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Dec 31, 2022
Juniper Networks Q4 2022 Earnings Report
Juniper Networks reported preliminary financial results for Q4 2022, showing revenue increase and strong profitability.
Key Takeaways
Juniper Networks reported a strong Q4 2022 with a record performance in the enterprise business and the second-highest cloud revenue quarter. The company's experience-first networking strategy continues to resonate, positioning them for another year of solid revenue growth in 2023. Non-GAAP gross and operating margins exceeded expectations, leading to a beat in non-GAAP EPS outlook.
Net revenues increased by 11% year-over-year to $1,448.8 million.
GAAP operating margin was 14.0%, up from 11.8% in Q4 2021.
Non-GAAP operating margin was 19.1%, up from 18.3% in Q4 2021.
GAAP net income was $180.4 million, resulting in diluted earnings per share of $0.55.
Revenue by Geographic Location
Forward Guidance
Juniper Networks provided its outlook for the first quarter of 2023, anticipating revenue growth of approximately 15% year-over-year at the mid-point of guidance. The forecast assumes stable currency exchange rates and acknowledges ongoing supply chain challenges with shortages and elevated costs expected to continue throughout 2023.
Positive Outlook
- Revenue will be approximately $1,340 million, plus or minus $50 million.
- Operating margin is expected to increase more than 100 basis points versus Q1'22.
- Non-GAAP gross margin will be approximately 57.0%, plus or minus 1%.
- Non-GAAP tax rate will be approximately 19.0%, plus or minus 1%.
- Non-GAAP net income per share will be approximately $0.42, plus or minus $0.05.
Challenges Ahead
- Supply chain related headwinds associated with shortages as well as elevated component and freight costs, which are expected to continue through the course of 2023.
- First quarter gross margin is expected to be down sequentially due to a normalized software mix and seasonality.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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