Palo Alto Networks (NYSE: PANW) reported its first quarter financial results after the closing bell on Monday. The Company reported better-than-expected earnings and revenue for the quarter, but shares fell by 12% on a weaker-than-expected guidance.

For the quarter, Palo Alto reported earnings of USD 1.05 per share on revenue of USD 771.9 Million. FactSet analysts anticipated earnings of USD 1.03 per share on revenue of USD 768 Million.

Total revenue for the quarter grew by 18% year-over-year compared to USD 656.0 Million the same period a year ago. However, non-GAAP net income declined to USD 104.8 Million versus USD 115.4 Million a year ago.

Palo Alto’s revenue during the quarter was driven by the growth in its subscription and support segment. The segment reported total revenues of USD 540.7 Million, increasing from USD 415.5 Million a year ago.

The Company’s product segment slightly fell to USD 231.2 Million in comparison to USD 240.5 Million the same quarter a year prior.

Billings during the quarter increased by 18% year-over-year to USD 897.4 Million.

"Palo Alto Networks' multi-platform approach to security is clearly resonating with our customers. Our Next-Gen Security offerings performed extremely well in our first fiscal quarter, bolstering our confidence in our long-term prospects for Prisma and Cortex," said Nikesh Arora, Chairman and Chief Executive Officer of Palo Alto Networks. "At our recent Ignite conference, we introduced significant product enhancements, including Cortex XDR 2.0, SD-WAN and DLP capabilities for Prisma Access and the integration of Twistlock and PureSec into Prisma Cloud, that should sustain this momentum. Additionally, we expect our proposed acquisition of Aporeto, announced today, will further extend our leadership in cloud security."

Based on the quarterly results, Palo Alto is forecasting earnings between USD 1.11 to USD 1.13 per share on revenue in the range of USD 838 Million to USD 848 Million for the second quarter. The Company’s forecast is much lower than analysts’ projections earnings of USD 1.30 per share.

Moreover, Palo Alto is expecting earnings of USD 4.90 to USD 5.00 per share on revenue in the range of USD 3.44 Billion to USD 3.48 Billion for the full-year.