely is On this
conversations this For get our ahead with working of payment more and meant just has on scope us, that, and Not around need it's closely this with creating partners. discounts teams, and our CSO terms, with deal CIO been purchasing to we've as of well. we work something customers
ahead deals did I'm based earlier the teams any delighted major field we problem, on quarter, this from quarter. getting of not slip that this our see
quarter same with year. quality last Our deal the cadence was consistent
to On are security been to customers. long-term that has fortunate environment sprawl security in an need ownership infrastructure not consolidation, this our deliver this but our positioned feel strategy customers' equally prevalent outcomes, total the positive with and the our to for and vendor best that the of just We generate note, for security a we value. on need cost to reduce based drives portfolio, also clear
One, things two business, we have on from become Within have more efficiency our focused early this happened. own year.
the outcomes. the down lower last anticipate we For of business the development than three years. any growth year At example, slowing our likely pace do is or be headcount this time, our same of to not
across ensure drivers all our our one areas. structures Dipak and the we to consistent our we margins set major we up are his been improve team to as to portfolio of have has of scale. deliver in inspecting operating to This improved cost been continue gross hope and rigorously margin
challenges product Secondly, anticipated, months six chain significantly have abated supply ago. versus and as
While product to this and abate profitability, is which impacts, end some the our year. through gross evident this are margins we in our overall lingering expect there further of
growth. to take also a Let's moment discuss hardware
the have factors given lot supply Over chain and demand, growth, backlog. of last uneven a constraints, including XX impacted hardware impacts months, supply
our customers operations transformations their on noticed network Additionally, longer. focused we hardware more and assets cloud, and and be sweat willing their continue security have are to to
industry that we the digits. all in low Underlying the believe to this, mid-single hardware is rate growth still
As few all next see gravitate we to will long-term these extraneous the levels. back those factors months, mitigated the growth over
the for counter and mean this metrics does what raising beyond? half on second year top-line of both we're to metrics, profitability. guidance this the So market, and Somewhat
us this for and current Of course, requires maintain to the to focus sustain, on demand continued execution. a
an position with consolidate. have investing towards growth in of the market. positioning we We for unique are to our a the Hence, looking and ourselves strengthen customers to environment this in disciplined eye opportunity partner to choice
about guidance QX which caused strength us but annual to software-based to guidance. our and in on are QX the our next-generation forecasted raising cloud-delivered capabilities. maintaining on specific transactions shift that some has this are we track pipeline, from for and from seeing our revenue back You'll hear more we're In billings Dipak, while QX, security hardware our
With XX.X% operations year all said margin I about fiscal we're operating and efficiency for the to now XX% XXXX. to have guiding better impact, in
cash flow we're also our increasing guidance. Additionally,
Consolidation a continues key with our to theme be customers.
course, customers compromise are on Of willing cybersecurity. to not and quality
with are fortunate in long-term business, XX in path transformation Given conversations and conversations. customers driving are engaged us. on our be many to market a are such many Those leadership we categories,
grew of greater-than-$XX-million nearly XX% and over transactions Similarly, a deals $X these number greater-than-$X-million number year-over-year, grew closed million nearly of grew over of deals the of number the we value and XXX%. The deals XX%. grew XX%
become to to help is drive us platform multiple We Almost customers. underlying an our $XX able our platforms cohorts customers significantly. on an consolidation. grow consolidation. more being is saw see we involve deal ramp drive values again, in momentum value critical Time to driving onboarding that million continued and of us vendor transformation deals these early millionaire cybersecurity all This to
a of consolidation. take some look Let's are we driving the at ways
Trust security with to helping broad customers their with A their First, operations life sciences firewalls our standardize subscriptions. deal firewalls, of transformations, line Zero signed a eight-figure subscriptions. software and we're next-generation security standardize appliance customer using VMs and an
Zero stack customers and recently figure eight consistent service adopt signed and cases, hybrid firewalls, our firm securing and their A across and and In network. us chose operational SASE in of breadth to ownership. challenges of SASE transform pure They consolidate reduce Trust the offerings, both financial of cost set network of security driven with other an us, because our work by they wanted we're over apps. helping play SaaS offering deal because their software our comprehensive competitors,
capabilities hyperscale trial using Cloud customers and Secondly, as Access and Prisma to transformations. adopt help Prisma our a Software Service. cloud We're cloud
Another with apps a over in signed the in to both financial cloud high services firm deal Cloud. Prisma mandate eight-figure standardize XX% Access the to a run Prisma of and
XDR small expanded around us and with XDR Lastly, and a high-fidelity transform and automation. started seven-figure relationship They security Cortex retail response with in trial deployment. the and an Unit their XSOAR. using sources, with XX around data customers to XSIAM help platform with Expanse company standardize A SOC high AI retool operations deal center our relationship a incident transformations, on we're to
would and relationships paradigm, not innovation. customer building a strategic been possible new These paradigm a constant have security us transformations without around industry
all here. much times starts Our non-GAAP that, is us pure-play on cybersecurity $X our dedicated success five as This a is at as the flywheel innovation of there spending in driven with two increasingly four-quarter and play basis. where is investments have investment, is a in by trailing we approximately clear This billion budget companies to to largest R&D peers.
