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Mar 31, 2024
Extreme Networks Q3 2024 Earnings Report
Extreme Networks reported financial results inline with previous outlook and 38% growth in SaaS ARR.
Key Takeaways
Extreme Networks reported a decrease in revenue by 36.5% year-over-year, totaling $211.0 million. GAAP diluted EPS was ($0.50), and non-GAAP diluted EPS was ($0.19). SaaS ARR grew by 38.0% year-over-year, reaching $162.0 million.
Net new logos grew double-digits this quarter, particularly in the Americas.
SaaS ARR grew again by 38%.
Channel inventory was significantly reduced during the quarter.
The company expects sequential growth in revenue in the fourth quarter.
Extreme Networks
Extreme Networks
Extreme Networks Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comSubscription and Support Revenue
CapyFin.com Forward Guidance
For its fourth quarter and full year of fiscal 2024, ending June 30, 2024, the Company is targeting total net revenue between $250.0 - $260.0 million. They anticipate a GAAP gross margin of 60.9% - 62.9% and a non-GAAP gross margin of 61.6% - 63.6%.
Positive Outlook
- Total net revenue between $250.0 - $260.0 million.
- GAAP gross margin of 60.9% - 62.9%.
- Non-GAAP gross margin of 61.6% - 63.6%.
- Operating margin between (3.8%) - (0.9%).
- Earnings per diluted share between ($0.11) - ($0.05).
Challenges Ahead
- Operating margin between (3.8%) - (0.9%).
- Earnings per diluted share between ($0.11) - ($0.05).
- Total net revenue $1,110.5 - $1,120.5.
- Operating margin (2.4%) - (1.7%).
- Earnings per diluted share ($0.35) - ($0.30).
Revenue & Expenses
Visualization of income flow from segment revenue to net income