NASDAQ$FFIV

F5 Networks Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported 10% first quarter revenue growth, driven by strong software demand.

F5's Q1 FY22 earnings showed strong performance with a 10% increase in GAAP revenue to $687 million. This growth was fueled by a 19% rise in product revenue and a 2% increase in global services revenue. Software solutions were particularly strong, with non-GAAP software revenue growing 47%.

  • GAAP revenue increased by 10% year-over-year to $687 million.
  • Product revenue grew by 19%, while global services revenue increased by 2%.
  • Non-GAAP software revenue grew by 47% compared to the same period in the prior year.
  • GAAP net income was $94 million, or $1.51 per diluted share, compared to $88 million, or $1.41 per diluted share, in the prior year.

Headline financials

Total Revenue

$687M

Previous: $625M+10.0%
EPS (adj)

$2.89

Previous: $2.59+11.6%
Capital Expenditures

-$10.6M

Previous: -$4.7M-124.9%
Free Cash Flow

$83M

Previous: $83M+0.0%
Net Income

$93.6M

Previous: $87.7M+6.7%
Operating Income

$114M

Previous: $118M-3.1%
Gross Profit

$552M

Previous: $510M+8.3%
Cash & Equivalents

$512M

Previous: $1.03B-50.1%
Total Assets

$5.09B

Previous: $4.9B+3.8%
Stock-Based Comp

$63.8M

Previous: $58.1M+9.8%

Revenue & EPS history

F5 · Revenue · Quarterly

$687M

Q1 2022+10%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

F5 · $344M total across 1 segment · Q1 2022

  • Services
    $344M+2.2%

Forward guidance

The Company expects fiscal second quarter revenue in a range of $610 to $650 million. It further expects fiscal year 2022 revenue growth in a range of 4.5% to 8%, down from its prior expectation of 8% to 9% growth. The Company expects fiscal year 2022 software revenue growth near the top end of its previously provided 35% to 40% guidance range, and fiscal year 2022 global services revenue growth of 1% to 2%.

Tailwinds

  • Demand drivers across our business are as strong as they have ever been.
  • Customers increasingly see F5 as an innovator uniquely equipped to help them build and scale both their traditional and modern application environments with our software- and systems-based solutions.
  • The Company expects fiscal year 2022 software revenue growth near the top end of its previously provided 35% to 40% guidance range.
  • The Company expects fiscal year 2022 global services revenue growth of 1% to 2%.

Headwinds

  • The Company expects that its ability to meet customers' continued strong demand for systems will be restricted by supply chain constraints for the remainder of fiscal year 2022.
  • It expects fiscal second quarter revenue in a range of $610 to $650 million.
  • It further expects fiscal year 2022 revenue growth in a range of 4.5% to 8%, down from its prior expectation of 8% to 9% growth.

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

+0.3%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+13.1%

Q3 2024

Best reaction

-16.7%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+7.0%+8.6%+26.1%
Q1 2026-4.3%+3.8%+0.3%
Q4 2025-7.7%-12.9%-18.0%
Q2 2025-0.9%+1.4%+5.9%
Q1 2025+11.4%+9.4%+8.4%
Q4 2024+10.8%+7.1%+15.3%
Q3 2024+13.1%+8.3%+12.2%
Q2 2024-9.1%-8.8%-7.5%
Q1 2024+1.7%+0.9%+1.1%
Q4 2023+3.6%+2.3%+14.1%
Q3 2023+6.8%+4.8%+6.4%
Q2 2023-6.1%-6.5%-0.3%
Q1 2023-1.5%+0.0%-2.8%
Q4 2022-4.2%-2.2%+4.8%
Q3 2022+3.5%+8.7%+7.1%
Q2 2022-16.7%-17.5%-20.0%
Q1 2022-10.7%-12.0%-12.5%
Q4 2021+3.7%+1.4%+11.4%
Q3 2021+6.4%+7.5%+7.1%
Q2 2021-11.4%-11.4%-11.2%
Q1 2021-2.9%-5.5%-8.3%
Q4 2020+6.2%+3.6%+28.3%
Q3 2020-9.4%-10.8%-12.2%
Q2 2020+10.6%+6.3%+14.1%
Q1 2020-7.2%-10.1%-6.9%
Q4 2019+4.9%+2.8%+2.7%
Q3 2019+0.0%+3.1%-15.7%
Q2 2019-0.9%-3.0%-16.5%
Q1 2019-0.8%+0.9%+9.4%
Q4 2018+1.6%-0.1%-0.4%
Q3 2018+2.7%-1.4%+8.8%
Q2 2018+0.8%+3.8%+11.2%
Q1 2018-5.4%-2.6%+3.3%
Q4 2017+4.1%+0.4%+3.4%
Q3 2017-7.0%-5.7%-8.1%
Q2 2017-8.1%-7.8%-8.0%
Q1 2017-7.2%-6.6%+0.2%
Q4 2016+11.7%+17.9%+22.9%
Q3 2016+1.0%+2.6%+3.0%
Q2 2016+7.1%
Q1 2016-4.3%
Q4 2015-8.5%
Q3 2015+8.0%
Q2 2015+2.9%
Q1 2015-10.2%
Q4 2014+1.3%
Q3 2014+1.0%
Q2 2014-3.0%
Q1 2014+4.4%
Q4 2013-6.1%
Q3 2013+9.2%
Q2 2013+3.5%
Q1 2013+6.8%
Q4 2012-13.1%
Q3 2012+12.0%
Q2 2012+8.3%
Q1 2012+12.9%
Q4 2011-3.1%
Q3 2011-13.0%
Q2 2011+2.9%
Q1 2010-0.1%
Q1 2011+1.5%
Q4 2008+0.5%
Q2 2010+0.5%
Q4 2010+0.5%
Q4 2009+2.8%
Q3 2009+2.8%
Q3 2010+2.8%

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