☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 91-1714307 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, no par value | FFIV | NASDAQ Global Select Market |
Large Accelerated Filer | ☑ | Accelerated Filer | ☐ | |||||||||||||||||
Non-accelerated Filer | ☐ (Do not check if a smaller reporting company) | Smaller Reporting Company | ☐ | |||||||||||||||||
Emerging Growth Company | ☐ |
Page | |||||
March 31, 2024 | September 30, 2023 | |||||||||||||
ASSETS | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 902,680 | $ | 797,163 | ||||||||||
Short-term investments | 802 | 6,160 | ||||||||||||
Accounts receivable, net of allowances of $3,038 and $3,561 | 388,325 | 454,832 | ||||||||||||
Inventories | 69,760 | 35,874 | ||||||||||||
Other current assets | 589,954 | 554,744 | ||||||||||||
Total current assets | 1,951,521 | 1,848,773 | ||||||||||||
Property and equipment, net | 161,525 | 170,422 | ||||||||||||
Operating lease right-of-use assets | 188,973 | 195,471 | ||||||||||||
Long-term investments | 6,343 | 5,068 | ||||||||||||
Deferred tax assets | 324,875 | 295,308 | ||||||||||||
Goodwill | 2,312,362 | 2,288,678 | ||||||||||||
Other assets, net | 439,071 | 444,613 | ||||||||||||
Total assets | $ | 5,384,670 | $ | 5,248,333 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 57,702 | $ | 63,315 | ||||||||||
Accrued liabilities | 266,563 | 282,890 | ||||||||||||
Deferred revenue | 1,178,158 | 1,126,576 | ||||||||||||
Total current liabilities | 1,502,423 | 1,472,781 | ||||||||||||
Deferred tax liabilities | 5,689 | 4,637 | ||||||||||||
Deferred revenue, long-term | 633,818 | 648,545 | ||||||||||||
Operating lease liabilities, long-term | 228,368 | 239,565 | ||||||||||||
Other long-term liabilities | 81,106 | 82,573 | ||||||||||||
Total long-term liabilities | 948,981 | 975,320 | ||||||||||||
Commitments and contingencies (Note 8) | ||||||||||||||
Shareholders' equity | ||||||||||||||
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding | — | — | ||||||||||||
Common stock, no par value; 200,000 shares authorized, 58,609 and 59,207 shares issued and outstanding | 19,029 | 24,399 | ||||||||||||
Accumulated other comprehensive loss | (21,034) | (23,221) | ||||||||||||
Retained earnings | 2,935,271 | 2,799,054 | ||||||||||||
Total shareholders' equity | 2,933,266 | 2,800,232 | ||||||||||||
Total liabilities and shareholders' equity | $ | 5,384,670 | $ | 5,248,333 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Net revenues | ||||||||||||||||||||||||||
Products | $ | 300,162 | $ | 340,581 | $ | 606,021 | $ | 681,139 | ||||||||||||||||||
Services | 381,192 | 362,594 | 767,930 | 722,414 | ||||||||||||||||||||||
Total | 681,354 | 703,175 | 1,373,951 | 1,403,553 | ||||||||||||||||||||||
Cost of net revenues | ||||||||||||||||||||||||||
Products | 85,313 | 99,795 | 168,021 | 198,650 | ||||||||||||||||||||||
Services | 55,800 | 55,859 | 109,481 | 112,011 | ||||||||||||||||||||||
Total | 141,113 | 155,654 | 277,502 | 310,661 | ||||||||||||||||||||||
Gross profit | 540,241 | 547,521 | 1,096,449 | 1,092,892 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Sales and marketing | 210,800 | 233,076 | 409,727 | 466,181 | ||||||||||||||||||||||
Research and development | 122,207 | 141,363 | 241,782 | 283,686 | ||||||||||||||||||||||
General and administrative | 67,184 | 67,036 | 131,902 | 137,027 | ||||||||||||||||||||||
