Software Growth Deceleration
Q: Why guide high single-digit software growth after strong FY'24?
A: Despite strong software growth in FY'24, we are forecasting high single-digit growth for FY'25 due to prudence and the early stage of AI deployments. While hybrid and multi-cloud adoption continues to drive tailwinds, we anticipate meaningful AI-related revenue contributions more in FY'26 and beyond. -

Systems Revenue Outlook
Q: Is systems growth due to share gains or accelerated refresh?
A: Both. We see strength in systems from competitive replacements and customers reinvesting in hardware, leading to a mid-single-digit growth outlook for our hardware business. This trend is likely to continue over the next several quarters. -

AI Opportunities Timing
Q: When will AI tailwinds impact revenues?
A: AI opportunities are developing but are in early days. Hardware opportunities with BIG-IP in AI deployments are starting now but won't significantly contribute to FY'25 revenue. Software opportunities, like our partnership with NVIDIA for improved GPU utilization, are expected to contribute meaningfully in FY'26 and beyond. -

Raised First Half Guidance
Q: Have first half FY'25 growth expectations changed?
A: Yes, we updated our expectation for the first half to low single-digit growth, up from prior flat expectations, due to strength in subscription renewals and systems. -

Subscription Revenue Dynamics
Q: Why might subscription revenue decline sequentially next quarter?
A: The sequential fluctuation is due to timing of the renewal base and strong Q4 performance. Our larger renewal base in FY'25 is more weighted to the second half, causing variability in reported revenue due to ASC 606 recognition. -

Hardware Price Increases
Q: Are you implementing hardware price increases?
A: Yes, we've announced modest single-digit percentage price increases for hardware, effective at the beginning of the calendar year, considering the competitive environment and delivering value to customers. -

Enterprise Sector Strength
Q: How did verticals perform relative to expectations?
A: Enterprise was the strong sector, exceeding expectations and leading to outperformance. U.S. Federal performed as expected, while the service provider sector remained weak due to constrained demand. -

New vs. Existing Customer Growth
Q: How much growth comes from new customers?
A: The majority of growth comes from existing customers through expansion and cross-selling, although we continue to win new customers each quarter across our portfolio. In FY'24, our distributed cloud services grew to over 800 customers from about 500. -

Sales Incentives and Partner Program
Q: Any changes in sales incentives or partner program for FY'25?
A: We will continue to incentivize our sales force to cross-sell our portfolio, focusing on hybrid multi-cloud architectures. Our strong partner program remains the same, with over 2,000 partners embracing our growing portfolio. -