On this page of StockholderLetter.com we present the latest annual shareholder letter from Palo Alto Networks Inc — ticker symbol PANW. Reading current and past PANW letters to shareholders can bring important insights into the investment thesis.

 •  10/29/2024 Letter Continued (Full PDF)
 •  10/27/2023 PANW Stockholder Letter
 •  More "Application Software" Category Stockholder Letters
 •  PANW Benford's Law Stock Score = 81

PANW Shareholder/Stockholder Letter Transcript:

2024
ANNUAL REPORT &
PROXY STATEMENT
NOTICE OF ANNUAL
MEETING
M
EETING O
OF
F SHAREHOLDERS
SHAREHOLDERS

WHAT
Dr
WHAT WE
WE DO
OUR VISION
VISION
OUR
Palo Alto
Networks is
is the
Palo
Alto Networks
the global
global cybersecurity
cybersecurity leader,
leader,
committed to
day safer
safer than
than the
with
committed
to making
making each
each day
the one
one before
before with
in network
network security,
industry-leading,
AI-powered solutions
solutions in
security,
industry-leading, Al-powered
Precision
cloud security
security and
security operations.
operations. Powered
cloud
and security
Powered by
by Precision
AI   , our
deliver precise
detection and
AlTM,
precise threat
threat detection
and swift
swift
our technologies
technologies deliver
response, minimizing
minimizing false
positives and
and enhancing
response,
false positives
enhancing security
security
effectiveness.
Platformization approach
approach integrates
integrates diverse
effectiveness. Our
Our Platformization
diverse
security solutions
solutions into
scalable platform,
streamlining
unified, scalable
platform, streamlining
security
into a
a unified,
management and
and providing
providing operational
operational efficiencies
management
efficiencies with
with
protection.
comprehensive protection.
comprehensive
Our vision
is a
a world
Our
vision is
world where
where
each
safer and
more
each day
day is
is safer
and more
secure than
secure
than the
the one
one before
before
Cybersecurity
consolidation
Cybersecurity consolidation
is the
the future.
is
future. And
And we're
we   re
already
there.
already there.

Letter
Letter from
from our
our Chair
Chair
"The
by Design
   The rollout
rollout of
of our
our new
Secure Al
AI by
Design portfolio
portfolio has
has begun.
begun. Our
Our solutions,
new Secure
solutions,
are your
an Al-first
powered by
by Precision
Precision AITM,
AITM, are
your ultimate
ultimate defense
defense in
in an
AI-first world."
world.   
powered
Dear
Dear Fellow
Fellow Shareholders:
Shareholders:
have never
never been
more excited
excited about
about the
the future
future of
of our
our company
company and
and our
our industry.
industry. As
As II have
have expressed
expressed in
in this
this letter
letter over
over the
the
II have
been more
past
several years,
years, II am
am incredibly
incredibly proud
proud of
the work
Palo Alto
Alto Networks
and its
its employees
employees have
have done
done with
with our
our customers
past several
of the
work Palo
Networks and
customers
and partners
to achieve
achieve our
our vision
vision -- aa world
world where
where each
each day
day is
is safer
safer and
and more
more secure
secure than
than the
the one
one before.
before.
and
partners to
FISCAL
FISCAL 2024
2024 ACHIEVEMENTS
ACHIEVEMENTS
II am
pleased to
2024 was
performance by
by Palo
Networks. Our
am pleased
to report
report that
that fiscal
fiscal 2024
was another
another year
year of
of strong
strong financial
financial performance
Palo Alto
Alto Networks.
Our revenue
revenue of
of
$8.03 billion
(a 16%
16% year-over-year
year-over-year increase),
increase), Next-Generation
Security ("NGS")
(   NGS   ) annual
annual recurring
recurring revenue
revenue ("ARR")
(   ARR   ) of
of $4.22
$4.22 billion
billion
$8.03
billion (a
Next-Generation Security
(a 43%
43% year-over-year
year-over-year increase)
and remaining
remaining performance
performance obligations
obligations ("RPO")
(   RPO   ) of
of $12.7
$12.7 billion
billion (a
(a 20%year-over-year
20% year-over-year increase)
increase)
(a
increase) and
demonstrate
that our
our strategy
strategy is
is deeply
deeply resonating
resonating with
customers. At
At the
the heart
heart of
this performance
is the
the continued
demonstrate that
with customers.
of this
performance is
continued broad
broad
adoption of
of our
three platforms:
Security, Cloud
Cloud Security
Security and
and Security
Security Operations.