Restructuring charges | 90 | — | 8,562 | 8,740 | ||||||||||||||||||||||
Total | 400,281 | 441,475 | 791,973 | 895,634 | ||||||||||||||||||||||
Income from operations | 139,960 | 106,046 | 304,476 | 197,258 | ||||||||||||||||||||||
Other income, net | 5,974 | 2,737 | 15,856 | 7,439 | ||||||||||||||||||||||
Income before income taxes | 145,934 | 108,783 | 320,332 | 204,697 | ||||||||||||||||||||||
Provision for income taxes | 26,913 | 27,347 | 62,929 | 50,859 | ||||||||||||||||||||||
Net income | $ | 119,021 | $ | 81,436 | $ | 257,403 | $ | 153,838 | ||||||||||||||||||
Net income per share — basic | $ | 2.02 | $ | 1.35 | $ | 4.37 | $ | 2.55 | ||||||||||||||||||
Weighted average shares — basic | 58,788 | 60,330 | 58,956 | 60,211 | ||||||||||||||||||||||
Net income per share — diluted | $ | 2.00 | $ | 1.34 | $ | 4.32 | $ | 2.54 | ||||||||||||||||||
Weighted average shares — diluted | 59,580 | 60,691 | 59,617 | 60,537 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Net income | $ | 119,021 | $ | 81,436 | $ | 257,403 | $ | 153,838 | ||||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||
Foreign currency translation adjustment | (386) | (266) | 2,118 | 1,984 | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
Unrealized gains on securities, net of taxes of $4 and $118 for the three months ended March 31, 2024 and 2023, respectively, and $16 and $232 for the six months ended March 31, 2024 and 2023, respectively | 20 | 1,060 | 69 | 1,827 | ||||||||||||||||||||||
Reclassification adjustment for realized losses included in net income, net of taxes of $0 and $58 for the three months ended March 31, 2024 and 2023, respectively, and $0 and $78 for the six months ended March 31, 2024 and 2023, respectively | — | (552) | — | (612) | ||||||||||||||||||||||
Net change in unrealized gains and losses on available-for-sale securities, net of tax | 20 | 508 | 69 | 1,215 | ||||||||||||||||||||||
Total other comprehensive (loss) income | (366) | 242 | 2,187 | 3,199 | ||||||||||||||||||||||
Comprehensive income | $ | 118,655 | $ | 81,678 | $ | 259,590 | $ | 157,037 |
Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total Shareholders’ Equity | |||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Balances, December 31, 2022 | 60,117 | $ | 129,060 | $ | (23,219) | $ | 2,476,508 | $ | 2,582,349 | |||||||||||||||||||||||
Exercise of employee stock options | 12 | 281 | — | — | 281 | |||||||||||||||||||||||||||
Issuance of restricted stock | 355 | — | — | — | — | |||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (19) | (2,788) | — | — | (2,788) | |||||||||||||||||||||||||||
Stock-based compensation | — | 64,039 | — | — | 64,039 | |||||||||||||||||||||||||||
Net income | — | — | — | 81,436 | 81,436 | |||||||||||||||||||||||||||
Other comprehensive income | — | — | 242 | — | 242 | |||||||||||||||||||||||||||
Balances, March 31, 2023 | 60,465 | $ | 190,592 | $ | (22,977) | $ | 2,557,944 | $ | 2,725,559 | |||||||||||||||||||||||
Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Balances, December 31, 2023 | 58,797 | $ | 18,348 | $ | (20,668) | $ | 2,863,297 | $ | 2,860,977 | |||||||||||||||||||||||
Exercise of employee stock options | 19 | 680 | — | — | 680 | |||||||||||||||||||||||||||
Issuance of restricted stock | 346 | — | — | — | — | |||||||||||||||||||||||||||
