Press release
Extreme Networks Reports Fourth Quarter and Fiscal Year 2023 Financial Results
Marks Second Consecutive Year of Double-Digit Revenue Growth Significant Operating Leverage and GAAP EPS Growth of 76% Expect Continued Strong Growth in FY24
About this update from Extreme Networks, Inc.
[{"type":"text","content":"\nMarks Second Consecutive Year of Double-Digit Revenue Growth\n\n\nSignificant Operating Leverage and GAAP EPS Growth of 76%\n\n\nExpect Continued Strong Growth in FY24\n\n\n MORRISVILLE, N.C.--(BUSINESS WIRE)--\nExtreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its fiscal year and fourth quarter ended June 30, 2023.\n\n\n\"Extreme delivered a year of exceptional performance, with revenue growth accelerating to 31% in the fourth quarter and 18% overall for the year,\" said Ed Meyercord, President and Chief Executive Officer. \"This marks our second consecutive year of double-digit growth. We're outgrowing our competitors, gaining share, and winning new logos, which helped drive more than 30% growth in the value of deals over $1 million. We're breaking the status quo of networking through product innovation with differentiated solutions like universal hardware, end-to-end cloud management, enhanced AI, and our unique fabric technology, which greatly simplifies network management and bolsters security. Our focus on simplicity, flexibility, and performance continues to fuel our funnel of large opportunities. I remain confident in our growth prospects and am excited about the new innovations and opportunities we have in store for FY24 and beyond,\" concluded Meyercord.\n\n\nKevin Rhodes, Executive Vice President and Chief Financial Officer stated, \"the strong topline growth we achieved in Q4 and FY23 resulted in significant operating leverage that drove over 76% growth in GAAP EPS. We doubled our cash generation to $235 million in free cash flow this year, and even after repurchasing another $100 million worth of shares, and paying down $80 million in debt, we improved our year-end balance sheet to achieve a net cash position. Extreme has never been in a more robust financial position, and I am encouraged about our future prospects.\"\n\n\nFiscal Fourth Quarter Results:\n\n\n\nRevenue $363.9 million, up 31% year-over-year, and up 9% quarter-over-quarter\n\n\n\nSaaS ARR $129.0 million, up 25% year-over-year, and up 10% quarter-over-quarter\n\n\n\nGAAP diluted EPS $0.19, compared to $0.04 in the prior year quarter\n\n\n\nNon-GAAP diluted EPS $0.33, compared to $0.15 in the prior year quarter\n\n\n\nGAAP gross margin 58.9% compared to 55.4% in the prior year quarter\n\n\n\nNon-GAAP gross margin 60...