On January 25, F5 Inc. (FFIV) declared its fiscal 2022 first quarter’s financial results. Consequently, the stock plunged down in the after-hours on poor future outlook and expected supply chain issues.
During regular trading, the stock remained gloomy with a loss of 2.44% at its closing price of $221.14. Following the announcement, FFIV’s downfall accelerated in the after-hours, decreasing by a further 14.69%. Therefore, the stock was trading at $188.65 apiece in the after hours.
The software-defined application services developer, F5 Inc. has a market capitalization of $13.88 billion. Currently, the company has 61.23 million shares outstanding in the market.
FFIV’s Q1 FY2022 Results
According to Q1 FY2022, which ended on December 31, 2021, FFIV had GAAP revenue of $687 million. Comparatively, the GAAP and non-GAAP revenue in the year-ago quarter were $625 million and $626 million, respectively. Thus, showing an increase of 10% year over year.
Moreover, the company generated a non-GAAP net income of $179 million in the first quarter of fiscal 2022. In comparison, the non-GAAP net income was $161 million in Q1 of fiscal 2021. Resultantly, the non-GAAP net income per diluted share was $2.89 and $2.59 in Q1 of fiscal 2022 and fiscal 2021, respectively.
Future Guidance
Along with the results, the company also provided its guidance for the upcoming quarter and fiscal 2022. Due to supply chain issues, FFIV expects a slight deficiency in meeting customers’ demands in fiscal 2022.
Subsequently, the expected revenue for the upcoming second quarter of fiscal 2022 is between $610 and $650 million.
Furthermore, the company has also revised its fiscal 2022 revenue growth from 8% – 9% to 4.5% – 8%, due to the expected problems.
In addition, the software revenue growth is expected to be somewhere the top end of the previous 35%-45% range. And the global services revenue is expected to grow by 1%-2% in fiscal 2022.
Recent Addition to FFIV Board
On January 10, FFIV notified the addition of a new director to its board. The president of the Digital Transformation Platform Group at Microsoft, James Phillips, has been appointed to the board. Additionally, the appointment was effective on January 05, 2022. Mr. Phillips will also sit on the company’s Nominating and Environmental, Societal and Governance (ESG) Committee.
Conclusion
In conclusion, the company beat its earnings and revenue estimates for Q1 of fiscal 2022. But the decreased guidance range for the upcoming quarter and fiscal 2022 caused the stock to plunge down.
