F5 Q1 2024 Earnings Report
Key Takeaways
F5's Q1 FY24 revenue declined 1% year-over-year to $693 million. However, the company saw strong earnings growth, with GAAP EPS increasing by 93% and non-GAAP EPS increasing by 39% compared to the previous year. The company also delivered more than 1,000 basis points improvement in GAAP operating margin and more than 900 basis points improvement in non-GAAP operating margin year over year.
Revenue declined 1% year-over-year to $693 million.
GAAP gross profit was $556 million, with a gross margin of 80.3%.
GAAP EPS increased to $2.32, a 93% increase year-over-year.
Non-GAAP EPS increased to $3.43, a 39% increase year-over-year.
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F5 Revenue by Segment
Forward Guidance
For the second quarter of fiscal year 2024, F5 expects to deliver revenue in the range of $675 million to $695 million, with non-GAAP earnings in the range of $2.79 to $2.91 per diluted share. The Company raised its fiscal year 2024 non-GAAP earnings per share outlook to growth of 6% to 8% from growth of 5% to 7%.
Positive Outlook
- Revenue is expected to be between $675 million and $695 million.
- Non-GAAP earnings per share are expected to be between $2.79 and $2.91.
- Fiscal year 2024 non-GAAP earnings per share outlook raised to growth of 6% to 8%.
- Stabilizing demand trends across all major geographic theaters.
- Customers continue to watch their budgets closely.
Challenges Ahead
- Forward-looking non-GAAP measures exclude estimates for various items.
- F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding GAAP measures.
- Material changes to any excluded items could significantly affect guidance and future GAAP results.
- Certain exclusions, like amortization and share-based compensation, vary significantly from quarter to quarter.
- Customers continue to watch their budgets closely.