Repurchase of common stock, including excise taxes | (543) | (53,304) | — | (47,047) | (100,351) | |||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (10) | (1,836) | — | — | (1,836) | |||||||||||||||||||||||||||
Stock-based compensation | — | 55,141 | — | — | 55,141 | |||||||||||||||||||||||||||
Net income | — | — | — | 119,021 | 119,021 | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | (366) | — | (366) | |||||||||||||||||||||||||||
Balances, March 31, 2024 | 58,609 | $ | 19,029 | $ | (21,034) | $ | 2,935,271 | $ | 2,933,266 |
Six months ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Balances, September 30, 2022 | 59,860 | $ | 91,048 | $ | (26,176) | $ | 2,404,106 | $ | 2,468,978 | |||||||||||||||||||||||
Exercise of employee stock options | 26 | 716 | — | — | 716 | |||||||||||||||||||||||||||
Issuance of stock under employee stock purchase plan | 179 | 21,745 | — | — | 21,745 | |||||||||||||||||||||||||||
Issuance of restricted stock | 731 | — | — | — | — | |||||||||||||||||||||||||||
Repurchase of common stock | (263) | (40,005) | — | — | (40,005) | |||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (68) | (9,825) | — | — | (9,825) | |||||||||||||||||||||||||||
Stock-based compensation | — | 126,913 | — | — | 126,913 | |||||||||||||||||||||||||||
Net income | — | — | — | 153,838 | 153,838 | |||||||||||||||||||||||||||
Other comprehensive income | — | — | 3,199 | — | 3,199 | |||||||||||||||||||||||||||
Balances, March 31, 2023 | 60,465 | $ | 190,592 | $ | (22,977) | $ | 2,557,944 | $ | 2,725,559 | |||||||||||||||||||||||
Six months ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Balances, September 30, 2023 | 59,207 | $ | 24,399 | $ | (23,221) | $ | 2,799,054 | $ | 2,800,232 | |||||||||||||||||||||||
Exercise of employee stock options | 33 | 1,088 | — | — | 1,088 | |||||||||||||||||||||||||||
Issuance of stock under employee stock purchase plan | 188 | 21,469 | — | — | 21,469 | |||||||||||||||||||||||||||
Issuance of restricted stock | 701 | — | — | — | — | |||||||||||||||||||||||||||
Repurchase of common stock, including excise taxes | (1,465) | (130,403) | — | (121,186) | (251,589) | |||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (55) | (8,667) | — | — | (8,667) | |||||||||||||||||||||||||||
Stock-based compensation | — | 111,143 | — | — | 111,143 | |||||||||||||||||||||||||||
Net income | — | — | — | 257,403 | 257,403 | |||||||||||||||||||||||||||
Other comprehensive income | — | — | 2,187 | — | 2,187 | |||||||||||||||||||||||||||
Balances, March 31, 2024 | 58,609 | $ | 19,029 | $ | (21,034) | $ | 2,935,271 | $ | 2,933,266 |
Six months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Operating activities | ||||||||||||||
Net income | $ | 257,403 | $ | 153,838 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Stock-based compensation | 111,143 | 126,913 | ||||||||||||
Depreciation and amortization | 57,284 | 54,817 | ||||||||||||
Non-cash operating lease costs | 16,596 | 20,231 | ||||||||||||
Deferred income taxes | (28,935) | (49,492) | ||||||||||||
Other | (2,829) | 1,878 | ||||||||||||
Changes in operating assets and liabilities (excluding effects of the acquisition of businesses): | ||||||||||||||
Accounts receivable | 66,569 | (14,317) | ||||||||||||
Inventories | (33,886) | 17,620 | ||||||||||||
Other current assets | (34,398) | (43,547) | ||||||||||||
Other assets | (16,203) | 9,354 | ||||||||||||
Accounts payable and accrued liabilities | (20,930) | (59,534) | ||||||||||||