allows our and this shared larger to also across budget us scale revenue a three Our of platforms. the needs spread base
number record R&D investments then releases. translate of product into a
number first XX% from major up release year. is the first Our last of half half XX,
of This and key our constant platform causing third subscription, flagship our first AI-based Advanced modules in industry advanced and analysts is included Some new XX.X to new releases take updates Wildfire, our in the innovation XSIAM the notice. SOC Prisma Cloud. Nova, PAN-OS half
early a large our that protection recognitions the services helped untapped services of total there given SASE received part recently these future a have We feel leadership we the compares still to all these the nine drive for ARR. platform NGS cloud for or in bringing at We NGS our many in believe TAM are advanced of leadership which us All of is us cloud-native number confident grow the cloud cycle, positions we of in have robust being software application which XX, delivered our ago. to category, recognition to XX%. active ability year and launched, life leadership CNAPP, ARR adoption
SASE year launched In I'll highlights. the at security of some personal Prisma capability, business. at look our We less with in deeper million XXXX. first first favorite, business. booked network a end the take Let's of we than fiscal $XXX start year, my Access, the our
quarters, Over X,XXX are the over deal last ARR a now customers billion, our growing with We quarter deal for $X for $XX about million booked approximately TCV last we largest being have six SASE. XX%. and
SASE, saw SASE our of months has In competitive looking a out. wins of in one we strongest large and healthy pipelines QX, number XX
two At customer we're you appliance ago, times higher. traction, seeing SASE compares five-year revenue in how line showed was improving business. the top the time, the that an also about SASE we a years customer. Two Beyond economics from to
we've AI security added AIOps value SaaS SASE. autonomous power additional digital FY management and experience management then, XXXX, this Since posture has the launched We followed SASE. transform to to by in year.
prevent using attacks. to And user are services experience and be the now platform. integrated the AI-driven Our powered security zero-day additional by to and we'll even transform AI detect soon all capability introducing
X.X our to have a more now we We've improvements this to an gross also our be five-year of efficient. period, times SASE revenue SASE seen more as that some We in expect than customer. scaled appliance margins from over customer become
series, network the in and to This you and integrated clouds. their firewall cloud data side business VM-Series for strong. other go in customers, portfolio, the of firewall cloud next-generation includes marketplaces centers software our our broadest which including security run first-to-market or the can going for options offerings hyperscale deployment CM purchased the is be If
highest of any We than of company competitor. three our closest have believe market. market it's any share times this the in more We
transforming the over our software is software environment in them offering. software of doubled, and with deals their the customers that macro CapEx firewalls data to centers is number adopt for budget. QX, our customers the QX fact to eight are top firewalls. current The of our million more shift, nearly six leading This along was of moving more to In in deals firewall cloud, the $X watch included causing
business. cloud security Moving onto our
module. security We Cloud. profiling security API released application preventive to capability most API our growth. teams including their stack risk on This surface make Platform enhance teams than helps important continue sensitive to are capability attack risk based risk more enhancements steady prioritize assess new with Prisma data and XXX access our measures to significant We This progress the and quickly take the surface, factors, to exposure misconfigurations, address to them. helps privileges. web
left as under our on focus To We that securing we team security also common Core team Cider, application these shift our to have has and Security security to help to the workloads adopted channels. of developed, customer After Cloud customers' a code acquisition releasing capabilities. base are Cider's our their leadership solving closed over year-ago, security our continue they platform. XX% and brought bring of CICD with cloud end, capability
over grew QX. Our customers cloud core XX% security QX in
scans hard-coded to make of new management a information passwords launched repos for and API not is keys and used exposed this Our vector attack. December in as like sure secret by module secrets used code developers
and module these to adoption. new capabilities see continue customer enhancements increase drive in We an
two being new more by additional XX% customers example, their For consumption growth with modules customers customer modules modules. is doubled. This more and or four Prisma or of year-over-year. over increasing Cloud and additions, customers with than cloud footprints our XX%, more consuming Credit grew customers increased driven
moderation been early has we us has stage from to there of on the While cloud adoption consumption will cloud security and market, continue headwind. believe relatively this discussion and in the shelter
that about challenges the conversation AI a about. of for be Cortex Networks about six of has The automation Alto fragmentation word need continues is talked we take to know detour compelled AI. tech counted, and in more in to has the a I problem I months on have Alto there, Most platform the and consolidation. optimism lot with feel We data in all so. continuing on mind and given you also solution talk AI talked Before that the category, everyone's know been than about arrival than industry. talked which used story I been to I the Clearly, or AI. my of move I continued time signs I first Networks. Palo and a see the you Palo AI towards a
