Palo Alto Networks, Inc. (NASDAQ:PANW) Q2 2023 Earnings Call Transcript

Ben Bollin: Good afternoon, everyone. Thank you for taking the question. Nikesh, you’ve talked about some GSI opportunities in the past. I’m interested in how you see that channel developing? What type of tail you see there? And how meaningful your platform is becoming for those partners? Thanks.

Nikesh Arora: Thanks, Ben. I used to say that, about a year ago that, I’ve had more CIO conversations in a quarter than I did in many years. I’d now say that about GSIs. I’d say in the last six months, I’ve had more GSI conversations than I had in the first five years of Palo Alto, or four and a half years of Palo Alto, right? And the reason is GSIs are interested in transformation. They’re interested in where they can go into a customer and deploy a much better security outcome for them. We were not relevant as a firewall company with SASE, with cloud security, with now XSIAM, they see a real opportunity to go in and do some transformation for their customers. And transformation for them means revenue to them and means a solid product in the back.

I’d say most GSIs are still early is in their journey to build a full cybersecurity competency across the board. And there, they’d rather deal with lesser vendors than more. So, us being leaders in certain categories, plays into our strength and our ability to partner with them. I think you — we are already, without specifically calling out deals, there are many deals where we are partnered with GSIs, where they are the front. We work with them to be as part of a larger transformation project, and we’re seeing more and more of that.

Clay Bilby: With that, we conclude the Q&A portion of our call today. I’ll turn it back over to Nikesh for his final remarks.

Nikesh Arora: Look, first of all, I want to thank all of you for joining our call. I also want to thank our employees, who work really hard towards delivering these results. I have to say six months ago, when we’ve started to see warning signs, we pivoted hard. We made sure that our teams got ahead of it, and they have delivered. So, I want to thank all of them for their contribution. As I said, this is this is a challenging macro environment out there. And the only way we’re going to get through this as Palo Alto Networks is to keep our head down and execute. And that’s what we intend to do. Once again, thank you, guys and see you next quarter.