Palo Alto Networks (PANW)
Just over four years ago, Palo Alto Networks shifted the company's focus to software-as-a-service cybersecurity solutions. And now, the percentage of total sales derived from subscriptions and support services has jumped to 78.9%.
A review of the company's operating performance shows the shift is paying off. Recurring revenue from these next-generation security solutions have soared. If stellar growth isn't convincing, consider that management has been making multiple bolt-on acquisitions. These smaller deals have helped the company expand its product and service ecosystem, as well as provided cross-selling opportunities that have encouraged cloud customers to purchase multiple cloud module subscriptions.
With businesses shifting their data online and into the cloud at an accelerated pace, Palo Alto Networks appears well positioned to capitalize on this trend.