paloalto：2023財年第4季度：電話財報會議和中期更新

?2023PaloAltoNetworks,Inc.Allrightsreserved.

Q4FiscalYear2023

EarningsCall&

MediumTermUpdate

1

Q4FiscalYear2023

EarningsCall

?2023PaloAltoNetworks,Inc.Allrightsreserved.2

SafeHarbor

Thispresentationcontains“forward-looking”statementswithinthemeaningofSection27AoftheSecuritiesActandSection21EoftheExchangeAct,includingstatementsrelatedtoourfinancialguidanceforthefirstquarteroffiscal2024andfiscalyear2024,ourfinancialestimatesforfiscalyears2023through2026,our

modelingpoints,ourstrategicplans,ourachievements,ourgrowthratesandgrowthprospects,ourestimatesofmarketsizesandopportunities,theperformanceandbenefitsofourproducts,ourproductdevelopmentexpectations,anticipatedtrends,businessandeconomicconditionsandchallenges,andotherfinancial,operationalandbusinessexpectations.Manyoftheseassumptionsrelatetomattersthatarebeyondourcontrolandchangingrapidly.

Thereareasignificantnumberoffactorsthatcouldcauseactualresultstodiffermateriallyfromforward-lookingstatementsmadeinthispresentation,including:

developmentsandchangesingeneralmarket,political,economic,andbusinessconditions;risksassociatedwithmanagingourgrowth;risksassociatedwithnew

product,subscriptionandsupportofferings;shiftsinprioritiesordelaysinthedevelopmentorreleaseofnewproductorsubscriptionofferings,orthefailuretotimely

developandachievemarketacceptanceofnewproductsandsubscriptionsaswellasexistingproducts,subscriptionandsupportofferings;rapidlyevolving

technologicaldevelopmentsinthemarketforsecurityproducts,subscriptionandsupportofferings;ourcustomers’purchasingdecisionsandthelengthofsalescycles;ourcompetition;ourabilitytoattractandretainnewcustomers;ourabilityasanorganizationtoacquireandintegrateothercompanies,products,ortechnologiesinasuccessfulmanner;ourdebtrepaymentobligations;andoursharerepurchaseprogram,whichmaynotbefullyconsummatedorenhanceshareholdervalue,andanysharerepurchaseswhichcouldaffectthepriceofourcommonstock.Furtherinformationontheseandotherfactorsthatcouldaffecttheforward-lookingstatementswemakeinthispresentationcanbefoundinthedocumentsthatwefilewithorfurnishtotheU.S.SecuritiesandExchangeCommission,includingPaloAltoNetworks’mostrecentQuarterlyReportonForm10-QfiledforthequarterendedApril30,2023,whichisavailableonourwebsiteatandonthe

SEC'swebsiteat.AdditionalinformationwillalsobesetforthinotherfilingsthatwemakewiththeSECfromtimetotime.Allforward-lookingstatementsinthispresentationarebasedonourcurrentbeliefsandoninformationavailabletomanagementasofthedatehereof,andwedonotassumeanyobligationtoupdatetheforward-lookingstatementsprovidedtoreflecteventsthatoccurorcircumstancesthatexistafterthedateonwhichtheyweremade.

AllinformationinthispresentationisasofAugust18,2023.Thispresentationcontainsnon-GAAPfinancialmeasuresandkeymetricsrelatingtothecompany'spastandexpectedfutureperformance.Wehavenotreconcileddilutednon-GAAPearningspershareguidancetoGAAPearningsperdilutedshare,non-GAAPoperatingmargintoGAAPoperatingmarginoradjustedfreecashflowmarginguidancetoGAAPnetcashfromoperatingactivitiesbecausewedonotprovideguidanceonGAAPnet

income(loss)ornetcashfromoperatingactivitiesandwouldnotbeabletopresentthevariousreconcilingcashandnon-cashitemsbetweenGAAPandnon-GAAPfinancialmeasures,includingshare-basedcompensationexpense,withoutunreasonableeffort.

