F5 Q2 2024 Earnings Report
Key Takeaways
F5 delivered a solid second quarter with revenue near the midpoint of guidance and earnings per share at the high end. Software subscription renewals continued to perform well, driving 20% total software revenue growth compared to a year ago, including 28% subscription revenue growth.
Second quarter revenue declined 3% year-over-year to $681 million.
Software revenue grew 20% year-over-year to $159 million, powered by 28% subscription software revenue growth.
GAAP operating profit for the second quarter was $140 million, representing a GAAP operating margin of 20.5%.
Non-GAAP net income for the second quarter of fiscal year 2024 was $173 million, or $2.91 per diluted share.
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F5 Revenue by Segment
Forward Guidance
For the third 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 $2.89 to $3.01 per diluted share. The Company expects fiscal year 2024 revenue growth that is flat to down 2% compared to fiscal year 2023 and raised its fiscal year 2024 non-GAAP earnings per share outlook to growth of 7% to 9%.
Positive Outlook
- Revenue guidance between $675 million and $695 million.
- Non-GAAP earnings per share between $2.89 and $3.01.
- Fiscal year 2024 revenue growth is expected to be flat to down 2% compared to fiscal year 2023.
- Fiscal year 2024 non-GAAP earnings per share outlook raised to growth of 7% to 9%.
- Software subscription renewals continued to perform well.
Challenges Ahead
- Customers remain cautious and are forecasting largely flat IT budgets for calendar 2024.
- Second quarter fiscal year 2024 revenue declined 3% from the year-ago period.
- Systems revenue of $142 million represented a decline of 32% from the prior year.
- Uncertainties in the geopolitical environment.
- Global economic conditions.