Deferred revenue | 36,855 | 102,933 | ||||||||||||
Lease liabilities | (21,714) | (22,140) | ||||||||||||
Net cash provided by operating activities | 386,955 | 298,554 | ||||||||||||
Investing activities | ||||||||||||||
Purchases of investments | (1,000) | (689) | ||||||||||||
Maturities of investments | 5,420 | 95,773 | ||||||||||||
Sales of investments | — | 16,085 | ||||||||||||
Acquisition of businesses, net of cash acquired | (32,939) | (35,006) | ||||||||||||
Purchases of property and equipment | (18,503) | (23,793) | ||||||||||||
Net cash (used in) provided by investing activities | (47,022) | 52,370 | ||||||||||||
Financing activities | ||||||||||||||
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan | 22,557 | 22,461 | ||||||||||||
Payments for repurchase of common stock | (250,029) | (40,005) | ||||||||||||
Payments on term debt agreement | — | (350,000) | ||||||||||||
Taxes paid related to net share settlement of equity awards | (8,667) | (9,825) | ||||||||||||
Net cash used in financing activities | (236,139) | (377,369) | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 103,794 | (26,445) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,779 | 2,979 | ||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 800,835 | 762,207 | ||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 906,408 | $ | 738,741 | ||||||||||
Supplemental disclosures of cash flow information | ||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 26,169 | $ | 27,200 | ||||||||||
Cash paid for interest on long-term debt | — | 2,970 | ||||||||||||
Supplemental disclosures of non-cash activities | ||||||||||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 7,267 | $ | 9,577 | ||||||||||
Six months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Balance, beginning of period | $ | 66,468 | $ | 77,220 | ||||||||||
Additional capitalized contract acquisition costs | 13,851 | 13,123 | ||||||||||||
Amortization of capitalized contract acquisition costs | (18,015) | (19,134) | ||||||||||||
Balance, end of period | $ | 62,304 | $ | 71,209 |
Six months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Balance, beginning of period | $ | 1,775,121 | $ | 1,691,580 | ||||||||||
Amounts added but not recognized as revenues | 768,890 | 785,122 | ||||||||||||
Deferred revenue acquired through acquisition of businesses | — | 1,800 | ||||||||||||
Revenues recognized related to the opening balance of deferred revenue | (732,035) | (682,190) | ||||||||||||
Balance, end of period | $ | 1,811,976 | $ | 1,796,312 |
Gross Unrealized | Classification on Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2024 | Fair Value Level | Cost or Amortized Cost | Gains | Losses | Aggregate Fair Value | Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||||||||||||||||||||||||||||||||||
Changes in fair value recorded in other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Money Market Funds | Level 1 | $ | 396,387 | $ | — | $ | — | $ | 396,387 | $ | 396,387 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
Corporate bonds and notes | Level 2 | 817 | — | (15) | 802 | — | 802 | — | ||||||||||||||||||||||||||||||||||||||||||
Total debt investments | $ | 397,204 | $ | — | $ | (15) | $ | 397,189 | $ | 396,387 | $ | 802 | $ | — | ||||||||||||||||||||||||||||||||||||
