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Sep 30, 2024
Extreme Networks Q1 2025 Earnings Report
Revenue and EPS guidance were exceeded, driven by sequential revenue growth and margin improvement.
Key Takeaways
Extreme Networks reported strong first-quarter results, exceeding both revenue and EPS guidance. The company saw sequential revenue growth, which drove margin improvement and cash flow. SaaS ARR grew by 23% year-over-year, highlighting the strength of their cloud management platform.
Revenue was $269.2 million, a decrease of 23.8% year-over-year but an increase of 4.9% quarter-over-quarter.
SaaS ARR reached $174.1 million, up 23.4% year-over-year and 4.3% quarter-over-quarter.
GAAP loss per share was $0.08, compared to a GAAP diluted EPS of $0.21 last year.
Non-GAAP diluted EPS was $0.17, compared to $0.35 last year.
Extreme Networks
Extreme Networks
Extreme Networks Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.com Forward Guidance
For the second quarter of fiscal 2025, Extreme Networks is targeting revenue between $273.0 million and $283.0 million. They also anticipate a GAAP gross margin between 62.2% and 63.2%, and a GAAP operating margin between -1.1% and 1.4%.
Positive Outlook
- Total net revenue between $273.0 million and $283.0 million.
- Non-GAAP gross margin between 63.0% and 64.0%.
- Non-GAAP operating margin between 11.3% and 13.4%.
- Earnings per share between $0.16 and $0.20 (Non-GAAP).
- GAAP gross margin between 62.2% and 63.2%.
Challenges Ahead
- GAAP operating margin between -1.1% and 1.4%.
- Earnings (Loss) per share between $(0.07) and $(0.01) (GAAP).
- Potential market conditions affecting business outlook.
- A highly competitive business environment for network switching equipment and cloud management of network devices.
- Risk of delays in the development or introduction of new technology and products.