NASDAQ$FFIV

F5 Networks Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

F5's Q4 2022 financial results were announced with a 3% revenue increase and GAAP EPS of $1.49.

F5 reported a 3% increase in revenue for the fourth quarter of fiscal year 2022, reaching $700 million. GAAP net income was $89 million, or $1.49 per diluted share, while non-GAAP net income was $158 million, or $2.62 per diluted share.

  • Q4 revenue grew by 3% year-over-year to $700 million.
  • Product revenue increased by 3%, driven by 13% software revenue growth.
  • GAAP net income was $89 million, or $1.49 per diluted share.
  • Non-GAAP net income reached $158 million, or $2.62 per diluted share.

Headline financials

Total Revenue

$700M

Previous: $682M+2.6%
EPS (adj)

$2.62

Previous: $3.01-13.0%
Capital Expenditures

$8.51M

Previous: $7.12M+19.5%
Free Cash Flow

$146M

Previous: $190M-23.2%
Net Income

$89.3M

Previous: $111M-19.5%
Operating Income

$108M

Previous: $126M-14.9%
Gross Profit

$553M

Previous: $553M-0.1%
Cash & Equivalents

$758M

Previous: $581M+30.5%
Total Assets

$5.28B

Previous: $5B+5.6%
Stock-Based Comp

$59.5M

Previous: $60.5M-1.8%

Revenue & EPS history

F5 · Revenue · Quarterly

$700M

Q4 2022+2.6%vs Q4 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

F5 · $350M total across 1 segment · Q4 2022

  • Services
    $350M+2.3%

Forward guidance

F5 expects to deliver fiscal year 2023 revenue growth of 9% to 11% and non-GAAP earnings growth in the low-to-mid teens. For the first quarter of fiscal year 2023, F5 expects revenue in the range of $690 million to $710 million, with non-GAAP earnings in the range of $2.25 to $2.37 per diluted share.

Tailwinds

  • Component availability is improving.
  • Expect fiscal year 2023 revenue growth of 9% to 11%.
  • Expect non-GAAP earnings growth in the low-to-mid teens in fiscal year 2023.
  • Q1 2023 revenue is expected to be between $690 million and $710 million.
  • Q1 2023 non-GAAP earnings are expected to be between $2.25 and $2.37 per diluted share.

Headwinds

  • Business is likely to bear some weight from macroeconomic headwinds.
  • Forward-looking non-GAAP measures exclude estimates for several items, including amortization of intangible assets and share-based compensation expenses.
  • F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding GAAP measures on a forward-looking basis without unreasonable effort.
  • Material changes to any one of the excluded items could have a significant effect on guidance and future GAAP results.
  • Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically varied and may continue to vary significantly from quarter to quarter.

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 Q4 2022

Historical avgQ4 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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