Summary
F5, Inc. (FFIV) in its November 3, 2017 10-K filing highlights its position as a leading provider of software-defined application services, crucial for ensuring applications delivered over IP networks are faster, smarter, and safer across various devices and locations. The company's core technology, TMOS, is a programmable and scalable platform that supports a wide range of application services, including traffic management, security, and access management. These services are delivered through hardware appliances, software-only Virtual Editions, and cloud-based Silverline SaaS offerings, providing flexibility for customers operating in hybrid and multi-cloud environments. The company's strategy focuses on offering a comprehensive suite of integrated application services, investing in technology to meet evolving customer needs, expanding its addressable market through strategic acquisitions and development, building strong technology partnerships, and leveraging its online community, DevCentral. F5 serves mid-to-large enterprises, public sector entities, and top service providers globally, with a significant portion of its revenue derived from hardware and associated services, while also expanding its software-only and cloud-based offerings. Financially, for the fiscal year ended September 30, 2017, F5 reported total net revenues of $2.09 billion, an increase of 4.8% year-over-year, driven by growth in both product and service revenues. The company maintained strong gross margins of 83.1% and demonstrated robust operating income. F5 also continued its share repurchase program, indicating a commitment to returning capital to shareholders.
Financial Highlights
51 data points| Revenue | $2.09B |
| Cost of Revenue | $353.49M |
| Gross Profit | $1.74B |
| R&D Expenses | $350.37M |
| Operating Expenses | $1.17B |
| Operating Income | $563.96M |
| Net Income | $420.76M |
| EPS (Basic) | $6.56 |
| EPS (Diluted) | $6.50 |
| Shares Outstanding (Basic) | 64.17M |
| Shares Outstanding (Diluted) | 64.78M |
Key Highlights
- 1F5's core offering is the TMOS platform, enabling a wide array of application services including traffic management, security, and access control, delivered via hardware appliances, Virtual Editions, and cloud-based SaaS.
- 2The company strategically focuses on providing a complete, integrated suite of application services and invests heavily in R&D to meet evolving customer demands in dynamic IT environments.
- 3F5's addressable market has expanded beyond traditional Application Delivery Networking (ADN) to include security, WAN optimization, and policy management, driven by acquisitions and technology development.
- 4Strategic partnerships with major technology vendors like Microsoft, Oracle, VMware, and Cisco are key to F5's go-to-market strategy and product interoperability.
- 5The company reported total net revenues of $2.09 billion for the fiscal year ended September 30, 2017, a 4.8% increase from the previous year.
- 6F5 maintained strong financial performance with a gross profit of $1.74 billion and an operating income of $564 million, demonstrating healthy margins.
- 7The company actively engaged in its share repurchase program, repurchasing 4.56 million shares in FY2017, reflecting a commitment to shareholder returns.