F5 Reports 40% Software Revenue Growth in its Fiscal Second Quarter

SEATTLE--(BUSINESS WIRE)-- F5, Inc. (NASDAQ: FFIV) today announced financial results for its fiscal second quarter ended March 31, 2022.

“Our strong 40% software growth enabled us to deliver above the midpoint of our revenue guidance and at the top end of our non-GAAP earnings per share guidance for the quarter,” said François Locoh-Donou, F5’s President and CEO. “While our ability to ship systems remains constrained as a result of semiconductor component shortages, momentum in our software business is strong, driven by customers’ growing need for multi-cloud application security and delivery.”

Second Quarter Performance Summary

Second quarter fiscal year 2022 revenue was $634 million, down 2% from $645 million in the year-ago period. Software revenue grew 40% over the prior year period while systems revenue declined 27% as a result of semiconductor component shortages. Global services revenue was flat with the year-ago period.

GAAP net income for the second quarter of fiscal year 2022 was $56 million, or $0.92 per diluted share compared to second quarter fiscal year 2021 GAAP net income of $43 million, or $0.70 per diluted share.

Non-GAAP net income for the second quarter of fiscal year 2022 was $131 million, or $2.13 per diluted share, compared to $155 million, or $2.50 per diluted share, in the second quarter of fiscal year 2021.

A reconciliation of net income on a GAAP to non-GAAP basis is included in the attached Consolidated Income Statements. Additional information about non-GAAP financial information is included in this release.

Business Outlook

“We have clear visibility to continuing strong demand drivers across our software and systems portfolio. Near term, our ability to ship to meet demand for our systems-based solutions is gated by ongoing component shortages,” said Locoh-Donou. “We continue to work every possible angle to expand our supply availability to match the demand from our customers.”

Given these near term supply chain constraints, the Company expects fiscal year 2022 revenue growth in a range of 1.5% to 4%, down from its prior outlook for 4.5% to 8% growth. The Company continues to expect fiscal year 2022 software revenue growth near the top end of its previously provided 35% to 40% guidance range. For fiscal third quarter, the company expects revenue in a range of $660 to $680 million.