On the reason why PANW's Billing guidance is weak

The financial results were beating in terms of both sales and EPS, but it is conceivable that the stock price fell due to weak billing guidance.

The reason can be inferred from the content of the conference call and the CEO's statement as follows.

・Until now, there has been a trend where clients prefer long-term contracts rather than being slightly discounted rather than short-term contracts of 1 year

・Due to recent upward pressure on interest rates, clients have been pressured to cut costs, and they have come to prefer steady short-term contracts over advantageous long-term contracts

・Since this trend is thought to continue for a while in the current market where interest rates are long and are thought to continue high, billing guidance was lowered