Summary
F5, INC. (FFIV) reported a net income of $87.7 million ($1.41 diluted EPS) for the quarter ended December 31, 2020, a decrease from $98.5 million ($1.62 diluted EPS) in the prior year quarter. Total net revenues increased by 9.7% to $624.6 million, driven by a 22.8% rise in product revenue, largely due to an increase in software sales and the impact of the Shape acquisition. Service revenues remained relatively flat. The company highlighted strong growth in software revenue and continued integration of the Shape acquisition, which contributed to increased product costs and overall operating expenses, particularly in R&D and Sales & Marketing, reflecting strategic investments in growth areas. Despite the decrease in net income, the company's financial position remains robust with a significant increase in cash and cash equivalents, reaching $1.03 billion. Management noted that while COVID-19 has not had a significant impact on recent results, the long-term effects remain uncertain. The company ended the quarter with a strong liquidity position, including $350 million available under its revolving credit facility and significant investment balances, suggesting a solid foundation for ongoing operations and strategic initiatives.
Financial Highlights
54 data points| Revenue | $624.62M |
| Cost of Revenue | $114.98M |
| Gross Profit | $509.64M |
| R&D Expenses | $114.19M |
| Operating Expenses | $391.89M |
| Operating Income | $117.75M |
| Net Income | $87.68M |
| EPS (Basic) | $1.43 |
| EPS (Diluted) | $1.41 |
| Shares Outstanding (Basic) | 61.44M |
| Shares Outstanding (Diluted) | 62.28M |
Key Highlights
- 1Total net revenues increased by 9.7% to $624.6 million for the quarter ended December 31, 2020, compared to $569.3 million in the prior year.
- 2Net product revenues saw a significant increase of 22.8% to $288.0 million, driven by strong software sales and the impact of the Shape acquisition.
- 3Net income decreased to $87.7 million from $98.5 million in the prior year's quarter, with diluted EPS falling to $1.41 from $1.62.
- 4Operating expenses increased by 9.2% to $391.9 million, with notable rises in Sales and Marketing (9.7%) and Research and Development (18.9%), reflecting continued investment.
- 5The company's cash and cash equivalents increased significantly to $1.03 billion as of December 31, 2020, up from $852.8 million at September 30, 2020.
- 6Deferred revenue continued to increase, reaching $1.36 billion, indicating strong subscription revenue growth and favorable contract performance.
- 7The company reported no outstanding borrowings under its $350 million revolving credit facility as of December 31, 2020, demonstrating strong liquidity.