On face and the top line, results were decent - 50% yoy revenue growth to new all times highs in ttm revenue, but what about the bottom line? This is below the ~100% revenue growth from before, but nothing to sneer at either. But what about the bottom line?
"GAAP net loss for the fiscal first quarter was $3.5 million, or $0.05 per basic and diluted share, compared with net income of $4.1 million, or $0.00 per basic and diluted share, in the fiscal first quarter of 2012"
Despite such great top-line growth, eps went negative versus 12-months ago, what gives?
General R&D, Sales and Marketing and General & Administrative costs all grew at 80% yoy, outstripping revenue growth. Sure, a growth company often incurs growing pains/costs, but revenue growth has be decreasing (50% yoy vs 100% from 2011 to 2012), while costs are still rising at a faster rate?
In particular, the Sales & Marketing expense nearly doubled - if PANW's products are so game-changing, why does it need to spend almost 2/3rds of the new revenue on new sales alone (85-57 revs vs 42-22 sales & marketing change)?
Disclosure: I am short PANW
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