•
Mar 31, 2022

F5 Q2 2022 Earnings Report

Reported a strong software revenue growth and delivered above the midpoint of revenue guidance.

Key Takeaways

F5, Inc. announced its fiscal second quarter results with a revenue of $634 million, a 2% decrease compared to the year-ago period. Software revenue grew by 40%, while systems revenue declined by 27% due to semiconductor component shortages. The company's GAAP net income was $56 million, or $0.92 per diluted share, compared to $43 million, or $0.70 per diluted share in the previous year. Non-GAAP net income was $131 million, or $2.13 per diluted share, compared to $155 million, or $2.50 per diluted share in the previous year.

Software revenue increased 40% year-over-year.

Second quarter revenue was $634 million, down 2% from the year-ago period.

GAAP net income was $56 million, or $0.92 per diluted share.

Non-GAAP net income was $131 million, or $2.13 per diluted share.

Total Revenue
$634M
Previous year: $645M
-1.7%
EPS
$2.13
Previous year: $2.5
-14.8%
Gross Profit
$508M
Previous year: $517M
-1.7%
Cash and Equivalents
$587M
Previous year: $532M
+10.2%
Free Cash Flow
$121M
Previous year: $119M
+1.8%
Total Assets
$5.08B
Previous year: $4.52B
+12.3%

F5

F5

F5 Revenue by Segment

Forward Guidance

F5 expects fiscal year 2022 revenue growth in a range of 1.5% to 4%, and continues to expect fiscal year 2022 software revenue growth near the top end of its previously provided 35% to 40% guidance range. For fiscal third quarter, the company expects revenue in a range of $660 to $680 million.

Positive Outlook

  • Clear visibility to continuing strong demand drivers across software and systems portfolio.
  • Continue to work every possible angle to expand supply availability to match the demand.
  • Expecting fiscal year 2022 software revenue growth near the top end of its previously provided 35% to 40% guidance range.

Challenges Ahead

  • Ability to ship to meet demand for systems-based solutions is gated by ongoing component shortages.
  • Fiscal year 2022 revenue growth expected in a range of 1.5% to 4%, down from its prior outlook for 4.5% to 8% growth.
  • Supply chain constraints are restricting the ability to meet customers’ demand for systems.