Earnings Beat Propels F5 Stock

F5 Inc. (NASDAQ:FFIV) is a Seattle-based company that provides multi-cloud application security and delivery solutions in the United States, Europe, the Middle East, Africa, and the Asia Pacific region. Its stock has climbed 3.74% month-over-month as of close on Monday, July 29, 2024. Meanwhile, its shares are only up 0.77% so far in 2024. The company’s stock recently enjoyed a jolt after unveiling its most recent quarterly report.

Investors got to see F5’s third quarter (Q3) fiscal 2024 earnings on July 29. In Q3 FY2024, the company reported revenue of $695 million – down from $703 million in the third quarter of fiscal 2023. Moreover, it reported software revenue of $179 million – up 3% compared to the prior year. However, systems revenue dropped 16% year-over-year to $130 million. Overall, GAAP gross profit for Q3 2024 was reported at $559 million, representing a GAAP gross margin of 80.4%.

Looking ahead to the fourth quarter of fiscal 2024, F5 is projecting revenue in the range of $720 million to $740 million. Moreover, it expects non-GAAP earnings in the range of $3.38 to $3.50 per diluted share. “Based on our visibility to strong fourth quarter software demand,” said CEO Francois Locoh-Donou. “We now expect fiscal year 2024 revenue toward the top end of our prior expectations, at approximately $2.8 billion, or roughly flat with last year.

Shares of F5 currently possess a price-to-earnings ratio of 21. It remains on track for solid earnings growth going forward, as well as having a very strong balance sheet.