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Jun 30, 2024
Extreme Networks Q4 2024 Earnings Report
Extreme Networks' Q4 performance was impacted by strategic inventory adjustments and investments in new products.
Key Takeaways
Extreme Networks reported Q4 2024 revenue of $256.7 million, a 29% decrease year-over-year, and a GAAP loss per share of $0.42. The company took action to reserve end of sale inventory and position new products for growth in fiscal 2025, which impacted gross and operating margins. However, SaaS ARR grew 29% year-over-year, indicating continued strength in cloud networking services.
Revenue decreased by 29% year-over-year to $256.7 million.
SaaS ARR increased by 29% year-over-year to $167.0 million.
GAAP loss per share was $0.42, compared to a GAAP diluted EPS of $0.19 in the prior year quarter.
Non-GAAP loss per share was $0.08, compared to a Non-GAAP diluted EPS of $0.33 in the prior year quarter.
Revenue by Segment
Forward Guidance
For its first quarter fiscal 2025, ending September 30, 2024, the Company is targeting total net revenue between $255.0 million and $265.0 million.
Positive Outlook
- Targeting total net revenue between $255.0 million and $265.0 million for Q1 2025.
- Expecting a gross margin between 61.2% and 63.2% (GAAP) or 62.0% and 64.0% (Non-GAAP) for Q1 2025.
- Operating margin is projected to be between (5.3)% and (2.3)% (GAAP) or 7.8% and 10.4% (Non-GAAP) for Q1 2025.
- Targeting earnings (loss) per share between ($0.14) and ($0.09) (GAAP) or $0.10 and $0.14 (Non-GAAP) for Q1 2025.
- For the full year fiscal 2025, ending June 30, 2025, the Company is targeting total net revenue between $1,110.0 million and $1,135.0 million
Challenges Ahead
- GAAP operating margin is expected to be negative for Q1 2025.
- GAAP earnings per share is projected to be a loss for Q1 2025.
- The business outlook is based on current expectations and is subject to market conditions and other factors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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