Operations. In
In Network
Security, we
we continued
adoption
our three
platforms: Network
Network Security,
Network Security,
continued
to see
see our
our firewall-as-a-platform
firewall-as-a-platform billings
grow in
in a
a healthy
healthy manner,
manner, up
up 17%
17% in
in fiscal
fiscal year
year 2024,
2024, driven
driven by
in our
our
to
billings grow
by growth
growth in
SASE
and software
become the
the first
SASE and
software firewall
firewall offerings.
offerings. Our
Our Cloud
Cloud Security
Security platform
platform maintained
maintained momentum
momentum to
to become
first pure-play
pure-play
cybersecurity cloud
security business
business to
to achieve
achieve $700
million in
in ARR'.
ARR1. In
In Security
Security Operations,
Operations, we
we saw
saw our
our Cortex  
Cortex   platform
platform
cybersecurity
cloud security
$700 million
exceed
$900 million
platform for
security operations.
exceed $900
million in
in ARR,
ARR, and
and firmly
firmly established
established Cortex
Cortex XSIAM  
XSIAM   as
as the
the transformation
transformation platform
for security
operations.
In fiscal
fiscal 2024,
2024, Cortex
Cortex XSIAM
XSIAM achieved
achieved approximately
approximately $500
million in
in bookings,
bookings, up
up more
than 2x
2x versus
versus fiscal
fiscal 2023.
2023.
In
$500 million
more than
None
of these
these accomplishments
accomplishments are
are possible
without the
the dedication
and engagement
15,000 employees,
None of
possible without
dedication and
engagement of
of our
our over
over 15,000
employees,
located all
all over
the world.
world. We
We believe
believe our
our ongoing
ongoing success
success depends
our employees.
employees. We
We continue
to prioritize
prioritize an
an
located
over the
depends on
on our
continue to
employee-centric people
grounded on
on core
core tenets
tenets of
of personalization,
fairness and
and equity,
equity, and
and choice
choice that
are
employee-centric
people strategy
strategy grounded
personalization, fairness
that are
workplace
built
upon our
values of
of disruption,
disruption, execution,
execution, collaboration,
collaboration, inclusion,
inclusion, and
and integrity.
integrity. We
We are
are proud
proud of
of the
the workplace
built upon
our core
core values
recognitions that
that the
the company
received in
in fiscal
fiscal 2024,
2024, including
including Newsweek   s
   Global Most
Workplaces   ,
recognitions
company received
Newsweek's "Global
Most Loved
Loved Workplaces",
Equality Index's
Comparably   s "Best
   Best Company
Company Culture"
Culture    and
and "Best
   Best Company
Company for
for Women"
Women    and
and Disability
Disability Equality
Index   s "Best
   Best Places
Places to
to Work
Work
Comparably's
for People
People with
with Disabilities."
Disabilities.   
for
LOOKING AHEAD
AHEAD
LOOKING
As we
we look
look to
to fiscal
fiscal 2025
2025 and
and beyond,
Palo Alto
Alto Networks
continues to
to build
build on
on its
its strong
strong foundation
foundation of
transformative
Networks continues
of transformative
As
beyond, Palo
innovation,
innovation, financial
financial performance
performance and
and profitable
profitable growth.
growth. Our
Our customers   
buy-in and
and our
our leadership
leadership positions
positions across
across
customers' buy-in
cybersecurity gives
gives me
me conviction
conviction that
that this
this is
is the
the time
for us
us to
to invest
in our
our long-term
long-term growth.
