Palo Alto Networks CEO Remains Optimistic Despite Quarterly Weakness

Palo Alto Networks CEO Nikesh Arora stated that demand for cybersecurity remains high, despite the company issuing weaker billings guidance. While the market was concerned about the guidance, Arora explained that rising interest rates have led to longer payment conversations with clients, affecting the billings number. Arora emphasized that there is tremendous demand for cybersecurity as attacks continue to rise. He also suggested that billings may not be the most important metric, highlighting the company's profitability and cash flow, as well as the growth of remaining performance obligations.