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Investing.com -- F5 Networks Inc (NASDAQ:FFIV) reported third-quarter earnings that significantly exceeded analyst expectations, driving shares up 8.4% as the company delivered strong revenue growth and raised its full-year outlook.
The application security and delivery company posted adjusted earnings of $4.16 per share for its fiscal third quarter ended June 30, handily beating the analyst estimate of $3.50. Revenue climbed to $780 million, surpassing the consensus estimate of $752.79 million and representing a 12% increase YoY.
The robust performance was fueled by exceptional product revenue growth of 26%, which included a 39% surge in systems revenue and 16% growth in software revenue. Global services revenue increased by 1% compared to the same period last year.
"This strong top-line performance along with continued operating leverage, is a testament to our team’s execution, our continued innovation, and the enormous trust the largest enterprises and service providers across the globe place in F5," said François Locoh-Donou, F5’s President and CEO.
Looking ahead, F5 Networks provided an optimistic outlook for its fourth quarter, projecting revenue between $780 million and $800 million, above the consensus estimate of $779.2 million. The company also expects adjusted earnings of $3.87 to $3.99 per share, exceeding analyst expectations of $3.84.
The guidance implies full-year revenue growth of approximately 9% at the midpoint, up from its previous forecast of 6.5% to 7.5%. F5 also raised its projection for fiscal 2025 adjusted earnings growth to 14-15%, compared to its earlier guidance of 8-10%.
Locoh-Donou attributed the strong results to major industry trends: "Customers are modernizing their data centers, adopting hybrid multicloud architectures, and scaling to meet growing application performance and security needs, including those coming from AI adoption."
The company’s operating margin improved to 34.3% on a non-GAAP basis, up from 33.4% in the year-ago period.
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