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Dec 31, 2022
Extreme Networks Q2 2023 Earnings Report
Reported consistent double-digit growth and raised FY23 revenue outlook.
Key Takeaways
Extreme Networks reported a strong second quarter for fiscal year 2023, marked by double-digit revenue growth and an increased FY23 revenue outlook. The company's SaaS ARR saw significant year-over-year growth, and both GAAP and non-GAAP EPS exceeded the previous year's figures. The company is raising its FY23 revenue growth outlook to the high-end of its 10-15% range.
Revenue reached $318.3 million, a 13% increase year-over-year and a 7% increase quarter-over-quarter.
SaaS ARR grew to $115 million, reflecting a 29% increase year-over-year and a 6% increase quarter-over-quarter.
GAAP diluted EPS was reported at $0.13, compared to $0.10 in Q2 last year.
Non-GAAP diluted EPS was $0.27, compared to $0.21 in Q2 last year.
Revenue by Segment
Forward Guidance
For its third quarter of fiscal 2023, ending March 31, 2023, the Company is targeting revenue between $315.0 million and $325.0 million.
Positive Outlook
- Total net revenue between $315.0 and $325.0 million.
- Gross margin between 56.6% and 58.6%.
- Operating margin between 6.9% and 8.9%.
- Net income between $15.7 and $23.0 million.
- Net income per diluted share between $0.12 and $0.17.
Challenges Ahead
- Operating expenses between $156.4 and $161.4 million.
- Total net revenue between $315.0 and $325.0 million on a non-GAAP basis.
- Gross margin between 58.0% and 60.0% on a non-GAAP basis.
- Operating expenses between $140.1 and $145.1 million on a non-GAAP basis.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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