Juniper Networks Reports Preliminary First Quarter 2024 Financial Results

SUNNYVALE, Calif.-- Juniper Networks (NYSE: JNPR), a leader in secure, AI-Native Networks, today reported preliminary financial results for the three months ended March 31, 2024.

Proposed Merger with Hewlett Packard Enterprise

As announced on January 9, 2024, Hewlett Packard Enterprise (“HPE”) plans to acquire Juniper Networks in an all-cash transaction for $40.00 per share, representing an equity value of approximately $14 billion. The transaction is currently expected to close in late calendar year 2024 or early calendar year 2025, subject to receipt of regulatory approvals, and satisfaction of other customary closing conditions.

First Quarter 2024 Financial Performance

Net revenues were $1,148.9 million, a decrease of 16% year-over-year, and a decrease of 16% sequentially.

GAAP operating margin was (1.2)%, a decrease from 8.4% in the first quarter of 2023, and a decrease from 9.2% in the fourth quarter of 2023.

Non-GAAP operating margin was 10.6%, a decrease from 14.8% in the first quarter of 2023, and a decrease from 18.3% in the fourth quarter of 2023.

GAAP net loss was $0.8 million, a decrease of 101% year-over-year and sequentially, resulting in diluted net loss per share of $(0.00).

Non-GAAP net income was $96.6 million, a decrease of 38% year-over-year, and a decrease of 51% sequentially, resulting in non-GAAP diluted net income per share of $0.29.

The reconciliation between GAAP and non-GAAP financial measures is provided in a table immediately following the Preliminary Net Revenues by Geographic Region table below.

“While many of our customers continue to be impacted by macro headwinds and the digestion of previously placed orders, we are starting to see a recovery in demand from our cloud customers and saw another quarter of double-digit order growth in our Mist-led business,” said Juniper CEO, Rami Rahim. “I remain optimistic regarding our long-term growth prospects, particularly as customers adopt our AI offerings, both for network operations and data center use cases.”

“We delivered strong non-GAAP gross margin and better than seasonal expense trends during the March quarter,” said Juniper’s CFO, Ken Miller. “We remain focused on profitability, while making the necessary investments to drive long-term growth.”

Balance Sheet and Other Financial Results

Total cash, cash equivalents, and investments as of March 31, 2024 were $1,534.9 million, compared to $1,191.0 million as of March 31, 2023, and $1,324.3 million as of December 31, 2023.

Net cash flows provided by operations for the first quarter of 2024 were $325.0 million, compared to $191.5 million in the first quarter of 2023, and $9.1 million in the fourth quarter of 2023.

Days sales outstanding in accounts receivable was 64 days in the first quarter of 2024, compared to 70 days in the first quarter of 2023, and 69 days in the fourth quarter of 2023.

Capital expenditures were $34.8 million, and depreciation and amortization expense was $45.1 million during the first quarter of 2024.

Capital Return

Our Board of Directors has declared a cash dividend of $0.22 per share to be paid on June 24, 2024 to stockholders of record as of the close of business on June 3, 2024. We remain committed to paying our dividend; we have suspended our stock repurchase program in accordance with the terms of the merger agreement with HPE.

First Quarter 2024 Financial Commentary Available Online

A CFO Commentary reviewing Juniper Networks’ preliminary first quarter 2024 financial results will be published on Juniper Networks’ website at http://investor.juniper.net.

In light of the proposed transaction with HPE, and as is customary during the pendency of an acquisition, Juniper Networks will not be providing financial guidance for 2024.