creative and exacting continue inform AI, consumer revolution us, going drive can and where the Sonnets in about from its ability talk to we advertising, is are summarize data or so that capabilities returns. and search Unlike to more and demands AI ChatGPT's the the far amuse and are to enterprise and
An be to It data. to especially to enterprise clean. needs has comprehensive in be have real needs security, AI it time. And
security So do need threats. be outcomes, best not data great positioned you you the line to in also to only have need to to create block
through flowing flies why flowing files, to deliver using hundreds data endpoints daily, positioned a of of AI learning. product of me Let cloud, URLs with we and flies trillions of are sessions, not security case of millions outcomes machine and petabytes our -- make network of billions tens from across events, -- millions best of
broke the by application of logs. ability Alto Network's days firewall data to or collection were industry our EAL, expansive the services Palo capabilities, next-generation security. firewalls through These driven early deliver in enhanced next-generation because then
security applied that capability secure network for any network valuable this entire We security stack. data needed We have outcome. AI-driven under half is data our that estimate is just that since across the
this XX,XXX over them data. we help use customers have We can where
and As we're which We we We building unique data fundamental a integrated perspective. ensure we to collected conceived acquired across at These there. the then and with footprint XSOAR, built at Expanse, largest and the but automation acquired from vulnerability XDR stopping the deployed the data for formed looked we endpoint security not different best blocks Cortex, industry. XSIAM.
position data largest data we're AI. the security automation, our data SoC for transformation. security leadership Slowly We integration data. of useful AI-based integrating it. Cloud, management, our and same Cloud Cortex that Prisma increasingly thought from is all from our of the shift-left benefit customers we're the and customers, built attack hyperscalers, a bring on integrating contributor is an believe next driving to AI, With Prisma built foundation being we as steadily, again, X,XXX we from Cloud important developers. rigor in is what With analytics and able will applied set surface an becoming to is X,XXX and stronger
websites, operations files to in our We without seconds all scale. command have unique control delivered domain we respond yet data reduce have that detection and can the and AI-based Also, to and to time unknown learning outcomes, minutes. AI/machine we to the we apply. mean blocking malicious the the that have shown at security center meantime including These outcomes are cannot expertise achieved and be own we
released and we XSIAM. more look we In and a us as this take QX, XSIAM platform, made into of around excited has Let's how encouraged the Cortex us important part new believe of at to Expanse our and SaaS-enabled including launched the using a customers and allowing issues capabilities, end XSOAR, cloud-based XSIAM surface delivering GA We QX. discovered XSIAM. interface active management remediate attack
$XX that in transform looking a operations customers of platform. are business and approximately closed we've the to growing pipeline far, have of new So security million
the XSIAM to drive I is pave way AI-driven outcomes. think going security for to transformation us
of ramp We $XXX any Cortex to our our concurrent work than product will me bookings Cloud hopeful our in and the the milestone Its in early Prisma XSIAM. and positive, cautiously see and drive to first getting market SASE I'm portfolio. that perhaps, success to We continue extremely hard security makes this be customers or discussion relevance, with with optimistic to in about fastest early fit, on it faster could AI, XSIAM. product. evolution million
clear ahead we and want enter execute. all transforming road and of year turn together and software-based where see of we're delivery fiscal this focused second to I the of our about cloud the we're half Right to intend to business floor a our in now, offerings. us. map beyond. We put head put talk our process down the and I to Before We as Dipak,
should is high our customers' security which revenue, an capabilities, sustain to becoming Our share longer. in own recurring and next-generation us budget. a we our opportunity have This nature, growth greater for allow more to driven cybersecurity is revenue of increasingly by
in Over our expand we businesses. of in set the our scale faster-growing plan including couple a driving motion last years, margin, to operating
Over our to encouraged last growth have the months, half in now who on for to made incremental business, positioned well investors and and progress us listened year. good profitable of we've six leverage focus the accelerate second we We're QX. in the
from we believe this year XXXX. Analyst target beyond, ahead years profitability basis on our XXX guidance raising XXXX our margin XXX of XXXX are and three us September our points to targets putting at last We guidance. XXXX prior up basis we initial fiscal build can We from appreciably FY points into our continue Day our and in FY for offered
line up combination on on As higher ahead the this believe focus of revenue. and Dipak well sustaining describe, growth build EPS higher we will top profitability sets and efficiency of grow base of to
company. I profitability emphasize important this percent as GAAP milestone an is bringing a this, continue for on In to our of focused achieving compensation stock-based to our actively down our we're of managing support that revenue. want
that, results then details take over With Dipak guidance, turn you the our I'll we'll to take of to and our questions. and floor through