In fiscal
fiscal 2024,
2024, we
we embarked
cybersecurity
time for
invest in
growth. In
embarked
on
on an
an ambitious
ambitious plan
plan to
to accelerate
accelerate Platformization
Platformization -- our
our strategy
to accelerate
accelerate customer
customer adoption
adoption of
of our
our platforms
across
strategy to
platforms across
our portfolio.
portfolio. While
While there
there is
more work
work to
to be
be done,
done, II am
am pleased
pleased with
with the
the early
early momentum
momentum that
that we
we achieved
achieved with
with our
our
our
is more
Platformization strategy
fiscal 2024,
2024, and
and we
we expect
this strategy
strategy to
to be
a driving
force toward
toward our
our goal
goal of
of $15
$15 billion
billion in
in NGS
Platformization
strategy in
in fiscal
expect this
be a
driving force
NGS
ARR in
in 2030.
2030.
ARR
Achievement of
of our
our aspirations
aspirations cannot
cannot be
be done
done without
without talking
talking about
about artificial
artificial intelligence
(   AI   ). In
In 2024,
2024, we
we witnessed
witnessed
Achievement
intelligence ("Al").
the
generative Al,
continued momentum
the acceleration
acceleration of
of our
our efforts
efforts to
to innovate
innovate with
with the
the arrival
arrival of
of generative
AI, the
the continued
momentum of
of Cortex
Cortex XSIAM
XSIAM
and the
the introduction
Secure Al
AI by
offerings    
AI Access
Access Security
Security ("Al
(   AI Access"),
Access   ), Al
AI security
security posture
posture
and
introduction of
of our
our Secure
by Design
Design product
product offerings
    Al
management
management ("Al-SPM")
(   AI-SPM   ) and
and Al
AI Runtime
Runtime Security
Security ("Al
(   AI Runtime"),
Runtime   ), as
as well
well as
as our
our Precision
Precision AITM
AITM security
security bundle.
bundle. We
We
introduced Al
AI Access
Access to
to enable
enable organizations'
organizations    workforces
workforces to
to use
AI tools
tools with
confidence, giving
giving security
security teams
teams full
full visibility,
visibility,
use Al
with confidence,
introduced
robust controls,
controls, data
and proactive
threat prevention
measures. With
With Al-SPM,
AI-SPM, we
we are
are securing
securing our
our customers'
customers   
robust
data protection
protection and
proactive threat
prevention measures.
AI ecosystem
ecosystem by
identifying vulnerabilities
vulnerabilities and
and prioritizing
prioritizing misconfigurations
misconfigurations in
in models,
models, applications
applications and
and resources.
resources. And
And
Al
by identifying
with
organizations to
confidently build
build Al-powered
with Al
AI Runtime,
Runtime, we
we are
are helping
helping organizations
to confidently
AI-powered applications
applications by
by securing
securing their
their entire
entire Al
AI
application ecosystem,
ecosystem, protecting
protecting against
against runtime
runtime threats.
threats. II personally
AI is
is going
to be
be one
of the
inflection
personally believe
believe Al
going to
one of
the biggest
biggest inflection
application
points in
over a
increase the
points
in technology
technology in
in over
a decade
decade and
and likely,
likely, more
more importantly,
importantly, to
to significantly
significantly increase
the total
total addressable
addressable market
market in
in
cybersecurity. Our
Our heritage
heritage of
of innovation
innovation     and
and our
our instinct
instinct to
to always
always have
have an
an eye
eye on
on the
the frontier
frontier of
of technological
technological innovation
innovation
cybersecurity.
    prepares
us to
to harness
harness the
the power
power of
of aa new
new generation
of Al
AI capabilities.
capabilities. We
We look
look forward
forward to
to more
more opportunities
opportunities ahead
ahead
prepares us
generation of
as we
we remain
committed to
to the
the long-term
long-term interests
interests of
of our
our shareholders
shareholders and
and a
a broad
broad range
range of
critical to
to our
our
as
remain committed
of stakeholders
stakeholders critical
success, including
including employees,
employees, customers,
the communities
operate in,
and our
our partners
partners and
and suppliers.
suppliers.
success,
customers, the
communities we
we operate
in, and
(1)
(1)
Cloud
Cloud Security
Security ARR
ARR represents
represents annual
annual recurring
recurring revenue
revenue for
for Prisma
Prisma Cloud
Cloud and
and VM-Series
VM-Series consumed
in the
the public
cloud.
consumed in
public cloud.
