F5 Networks satisfies second quarter earnings targets, guidance strong

The company said it has seen an increased demand for capacity as customers scale remote access capabilities for employees working from home.

F5 Networks on Monday https://www.businesswire.com/news/home/20200427005811/en/%C2%A0F5-Delivers-7-Revenue-Growth-Quarter-Fiscal better-than-expected second quarter financial results. The company reported non-GAAP net income of $135.9 million, or $2.23 per diluted share, on revenue of $585.6 million.

Wall Street was looking for earnings of $1.95 per share on revenue of $559 million.

F5 CEO François Locoh-Donou noted in his prepared remarks that the company has seen an increased demand for capacity as customers scale remote access capabilities for employees working from home. 

"With 65% recurring revenue, $182 million in cash flow from operations and cash and investments totaling $1 billion at the end of our second quarter, we can weather the economic uncertainty resulting from the COVID-19 pandemic and we are confident our multi-cloud vision, our investments, and our innovation are well aligned with both near- and longer-term customer demand," Locoh-Donou said.

For the current quarter, F5 has set a revenue goal of $555 million to $585 million with a non-GAAP earnings target of $1.91 to $2.13 per diluted share. Wall Street is expecting revenue of $546.8 million and EPS of $1.84.

F5 shares were up over 7% after hours. 

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