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F5 Delivers 5% Revenue Growth in Fiscal Year 2020 on Building Software Momentum
SEATTLE, WA - October 26, 2020 - F5 Networks, Inc. (NASDAQ: FFIV) today announced financial results for its fiscal fourth quarter and year ended September 30, 2020.
“F5 is well on its way to becoming a software-led business, with customer demand for our multi-cloud application security and delivery services driving 5% GAAP and non-GAAP annual revenue growth in fiscal year 2020,” said François Locoh-Donou, president and CEO of F5. “Going forward, we expect continued robust software growth from a more diversified base of subscription and SaaS revenue, a software subscription renewals flywheel that is starting to turn with momentum, and true-forward revenue opportunities on a significant percentage of our long-term software subscription contracts.”
“We have prioritized our innovation and investment to focus on solving our customers’ most pressing application challenges,” continued Locoh-Donou. “New ways of working and higher consumer expectations for application performance along with exploding application growth have created new challenges for customers that F5 is uniquely positioned to address.”
Fiscal Year 2020 Performance Summary
Following its acquisition of Shape Security, to provide transparency to what F5 management believes reflects its ongoing business results, during fiscal year 2020, F5 is reporting both GAAP and non-GAAP revenue. Non-GAAP revenue excludes the impact of the purchase accounting write-down on Shape’s assumed deferred revenue.
GAAP revenue of $2.35 billion for fiscal year 2020 reflects 5% growth from $2.24 billion in fiscal year 2019.
Non-GAAP revenue for fiscal year 2020 was $2.36 billion, reflecting 5% growth in total revenue and 52% growth in software revenue from the year ago period.
GAAP net income for fiscal year 2020 was $307 million, or $5.01 per diluted share compared to fiscal year 2019 GAAP net income of $428 million, or $7.08 per diluted share.
Non-GAAP net income for fiscal year 2020 was $575 million, or $9.37 per diluted share, compared to $626 million, or $10.36 per diluted share, in fiscal year 2019. Non-GAAP net income for fiscal year 2020 excludes $202 million in stock-based compensation, $56 million in acquisition-related charges, $35 million in amortization of purchased intangible assets, and $17 million in facility-exit costs.
Fourth Quarter Performance Summary
GAAP revenue of $615 million for the fourth quarter of fiscal year 2020 reflects 4% growth from $590 million in the fourth quarter of fiscal year 2019.
Non-GAAP revenue for the fourth quarter of fiscal year 2020 was $617 million, reflecting 4% growth in total revenue and 36% growth in software revenue from the year ago period.
The following information was filed by F5 Networks Inc (FFIV) on Monday, October 26, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.