?2023PaloAltoNetworks,Inc.Allrightsreserved.3

Nikesh

Arora

CEO&Chairman

?2023PaloAltoNetworks,Inc.Allrightsreserved.

GUIDANCEAS

OF8/22/22

TotalBillings1

$8.95B-$9.05B

+20%-21%yr/yr

$9.19B

+23%yr/yr

$6.85B-$6.90B

+25%yr/yr

$3.13-$3.172

+24%-26%yr/yr

Adj.FCFMargin

(Non-GAAP)

$4.44

+76%yr/yr

$6.89B

+25%yr/yr

EPS

(Non-GAAP)

ACTUAL

RESULTS

33.5-34.5%

TotalRevenue

38.8%

Q4cappedastrongyearofexecution

TOTALREVENUE

$1.95B

+26%y/y

TOTALBILLINGS

$3.16B

+18%y/y

REMAININGPERFORMANCEOBLIGATION

$10.6B

+30%y/y

OPERATINGMARGIN(NON-GAAP)DELIVEREDATORABOVEALLINITIALFY’23GUIDANCETARGETS

28.4%

+760bpsy/y

ADJ.FREECASHFLOW(NON-GAAP)

$388M

+46%y/yontrailing12-monthbasis

EPS(NON-GAAP)

$1.44

+80%y/y

1Totalbillingsisakeyfinancialmetriccalculatedastotalrevenuepluschangeintotaldeferredrevenue,netoftotalacquireddeferredrevenue.

2Non-GAAPEarningsPerShareforperiodQ4’22adjustedtoreflecttheeffectofthestocksplitexecutedonSeptember13,2022

?2023PaloAltoNetworks,Inc.Allrightsreserved.5

Areconciliationofforward-lookingnon-GAAPfinancialmeasurestothecorrespondingGAAPmeasureshasnotbeenprovidedasitisnotavailablewithoutunreasonableeffort.

FiscalyearendingonJuly31.

NetNewNGSARRq/q

+$381M

LargestNetNewARRinPANWhistory

LargestNetNewARRofanypure-playcybersecuritycompany3

Continuedstrongdemandfor

cybersecuritydroveourNGSbusiness

Weachievedkeymilestones

SASE

>$1BinFY’23bookings

Cortex

>$1BinFY’23bookings

PrismaCloud

>$500MinARRinQ42

Q4’23NGSARR1

$2.95B

Q4’23NGSARRgrowthy/y

+56%

1ARR=AnnualizedRecurringRevenue.Next-GenSecurityARRisannualizedallocatedrevenueofallactivecontractsasofthefinaldayofthereportingperiodforPrismaandCortexofferingsinclusiveoftheVM-Seriesandrelatedservices,andcertaincloud-deliveredsecurityservices.

?2023PaloAltoNetworks,Inc.Allrightsreserved.

2PrismaCloudARRrepresentsAnnualRecurringRevenueforPrismaCloud,VM-SeriesforPublicCloud,andCN-Series.

3LargestpubliclydisclosedNetNewARRofanypure-playcybersecuritycompany.

6

FiscalyearendingonJuly31.

Platformizationcontinuesto

drivelargedealmomentum

Sixoutoftop-10dealswereDrivenbyNGS

%ofDeal-non-NGS

%ofDeal-NGS

DealTop-10dealdrivenbyNGS

?

HavePurchased

all3NGSAreas2

Top10Q4'23deals

Deal1size(TCV)

Deal10

Deal4

Deal9

Deal5

Deal3

Deal2

Deal8

Deal6

Deal7

Deal1

?

?

?

?

?

?

?

?

?

Largedealgrowth

NumberofDeals1

>$20M

NumberofDeals1

>$10M

+43%

y/y

+37%

y/y

?2023PaloAltoNetworks,Inc.Allrightsreserved.7

1Dealrepresentsthetotalbookingsfromasinglecustomer,withinthestatedperiod.

2HavemadeapurchaseofSASE,Cortex,andPrismaCloud,lifetodate.

