Record Sales And Strong Software Growth...

Gain: $747 million in the fourth quarter, up 6% year over year.
Software revenue growth: 19% in the fourth quarter.
Non-GAAP EPS: $3.67 in Q4, $0.17 above guidance.
Global services revenues: $388 million in the fourth quarter, up 2% year over year.
Product yields: $358 million in the fourth quarter, up 10% year over year.
System yields: $130 million in the fourth quarter, down 3% year over year.
Subscription-based software revenue: $204 million in the fourth quarter, 89% of total software revenue.
Recurring revenue: 78% of total sales in the fourth quarter.
GAAP gross margin: 80.8% in the fourth quarter.
Non-GAAP gross margin: 83% in the fourth quarter.
GAAP operating margin: 25.6% in the fourth quarter.
Non-GAAP operating margin: 34.4% in the fourth quarter.
Cash flow from operating activities: $247 million in the fourth quarter.
Deferred income: $1.8 billion, up 1% year over year.
Share buybacks: $100 million in Q4, $500 million in FY24.
Turnover for financial year 24: $2.82 billion, at the high end of the guideline.
Software revenue FY24: $735 million, up 11% year over year.
Security revenues FY24: $1.1 billion, 41% of total revenue.
Non-GAAP net income FY24: $794 million, $13.37 per share.

Release date: October 28, 2024

For the full earnings call transcript, please refer to the full earnings call transcript.

F5 Inc (NASDAQ:FFIV) posted a record fourth quarter with $747 million in revenue, up 6% year over year, exceeding the upper end of their expectations.
Software revenues increased 19% year-on-year, highlighting the strong performance in this segment.
The company achieved non-GAAP earnings per share of $3.67, which was $0.17 above the top of their guidance range, indicating improved operating margins.
F5 Inc (NASDAQ:FFIV) has successfully transformed from a hardware-focused company to a leader in security and software for hybrid multi-cloud environments.
The company expects revenue growth to accelerate in FY25, with expected growth of 4% to 5% over FY24, driven by a high opportunity for software renewal and improving demand trends.

Despite strong software growth, SaaS and managed services revenues declined 5% year-over-year due to planned retirements and transitions of existing offerings.
Sales from the APAC region decreased by 3%, which presented a challenge in that geographic market.
The company expects only low single-digit revenue growth in the first half of FY25, indicating a cautious outlook for the first part of the fiscal year.
F5 Inc (NASDAQ:FFIV) did not include significant contributions from AI capabilities in their FY25 guidance, indicating uncertainty in this emerging area.
Demand for service providers remains subdued, with the sector failing to demonstrate a broad recovery, impacting overall growth potential.

Record sales and strong software growth…