Press release
Extreme Networks Reports First Quarter Fiscal Year 2024 Financial Results
Revenue Growth of 19% and Operating Leverage Doubles GAAP EPS Cloud Adoption Drives 30% Growth in SaaS ARR MORRISVILLE, N.C.--(BUSINESS WIRE)-- Extreme
About this update from Extreme Networks, Inc.
[{"type":"text","content":"\nRevenue Growth of 19% and Operating Leverage Doubles GAAP EPS\n\n\nCloud Adoption Drives 30% Growth in SaaS ARR\n\n\n MORRISVILLE, N.C.--(BUSINESS WIRE)--\nExtreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its first quarter ended September 30, 2023.\n\n\n\"Extreme delivered another quarter of double-digit growth as we continued to increase both market and mindshare with new customers, while expanding our presence within our existing base,\" said Ed Meyercord, President and Chief Executive Officer. \"Our funnel of new opportunities continued to grow double-digits and the value of deals over $1 million once again grew from the prior quarter. Our highly differentiated cloud solutions deliver simplicity, flexibility and actionable insights to customers, making it easier to manage and secure their networks. And our subscription bookings and SaaS ARR growth of 30% are a testament to that. We continue to focus on gaining core market share, making strategic investments, and driving go-to-market initiatives to position the company for success as we navigate potential macroeconomic headwinds in FY24. We remain committed to driving double-digit long-term growth while being prudent stewards of shareholder capital,\" concluded Meyercord.\n\n\nKevin Rhodes, Executive Vice President and Chief Financial Officer stated, \"We are pleased with our Q1 financial and operational performance. Our topline growth and operating leverage enabled us to double our EPS from the prior year, and generate $71.3 million in free cash flow. We repurchased another $24.9 million worth of shares and our net cash position grew to $26.9 million. Looking ahead at FY24, we expect changing customer buying patterns based on macroeconomic conditions in certain geographies. Therefore, we expect revenue growth to be more tempered for the balance of the year. Despite these market conditions and slower revenue growth expectations, we expect continued growth of EPS of over 25% in FY24. We have taken recent actions to ensure we align our cost structure to the current level of revenue growth we expect to achieve. As a result, we believe we are well-positioned to deliver strong profitability and improved operating margins during the year.\"\n\n\nFiscal First Quarter Results:\n\n\n\nRevenue $353.1 million, up 19% year-over-year.\n\n\n\nSaaS ARR...