2024
2024 Proxy
Proxy Statement
Statement
paloajtp:
3
3

Letter
Letter from
from our
our Chair
Chair
OUR
MEETING
OUR ANNUAL
ANNUAL MEETING
As in
in the
the past,
past, this
this year's
year   s Proxy
Proxy Statement
Statement is
is constructed
constructed to
to maximize
maximize clarity
clarity and
and
As
understanding about
about the
the company   s
successes and
and challenges.
challenges. Several
Several of
of our
understanding
company's strategies,
strategies, successes
our
key initiatives
initiatives are
prefacing here.
key
are worth
worth prefacing
here.
Shareholder Engagement.
Engagement. We
We remain
remain guided
guided by,
by, and
and appreciative
appreciative of,
of, the
the perspectives
Shareholder
perspectives
of our
our shareholders
shareholders as
as expressed
expressed through
through their
their engagement
engagement with
with us.
us. Due,
Due, in
in part,
to the
the
part, to
of
disappointing "Say-on-Pay"
disappointing
   Say-on-Pay    vote
vote result
result at
at our
our 2023
2023 annual
annual meeting,
meeting, we
redoubled our
our
we redoubled
of
efforts and
and engaged
engaged in
in discussions
discussions with
with shareholders
holding approximately
approximately 55%
55% of
efforts
shareholders holding
our outstanding
outstanding shares
as of
of June
June 30,
2024. We
We conversed
conversed with
with you
you on
on aa wide
wide variety
variety of
of
our
shares as
30, 2024.
topics, including
including executive
executive compensation,
compensation, business
business strategy,
strategy, risk
risk management
management oversight,
oversight,
topics,
sustainability, inclusion
inclusion and
and diversity,
and corporate
corporate governance.
governance. We
We understand
understand the
the
sustainability,
diversity, and
importance of
of having
having a
a true
true dialogue
dialogue with
with our
our investors,
investors, and
and we
we are
are committed
committed to
to
importance
coming year.
meaningful outreach
outreach and
and discussion
with our
our shareholders
shareholders in
in the
the coming
year.
meaningful
discussion with
Executive Compensation.
Compensation. We
We remain
remain committed
to an
an executive
executive compensation
compensation
Executive
committed to
program
that is
is truly
truly pay-for-performance.
fiscal 2024,100%
2024, 100% of
of our
our named
named
program that
pay-for-performance. For
For fiscal
executive officers   
equity compensation
compensation awards
awards were
were performance-based,
with
executive
officers' equity
performance-based, with
different performance
performance targets
cash incentive
plan awards,
of my
different
targets than
than the
the cash
incentive plan
awards, and
and over
over 97%
97% of
my
compensation and,
and, on
average, approximately
approximately 94%
94% of
of our
our other
other named
named executive
executive officers'
officers   
compensation
on average,
compensation was
was performance-based.
performance-based. Understanding
Understanding that
that you
you were
were not
not completely
completely
compensation
satisfied with
our executive
executive compensation
in fiscal
fiscal 2024,
our Compensation
Compensation and
and
satisfied
with our
compensation program
program in
2024, our
People Committee
Committee made
made a
a number
number of
of important
important changes
to our
our executive
executive compensation
compensation
People
changes to
programs
for fiscal
fiscal 2025,
to the
the equity
equity compensation
we
2025, particularly
particularly to
compensation program,
program, which
which we
programs for
believe
address the
the core
concerns raised
raised by
by you.
you. In
In the
the pages
pages that
that follow,
follow, our
our Lead
believe address
core concerns
Lead
Independent
and our
Independent Director,
Director, John
John Donovan,
Donovan, and
our Compensation
Compensation and
and People
People Committee
Committee
detail.
describe
these changes
to you
you in
in detail.
describe these
changes to
Our Commitment
Commitment to
to Responsible
Responsible Business
Business Practices.
