According to a Radiant Insights research report, the global network security market is estimated to grow at 4.74% annually through the year 2022 driven the continuing adoption of mobile devices and the increasing demand for integrated security solutions. Santa Clara-based Billion Dollar Unicorn Palo Alto Networks (NYSE: PANW) is a leading player in the network security market whose stock has had a strong run this year.

Palo Alto Network’s Financials

Palo Alto Networks reported its fourth quarter results with revenues growing 29% over the year to $658.1 million, ahead of the market’s forecast of $632 million. It ended the quarter with earnings of $125 million or $1.28 per share, recording a 39% growth over the year. The market was looking for an EPS of $1.17 for the quarter.

By segment, revenues from products grew 26% over the year to $267.6 million. Subscription and support revenues grew 38% to $390.5 million. For the quarter, billings improved 29% to $868.1 million. Among other metrics, it added nearly 3,000 customers during the quarter, to end with 54,000 customers.

Palo Alto Networks ended the year with revenues growing 29% to $2.3 billion with an adjusted net income of $381.4 million or $3.99 per share.

For the current quarter, Palo Alto Networks expects revenues of $625-$635 million and EPS of $1.04-$1.06. The market was looking for revenues of $622 million with an EPS of $1.05 for the quarter.

Palo Alto Network’s Acquisitions

Palo Alto Networks has been building its portfolio through several acquisitions. Last month, it announced the acquisition of a cloud threat defense company RedLock for an estimated $173 million. Menlo Park-based RedLock was founded in 2015 to help companies manage security risks across cloud services, including Google Cloud, Amazon Web Services, and Microsoft Azure. It emerged from stealth mode nearly a year ago. RedLock’s services companies make sure their cloud instances are locked down and secure. Prior to the acquisition, RedLock had raised $12 million in funding from investors including Sierra Ventures, Storm Ventures, and Dell Technology Capital. Prior to the acquisition, RedLock was valued at close to $35 million when it raised funds in 2017.