NASDAQ$FFIV

F5 Networks Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

F5 reported a 1% revenue increase and double-digit earnings growth in its fourth quarter.

F5's Q4 2023 saw a 1% increase in revenue compared to the previous year, reaching $707 million. Software revenue grew by 11%, contributing to double-digit earnings per share growth. The company's focus on operating discipline enabled it to deliver fiscal year 2023 earnings per share in line with expectations.

  • Q4 revenue grew 1% year-over-year to $707 million.
  • Software revenue increased by 11% year-over-year.
  • GAAP EPS was $2.55, compared to $1.49 in the prior year.
  • Non-GAAP EPS was $3.50, compared to $2.62 in the prior year.

Headline financials

Total Revenue

$707M

Previous: $700M+1.0%
EPS (adj)

$3.50

Previous: $2.62+33.6%
Capital Expenditures

$15.4M

Previous: $8.51M+80.8%
Free Cash Flow

$174M

Previous: $146M+19.6%
Net Income

$152M

Previous: $89.3M+70.1%
Operating Income

$172M

Previous: $108M+60.0%
Gross Profit

$566M

Previous: $553M+2.4%
Cash & Equivalents

$797M

Previous: $758M+5.2%
Total Assets

$5.25B

Previous: $5.28B-0.5%
Stock-Based Comp

$53.3M

Previous: $59.5M-10.4%

Revenue & EPS history

F5 · Revenue · Quarterly

$707M

Q4 2023+1%vs Q4 2022
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

F5 expects flat to low-single-digit percentage decline in revenue for fiscal year 2024. The Company expects to deliver non-GAAP earnings per share growth of 5% to 7% year-over-year. For the first 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 $2.97 to $3.09 per diluted share.

Tailwinds

  • Subscription renewals performed well throughout fiscal year 2023.
  • F5 saw encouraging signs from enterprise customers in our fourth quarter.
  • Company remains committed to its profitability.
  • Company expects to deliver non-GAAP earnings per share growth of 5% to 7% year-over-year
  • Company also remains committed to using at least 50% of its annual free cash flow toward share repurchases.

Headwinds

  • Customer caution will persist into fiscal year 2024
  • $180 million headwind from strong backlog fulfillment in fiscal year 2023 tempers our 2024 revenue growth expectations.
  • Expects revenue that is flat to a low-single-digit percentage decline from its fiscal year 2023 revenue.
  • F5 expects to deliver revenue in the range of $675 million to $695 million for the first quarter of fiscal year 2024
  • F5 expects non-GAAP earnings in the range of $2.97 to $3.09 per diluted share for the first quarter of fiscal year 2024

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 2023

Historical avgQ4 2023

+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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