Practices. We
We recognize
recognize our
our
Our
responsibilities to
to provide
provide safety,
safety, security
security and
and sustainability
to our
suppliers,
responsibilities
sustainability to
our workforce,
workforce, suppliers,
communities
communities and
and environment.
environment. Elsewhere
Elsewhere in
in this
this Proxy
Proxy Statement,
Statement, we
we discuss
our efforts
efforts
discuss our
throughout
2024 to
throughout fiscal
fiscal 2024
to reduce
reduce our
our impacts
impacts on
on climate
climate change,
change, to
to invest
invest in
in our
our people
people
and our
our communities,
and to
to operate
operate with
integrity in
in all
all we
we do.
Your Board
and executive
executive
and
communities, and
with integrity
do. Your
Board and
leadership team
team take
take seriously
seriously their
their duty
to oversee
oversee these
these environmental,
environmental, social
social and
and
leadership
duty to
governance
strategies and
and are
are proud
of our
our progress
to date.
governance strategies
proud of
progress to
date.
ON_
Network Security
STRATA I PRISMA SASE
Best-in-class security
delivered across
hardware, software
and SASE
Cloud Security
PRISMA CLOUD
Comprehensive
platform to secure
everything that runs
in the cloud
You
Meeting of
of Palo
Palo Alto
You are
are cordially
cordially invited
invited to
to attend
attend the
the 2024
2024 Annual
Annual Meeting
of Shareholders
Shareholders of
Alto
Networks,
Inc. to
to be
held on
on Tuesday,
Tuesday, December
10, 2024
2024 at
at 11:00
11:00 AM.,
A.M., Pacific
Pacific Time.
Time.
December10,
Networks, Inc.
be held
This
This year's
year   s annual
annual meeting
meeting will
will be
be aa virtual
virtual meeting
meeting conducted
conducted via
via a
a live
live webcast.
webcast. You
You
will
questions, and
will be
be able
able to
to listen
listen to
to the
the annual
annual meeting,
meeting, submit
submit your
your questions,
and vote
vote during
the
during the
live
of the
by visiting
live webcast
webcast of
the meeting
meeting by
visiting www.virtualshareholdermeeting.com/PANW2024
www.virtualshareholdermeeting.com/PANW2024
and entering
entering the
the 16-digit
16-digit control
control number
number included
included in
in our
our Notice
Notice of
of Internet
Internet Availability
Availability of
of
and
Proxy Materials,
your proxy
proxy card,
in the
the instructions
instructions that
that accompanied
accompanied your
your proxy
Proxy
Materials, on
on your
card, or
or in
proxy
materials.
did not
materials. If
If you
you did
not receive
receive aa 16-digit
16-digit control
control number,
number, please
please reach
to your
your broker
reach out
out to
broker
for
for further
further instructions.
instructions.
On behalf
of our
we thank
thank you
you for
for your
your investment
investment in
in Palo
Palo Alto
Alto Networks
Networks and
and for
for
our Board,
Board, we
On
behalf of
your continued
continued trust.
trust. We
We look
look forward
forward to
to the
the annual
annual meeting
meeting on
on December
December 10,
10, 2024.
2024.
your
Thank
Thank you,
you,
Nikesh
Nikesh Arora
Arora
Chair
Chair and
and Chief
Chief Executive
Executive Officer
Officer
4
4
palomIto  
Security Operations
CORTEX
A new approach to
SOC with fully
integrated data,
analytics and
automation, wrapped
with strategic services
capability
For important
important information
information regarding
regarding our
our
For
use of
of forward-looking
forward-looking statements,
statements, please
please
use
see page
page 8
of this
this proxy
proxy statement.
statement.
see
8 of
2024 Proxy
2024
Proxy Statement
Statement

Letter
Letter from
from our
our Lead
Director
Lead Independent
Independent Director
"The
   The Board
Board recognizes
recognizes that
that we
we are
leading this
this company
company for
for our
shareholders   
are leading
our shareholders'
benefit.
