F5, Inc. has recently released its 10-Q report, providing a detailed overview of its financial performance and operations. F5, Inc. is a leading provider of multi-cloud application security and delivery solutions, offering a range of services from web app and API protection to multi-cloud networking and application deployment. The company sells its products to large enterprise businesses, public sector institutions, governments, and service providers through various channels and has partnerships with public cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
In its Management's Discussion and Analysis of Financial Condition and Results of Operations, F5, Inc. highlighted several key performance indicators that it monitors to evaluate its financial and operating performance. These include revenues, cost of revenues and gross margins, operating expenses, liquidity and cash flows, and balance sheet metrics such as cash, short-term and long-term investments, deferred revenue, and accounts receivable balances.
The report revealed that for the three months ended June 30, 2024, F5, Inc. reported total net revenues of $695.5 million, representing a 1.0% decrease from the same period in the prior year. The decrease was primarily attributed to a decline in product revenues associated with systems, partially offset by an increase in service revenues. International revenues accounted for 48.0% of the total net revenues during this period.
Net product revenues decreased by 6.0% for the three months ended June 30, 2024, primarily due to a decrease in systems sales, partially offset by an increase in software revenue. Software revenues, as a component of net product revenues, increased by 3.0% during the same period.
Cost of net product revenues decreased by 8.1% for the three months ended June 30, 2024, primarily due to a decrease in systems revenue. Cost of net service revenues as a percentage of net service revenues was relatively stable at 14.4% for the same period.
Operating expenses decreased by 0.8% for the three months ended June 30, 2024, primarily due to a decrease in personnel costs and commissions compared to the same period in the prior year.
Following these announcements, the company's shares moved 1.0%, and are now trading at a price of $189.06. If you want to know more, read the company's complete 10-Q report here.
