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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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