Q4 2023 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$147.48June 30, 2023
Final Price$161.14September 30, 2023
Price Change$13.66
% Change+9.26%
- F5 Networks reports net revenue retention rates above 120%, surpassing industry norms, indicating strong customer retention and expansion within their term subscription business.
- The company anticipates double-digit software growth returning in FY25, driven by robust renewals and expansions in their term subscription business.
- F5 is gaining market share in Application Delivery Controllers (ADCs) by displacing competitors, thanks to investments in next-generation hardware and software platforms like BIG-IP, and expects this trend to continue with upcoming differentiated offerings.
- F5 Networks expects flat to down low single-digit revenue growth in FY '24, signaling potential challenges in maintaining growth momentum.
- The company anticipates a planned revenue churn of approximately $65 million in its SaaS and managed services business due to retiring legacy offerings and transitioning customers, which may impact short-term revenue.
- Software revenue growth is expected to be flat to modest in FY '24, with no expected growth from perpetual or SaaS and managed services segments, raising concerns about near-term software growth.