XSIAMtractionamplifyingCortextrajectory

>$200M

XSIAMBookingswithinfirstyearofrelease

XSIAMTransactionsareLargeandStrategic

DrivingMTTR2

fromdaysto

hours/minutes

3-5Year

customercommitments

>$1M

AverageACV

1

CortexActiveCustomersQ4'23AverageCortexDealSize

DrivenbyXDRcustomeraddsandmarket-leadingXSOAR

+50%

y/y

>5K

+28%y/y

1AverageACV=AverageAnnualContractValuefordealssignedinQ4’23.

?2023PaloAltoNetworks,Inc.Allrightsreserved.8

2MTTR=MedianTimeToResolve(timefromincidentcreationtoincidentresolution).

FiscalyearendingonJuly31.

>$1B

SASE

SASEcontinuestodisplaystrongperformance

FY’23Bookings1

Q4’23SASEARRGrowth

~60%y/y

TwonewSASEleadershipposition

Increasingleadershiprecognitioniscontributingtoourcustomerwins

5

TotalSASE&ZeroTrust

CategoryLeadershipPositions

ALeaderinForresterZeroTrustEnterpriseWave

LeaderinIDCZTNAMarketScape

MarqueedealsinQ4

$43M

NewwinwithaBusiness

ConsultingandServicesCompany

$26M

ExpansionwithaUSTechnologyCompany

$21M

ExpansionwithaEuropeanFoodandBeveragescompany

$11M

ExpansionwithaUSFinancialServicesCompany

1PrismaSASEincludesPrismaAccessandPrismaSD-WAN,PANOSSD-WANandSaaSSecuritysubscriptions.

?2023PaloAltoNetworks,Inc.Allrightsreserved.9

SASE

SASEcontinuestodisplaystrongperformance

FY’23Bookings1

Q4’23SASEARRGrowth

MarqueedealsinQ4

~60%y/y

>$1B

$43M

NewwinwithaBusiness

ConsultingandServicesCompany

$26M

ExpansionwithaUSTechnologyCompany

$21M

ExpansionwithaEuropeanFoodandBeveragescompany

$11M

ExpansionwithaUSFinancialServicesCompany

Gartne

SingleVendorSASE

MagicQuadrant

Published:August16th,2023

TwonewSASE

5

TotalSASE&ZeroTrust

CategoryLeadershipPositions

Increasingleadershiprecognitionis

contributingtoourcustomerwins

ALeaderinForresterZeroTrustEnterpriseWave

LeaderinIDCZTNAMarketScape

BREAKING

NEWS

?2023PaloAltoNetworks,Inc.Allrightsreserved.10

1PrismaSASEincludesPrismaAccessandPrismaSD-WAN,PANOSSD-WANandSaaSSecuritysubscriptions.

Growthinmulti-moduleadoptioncustomers2

+179%

y/y

5+

modules

+31%

y/y

2+

modules

+57%

y/y

3+

modules

Sustainedcreditconsumptionpropels

PrismaCloudthrough$500MinARR1

GrowthinQ4’23

PrismaCloudCredit

Consumption

+45%

y/y

ExtendingPlatform

LeadinQ4

Security

Launched11thmodulebasedonCideracquisition

EnhancingCloudSecuritycapabilities

APIChangeDetection

Agentless

CWP

CI/CD

?2023PaloAltoNetworks,Inc.Allrightsreserved.11

1PrismaCloudARRrepresentsAnnualRecurringRevenueforPrismaCloud,VM-SeriesforPublicCloud,andCN-Series.

2Multi-moduleadoptioncustomersisbasedoncustomerswithmoduleadoptionoverthe90dayperiodending7/31/2023,andexcludesanyPrismaCloudComputeonlyself-hostedcustomers.

FY23:Successfulexecutionthrough

atoughmacroenvironment

Platformization

Gotomarket

transformation

Strongproductinnovation

Drivingefficiencyandleverage

?2023PaloAltoNetworks,Inc.Allrightsreserved.12

Dipak

Golechha

ChiefFinancialOfficer

?2023PaloAltoNetworks,Inc.Allrightsreserved.

