NASDAQ$EXTR

Extreme Networks Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported strong bookings, driving double-digit year-over-year revenue growth and record quarterly operating and net income.

Extreme Networks reported a strong first quarter with double-digit year-over-year revenue growth and record quarterly operating and net income. The company's cloud solutions drove customer interest, resulting in a doubling of backlog. Despite supply chain challenges, Extreme exceeded its quarterly revenue outlook.

  • Revenue increased by 14% year-over-year.
  • GAAP EPS was $0.10, up from ($0.07) in Q1 last year.
  • Non-GAAP EPS was $0.21, up from $0.09 in Q1 last year.
  • SaaS subscription bookings grew 71% during the quarter.

Headline financials

Total Revenue

$268M

Previous: $236M+13.5%
EPS (adj)

$0.21

Previous: $0.09+133.3%
GAAP Gross Margin

58.1%

No prior period
Non-GAAP Gross Margin

60.3%

No prior period
GAAP Operating Margin

6.9%

No prior period
Non-GAAP Operating Margin

13.8%

No prior period
Capital Expenditures

-$3.41M

Previous: -$3.02M-12.8%
Free Cash Flow

$9.29M

Previous: -$11.8M+178.5%
Net Income

$12.7M

Previous: -$8.81M+244.1%
Operating Income

$18.4M

Previous: -$60K+30706.7%
Gross Profit

$156M

Previous: $135M+15.2%
Cash & Equivalents

$191M

Previous: $193M-0.9%
Total Assets

$1.01B

Previous: $959M+5.1%
Stock-Based Comp

$10.4M

Previous: $8.3M+25.8%

Revenue & EPS history

Extreme Networks · Revenue · Quarterly

$268M

Q1 2022+13.5%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Extreme Networks · $185M total across 1 segment · Q1 2022

  • Product
    $185M+14.7%

Forward guidance

For its second quarter of fiscal 2022, ending December 31, 2021, the Company is targeting revenue between $265.0 million and $280.0 million.

Tailwinds

  • Total net revenue between $265.0 million and $280.0 million (GAAP)
  • Gross margin between 55.4 % and 57.5 % (GAAP)
  • Operating margin between 2.3 % and 6.4 % (GAAP)
  • Net income between $0.00 and $11.9 million (GAAP)
  • Net income per diluted share between $0.00 and $0.09 (GAAP)

Headwinds

  • Total net revenue between $265.0 million and $280.0 million (Non-GAAP)
  • Gross margin between 57.0 % and 59.0 % (Non-GAAP)
  • Operating margin between 9.5 % and 13.5 % (Non-GAAP)
  • Net income between $18.4 and $28.9 million (Non-GAAP)
  • Net income per diluted share between $0.14 and $0.21 (Non-GAAP)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.2%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+3.9%

Avg return

30 days after

61%

39 / 64 earnings

Positive

+28.2%

Q3 2026

Best reaction

-30.4%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+28.2%+33.9%+55.5%
Q2 2026+2.4%-0.9%-6.9%
Q1 2026-15.4%-11.7%-17.7%
Q3 2025+4.9%+7.8%+19.1%
Q2 2025-3.0%-6.3%-4.9%
Q1 2025+5.0%+6.9%+16.7%
Q4 2024+3.6%+2.7%+5.8%
Q3 2024+2.0%-2.1%-0.4%
Q2 2024-20.6%-25.9%-25.1%
Q1 2024-17.1%-17.6%-20.6%
Q4 2023+6.6%+9.6%-2.5%
Q3 2023+8.4%+10.8%+19.4%
Q2 2023-9.0%-9.4%-2.4%
Q1 2023+13.8%+16.4%+29.4%
Q4 2022+17.4%+16.7%+28.6%
Q3 2022-13.0%-12.1%-10.9%
Q2 2022-1.9%+1.5%-2.5%
Q1 2022+15.5%+11.5%+30.6%
Q4 2021+14.7%+13.5%+12.6%
Q3 2021+16.8%+10.3%+11.3%
Q2 2021+1.7%-3.6%-6.6%
Q1 2021-5.1%-16.3%+22.0%
Q4 2020+4.6%+1.3%-14.5%
Q3 2020-1.5%-13.9%+36.8%
Q2 2020-15.8%-19.3%-30.7%
Q1 2020-14.9%-13.6%-7.1%
Q4 2019+13.7%+10.2%-9.2%
Q3 2019-20.1%-17.0%-29.6%
Q2 2019+9.0%+7.7%+21.1%
Q1 2019+14.7%+11.6%+12.1%
Q4 2018-30.4%-29.1%-33.1%
Q3 2018-23.5%-26.7%-24.3%
Q2 2018-13.5%-21.8%-8.1%
Q1 2018+0.6%-4.7%+10.1%
Q4 2017+20.4%+23.8%+30.7%
Q3 2017+11.1%+19.7%+33.2%
Q2 2017+0.0%+0.9%+11.2%
Q1 2017+2.9%+2.4%+1.9%
Q4 2016+0.8%+4.2%+1.3%
Q3 2016+5.7%
Q2 2016-29.6%
Q1 2016+1.4%
Q4 2015+21.5%
Q3 2015-0.8%
Q2 2015+12.6%
Q1 2015+15.2%
Q4 2014-0.8%
Q3 2014-29.0%
Q2 2014-16.3%
Q1 2014+12.0%
Q4 2013-4.8%
Q3 2013-4.6%
Q2 2013+0.8%
Q1 2013+8.0%
Q4 2012+0.3%
Q3 2011-0.8%
Q3 2012+0.3%
Q2 2011+2.2%
Q2 2012+0.9%
Q1 2012+2.4%
Q1 2011+2.4%
Q4 2011+2.4%
Q4 2010-2.3%
Q3 2010+0.3%

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