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Sep 30, 2023
F5 Q4 2023 Earnings Report
F5 reported a 1% revenue increase and double-digit earnings growth in its fourth quarter.
Key Takeaways
F5's Q4 2023 saw a 1% increase in revenue compared to the previous year, reaching $707 million. Software revenue grew by 11%, contributing to double-digit earnings per share growth. The company's focus on operating discipline enabled it to deliver fiscal year 2023 earnings per share in line with expectations.
Q4 revenue grew 1% year-over-year to $707 million.
Software revenue increased by 11% year-over-year.
GAAP EPS was $2.55, compared to $1.49 in the prior year.
Non-GAAP EPS was $3.50, compared to $2.62 in the prior year.
F5
F5
F5 Revenue by Segment
Revenue by Segment
Services Revenue
CapyFin.com Forward Guidance
F5 expects flat to low-single-digit percentage decline in revenue for fiscal year 2024. The Company expects to deliver non-GAAP earnings per share growth of 5% to 7% year-over-year. For the first 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 $2.97 to $3.09 per diluted share.
Positive Outlook
- Subscription renewals performed well throughout fiscal year 2023.
- F5 saw encouraging signs from enterprise customers in our fourth quarter.
- Company remains committed to its profitability.
- Company expects to deliver non-GAAP earnings per share growth of 5% to 7% year-over-year
- Company also remains committed to using at least 50% of its annual free cash flow toward share repurchases.
Challenges Ahead
- Customer caution will persist into fiscal year 2024
- $180 million headwind from strong backlog fulfillment in fiscal year 2023 tempers our 2024 revenue growth expectations.
- Expects revenue that is flat to a low-single-digit percentage decline from its fiscal year 2023 revenue.
- F5 expects to deliver revenue in the range of $675 million to $695 million for the first quarter of fiscal year 2024
- F5 expects non-GAAP earnings in the range of $2.97 to $3.09 per diluted share for the first quarter of fiscal year 2024