Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Palo Alto Networks Inc | d698399d8k.htm |
| EX-99.1 - EX-99.1 - Palo Alto Networks Inc | d698399dex991.htm |
 Palo
Alto Networks Acquisition of Cyvera
March 24, 2014
Exhibit 99.2
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 Page 2 | ©2014 Palo Alto Networks
Transaction overview
Company
Company
Cyvera
Consideration
Consideration
Approximately $200 million in transaction value:
Approximately $88 million in cash
Approximately $112 million in stock
Financials
Financials
Immediately expands TAM by over $4 billion
Significant opportunity as driver for continued outsize revenue growth
SaaS-based model: adds additional subscription revenue
Timeline
Timeline
The transaction was approved by both boards and is subject to customary
conditions and regulatory reviews |
 Strategic combination
•
Extensible
platform
based
on
disruptive
innovations:
Next-Generation
Firewall
+
WildFire
+
Cyvera
•
Tightly
integrated
and
highly
automated
•
End-to-end
next
generation
enterprise
security
•
Significant
synergy
opportunity
to
cross-sell
to
our
existing
install
base
of
16,000+
end-customers
•
Expands
TAM
immediately
by
$4B
in
the
large
and
growing
endpoint
market
•
Extends
the
power
of
our
platform
model
with
newest
SaaS-based
offering
•
Cyvera’s
unique
&
disruptive
technology
prevents
endpoint
attacks
at
critical
exploit
phase
•
WildFire
cloud-
based
services
prevent
unknown
threats
and
share
intelligence
•
Next-Generation
Firewall
safely
enables
all
applications
and
blocks
network-based
threats |
 Page 4 | ©2014 Palo Alto Networks
The Palo Alto Networks Next-Generation Security
Platform
Next-Generation Threat Cloud
Gathers potential
threats from network
and endpoints
Analyzes and correlates
threat intelligence
Disseminates threat
intelligence to network
and endpoints
Next-Generation Firewall
Inspects all traffic
Safely enables
applications
Sends unknown threats
to cloud
Blocks network based
threats
Inspects all processes and files
Prevents both known and unknown exploits
Protects fixed, virtual, and mobile endpoints
Lightweight client and cloud based
Next-Generation Endpoint |
 Page 5 | ©2014 Palo Alto Networks
Palo Alto Networks is disrupting security –
AGAIN
Signature-only
products
Only blocks known threats
Cannot detect zero day
exploits or malware
Inability to detect attacks
at exploit phase
Not integrated
Detection-only
products
No prevention capabilities
Inability to detect attacks at
exploit phase
Limited control over
applications
Bolt-on architecture
Uniquely prevents attacks
targeting endpoint and network
Extensible platform spanning
network, endpoint, and cloud
Automated prevention |
 Page 6 | ©2014 Palo Alto Networks
Cyvera uniquely prevents endpoint-based attacks
Real-time prevention of all
core attack
techniques prior to the exploit
Only
company focused on
preventing core exploit techniques
Prevents attacks at critical exploit phase
No prior knowledge of the attack is needed
Lightweight embedded agent within OS
Protects endpoints from known and unknown
exploits
Protects unpatched systems
Forensic evidence collected
Sends unknown threats to cloud
Watering-hole attacks
European Aerospace
(Infector)
Stuxnet
Night Dragon
NASA / Nortel
25 DoD contractors
RSA
2013
2012
2009
2010
2012
2011
2011
Cyvera would have successfully prevented
every published zero day since 2009 |
 Page 7 | ©2014 Palo Alto Networks
Market Disruptions
Sources: IDC, Worldwide Network Security 2013–2017 Forecast and 2012 Vendor Shares, July
2013 IDC, Worldwide Web Security 2013–2017 Forecast and 2012 Vendor Shares, July
2013 IDC, Worldwide Endpoint Security 2013–2017 Forecast and 2012 Vendor Shares,
August 2013 IDC, Worldwide Specialized Threat and Protection 2013–2017 Forecast and
2012 Vendor Shares, August 2013 $4B+ expansion of TAM
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 Page 8 | ©2014 Palo Alto Networks
About Cyvera
Description
Description
Innovative provider of cyber security solutions
Employs advanced and unique exploit prevention techniques to prevent unknown
malware on fixed, virtual, and mobile endpoints
Location
Location
Tel-Aviv and San Francisco
Technology
Technology
Cyvera TRAPS, launched in 2012
Client-based solution providing full protection on Windows-based
endpoints, servers, virtual machines, and terminals. Additional
operating systems, including mobile operating systems, expected to be
covered within 12 months. Covers majority of most commonly exploited
software applications Talent
Talent
55 employees, of which 37 engineers based in Tel-Aviv
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 Page 9 | ©2014 Palo Alto Networks
Financial impact
Cyvera product immediately augments our platform
with an additional subscription offering
SaaS model: billings to build ahead of revenue
Billings and revenue ramping in 2H FY2015,
meaningful revenue contribution in FY2016
Investing aggressively to capitalize on unique technology leadership
and large market opportunity
Short-term investment in non-GAAP operating expense
Preliminary estimate: Q3’14 ~$1.5mm, Q4’14 ~$3.5mm, and FY’15
~$25mm Cyvera to be free cash flow positive contributor in 1H FY2016
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 Page 10 | ©2014 Palo Alto Networks
Conclusion
Unique endpoint technology
Unique endpoint technology
Prevents attacks at the critical exploit phase
Enhances our enterprise security platform
Enhances our enterprise security platform
Tightly integrated and highly automated end-to-end security
Enhances TAM
Enhances TAM
Immediately adds $4B of enterprise endpoint market
SaaS model
SaaS model
Adds additional subscription revenue |
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