$1,551M

$1,563M

$1,655M

$1,721M

$1,953M

Total

Revenue

Billings

$2,685M

$1,749M

2,029M

2,256M

$3,160M

TotalBillings(y/y)

Next-Gen

SecurityARR

Remaining

Performance

Obligation(y/y)

Q4’22Q1’23

40%38%

Q2’23Q3’23Q4’23

39%35%30%

$8.2B

$8.3B

$8.8B

$9.2B

$10.6B

Strongtop-linegrowthatindustryleadingscale

25%

26%

24%

26%

27%

Total

Revenue

Total

Revenue(y/y)

Q4’22Q1’23Q2’23Q3’23Q4’23

44%27%26%26%18%

Total

TotalBillings

Q4’22Q1’23Q2’23Q3’23Q4’23

FiscalyearendingonJuly31.

Next-Gen

SecurityARR

Next-Gen

SecurityARR

(y/y)

Remaining

Performance

Obligation

Remaining

PerformanceObligation

60%67%63%60%56%

$1,893M

$2,111M

2,332M

2,574M

$2,955M

Q4’22Q1’23Q2’23Q3’23Q4’23

?2023PaloAltoNetworks,Inc.Allrightsreserved.14

Managingthroughtheimpact

oftherisingcostofmoney

%ofBookingsunderDeferred

PaymentPlans1

Q4’22Q1’23Q2’23Q3’23Q4’23

%ofBookingsunderdeferredpaymentplans

RemainingPerformanceObligation

40%38%39%35%30%

$10.6B

$9.2B

$8.3B

$8.8B

$8.2B

Q4’22Q1’23Q2’23Q3’23Q4’23

Remaining

Remaining

PerformanceObligation

PerformanceObligation(y/y)

?2023PaloAltoNetworks,Inc.Allrightsreserved.15

1DeferredpaymentplansincludeanydealsunderBillingsPlans&PaloAltoNetworksFinancialService

FiscalyearendingonJuly31.

Pandemic

Industryhardwaregrowthtrendis

returningtoexpectedbaselinelevel

20%

10%

0%

-10%%

headwinds

Pandemic

reopeningdrives

catchup

Supplychain

constraintsdriving

earlyorders

+

Industrypricing

impacts

Macroheadwinds,

shipmentsstill

buoyedbybacklog

CY19CY20CY21CY22CY23CY24Future

ApplianceMarketGrowth(y/y)UnderlyingApplianceMarketGrowthRange(0-5%)

?2023PaloAltoNetworks,Inc.Allrightsreserved.16

Source:AppliancegrowthratesfromOmdia,Dell’OroandPaloAltoNetworksinternalestimates.Alldatabasedoncalendaryear.

49%

66%

28%

73%

72%

68%

SoftwaretransitionandNGSgrowthis

drivingmorerecurringrevenue

RecurringRevenueasa%ofTotalRevenue

FWaaPBillingsGrowth&

SWasa%ofFWaaP

45%

26%

26%

19%

46%

Q4’20Q4’21Q4’22Q4’23

79%

Q4’20Q4’21Q4’22Q4’23

SW%ofFWaaPBillings

RecurringRevenue3%ofTotalRevenue

FWaaPBillingsGrowthy/y

1FirewallasaPlatform(FWaaP)billingsisakeyfinancialandoperatingmetricdefinedaspubliclyreportedproductbillings,togetherwiththeservicesbillingsforPrismaAccess,VM-Series,andSD-WANofferings,duringtheperiodstated.2SW%ofTotalFWaaPbillingsisthebillingsforthePrismaAccessandVM-seriesofferings,andthenon-hardwareportionofSD-WANofferings,asapercentageoftotalFirewallasaPlatformbillings,duringtheperiodstated.

?2023PaloAltoNetworks,Inc.Allrightsreserved.17

3RecurringRevenuerepresentsTotalRevenuelesshardwareandprofessionalservicesrevenue.

