F5 beats Wall Street expectations for Q4, capping strong 2021

Application security company F5 Networks delivered better-than-expected fourth-quarter financial results, reporting non-GAAP net income of $185 million, or $3.01 per diluted share, on revenue of non-GAAP $617 million.

The fourth-quarter fiscal year 2021 GAAP revenue was $682 million, beating Wall Street’s expectations of $671.51 million and $2.75 per share earnings.

See also: F5 to acquire multi-cloud security software maker Volterra for $500 million, raises financial outlook. 

This year, the company announced that it would acquire distributed multi-cloud application security and load-balancing software company Volterra of Santa Clara, California. F5 Networks also announced last month that it is acquiring cloud security company Threat Stack for $68 million.

F5 shares are up 2% at $208.12 in after-hours trading.

For fiscal year 2021, F5 delivered GAAP revenue of $2.60 billion, up 11% year over year. The company said its revenue growth was driven by 21% product revenue growth and 2% global services revenue growth compared to last year. 

F5 expects to deliver revenue in the range of $665 million to $685 million, with non-GAAP earnings in the range of $2.71 to $2.83 per diluted share for Q1. 

François Locoh-Donou, F5’s president and CEO, said the strong Q4 caps a “year of robust financial performance for F5.”

“With software revenue representing 45% of product revenue in the fourth quarter, and 80% of this software revenue coming from subscriptions, we continue to mark milestone after milestone in our rapid transformation to a software led business model,” Locoh-Donou said.

“Skyrocketing application usage and heightened security awareness are driving strong demand for F5 solutions on premises, in the cloud, and across multiple clouds. Our expanded solutions portfolio and vision for enabling Adaptive Applications puts us at the intersection of these strong and sustainable secular trends and positions F5 for continued strong revenue and earnings growth.”

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