for the
benefit. Thank
Thank you
you for
the trust
trust you
you place
in us
us and
the opportunity
to serve
serve you
place in
and the
opportunity to
you
and our
company as
as directors."
directors.   
and
our company
Dear Fellow
Fellow Shareholders:
Shareholders:
Dear
As
director of
of the
Palo Alto
Directors, II wanted
write to
separately this
As the
the lead
lead independent
independent director
the Palo
Alto Networks
Networks Board
Board of
of Directors,
wanted to
to write
to you
you separately
this
year to
to cover
cover topics
topics of
to you
you as
as shareholders.
As always,
always, the
the Board's
Board   s primary
responsibility was
was to
to oversee
oversee the
the
year
of interest
interest to
shareholders. As
primary responsibility
company   s efforts
efforts to
to deliver
meaningful and
and sustainable
sustainable value
value to
to our
our shareholders.
shareholders.
company's
deliver meaningful
FISCAL
FISCAL 2024
2024 HIGHLIGHTS
HIGHLIGHTS
The company
company had
had another
another successful
successful year,
year, both
financially and
and technologically.
technologically. Through
Through the
the dedicated
efforts of
of our
our
The
both financially
dedicated efforts
executive team
team and
and employees,
employees, we
we achieved
record financial
financial results,
as discussed
discussed in
in our
our Chair's
Chair   s letter,
letter, and
and were
were at
at the
the
executive
achieved record
results, as
forefront of
of innovation,
innovation, particularly
particularly with
with the
the launch
launch of
of our
our Secure
Secure Al
AI by
Design product
powered by
Precision AITM
AITM..
forefront
by Design
product offerings
offerings powered
by Precision
In addition,
addition, we
are thrilled
thrilled to
to have
have completed
acquisitions that
that further
further our
our mission
mission to
to be
the cybersecurity
cybersecurity partner
of
In
we are
completed acquisitions
be the
partner of
choice, protecting
our digital
digital way
way of
life. The
The acquisition
acquisition of
of Talon"'
Talon    Cyber
Cyber Security
Security led
led to
to our
of SASE's
SASE   s first
first nativelynativelychoice,
protecting our
of life.
our launch
launch of
integrated
browser, which
integrated enterprise
enterprise browser,
which has
has attracted
attracted more
more attention
attention to
to our
our SASE
SASE offerings,
and helps
helps secure
secure work
work for
for users
users
offerings, and
on any
any managed
managed or
or unmanaged
unmanaged device,
device, working
in any
any location,
location, on
on any
any web
web application.
application. In
In addition,
addition, the
the Board
is excited
excited by
Board is
by
on
working in
the
prospects of
partnership with
will further
the prospects
of our
our expanding
expanding partnership
with IBM
IBM and
and expect
expect it
it will
further accelerate
accelerate the
the adoption
adoption of
of Cortex
Cortex XSIAM  .
XSIAM  .
The Board
that the
the company
company and
and the
the cybersecurity
industry are
are at
at an
an inflection
inflection point
as a
a result
result of
of the
the advances
advances
The
Board believes
believes that
cybersecurity industry
point as
in
consolidation to
in generative
generative Al
AI and
and the
the need
need for
for vendor
vendor consolidation
to deliver
deliver optimal
optimal cybersecurity
outcomes. With
With our
platform
cybersecurity outcomes.
our broad
broad platform
of products,
products, Palo
Palo Alto
Alto Networks
is uniquely
uniquely situated
situated to
to benefit
benefit from
from these
these conditions.
the completion
completion of
of the
the first
first
conditions. Following
Following the
of
Networks is
half
2024, the
half of
of fiscal
fiscal 2024,
the company
company made
made a
a strategic
strategic shift
shift to
to focus
focus even
even more
more intentionally
intentionally on
on Platformization
Platformization to
to accelerate
accelerate the
the
broad
adoption of
of our
our product
We expected
expected this
this strategic
shift to
to meaningfully
meaningfully increase
increase long-term
long-term shareholder
shareholder
strategic shift
broad adoption
product platforms.
platforms. We
value
even though
value creation,
creation, even
though these
these longer-term
longer-term benefits
would come,
in part,
at the
expense of
of certain
certain elements
elements of
of our
our
benefits would
come, in
part, at
the expense
short-term performance.