FiscalyearendingonJuly31.

Profitabilitysupportingahigher

freecashflowbaseline

OperatingIncomeGrowth&Margin

(Non-GAAP)

59%

34%

30%

-6%

24%

19%

19%

18%

FY’20FY’21FY’22FY’23

FiscalYearAdjustedNon-GAAPFreeCashFlowMargin

39%

33%

33%

28%

FY’20FY’21FY’22FY’23

%ofBookingson

DeferredPaymentPlans1

FY’20FY’21FY’22FY’23

OperatingMargin(Non-GAAP)

OperatingIncomeGrowthy/y(Non-GAAP)

1DeferredpaymentplansincludeanydealsBillingsPlans&PaloAltoNetworksFinancialServices.FiscalyearendingonJuly31.

AdjustedNon-GAAPFreeCashFlowMargin

Impacttoadjustednon-GAAPFreeCashFlow

MarginwhenremovingtheimpactofDeferred

PaymentPlans

________%ofBookingsunderdeferredpaymentplans

?2023PaloAltoNetworks,Inc.Allrightsreserved.18

Q4’23

Guidance(asof5/23/23)

Q4’23

Actual

$3.15B-$3.20B

17%-19%yr/yr

$3.16B

18%yr/yr

$1.937B-$1.967B

25%-27%yr/yr

$1.95B

26%yr/yr

$507M

24%yr/yr

$10.6B

30%yr/yr

$2.95B

56%yr/yr

77.3%

+410bpsyr/yr

$554M

71%yr/yr

28.4%

+760bpsyr/yr

$1.44

$1.26-$1.30

$0.64

$388M

Q4Results

Summary

TotalBillings

TotalRevenue

ProductRevenue

RemainingPerformanceObligation

Next-GenSecurityARR

GrossMargin(Non-GAAP)

OperatingIncome(Non-GAAP)

OperatingMargin(Non-GAAP)

EPS(Non-GAAP)

EPS(GAAP)

Adj.FreeCashFlow(Non-GAAP)

?2023PaloAltoNetworks,Inc.Allrightsreserved.

19

Reconciliationsofhistoricalnon-GAAPmeasurescanbefoundintheAppendix.

FiscalyearendingonJuly31.

FY2023

Actuals

FY2024

Guidanceasof8/18/23

FiscalYear2024Guidance

TotalBillings

Next-GenSecurityARR

$9.19B

+23%yr/yr

$10.9B-$11.0B

+19%-20%yr/yr

$2.95B

+56%yr/yr

$3.95B-$4.00B

+34%-36%yr/yr

$6.89B

+25%yr/yr

TotalRevenue

$8.15B-$8.20B

+18%-19%yr/yr

OpMargin(Non-GAAP)

EPS(Non-GAAP)

24.1%

25.0-25.5%

$4.44

+76%yr/yr

$5.27-$5.40

+19%-22%yr/yr

Adj.FCFMargin(Non-GAAP)38.8%37-38%

?2023PaloAltoNetworks,Inc.Allrightsreserved.20

Areconciliationofforward-lookingnon-GAAPfinancialmeasurestothecorrespondingGAAPmeasureshasnotbeenprovidedasitisnotavailablewithoutunreasonableeffort.

FiscalyearendingonJuly31.

TotalBillings

TotalRevenue

EPS(Non-GAAP)

Q1Fiscal2024Guidance

Q1’24

Guidanceasof8/18/23

$2.05B-$2.08B

17%-19%yr/yr

$1.82B-$1.85B

16%-18%yr/yr

$1.15-$1.17

39%-41%yr/yr

?2023PaloAltoNetworks,Inc.Allrightsreserved.21

Areconciliationofforward-lookingnon-GAAPfinancialmeasurestothecorrespondingGAAPmeasureshasnotbeenprovidedasitisnotavailablewithoutunreasonableeffort.

FiscalyearendingonJuly31.

