Q4 2024 F5 Inc Earnings Call Transcript
Key Points
- F5 Inc (FFIV) delivered a record Q4 with $747 million in revenues, up 6% year over year, exceeding the high end of their guidance range.
- Software revenue grew by 19% year over year, highlighting strong performance in this segment.
- The company achieved a non-GAAP EPS of $3.67, which was $0.17 above the top end of their guidance range, indicating improved operating margins.
- F5 Inc (FFIV) has successfully transformed from a hardware-centric company to a leader in security and software for hybrid multi-cloud environments.
- The company expects revenue growth to accelerate in FY25, with a projected growth range of 4% to 5% from FY24, driven by a large software renewal opportunity and improving demand trends.
- Despite strong software growth, the SaaS and managed services revenue declined by 5% year over year due to planned legacy offering retirements and transitions.
- APAC region revenue declined by 3%, representing a challenge in that geographical market.
- The company anticipates only low single-digit revenue growth in the first half of FY25, indicating a cautious outlook for the early part of the fiscal year.
- F5 Inc (FFIV) has not baked in significant contributions from AI opportunities in their FY25 guidance, suggesting uncertainty in this emerging area.
- Service provider demand remains constrained, with the sector not showing a broad recovery, impacting overall growth potential.
Good afternoon, and welcome to the F5 fourth quarter fiscal 2024 financial results conference call. (Operator Instructions) Also, today's conference is being recorded. If anyone has any objections, please disconnect at this time.
I'll now turn the call over to Ms. Suzanne DuLong. Ma'am, you may begin.
Hello and welcome. I'm Suzanne DuLong, F5's Vice President of Investor Relations. We're here with you today to discuss our fourth quarter and fiscal year 2024 financial results.
François Locoh-Donou, F5's President and CEO; Frank Pelzer, F5's Executive Vice President and CFO; and Cooper Werner, our SVP of Finance and incoming CFO, will be making prepared remarks on today's call. Other members of the F5 executive team are also here to answer questions during the Q&A session.
A copy of today's press release is available on our website at f5.com, where an archived version of today's audio will be available through January 27, 2025. We will post the slide deck accompanying
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