NASDAQ$FFIV

F5 Networks Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

F5 reported strong earnings growth in its second quarter of fiscal year 2024, with revenue near the midpoint of guidance and EPS at the high end.

F5 delivered a solid second quarter with revenue near the midpoint of guidance and earnings per share at the high end. Software subscription renewals continued to perform well, driving 20% total software revenue growth compared to a year ago, including 28% subscription revenue growth.

  • Second quarter revenue declined 3% year-over-year to $681 million.
  • Software revenue grew 20% year-over-year to $159 million, powered by 28% subscription software revenue growth.
  • GAAP operating profit for the second quarter was $140 million, representing a GAAP operating margin of 20.5%.
  • Non-GAAP net income for the second quarter of fiscal year 2024 was $173 million, or $2.91 per diluted share.

Headline financials

Total Revenue

$681M

Previous: $703M-3.1%
EPS

$2.00

Previous: $2.53-20.9%
Capital Expenditures

-$18.5M

Previous: -$23.8M+22.2%
Free Cash Flow

$101M

Previous: $57.6M+74.4%
Net Income

$119M

Previous: $81.4M+46.2%
Operating Income

$140M

Previous: $106M+32.0%
Gross Profit

$540M

Previous: $548M-1.3%
R&D Expense

$123M

No prior period
Stock-Based Comp

$55.1M

Previous: $64M-13.9%

Revenue & EPS history

F5 · Revenue · Quarterly

$681M

Q2 2024-3.1%vs Q2 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

F5 · $382M total across 1 segment · Q4 2023

  • Services
    $382M+9.0%

Forward guidance

For the third quarter of fiscal year 2024, F5 expects to deliver revenue in the range of $675 million to $695 million, with non-GAAP earnings in the range of $2.89 to $3.01 per diluted share. The Company expects fiscal year 2024 revenue growth that is flat to down 2% compared to fiscal year 2023 and raised its fiscal year 2024 non-GAAP earnings per share outlook to growth of 7% to 9%.

Tailwinds

  • Revenue guidance between $675 million and $695 million.
  • Non-GAAP earnings per share between $2.89 and $3.01.
  • Fiscal year 2024 revenue growth is expected to be flat to down 2% compared to fiscal year 2023.
  • Fiscal year 2024 non-GAAP earnings per share outlook raised to growth of 7% to 9%.
  • Software subscription renewals continued to perform well.

Headwinds

  • Customers remain cautious and are forecasting largely flat IT budgets for calendar 2024.
  • Second quarter fiscal year 2024 revenue declined 3% from the year-ago period.
  • Systems revenue of $142 million represented a decline of 32% from the prior year.
  • Uncertainties in the geopolitical environment.
  • Global economic conditions.

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 Q2 2024

Historical avgQ2 2024

+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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