Cyber Security Firm Palo Alto Network’s Third Quarter Loss Widens by Reuters @FortuneMagazine May 26, 2016, 5:31 PM EDT E-mail Tweet Facebook Linkedin Share icons Palo Alto Networks reported a bigger third-quarter loss as the cyber security company spent more on marketing its products. The company’s shares fell 8.1% to $136.18 in extended trading on Thursday. The company said operating expenses jumped 50% to $309.5 million in the quarter ended April 30, from a year earlier. Get Data Sheet, Fortune’s technology newsletter. Sales and marketing expenses also rose 54% to $202 million. Palo Alto panw also forecast an adjusted fourth-quarter profit of 48-50 cents per share and revenue of $386 million-$390 million. Analysts on average were expecting a profit of 50 cents per share and revenue of $389.5 million, according to Thomson Reuters. Billings, defined as total revenue plus the change in deferred revenue, rose 61% to $486.2 million in the third quarter. Cybersecurity Has a Funding Problem Analysts expect the company to continue to gain market share from traditional security service providers as Palo Alto shifts to more lucrative subscription-based services and customers move to newer cloud platforms. Palo Alto’s net loss widened to $70.2 million, or 80 cents per share, in the third quarter, from $45.9 million, or 56 cents per share, a year earlier. Excluding items, the company earned 42 cents per share, in line with the average analyst estimate. Palo Alto Networks CEO at RSA: ‘We Cannot Afford to Lose Digital Trust’ The company’s revenue rose to $345.8 million from $234.2 million, beating analysts’ estimate of $339.5 million. Up to Thursday’s close, shares of the company have fallen 17.3% this year.