ModelingPoints

Q1’24andFY24non-GAAPeffectivetaxrate:22%

CashtaxesforFY24of$230-280M

Q1’24netinterestandotherincomeof$50M–$55M

Q1’24dilutedsharesoutstanding336–339million

FY24dilutedsharesoutstanding338–343million

Q1’24capitalexpendituresof$40M–$45M

FY24capitalexpendituresof$160M–$170M

?2023PaloAltoNetworks,Inc.Allrightsreserved.22

?2023PaloAltoNetworks,Inc.Allrightsreserved.

Q&A

23

Nikesh

Arora

CEO&Chairman

?2023PaloAltoNetworks,Inc.Allrightsreserved.

Overthelast5years,thecybersecurity

markethasevolvedsignificantly

EnterpriseCybersecurityMarket

TAM’23

(‘18-‘23CAGR)

$29B

(35%)

$72B

(19%)

Segmentsundergoingtransformation

Endpoint/XDR,SecOps(+SIEM),NetworkSecurity

$31B

(13%)

Largelysteadysegments

Identity,AppSecurity,DataSecurity,EmailSecurity

$81B

(7%)

Newsegments

SASE,CloudSecurity,IoTSecurity

Services

$213B

Note:CommunicationservicesincludeUnifiedCommunications,MobileNetworkServices,FixedData,FixedVoice;DevicesincludeMobilePhones,Printers,Desktop,Laptops,andTablets.DataCenterincludesServersandexternalcontroller-basedStorage.ApplicationSoftwareincludesEnterpriseApplicationSoftwareandVertical-SpecificSoftware.CybersecurityTAMexcludesIntegratedRiskManagement.

AllestimatesandfiguresinthispresentationrelatedtototaladdressablemarketsormarketsizesarebasedonPaloAltoNetworkestimatesusingthird-partydata.SeeAppendixformoreinformation.

?2023PaloAltoNetworks,Inc.Allrightsreserved.

AI&ML

waywe

Thenetworkwouldneedtobereimagined

wouldbeTHE‘solve’security

$17B

SecurityOps

2018TAM

$2B

CloudSecurity2018TAM

?PaloAlto

26

$19B

NetworkSecurity2018TAM

Networks,Inc.Allrightsreserved.

Note:thesizeofthebubblesinthechartisnotadjustedtoscale

PublicCloudadoptionwouldscalerapidly

Lookingback,weenvisionedthreetransformations

$2B

CloudSecurity

2018TAM

$

SCA

SIEM

Adv.Threat

CNS

CWP

VPN

MTH

XDR

IoT/OT

DLP

SAST

SWG

CDS

Threat

Intel.

ZTNA

ASM

AIOps

Secrets

Scanning

CIEM

SD-WAN

CI/CD

SASE

SOAR

Network

Intel.

CASB

WAAS

Web

AppFW

ADEM

Vuln.

Mgmt.

?2023PaloAlto

27

$19B

NetworkSecurity2018TAM

17B

SecurityOps2018TAM

Networks,Inc.Allrightsreserved.

Note:thesizeofthebubblesinthechartisnotadjustedtoscale

IaC

Thesetransformationsendedup

drivingrapidgrowthincybersecurity

28

?2023PaloAltoNetworks,Inc.Allrightsreserved.

SecurityOps

$48B

$11B

CloudSecurity

2023TAM

2023TAM

Note:thesizeofthebubblesinthechartisnotadjustedtoscale

Thesetransformationsendedup

drivingrapidgrowthincybersecurity

$45B

NetworkSecurity

2023TAM

MadeInnovationthelifebloodofourmulti-productbusiness

Executed“Build&Buy”strategytobecomethelargestcyberplayer

~3.5xMarketCapgrowth1

Whatwehaveachieved

inthelast5years

ProvedPlatformsarethewaytodeliversecurity

outcomes

20+IndustryRecognitions180+majorreleasessinceFY19

29

?2023PaloAltoNetworks,Inc.Allrightsreserved.