Changes in fair value recorded in other net income (expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity investments | * | $ | 6,343 | $ | — | $ | — | $ | 6,343 | |||||||||||||||||||||||||||||||||||||||||
Total equity investments | 6,343 | — | — | 6,343 | ||||||||||||||||||||||||||||||||||||||||||||||
Total investments | $ | 403,532 | $ | 396,387 | $ | 802 | $ | 6,343 |
Gross Unrealized | Classification on Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2023 | Fair Value Level | Cost or Amortized Cost | Gains | Losses | Aggregate Fair Value | Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||||||||||||||||||||||||||||||||||
Changes in fair value recorded in other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Money Market Funds | Level 1 | $ | 392,592 | $ | — | $ | — | $ | 392,592 | $ | 392,592 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
Corporate bonds and notes | Level 2 | 4,412 | — | (88) | 4,324 | — | 4,324 | — | ||||||||||||||||||||||||||||||||||||||||||
Municipal bonds and notes | Level 2 | 1,108 | — | (9) | 1,099 | — | 1,099 | — | ||||||||||||||||||||||||||||||||||||||||||
U.S. government agency securities | Level 2 | 740 | — | (3) | 737 | — | 737 | — | ||||||||||||||||||||||||||||||||||||||||||
Total debt investments | $ | 398,852 | $ | — | $ | (100) | $ | 398,752 | $ | 392,592 | $ | 6,160 | $ | — | ||||||||||||||||||||||||||||||||||||
Changes in fair value recorded in other net income (expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity investments | * | $ | 5,068 | $ | — | $ | — | $ | 5,068 | |||||||||||||||||||||||||||||||||||||||||
Total equity investments | 5,068 | — | — | 5,068 | ||||||||||||||||||||||||||||||||||||||||||||||
Total investments | $ | 403,820 | $ | 392,592 | $ | 6,160 | $ | 5,068 |
March 31, 2024 | September 30, 2023 | |||||||||||||
Cash and cash equivalents | $ | 902,680 | $ | 797,163 | ||||||||||
Restricted cash included in other assets, net | 3,728 | 3,672 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 906,408 | $ | 800,835 |
March 31, 2024 | September 30, 2023 | |||||||||||||
Finished goods | $ | 17,605 | $ | 11,699 | ||||||||||
Raw materials | 52,155 | 24,175 | ||||||||||||
$ | 69,760 | $ | 35,874 |
March 31, 2024 | September 30, 2023 | |||||||||||||
Unbilled receivables | $ | 379,904 | $ | 374,113 | ||||||||||
Prepaid expenses | 116,621 | 84,506 | ||||||||||||
Capitalized contract acquisition costs | 30,411 | 31,206 | ||||||||||||
Other1 | 63,018 | 64,919 | ||||||||||||
$ | 589,954 | $ | 554,744 |
March 31, 2024 | September 30, 2023 | |||||||||||||
Intangible assets | $ | 132,243 | $ | 150,969 | ||||||||||
Unbilled receivables | 219,084 | 202,838 | ||||||||||||
Capitalized contract acquisition costs | 31,893 | 35,263 | ||||||||||||
Other | 55,851 | 55,543 | ||||||||||||
$ | 439,071 | $ | 444,613 |
March 31, 2024 | September 30, 2023 | |||||||||||||
Payroll and benefits | $ | 152,574 | $ | 152,898 | ||||||||||
Operating lease liabilities, current | 38,480 | 41,421 | ||||||||||||
Income and other tax accruals | 26,593 | 34,504 | ||||||||||||
Other | 48,916 | 54,067 | ||||||||||||
$ | 266,563 | $ | 282,890 |
March 31, 2024 | September 30, 2023 | |||||||||||||
Income taxes payable | $ | 72,110 | $ | 73,751 | ||||||||||
Other | 8,996 | 8,822 | ||||||||||||
$ | 81,106 | $ | 82,573 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Operating lease expense | $ | 10,167 | $ | 12,181 | $ | 20,493 | $ | 24,697 | ||||||||||||||||||
