[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Sergey [@SergeyCYW](/creator/twitter/SergeyCYW) on x 6319 followers Created: 2025-07-21 14:57:22 UTC Conclusion $PANW is leaning into platformization—offering select products for free short-term to drive long-term lock-in. The strategy appears to be working: revenue growth has re-accelerated over the past two quarters. With a $110B TAM growing at +14% CAGR, and just X% market capture via $4.8B in ARR, Palo Alto Networks has room to run. Its wide economic moat—built on switching costs, network effects, and deep integration across cloud, network, and security ops—continues to be its strongest defense in an increasingly competitive space. Leading Indicators: • RPO growth of +19.5% outpaced revenue growth • Billings grew +12.1%, lower than revenue growth • Net new ARR additions strong +8 YoY, while NGS ARR grew +35% YoY, outpacing total revenue growth Key Indicators • CAC Payback Period slightly improved to XXX months, which is much better than average • RDI Score increased slightly to 0.99, but remains below the median of other SaaS companies I track The forecast for next quarter points to a stabilization in revenue growth, supported by leading indicators such as RPO and NGS ARR growth outpacing revenue, and a net new ARR increase of +8% YoY. Improvements in the CAC Payback Period and RDI Score suggest meaningful progress. It’s likely that the slowest revenue growth point (+12.1% YoY in Q2 FY2024) is behind us, as Palo Alto’s platformization strategy starts to show real traction. The company is trading at a Forward EV/Sales multiple above its historical average, and near all-time highs. Still, valuation appears fair relative to peers, given the company’s long-term growth outlook. Palo Alto is leaning hard into platformization—offering some products temporarily for free to drive customer retention and long-term growth, even if it means deferring some revenue today. This shift has clearly contributed to the noticeable revenue growth slowdown over the past year, but the recent positive inflection in revenue suggests that platformization was not just a defensive move under competitive pressure—but a strategic pivot that's beginning to pay off. That said, there are still concerns: subscription and support revenue growth slowed to +15.2% YoY, and gross margin in this segment dipped slightly to 75.4%. I’m currently on the sidelines with $PANW, but closely tracking the company’s performance. I believe cybersecurity remains one of the most attractive sectors for long-term investing. XXX engagements  **Related Topics** [networks](/topic/networks) [$48b](/topic/$48b) [$110b](/topic/$110b) [quarterly earnings](/topic/quarterly-earnings) [lockin](/topic/lockin) [$panw](/topic/$panw) [stocks technology](/topic/stocks-technology) [Post Link](https://x.com/SergeyCYW/status/1947309936553374041)
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Sergey @SergeyCYW on x 6319 followers
Created: 2025-07-21 14:57:22 UTC
Conclusion $PANW is leaning into platformization—offering select products for free short-term to drive long-term lock-in. The strategy appears to be working: revenue growth has re-accelerated over the past two quarters.
With a $110B TAM growing at +14% CAGR, and just X% market capture via $4.8B in ARR, Palo Alto Networks has room to run.
Its wide economic moat—built on switching costs, network effects, and deep integration across cloud, network, and security ops—continues to be its strongest defense in an increasingly competitive space.
Leading Indicators: • RPO growth of +19.5% outpaced revenue growth • Billings grew +12.1%, lower than revenue growth • Net new ARR additions strong +8 YoY, while NGS ARR grew +35% YoY, outpacing total revenue growth
Key Indicators • CAC Payback Period slightly improved to XXX months, which is much better than average • RDI Score increased slightly to 0.99, but remains below the median of other SaaS companies I track
The forecast for next quarter points to a stabilization in revenue growth, supported by leading indicators such as RPO and NGS ARR growth outpacing revenue, and a net new ARR increase of +8% YoY.
Improvements in the CAC Payback Period and RDI Score suggest meaningful progress. It’s likely that the slowest revenue growth point (+12.1% YoY in Q2 FY2024) is behind us, as Palo Alto’s platformization strategy starts to show real traction.
The company is trading at a Forward EV/Sales multiple above its historical average, and near all-time highs. Still, valuation appears fair relative to peers, given the company’s long-term growth outlook.
Palo Alto is leaning hard into platformization—offering some products temporarily for free to drive customer retention and long-term growth, even if it means deferring some revenue today.
This shift has clearly contributed to the noticeable revenue growth slowdown over the past year, but the recent positive inflection in revenue suggests that platformization was not just a defensive move under competitive pressure—but a strategic pivot that's beginning to pay off.
That said, there are still concerns: subscription and support revenue growth slowed to +15.2% YoY, and gross margin in this segment dipped slightly to 75.4%.
I’m currently on the sidelines with $PANW, but closely tracking the company’s performance. I believe cybersecurity remains one of the most attractive sectors for long-term investing.
XXX engagements
Related Topics networks $48b $110b quarterly earnings lockin $panw stocks technology