1.Averagemarketcapforthefirst15daysinAugust2018tothefirst15daysinAugust2023;source:Bloomberg

Lookingahead

Shifttomorereal-timeand

autonomoussecurity

Thefuturewillrequireubiquitousplatformization

todeliverreal-timesecurityoutcomes

30?2023PaloAltoNetworks,Inc.Allrightsreserved.

Ouraddressablemarketcontinuestoexpand

ZeroTrust

Platform

~$80B

by2028

Securityfornetworktrafficmanagedcomprehensivelyviaasinglepaneofglass

CodetoCloud

Platform

~$40B

by2028

Scalableandcomprehensivesecurityacrossthecloudappdevelopmentlifecycle

Autonomous

SecurityOpsPlatform

~$90B

by2028

Securityreaching‘real-time’

usingthepowerofAIto

contendwithagilebadactors

31

?2023PaloAltoNetworks,Inc.Allrightsreserved.

Beanevergreeninnovation

Fortifyourmulti-categorylead

company

Makeourplatformsmorecomprehensive&ubiquitous

Delivernearreal-timesecurityoutcomes

LeverageAIacrossourportfolio

SuperchargeourProducts,Processes&People

Amplifyourgo-to-markettodeliverourambition

Driveubiquityacrosscustomers

Bethebestplacetoworkincybersecurity

Buildthemostcapableandmotivatedteam

Our

strategy

towin

?2023PaloAltoNetworks,Inc.Allrightsreserved.32

Our

strategy

towin

Innovation

Platformization

LeverageAI

Go-To-Market

Team

?2023PaloAltoNetworks,Inc.Allrightsreserved.33

Innovation

Platformization

LeverageAI

Go-To-Market

Team

Tostayaheadofrelentlessadversaries,wemust

beaninnovation-ledcybersecuritycompany

…andweplantoacceleratethepace

Ourinnovationpipelinedroveoursuccess…

Numberofmajorproductreleasesbyyear

74

~5x

49

29

22

13

2019

2021

2022

2023

2020

EnhancedbyAcquisitions

UnderpinningML/AIacrossourportfolio

ExpandingsensorsintonewpartsoftheestatelikeOT

Scoutingexternallyfornext-levelcapabilities&modules

InvestinginleadingedgeR&D,fromAIthreatstoquantum

?2023PaloAltoNetworks,Inc.Allrightsreserved.34

Innovation

Platformization

LeverageAI

Go-To-Market

Team

Weareenhancingourplatformsto

deliverreal-timesecurityoutcomes

ZEROTRUSTPLATFORM

ZERO

TRUST

PLATFORM

CODETO

CLOUD

PLATFORM

AUTONOMOUS

SECOPS

PLATFORM

Radicallymoreintegrationacrossform-factors…

Comprehensivenessacrossform-factorsenablingZeroTrust

‘Singlepaneofglass’offeringinstantaneousvisibility&response

CODETOCLOUDPLATFORM

Securitywillbeatthe‘speedofCloud’…

Traceabilitythroughintegrationacrosstheapplifecycle

‘Blockinreal-time’and‘fixatthesource’

AUTONOMOUSSECOPSPLATFORM

MTTRwillneedtogofromDaystoMinutes…

‘Real-timeremediation’bystitchingdataacrosssourcesandusingAI

Allsecurityproductswilleitherprovidedataoractasenforcementpoints

?2023PaloAltoNetworks,Inc.Allrightsreserved.35

Out-of-the-boxautomationtotakereal-timeaction

Innovation

Platformization

LeverageAI

Go-To-Market

Team

WewillleverageAIacrossourentireportfolio

UniqueAssets

Sensorsinstalled

across~48kcustomers1

4.86PBsofhighqualitydatacollectedperday

PrecisionAI

PrecisionAIwillallowustodeliverunparalleleddetectionandresponsetoachievenearreal-timesecurity