Short-term lease expense | 671 | 744 | 1,366 | 1,399 | ||||||||||||||||||||||
Variable lease expense | 5,941 | 5,650 | 11,975 | 10,986 | ||||||||||||||||||||||
Total lease expense | $ | 16,779 | $ | 18,575 | $ | 33,834 | $ | 37,082 |
March 31, 2024 | September 30, 2023 | |||||||||||||
Operating lease right-of-use assets, net | $ | 188,973 | $ | 195,471 | ||||||||||
Operating lease liabilities, current1 | 38,480 | 41,421 | ||||||||||||
Operating lease liabilities, long-term | 228,368 | 239,565 | ||||||||||||
Total operating lease liabilities | $ | 266,848 | $ | 280,986 | ||||||||||
Weighted average remaining lease term (in years) | 8.3 | 8.6 | ||||||||||||
Weighted average discount rate | 2.91 | % | 2.77 | % |
Fiscal Years Ending September 30: | Operating Lease Payments | |||||||
2024 (remainder) | $ | 23,702 | ||||||
2025 | 42,189 | |||||||
2026 | 34,948 | |||||||
2027 | 32,555 | |||||||
2028 | 29,502 | |||||||
2029 | 26,750 | |||||||
Thereafter | 112,351 | |||||||
Total lease payments | 301,997 | |||||||
Less: imputed interest | (35,149) | |||||||
Total lease liabilities | $ | 266,848 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Shares repurchased | 543 | — | 1,465 | 263 | ||||||||||||||||||||||
Average price per share | $ | 184.07 | — | $ | 170.59 | $ | 151.87 | |||||||||||||||||||
Amount repurchased | $ | 100,011 | — | $ | 250,029 | $ | 40,005 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||
Net income | $ | 119,021 | $ | 81,436 | $ | 257,403 | $ | 153,838 | ||||||||||||||||||
Denominator | ||||||||||||||||||||||||||
Weighted average shares outstanding — basic | 58,788 | 60,330 | 58,956 | 60,211 | ||||||||||||||||||||||
Dilutive effect of common shares from stock options and restricted stock units | 792 | 361 | 661 | 326 | ||||||||||||||||||||||
Weighted average shares outstanding — diluted | 59,580 | 60,691 | 59,617 | 60,537 | ||||||||||||||||||||||
Basic net income per share | $ | 2.02 | $ | 1.35 | $ | 4.37 | $ | 2.55 | ||||||||||||||||||
Diluted net income per share | $ | 2.00 | $ | 1.34 | $ | 4.32 | $ | 2.54 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Americas: | ||||||||||||||||||||||||||
United States | $ | 363,847 | $ | 359,906 | $ | 713,922 | $ | 735,654 | ||||||||||||||||||
Other | 21,718 | 23,197 | 48,033 | 49,607 | ||||||||||||||||||||||
Total Americas | 385,565 | 383,103 | 761,955 | 785,261 | ||||||||||||||||||||||
EMEA | 178,386 | 190,439 | 371,749 | 374,554 | ||||||||||||||||||||||
APAC | 117,403 | 129,633 | 240,247 | 243,738 | ||||||||||||||||||||||
$ | 681,354 | $ | 703,175 | $ | 1,373,951 | $ | 1,403,553 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Net product revenues | ||||||||||||||||||||||||||
Systems revenue | $ | 141,654 | $ | 208,689 | $ | 277,028 | $ | 381,721 | ||||||||||||||||||
Software revenue | 158,508 | 131,892 | 328,993 | 299,418 | ||||||||||||||||||||||
Total net product revenue | $ | 300,162 | $ | 340,581 | $ | 606,021 | $ | 681,139 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Ingram Micro, Inc. | 18.6 | % | 16.5 | % | 17.0 | % | 17.1 | % | ||||||||||||||||||
Synnex Corporation | 16.5 | % | 14.7 | % | 16.0 | % | 14.2 | % | ||||||||||||||||||
March 31, 2024 | September 30, 2023 | |||||||||||||
Americas: | ||||||||||||||
United States | $ | 119,617 | $ | 125,736 | ||||||||||
Other | 2,083 | 2,592 | ||||||||||||
Total Americas | 121,700 | 128,328 | ||||||||||||
EMEA | 23,957 | 24,336 | ||||||||||||
