Extreme Networks Shares Gain On Q2 Beat Driven By SaaS ARR Momentum

  • Extreme Networks, Inc EXTR reported a flat fourth-quarter FY22 revenue growth year-on-year to $278.2 million, beating the consensus of $268.96 million. 
  • Product revenue declined 8.7% Y/Y to $187.1 million. Service and subscription revenue grew 8.8% Y/Y to $91.1 million.
  • SaaS ARR was $103 million, up 47% Y/Y and 8% quarter-over-quarter.
  • Non-GAAP EPS of $0.15 beat the consensus of $0.14.
  • Non-GAAP gross margin contracted 350 bps to 57.0%. Non-GAAP operating margin contracted 380 bps to 9.6%.
  • EXTR generated $64.1 million in operating cash flow and held $194.5 million in cash and equivalents.
  • CFO Remi Thomas added, "After another quarter of solid execution, we achieved double-digit growth for the year and improved operating margins, even in the current supply chain environment."
  • "As we enter FY23, our record backlog, combined with the expected improvement in the supply chain environment through the course of the year gives us further confidence that we can grow the topline between 10-15%, improve our gross margin to exit the year above 60%, and deliver an operating margin between 10-15%," concluded Thomas.
  • Outlook: EXTR sees Q1 revenue of $279 million - $289 million, above the consensus of $278.5 million.
  • Non-GAAP EPS of $0.15 - $0.20 compared to the consensus of $0.17.
  • Price Action: EXTR shares traded higher by 6.43% at $11.76 in the premarket on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceSmall CapMoversTechTrading IdeasBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!