GenerativeAI

GenerativeAIwillredefineandsimplifyhowcustomersengagewithourproductsandservices

1.Referstoactivecustomersasof08/07/2023

?2023PaloAltoNetworks,Inc.Allrightsreserved.36

Innovation

Platformization

LeverageAI

Go-To-Market

Team

ContinuedevolutionofourGo-To-Marketmodel…

FROM

Transactionalvendor

Sellingproducts

Reactivehelp

〉

〉

〉

TO

Strategicpartnerhelpingcustomersontheirtransformationjourney

Architectingoutcomesjointlywithecosystemsolutionproviders

“Inittogether”mindset-drivingsuccessforeverycustomer

?2023PaloAltoNetworks,Inc.Allrightsreserved.37

withopportunitytomakeanimpact,flexibilitytogetthejobdoneand

challengingworktogrowanddevelop

byradicallyeliminatingfriction,

providinginformationattheirfingertipsanddrivingautonomywithaccountability

Innovation

Platformization

LeverageAI

Go-To-Market

Team

Deliveringonourstrategyisonlypossiblewiththebestteam

Wewillattractthebest…

BuiltonourBrandandReputation

…andempowerthem

SuperchargedbyGenerativeAI

40+EmployerAwardsinFY23

?2023PaloAltoNetworks,Inc.Allrightsreserved.38

Targetmarkets

undergoinginflection

Relentlessinnovationacrossall3platforms

CloserGTMpartnershipstoexpandplatformreach

GenAI-enabledemployee&operationalproductivity

PlatformandscalebenefitswithinR&D

AI-driventechnical

supporttransformation

Thecontinuedbusinesstransformation

ofPaloAltoNetworks…

Strong&sustainedtop-linegrowth

Software&Cloud

increasinglyfuelinggrowth

Uniqueopportunitytodeliverleveragebeyondexpectations

Integratedsalesforcewithscaleacrossplatforms

?2023PaloAltoNetworks,Inc.Allrightsreserved.39

Innovatingourway

tothreeleading

platforms

?2023PaloAltoNetworks,Inc.Allrightsreserved.40

Lee

Klarich

ChiefProductOfficer

?2023PaloAltoNetworks,Inc.Allrightsreserved.

Thethreatlandscapeisintensifying

Elevatedattackermotivation

$8Tcostofcybercrime1

Integralpartofmodernwarfare

Nation-stateeconomicgain

Techisenablingattacksatscale

Automatedattacksexecutedacrossregionswithin1hourofinitialcompromise2

>10millionpeopleand>1,700organizationsaffectedbysupplychainattacksin20223

Near-instant“trickledown”ofattacktechniques

Sources:

1

/cybercrime-to-cost-the-world-8-trillion-annually-in-2023/

;

2Unit42research:

/purpleurchin-steals-cloud-resources/

;

3

/wp-content/uploads/2023/01/ITRC

_2022-Data-Breach-Report_Final-1.pdf4

/malware

.

Organizationsareheavilyimpacted…

andit’sgettingworse

20xincreaseto1.3billionnew

maliciousprogramssince2014

1.3B

967M

594M

253M

62M

?2023PaloAltoNetworks,Inc.Allrightsreserved.42

Future

2008

2020

2023

2014

2017

2011

Industryaverage

6DAYS

toremediate

SECadoptedrule

4DAYS

todisclosematerialcybersecurityincident2

Attacksarehappeningfasterthanorganizationscanrespond

AverageDaysfrom“Compromise”to“Exfil”1

44

days

Latestattacks

30

days

5

days

Hours

2022

2023

2021

Sources:

1Unit42CloudThreatReport-Volume7,2023,Unit42EngagementExperience;

2UnderthenewSECRules,theoccurrenceofacybersecurityincidentmustbereportedwithinfour

businessdaysofwhentheincidentisdeterminedtobematerialbythereportingcompany.

AIwilltransformthethreatlandscape

WS.J

Usingatechniquecalled‘promptinjections’,hackers

canbreakAIsystemsusingplainEnglish

Aug10,2023

Andmany,manymoreusecases

AI-generatedmalware

AI-enhancedsocialengineering