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Sep 30, 2022

F5 Q4 2022 Earnings Report

F5's Q4 2022 financial results were announced with a 3% revenue increase and GAAP EPS of $1.49.

Key Takeaways

F5 reported a 3% increase in revenue for the fourth quarter of fiscal year 2022, reaching $700 million. GAAP net income was $89 million, or $1.49 per diluted share, while non-GAAP net income was $158 million, or $2.62 per diluted share.

Q4 revenue grew by 3% year-over-year to $700 million.

Product revenue increased by 3%, driven by 13% software revenue growth.

GAAP net income was $89 million, or $1.49 per diluted share.

Non-GAAP net income reached $158 million, or $2.62 per diluted share.

Total Revenue
$700M
Previous year: $682M
+2.6%
EPS
$2.62
Previous year: $3.01
-13.0%
Gross Profit
$553M
Previous year: $553M
-0.1%
Cash and Equivalents
$758M
Previous year: $581M
+30.5%
Free Cash Flow
$146M
Previous year: $190M
-23.2%
Total Assets
$5.28B
Previous year: $5B
+5.6%

F5

F5

F5 Revenue by Segment

Forward Guidance

F5 expects to deliver fiscal year 2023 revenue growth of 9% to 11% and non-GAAP earnings growth in the low-to-mid teens. For the first quarter of fiscal year 2023, F5 expects revenue in the range of $690 million to $710 million, with non-GAAP earnings in the range of $2.25 to $2.37 per diluted share.

Positive Outlook

  • Component availability is improving.
  • Expect fiscal year 2023 revenue growth of 9% to 11%.
  • Expect non-GAAP earnings growth in the low-to-mid teens in fiscal year 2023.
  • Q1 2023 revenue is expected to be between $690 million and $710 million.
  • Q1 2023 non-GAAP earnings are expected to be between $2.25 and $2.37 per diluted share.

Challenges Ahead

  • Business is likely to bear some weight from macroeconomic headwinds.
  • Forward-looking non-GAAP measures exclude estimates for several items, including amortization of intangible assets and share-based compensation expenses.
  • F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding GAAP measures on a forward-looking basis without unreasonable effort.
  • Material changes to any one of the excluded items could have a significant effect on guidance and future GAAP results.
  • Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically varied and may continue to vary significantly from quarter to quarter.