Here's Why Palo Alto Networks Surged 57% in 2021

Palo Alto Networks (NASDAQ: PANW) gained 56.7% thanks to strong growth along with rising valuation multiples. It was a great operational year for the company, and it was pushed even higher as investors bought up cybersecurity stocks.

Palo Alto Networks' fiscal year ended in July, and it reported 27% revenue growth along with 36% bookings growth. The company was especially strong in its next-generation security products, indicating that it's gaining traction in key growth categories. That excellent sales expansion also drove improvements on the bottom line. Free cash flow grew to $1.4 billion for the fiscal year, a 30% increase over 2019 and 43% over 2020. This was all achieved alongside new product releases and a significant investment in growth. The company's R&D budget rose 15% while sales and marketing expenditures increased 30%, and free cash flow still rose dramatically.

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Source Fool.com