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Mar 31, 2023
F5 Q2 2023 Earnings Report
Delivered 11% revenue growth due to stronger than expected systems shipments and strong global services performance.
Key Takeaways
F5 reported an 11% increase in revenue for Q2 FY23, reaching $703 million, driven by strong systems shipments and global services. The company is prioritizing high-impact initiatives while reducing operating costs, including a workforce reduction of approximately 9%.
Revenue grew 11% year-over-year to $703 million.
GAAP net income was $81 million, or $1.34 per diluted share.
Non-GAAP net income was $154 million, or $2.53 per diluted share.
Company announced a reduction of global headcount by approximately 9%.
F5
F5
F5 Revenue by Segment
Revenue by Segment
Services Revenue
CapyFin.com Forward Guidance
F5 expects revenue in the range of $690 million to $710 million, with non-GAAP earnings in the range of $2.78 to $2.90 per diluted share for Q3 FY23. The company expects low-to-mid single-digit revenue growth in fiscal year 2023 with non-GAAP operating margins of approximately 30% and non-GAAP earnings growth of 7% to 11%.
Positive Outlook
- Revenue guidance for Q3 FY23 is between $690 million and $710 million.
- Non-GAAP earnings per share for Q3 FY23 are expected to be between $2.78 and $2.90.
- Company expects low-to-mid single-digit revenue growth in fiscal year 2023.
- Non-GAAP operating margins are expected to be approximately 30% for fiscal year 2023.
- Non-GAAP earnings growth is projected to be between 7% and 11% for fiscal year 2023.
Challenges Ahead
- Customer spending remains pressured by macro-economic uncertainty near term.
- Company is reducing its global headcount by approximately 9%.
- Company expects to incur approximately $45 million in severance benefits costs and other charges related to workforce reductions in fiscal year 2023.
- Company will reduce, and in some cases, eliminate portions of its facilities footprint.
- Company is substantially reducing the size of its corporate bonus pool in 2023.