APAC | 15,868 | 17,758 | ||||||||||||
$ | 161,525 | $ | 170,422 |
Six months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Employee Severance, Benefits and Related Costs | ||||||||||||||
Accrued expenses, beginning of period | $ | 3,496 | $ | — | ||||||||||
Restructuring charges1 | 8,562 | 8,740 | ||||||||||||
Cash payments | (11,501) | (8,130) | ||||||||||||
Accrued expenses, end of period | $ | 557 | $ | 610 |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
Net revenues | ||||||||||||||||||||||||||
Products | $ | 300,162 | $ | 340,581 | $ | 606,021 | $ | 681,139 | ||||||||||||||||||
Services | 381,192 | 362,594 | 767,930 | 722,414 | ||||||||||||||||||||||
Total | $ | 681,354 | $ | 703,175 | $ | 1,373,951 | $ | 1,403,553 | ||||||||||||||||||
Percentage of net revenues | ||||||||||||||||||||||||||
Products | 44.1 | % | 48.4 | % | 44.1 | % | 48.5 | % | ||||||||||||||||||
Services | 55.9 | 51.6 | 55.9 | 51.5 | ||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
Net product revenues | ||||||||||||||||||||||||||
Systems revenue | $ | 141,654 | $ | 208,689 | $ | 277,028 | $ | 381,721 | ||||||||||||||||||
Software revenue | 158,508 | 131,892 | 328,993 | 299,418 | ||||||||||||||||||||||
Total net product revenue | $ | 300,162 | $ | 340,581 | $ | 606,021 | $ | 681,139 | ||||||||||||||||||
Percentage of net product revenues | ||||||||||||||||||||||||||
Systems revenue | 47.2 | % | 61.3 | % | 45.7 | % | 56.0 | % | ||||||||||||||||||
Software revenue | 52.8 | 38.7 | 54.3 | 44.0 | ||||||||||||||||||||||
Total net product revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three months ended March 31, | Six months ended March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Ingram Micro, Inc. | 18.6 | % | 16.5 | % | 17.0 | % | 17.1 | % | |||||||||||||||
Synnex Corporation | 16.5 | % | 14.7 | % | 16.0 | % | 14.2 | % | |||||||||||||||
March 31, 2024 | September 30, 2023 | ||||||||||
Ingram Micro, Inc. | 13.4 | % | — | ||||||||
Synnex Corporation | 15.8 | % | 16.0 | % | |||||||
Carahsoft Technology Corporation | — | 10.1 | % | ||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
Cost of net revenues and gross profit | ||||||||||||||||||||||||||
Products | $ | 85,313 | $ | 99,795 | $ | 168,021 | $ | 198,650 | ||||||||||||||||||
Services | 55,800 | 55,859 | 109,481 | 112,011 | ||||||||||||||||||||||
Total | 141,113 | 155,654 | 277,502 | 310,661 | ||||||||||||||||||||||
Gross profit | $ | 540,241 | $ | 547,521 | $ | 1,096,449 | $ | 1,092,892 | ||||||||||||||||||
Percentage of net revenues and gross margin (as a percentage of related net revenue) | ||||||||||||||||||||||||||
Products | 28.4 | % | 29.3 | % | 27.7 | % | 29.2 | % | ||||||||||||||||||
Services | 14.6 | 15.4 | 14.3 | 15.5 | ||||||||||||||||||||||
Total | 20.7 | 22.1 | 20.2 | 22.1 | ||||||||||||||||||||||
Gross margin | 79.3 | % | 77.9 | % | 79.8 | % | 77.9 | % |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Sales and marketing | $ | 210,800 | $ | 233,076 | $ | 409,727 | $ | 466,181 | ||||||||||||||||||
Research and development | 122,207 | 141,363 | 241,782 | 283,686 | ||||||||||||||||||||||
General and administrative | 67,184 | 67,036 | 131,902 | 137,027 | ||||||||||||||||||||||
Restructuring charges | 90 | — | 8,562 | 8,740 | ||||||||||||||||||||||
Total | $ | 400,281 | $ | 441,475 | $ | 791,973 | $ | 895,634 | ||||||||||||||||||
