NASDAQ$FFIV

F5 Networks Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

F5 reported strong software revenue growth and double-digit fiscal year 2024 EPS growth.

F5's Q4 revenue reached $747 million, a 6% increase year-over-year, driven by a 19% rise in software revenue. The company achieved revenue at the high end of its guidance for fiscal year 2024 and surpassed software growth expectations, resulting in double-digit earnings per share growth.

  • Q4 revenue totaled $747 million, up from $707 million in Q4 2023.
  • Software revenue grew by 19% to $228 million compared to the previous year.
  • GAAP net income was $165 million, or $2.80 per diluted share, compared to $152 million, or $2.55 per diluted share, in Q4 2023.
  • The Board of Directors authorized an additional $1 billion for share repurchases.

Headline financials

Total Revenue

$747M

Previous: $707M+5.6%
EPS (adj)

$3.67

Previous: $3.50+4.9%
GAAP Gross Margin

80.8%

No prior period
Non-GAAP Gross Margin

83.0%

No prior period
GAAP Operating Margin

25.6%

No prior period
Non-GAAP Operating Margin

34.4%

No prior period
Capital Expenditures

-$6.06M

Previous: $15.4M-139.4%
Net Income

$165M

Previous: $152M+8.6%
Operating Income

$191M

Previous: $172M+11.0%
Gross Profit

$603M

Previous: $566M+6.5%
R&D Expense

$123M

No prior period
Stock-Based Comp

$53.8M

Previous: $53.3M+0.9%

Revenue & EPS history

F5 · Revenue · Quarterly

$747M

Q4 2024+5.6%vs Q4 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 fiscal year 2025, F5 expects total revenue growth of 4% to 5% and non-GAAP earnings per share growth of 5% to 7% over fiscal year 2024. For the first quarter of fiscal year 2025, F5 expects revenue in the range of $705 million to $725 million, with non-GAAP earnings in the range of $3.29 to $3.41 per diluted share.

Tailwinds

  • Expects to deliver total revenue growth of 4% to 5% for fiscal year 2025.
  • Projects non-GAAP earnings per share growth of 5% to 7% over fiscal year 2024.
  • The midpoint of F5’s fiscal year 2025 non-GAAP earnings per share guidance reflects 10% growth year over year on a tax-neutral basis.
  • Expects to deliver revenue in the range of $705 million to $725 million for the first quarter of fiscal year 2025.
  • Projects non-GAAP earnings in the range of $3.29 to $3.41 per diluted share for the first quarter of fiscal year 2025.

Headwinds

  • Forward-looking non-GAAP measures exclude estimates for amortization of intangible assets.
  • Forward-looking non-GAAP measures exclude share-based compensation expenses.
  • Forward-looking non-GAAP measures exclude significant effects of tax legislation.
  • Forward-looking non-GAAP measures exclude non-recurring income tax adjustments.
  • F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding U.S. GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded.

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 2024

Historical avgQ4 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro