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Sep 30, 2023
Extreme Networks Q1 2024 Earnings Report
Achieved double-digit growth with increased market and mindshare, and GAAP EPS doubled.
Key Takeaways
Extreme Networks reported a strong first quarter for fiscal year 2024, with revenue up 19% year-over-year and significant operating leverage leading to a doubling of GAAP EPS. The company saw growth in SaaS ARR and generated substantial free cash flow.
Revenue increased by 19% year-over-year, reaching $353.1 million.
SaaS ARR grew by 30% year-over-year, reaching $141.0 million.
GAAP diluted EPS doubled, increasing to $0.21 compared to $0.09 in the prior year quarter.
Generated $71.3 million in free cash flow during the quarter.
Extreme Networks
Extreme Networks
Extreme Networks Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.com Forward Guidance
The Company is targeting revenue between $312.0 million and $327.0 million, GAAP net income per diluted share between $0.07 and $0.12, and non-GAAP net income per diluted share between $0.26 and $0.31 for the second quarter of fiscal 2024.
Positive Outlook
- Gross margin is expected to be between 59.5% and 61.5% (GAAP) and between 60.2% and 62.2% (Non-GAAP).
- Operating margin is projected to be between 5.0% and 7.4% (GAAP) and between 15.4% and 17.3% (Non-GAAP).
- Expects revenue to grow mid-to-high single digits.
- Non-GAAP operating margin to remain mid-to-high teens.
- EPS growth of over 25% for full year Fiscal Year 24.
Challenges Ahead
- Revenue growth is expected to be more tempered for the balance of the year due to changing customer buying patterns based on macroeconomic conditions in certain geographies.
- The business outlook is based on current expectations and actual results could differ materially based on various factors, including market conditions.
- There are several important factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements.
- These include, among others, risks related to global macroeconomic and business trends.
- The Company’s failure to achieve targeted financial metrics; a highly competitive business environment for network switching equipment and cloud management of network devices.