F5 Networks announces a 91% software revenue growth

The service provider’s third-quarter fiscal results for the year also showed a 4% revenue growth, with a GAAP net income of $85.9mn (AED328.7mn).

F5 president and CEO François Locoh-Donou
F5 president and CEO François Locoh-Donou

Financial results of cloud security service provider F5 Networks Inc. were announced by the company’s spokespeople. Included in the results were their acquisition of California-based web-server NGINX Inc. on May 8 this year, a revenue of $563.4mn (AED2.07bn) marking a growth of 4%, with a 91% growth from software solutions revenue. The third-quarter performance also summarised a GAAP net income for this quarter recorded earnings of $85.9mn (AED328.7mn)—$1.43 (AED5.25) per diluted share—and included $41mn (AED150.59mn) in stock-based compensation, $30.1mn (AED110.55mn) in costs related to the NGINX acquisition, $8.7mn (AED 31.9mn) in facility exit costs, and $3.7mn (AED13.59mn) in amortisation of purchased intangible assets. This compared with the third-quarter fiscal year 2018 GAAP net income of $122.7mn (AED450.6mn)—$1.99 (AED7.31) per diluted share.

Non-GAAP net income for the year’s third quarter recorded earnings of $151.5mn (AED556.4mn)—$2.52 (AED9.26) per diluted share—compared to the previous year’s $150.1mn (AED551.3mn)—$2.44 (AED8.96) per diluted share. The non-GAAP income reportedly excluded impact of stock-based compensation and amortisation of purchased intangible assets, apart from facility-exit costs related to the company's headquarters move and costs related to the acquisition of NGINX. F5 president and CEO François Locoh-Donou stated, “The quarter's 4% total revenue growth and 91% software growth was driven by customer demand for the software form factors of our application services, as customers globally rely on F5 to provide consistent application security and reliable performance across private, public and multi-cloud environments. With customers facing an ever-increasing array of threats, our software growth continues to be driven by security use cases, including web application firewall and bot-defence and mitigation.”

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