NASDAQ$FFIV

F5 Networks Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Delivered third quarter revenue at the top end of guidance range, fueled by software growth and continued growth of global services offerings. Earnings per share were also well above the high end of guidance due to continued operating discipline.

F5 reported strong Q3 FY24 results, with revenue at the top end of its guidance range, driven by software growth and global services. The company is raising its earnings growth expectations for the year, expecting approximately 12% non-GAAP earnings per share growth compared to fiscal year 2023.

  • Q3 revenue totaled $695 million, compared to $703 million in the third quarter of fiscal year 2023.
  • Software revenue grew 3% year-over-year to $179 million.
  • Global services revenue increased 3% year-over-year to $387 million.
  • GAAP EPS was $2.44, compared to $1.48 in the third quarter of fiscal year 2023.

Headline financials

Total Revenue

$695M

Previous: $703M-1.0%
EPS

$2.44

Previous: $3.21-24.0%
GAAP Gross Margin

80.4%

No prior period
Non-GAAP Gross Margin

83.1%

No prior period
GAAP Operating Margin

23.4%

No prior period
Non-GAAP Operating Margin

33.4%

No prior period
Capital Expenditures

-$24.4M

Previous: -$38.8M+37.2%
Free Cash Flow

$120M

Previous: $50.2M+138.6%
Net Income

$144M

Previous: $89M+61.9%
Operating Income

$163M

Previous: $104M+57.5%
Gross Profit

$559M

Previous: $561M-0.3%
R&D Expense

$123M

No prior period
Stock-Based Comp

$54.2M

Previous: $56.5M-4.0%

Revenue & EPS history

F5 · Revenue · Quarterly

$695M

Q3 2024-1%vs Q3 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 fourth quarter of fiscal year 2024, F5 expects to deliver revenue in the range of $720 million to $740 million, with non-GAAP earnings in the range of $3.38 to $3.50 per diluted share. F5 now expects fiscal year 2024 revenue toward the top end of its prior expectations, at approximately $2.8 billion. They now expect to deliver approximately 12% non-GAAP earnings per share growth compared to fiscal year 2023.

Tailwinds

  • Revenue in the range of $720 million to $740 million.
  • Non-GAAP earnings in the range of $3.38 to $3.50 per diluted share.
  • Fiscal year 2024 revenue toward the top end of its prior expectations, at approximately $2.8 billion.
  • Approximately 12% non-GAAP earnings per share growth compared to fiscal year 2023.

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 Q3 2024

Historical avgQ3 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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