Our executive
executive team
team enthusiastically
enthusiastically embraced
embraced this
this strategy
despite the
the negative
negative impact
impact it
it could
short-term
performance. Our
strategy despite
could
have had
had on
their compensation.
This ultimately
lead to
to the
the fiscal
fiscal 2024
2024 portion
portion of
of recent
recent equity
equity awards
resulting in
in 0%
have
on their
compensation. This
ultimately lead
awards resulting
0%
payout
attributable to
to fiscal
fiscal 2024
performance.
payout attributable
2024 performance.
SHAREHOLDER ENGAGEMENT
ENGAGEMENT AND
AND EXECUTIVE
EXECUTIVE COMO.
COMPENSATION
SHAREHOLDER
=1.0.411,01.
During
During fiscal
fiscal 2023,
2023, the
the Compensation
Compensation and
and People
People Committee
Committee of
of our
our
Board
granted Nikesh
Arora, our
Chief Executive
Officer, aa significant
significant
Nikesh Arora,
our Chief
Executive Officer,
Board granted
performance-based
restricted stock
unit retention
retention award.
award. The
The
performance-based restricted
stock unit
committee reached
reached its
its decision
decision following
following a
a rigorous
rigorous and
and data-driven
committee
data-driven
assessment, concluding
concluding that
that Nikesh
had typified
typified our
our leadership
leadership ethos
ethos
assessment,
Nikesh had
    one
one that
that values
values high
high integrity
integrity and
and high
high performance
performance for
for the
the benefit
benefit
of our
our shareholders.
shareholders. The
The committee
also recognized
recognized that
that he
he led
led the
the
of
committee also
transformation
of our
our company
company from
transformation of
from aa market
market leader
leader in
in next
next generation
generation
firewalls into
into the
the world   s
cybersecurity leader,
leader, with
with best-of-breed
firewalls
world's cybersecurity
best-of-breed
products
across network
network security,
security, cloud
security and
and security
operations.
products across
cloud security
security operations.
During his
his tenure,
tenure, our
financial performance
and product
product innovation
innovation has
has
During
our financial
performance and
accelerated, and
and our
our market
market capitalization
increased from
from $19.1
$19.1 billion
capitalization increased
billion
accelerated,
day prior
prior to
to announcing
Nikesh as
(as of
May 31,
31, 2018,
the last
last trading
trading day
announcing Nikesh
as
(as
of May
2018, the
our Chief
Chief Executive
Executive Officer)
Officer) to
to $76.5
$76.5 billion
billion (as
(as of
of July
July 31,
31, 2023,
the last
last
2023, the
our
day
of fiscal
fiscal 2023),
and it
it continued
continued to
to increase
increase substantially
substantially throughout
throughout
day of
2023), and
fiscal 2024.
With Nikesh
at the
the helm,
helm, Palo
Palo Alto
Alto Networks
has delivered
delivered
fiscal
2024. With
Nikesh at
Networks has
extraordinary value
value creation
creation for
for our
and has
has become
the
extraordinary
our shareholders
shareholders and
become the
company in
largest pure-play
in the
the world.
world.
largest
pure-play cybersecurity
cybersecurity company
2024
2024 Proxy
Proxy Statement
Statement
21
21
Meetings
investors
Meetings with
with investors
33%
Representing 33%
33% of
of our
our outstanding
outstanding
Representing
shares, while
investors
shares,
while offering
offering meetings
meetings to
to investors
representing
representing 47%
47% of
outstanding shares
shares
of our
our outstanding
30, 2024).
(each as
as of
of June
June 30,
2024).
(each
palositb:
5



 10/29/2024 Letter Continued (Full PDF)