In This Article:
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Revenue: $747 million in Q4, up 6% year over year.
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Software Revenue Growth: 19% in Q4.
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Non-GAAP EPS: $3.67 in Q4, $0.17 above guidance.
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Global Services Revenue: $388 million in Q4, up 2% year over year.
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Product Revenue: $358 million in Q4, up 10% year over year.
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Systems Revenue: $130 million in Q4, down 3% year over year.
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Subscription-based Software Revenue: $204 million in Q4, 89% of total software revenue.
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Recurring Revenue: 78% of total revenue in Q4.
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GAAP Gross Margin: 80.8% in Q4.
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Non-GAAP Gross Margin: 83% in Q4.
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GAAP Operating Margin: 25.6% in Q4.
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Non-GAAP Operating Margin: 34.4% in Q4.
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Cash Flow from Operations: $247 million in Q4.
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Deferred Revenue: $1.8 billion, up 1% year over year.
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Share Repurchases: $100 million in Q4, $500 million in FY24.
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FY24 Revenue: $2.82 billion, at the top end of guidance.
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Software Revenue FY24: $735 million, up 11% year over year.
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Security Revenue FY24: $1.1 billion, 41% of total revenue.
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Non-GAAP Net Income FY24: $794 million, $13.37 per share.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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F5 Inc (NASDAQ:FFIV) delivered a record Q4 with $747 million in revenues, up 6% year over year, exceeding the high end of their guidance range.
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Software revenue grew by 19% year over year, highlighting strong performance in this segment.
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The company achieved a non-GAAP EPS of $3.67, which was $0.17 above the top end of their guidance range, indicating improved operating margins.
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F5 Inc (NASDAQ:FFIV) has successfully transformed from a hardware-centric company to a leader in security and software for hybrid multi-cloud environments.
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The company expects revenue growth to accelerate in FY25, with a projected growth range of 4% to 5% from FY24, driven by a large software renewal opportunity and improving demand trends.
Negative Points
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Despite strong software growth, the SaaS and managed services revenue declined by 5% year over year due to planned legacy offering retirements and transitions.
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APAC region revenue declined by 3%, representing a challenge in that geographical market.
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The company anticipates only low single-digit revenue growth in the first half of FY25, indicating a cautious outlook for the early part of the fiscal year.
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F5 Inc (NASDAQ:FFIV) has not baked in significant contributions from AI opportunities in their FY25 guidance, suggesting uncertainty in this emerging area.
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Service provider demand remains constrained, with the sector not showing a broad recovery, impacting overall growth potential.