TMTB: PANW CSCO First takes

Calls still ongoing….

PANW (-7%) revs beat but billings miss of $2.02 below street at $2.07 and bogeys of $2.10-$2.12. Billings guide of $2.34-2.39b (15-18%) was also below street at $2.41B and bogey of 18%-19%.

PANW reported revenue/EPS of $1.88b/$1.38 vs. Street at $1.84b/$1.16. Next gen security ARR of $3.23b was slightly ahead of Street at $3.11b.

Given where sentiment was heading into the print, not surprised its down 6%+ on the billings miss even though next gen ARR hit bogeys. Still confident in their 3 yr targets

“Our revenue, next-generation security ARR, and cRPO metrics best represent our top-line performance in Q1, while our billings were impacted by the cost of money.”

Cost of money…hmmm. Saying customers negotiating discounts if they have to pay up front bc cost of money has gone up.

CRWD ZS down 2% in sympathy

CSCO (-10%) doesn’t look good despite the Q1 beat. Sentiment wasn’t great heading in and we had heard neg checks from Clev, but this looks worse than expected wi…