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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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