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Dec 31, 2020
Juniper Networks Q4 2020 Earnings Report
Juniper Networks reported preliminary financial results for Q4 2020, showing a slight increase in revenue and a decrease in GAAP operating margin.
Key Takeaways
Juniper Networks reported a 1% year-over-year increase in revenue for Q4 2020, driven by better-than-expected demand. The company exceeded revenue and non-GAAP EPS targets, with strong backlog and momentum across core industry verticals. Strategic investments in technology and go-to-market organization are expected to drive long-term growth and improved profitability.
Net revenues increased by 1% year-over-year to $1,222.6 million.
GAAP operating margin decreased to 8.0% from 14.8% in Q4 2019.
Non-GAAP operating margin decreased to 19.3% from 20.4% in Q4 2019.
GAAP net income decreased by 82% year-over-year to $30.8 million, resulting in diluted earnings per share of $0.09.
Juniper Networks
Juniper Networks
Juniper Networks Revenue by Segment
Juniper Networks Revenue by Geographic Location
Revenue by Segment
Cloud Revenue
CapyFin.comService Provider Revenue
CapyFin.comEnterprise Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Juniper Networks anticipates revenue of approximately $1,055 million, plus or minus $50 million, for the quarter ending March 31, 2021. The guidance assumes stable exchange rates and includes a non-GAAP EPS of approximately $0.25, plus or minus $0.05.
Positive Outlook
- Expected revenue is up 6% year-over-year at the mid-point of guidance.
- Non-GAAP gross margin is expected to be approximately 59.0%, plus or minus 1%.
- The company expects to see less than $10 million of revenue from recent acquisitions.
- A quarterly cash dividend of $0.20 per share will be paid on March 22, 2021.
- Strong backlog and healthy momentum across each of core industry verticals.
Challenges Ahead
- Non-GAAP operating expenses are expected to increase sequentially, primarily due to the inclusion of approximately $20 million of operating expenses related to recent acquisitions.
- Non-GAAP EPS guidance includes the dilutive impact of the recent acquisitions.
- COVID-related costs are expected to impact non-GAAP gross margin.
- Non-GAAP other income and expense will be an expense of approximately $12 million.
- Non-GAAP tax rate will be approximately 19.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income