F5, Inc. reported a total net revenue of $766.5 million for the three months ended December 31, 2024, marking a 10.7% increase from $692.6 million in the same period of the previous year. The growth was driven by a 20.5% rise in product revenues, which reached $368.5 million, and a 2.9% increase in service revenues, totaling $398.0 million. The company's net income for the quarter was $166.4 million, up from $138.4 million a year earlier, resulting in a diluted earnings per share of $2.82 compared to $2.32 in the prior year.
In terms of operational metrics, F5's total current assets increased to $2.34 billion as of December 31, 2024, from $2.11 billion at the end of September 2024. The company also reported a significant rise in accounts receivable, which grew to $485.0 million from $389.0 million. Deferred revenue, an important indicator of future revenue, rose to $1.95 billion, reflecting a strong demand for maintenance contracts and subscription services. The company’s employee headcount increased slightly, with 1,093 professionals in services, up from 1,049 a year prior.
Strategically, F5 completed two acquisitions during the second quarter of fiscal 2024, resulting in $23.6 million of goodwill. These acquisitions are expected to enhance the company's capabilities in multicloud application security and delivery solutions. The company continues to focus on expanding its product offerings, particularly in software and systems, which have seen increased adoption rates. F5's geographic revenue distribution showed that international markets accounted for 46.9% of total revenues, a slight decrease from 49.5% in the previous year.
The company’s operating expenses increased to $420.9 million from $391.7 million, primarily due to higher sales and marketing costs and restructuring charges of $11.3 million, up from $8.5 million in the prior year. F5's management noted that the increase in expenses was aligned with their strategic initiatives to optimize resources for long-term growth. Looking ahead, F5 anticipates continued revenue growth driven by strong demand for its cloud-based solutions and an increase in maintenance contract renewals, despite potential macroeconomic challenges. The company remains committed to maintaining a strong balance sheet, with cash and investments totaling $1.16 billion as of December 31, 2024.
About F5, INC.
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