Operating expenses (as a percentage of net revenue) | ||||||||||||||||||||||||||
Sales and marketing | 30.9 | % | 33.2 | % | 29.8 | % | 33.2 | % | ||||||||||||||||||
Research and development | 17.9 | 20.1 | 17.6 | 20.2 | ||||||||||||||||||||||
General and administrative | 9.9 | 9.5 | 9.6 | 9.8 | ||||||||||||||||||||||
Restructuring charges | — | — | 0.6 | 0.6 | ||||||||||||||||||||||
Total | 58.7 | % | 62.8 | % | 57.6 | % | 63.8 | % |
Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||
Other income and income taxes | ||||||||||||||||||||||||||
Income from operations | $ | 139,960 | $ | 106,046 | $ | 304,476 | $ | 197,258 | ||||||||||||||||||
Other income, net | 5,974 | 2,737 | 15,856 | 7,439 | ||||||||||||||||||||||
Income before income taxes | 145,934 | 108,783 | 320,332 | 204,697 | ||||||||||||||||||||||
Provision for income taxes | 26,913 | 27,347 | 62,929 | 50,859 | ||||||||||||||||||||||
Net income | $ | 119,021 | $ | 81,436 | $ | 257,403 | $ | 153,838 | ||||||||||||||||||
Other income and income taxes (as percentage of net revenue) | ||||||||||||||||||||||||||
Income from operations | 20.5 | % | 15.1 | % | 22.2 | % | 14.1 | % | ||||||||||||||||||
Other income, net | 0.9 | 0.4 | 1.1 | 0.5 | ||||||||||||||||||||||
Income before income taxes | 21.4 | 15.5 | 23.3 | 14.6 | ||||||||||||||||||||||
Provision for income taxes | 3.9 | 3.9 | 4.6 | 3.6 | ||||||||||||||||||||||
Net income | 17.5 | % | 11.6 | % | 18.7 | % | 11.0 | % |
Total Number of Shares Purchased1 | Average Price Paid per Share | Total Number of Shares Purchased per the Publicly Announced Plan | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan2 | |||||||||||||||||||||||
January 1, 2024 — January 31, 2024 | — | — | — | $ | 772,421 | |||||||||||||||||||||
February 1, 2024 — February 29, 2024 | 553,136 | $ | 184.10 | 543,263 | $ | 672,421 | ||||||||||||||||||||
March 1, 2024 — March 31, 2024 | — | — | — | $ | 672,421 |
Exhibit Number | Exhibit Description | ||||||||||
31.1* | — | ||||||||||
31.2* | — | ||||||||||
32.1* | — | ||||||||||
101.INS* | — | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||||
101.SCH* | — | Inline XBRL Taxonomy Extension Schema Document | |||||||||
101.CAL* | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||
101.DEF* | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||
101.LAB* | — | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||
101.PRE* | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||
104* | — | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
F5, INC. | |||||||||||
By: | /s/ FRANCIS J. PELZER | ||||||||||
Francis J. Pelzer | |||||||||||
Executive Vice President, | |||||||||||
Chief Financial Officer | |||||||||||
(principal financial officer and principal accounting officer) |
Date: | May 6, 2024 | ||||
/s/ FRANÇOIS LOCOH-DONOU | |||||
François Locoh-Donou | |||||
Chief Executive Officer and President |
Date: | May 6, 2024 | ||||
/s/ FRANCIS J. PELZER | |||||
Francis J. Pelzer | |||||
Executive Vice President, | |||||
Chief Financial Officer | |||||
(principal financial officer and principal accounting officer) |
Date: | May 6, 2024 | ||||
/s/ FRANÇOIS LOCOH-DONOU | |||||
François Locoh-Donou | |||||
Chief Executive Officer and President | |||||
/s/ FRANCIS J. PELZER | |||||
Francis J. Pelzer | |||||
Executive Vice President and Chief Financial Officer | |||||
(principal financial officer and principal accounting officer) |