Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Palo Alto Networks Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019	Jul 31, 2018
Net income (loss)	439,700)	(267,000)	(498,900)	(267,000)	(81,900)	(147,900)
Share-based compensation for equity-based awards	1,074,500)	1,011,100)	894,500)	658,400)	567,700)	496,700)
Depreciation and amortization	282,200)	282,600)	260,400)	206,100)	153,800)	96,400)
(Gain) loss related to facility exit	—)	—)	—)	(3,100)	7,000)	41,100)
Amortization of deferred contract costs	413,400)	362,100)	298,000)	254,400)	223,800)	—)
Amortization of debt discount and debt issuance costs	6,700)	7,200)	142,900)	73,900)	70,200)	28,800)
Reduction of operating lease right-of-use assets	49,900)	54,400)	44,500)	47,400)	—)	—)
Amortization of investment premiums, net of accretion of purchase discounts	(52,200)	13,500)	13,100)	(6,200)	(17,500)	500)
Loss on conversions of convertible senior notes	—)	—)	—)	—)	2,600)	—)
Repayments of convertible senior notes attributable to debt discount	—)	—)	(100)	—)	(97,600)	—)
Accounts receivable, net	(320,300)	(902,000)	(172,400)	(435,600)	(108,700)	(33,000)
Financing receivables, net	(738,700)	(30,100)	(272,600)	—)	—)	—)
Deferred contract costs	(431,900)	(458,800)	(440,800)	(407,400)	(361,100)	—)
Prepaid expenses and other assets	(265,300)	(110,900)	(26,500)	(1,600)	28,600)	(125,500)
Accounts payable	1,000)	69,300)	(11,800)	(12,800)	32,300)	3,700)
Accrued compensation	84,400)	30,400)	105,100)	75,700)	66,800)	44,200)
Accrued and other liabilities	(67,600)	(47,100)	(28,500)	(39,800)	(20,600)	44,900)
Deferred revenue	2,301,700)	1,970,000)	1,196,100)	893,300)	590,200)	587,100)
Changes in operating assets and liabilities, net of effects of acquisitions	563,300)	520,800)	348,600)	71,800)	227,500)	521,400)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	2,337,800)	2,251,700)	2,001,900)	1,302,700)	1,137,500)	1,184,900)
Net cash provided by operating activities	2,777,500)	1,984,700)	1,503,000)	1,035,700)	1,055,600)	1,037,000)
Purchases of investments	(5,460,400)	(2,271,700)	(1,958,900)	(1,180,800)	(2,984,600)	(725,700)
Proceeds from sales of investments	965,900)	449,200)	131,100)	314,000)	6,500)	—)
Proceeds from maturities of investments	2,811,500)	1,118,900)	1,240,500)	1,952,700)	2,057,100)	691,800)
Business acquisitions, net of cash acquired	(204,500)	(37,000)	(777,300)	(583,500)	(773,700)	(374,100)
Purchases of property, equipment, and other assets	(146,300)	(192,800)	(116,000)	(214,400)	(131,200)	(112,000)
Net cash (used in) provided by investing activities	(2,033,800)	(933,400)	(1,480,600)	288,000)	(1,825,900)	(520,000)
Repayments of convertible senior notes	(1,692,000)	(600)	(900)	—)	(477,400)	—)
Payments for debt issuance costs	—)	—)	(200)	—)	(3,700)	—)
Proceeds from borrowings on convertible senior notes, net	—)	—)	—)	1,979,100)	—)	1,682,400)
Proceeds from issuance of warrants	—)	—)	—)	202,800)	—)	145,400)
Purchase of note hedges	—)	—)	—)	(370,800)	—)	(332,000)
Repurchases of common stock	(272,700)	(892,300)	(1,178,100)	(1,198,100)	(330,000)	(259,100)
Proceeds from sales of shares through employee equity incentive plans	258,800)	136,600)	104,000)	84,000)	71,700)	52,600)
Payments for taxes related to net share settlement of equity awards	(20,400)	(50,300)	(28,800)	(22,700)	(33,200)	(43,700)
Payment of deferred consideration related to prior year business acquisition	—)	—)	—)	(1,300)	(1,300)	—)
Net cash provided by (used in) financing activities	(1,726,300)	(806,600)	(1,104,000)	673,000)	(773,900)	1,245,600)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(982,600)	244,700)	(1,081,600)	1,996,700)	(1,544,200)	1,762,600)
Cash, cash equivalents, and restricted cash, beginning of period	2,124,800)	1,880,100)	2,961,700)	965,000)	2,509,200)	744,300)
Cash, cash equivalents, and restricted cash, end of period	1,142,200)	2,124,800)	1,880,100)	2,961,700)	965,000)	2,506,900)

Based on: 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Palo Alto Networks Inc. net cash provided by operating activities increased from 2021 to 2022 and from 2022 to 2023.
Net cash (used in) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Palo Alto Networks Inc. net cash (used in) provided by investing activities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Palo Alto Networks Inc. net cash provided by (used in) financing activities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Palo Alto Networks Inc. (NASDAQ:PANW)

Cash Flow Statement