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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.
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
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.
- We expect first quarter non-GAAP operating expense to increase sequentially, primarily driven by the typical seasonal increase of fringe costs.
- Assumes a share count of approximately 330 million.
- The outlook assumes that the exchange rate of the U.S. dollar to other currencies will remain relatively stable at current levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income