F5 Q1 2022 Earnings Report

Reported 10% first quarter revenue growth, driven by strong software demand.

Key Takeaways

F5's Q1 FY22 earnings showed strong performance with a 10% increase in GAAP revenue to $687 million. This growth was fueled by a 19% rise in product revenue and a 2% increase in global services revenue. Software solutions were particularly strong, with non-GAAP software revenue growing 47%.

GAAP revenue increased by 10% year-over-year to $687 million.

Product revenue grew by 19%, while global services revenue increased by 2%.

Non-GAAP software revenue grew by 47% compared to the same period in the prior year.

GAAP net income was $94 million, or $1.51 per diluted share, compared to $88 million, or $1.41 per diluted share, in the prior year.

Total Revenue

$687M

Previous year: $625M

+10.0%

EPS

$2.89

Previous year: $2.59

+11.6%

Gross Profit

$552M

Previous year: $510M

+8.3%

Cash and Equivalents

$512M

Previous year: $1.03B

-50.1%

Free Cash Flow

$79.8M

Previous year: $133M

-39.8%

Total Assets

$5.09B

Previous year: $4.9B

+3.8%

F5

F5 Revenue by Segment

Forward Guidance

The Company expects fiscal second quarter revenue in a range of $610 to $650 million. It further expects fiscal year 2022 revenue growth in a range of 4.5% to 8%, down from its prior expectation of 8% to 9% growth. The Company expects fiscal year 2022 software revenue growth near the top end of its previously provided 35% to 40% guidance range, and fiscal year 2022 global services revenue growth of 1% to 2%.

Positive Outlook

Demand drivers across our business are as strong as they have ever been.
Customers increasingly see F5 as an innovator uniquely equipped to help them build and scale both their traditional and modern application environments with our software- and systems-based solutions.
The Company expects fiscal year 2022 software revenue growth near the top end of its previously provided 35% to 40% guidance range.
The Company expects fiscal year 2022 global services revenue growth of 1% to 2%.

Challenges Ahead

The Company expects that its ability to meet customers' continued strong demand for systems will be restricted by supply chain constraints for the remainder of fiscal year 2022.
It expects fiscal second quarter revenue in a range of $610 to $650 million.
It further expects fiscal year 2022 revenue growth in a range of 4.5% to 8%, down from its prior expectation of 8% to 9% growth.

Company Overview

Full financial data and analysis

View F5