F5 forecast upbeat first-quarter revenue on steady demand for software services

F5

28/10/2024 21:10

Oct 28 (Reuters) - F5  FFIV.O  forecast first-quarter
revenue above Wall Street estimates and beat quarterly results
on Monday, helped by steady demand for its software products,
sending the shares of the company up 10% in extended trading.
    As businesses actively migrate to the cloud, delivery
networking companies such as F5, which provides software and
hardware solutions to secure network and apps, have witnessed a
surge in demand for their services.
    The company expects first-quarter revenue in the range of
$705 million to $725 million, whose mid-point is above analysts'
estimate of $707.1 million, according to data compiled by LSEG.
    The company's software revenue grew 19% to $228 million from
a year ago.
    Its revenue grew 6% to $747 million, beating analysts'
expectations of $730.5 million in the fourth quarter. Adjusted
earnings came at $3.67 per share, higher than expected $3.45 per
share.
    The Seattle, Washington-based company's board authorized a
$1 billion share repurchase program.
    F5 forecast adjusted earnings per share between $3.29 to
$3.41, compared to analysts' expectations of $3.37.
    For the full-year 2025, the company expects total revenue
growth of 4% to 5% and adjusted earnings per share growth of 5%
to 7% from a year ago.

            

 (Reporting by Priyanka.G in Bengaluru; editing by Alan Barona)
 ((mailto:Priyanka.G@thomsonreuters.com))