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Jun 30, 2023
Juniper Networks Q2 2023 Earnings Report
Reported better than expected results due to improved supply and momentum in the Enterprise business.
Key Takeaways
Juniper Networks reported Q2 2023 financial results with net revenues of $1,430.1 million, a 13% increase year-over-year. The company experienced momentum in its Enterprise business and improved profitability, with non-GAAP EPS toward the high-end of its outlook. However, they are facing near-term order weakness from Cloud and Service Provider customers.
Net revenues increased by 13% year-over-year to $1,430.1 million.
GAAP operating margin increased to 9.9%, and non-GAAP operating margin increased to 16.9%.
Non-GAAP net income was $189.0 million, resulting in non-GAAP diluted net income per share of $0.58.
The Enterprise business had a record quarter, representing the largest and fastest-growing vertical for the third consecutive quarter.
Juniper Networks
Juniper Networks
Juniper Networks Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
For the third quarter of 2023, Juniper Networks expects revenue to be approximately $1,385 million, plus or minus $50 million, and non-GAAP net income per share to be approximately $0.54, plus or minus $0.05.
Positive Outlook
- Non-GAAP gross margin is expected to modestly increase in Q3 2023.
- Supply chain-related costs are expected to improve, though remain elevated relative to pre-pandemic levels.
- Non-GAAP operating expenses will be managed prudently and are expected to decline sequentially.
- Company remains committed to paying dividend.
- Company will remain opportunistic with respect to share buybacks.
Challenges Ahead
- Continued weakness in bookings is expected, particularly with Cloud and, to a lesser extent, Service Provider customers.
- Softness in bookings is largely attributable to customer digestion of previously placed orders and certain projects being pushed to future periods.
- The macro-economic environment is expected to remain challenged, which may continue to impact customer spending.
- These factors are negatively impacting revenue expectations.
- Assumes macro-economic environment to remain challenged, which may continue to impact customer spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income