F5, Inc. has recently released its 10-Q report, providing a detailed look at the company's financial condition and results of operations. F5, Inc. is a leading provider of multicloud application security and delivery solutions, enabling customers to deploy, secure, and operate applications in any architecture, from on-premises to the public cloud. The company offers unified security, networking, and application management solutions, with a strong focus on professional services, including maintenance, consulting, training, and technical support services. F5, Inc. sells its products to large enterprise businesses, public sector institutions, governments, and service providers through various indirect channel partners.
In the 10-Q report, F5, Inc. provided an overview of its financial condition and results of operations. The company reported total net revenues of $766.5 million for the three months ended December 31, 2024, representing a 10.7% increase from the same period in the prior year. The increase in total net revenues was primarily driven by growth in product revenues associated with both software and systems, as well as an increase in service revenues fueled by continued growth in maintenance contract renewals. Notably, revenues outside of the United States represented 46.9% of total net revenues for the three months ended December 31, 2024.
The company's net product revenues increased by 20.5% for the same period, driven by an increase in software revenue primarily from packaged software sales, as well as an increase in systems sales. F5, Inc. also witnessed an increase in net service revenues, which grew by 2.9% for the three months ended December 31, 2024, attributed to increased initial purchases and renewals of maintenance contracts driven by growth in product revenue.
In terms of profitability, F5, Inc. reported a gross profit of $626.0 million for the three months ended December 31, 2024, with a gross margin of 81.7%. The company's operating expenses totaled $420.9 million, with sales and marketing expenses accounting for 26.9% of net revenue, research and development expenses accounting for 17.0%, and general and administrative expenses accounting for 9.5%. Additionally, the company incurred restructuring charges of $11.3 million during the period.
F5, Inc. also highlighted its liquidity and cash flows, emphasizing its strong financial condition with significant cash and investments. The company reported cash provided by operating activities of $202.8 million for the first three months of fiscal year 2025. Furthermore, F5, Inc. disclosed that it had entered into a Revolving Credit Agreement, providing for a senior unsecured revolving credit facility in an aggregate principal amount of $350.0 million, which remained undrawn as of December 31, 2024.
Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $306.6. For the full picture, make sure to review F5's 10-Q report.
