Extreme Networks, Inc. · NASDAQ:EXTR
Extreme Networks — Q4 2021 Earnings Presentation
24 slides from Extreme Networks's earnings presentation, Jul 28, 2021
Slide 1: Extreme Networks FQ4'21 Financial Results
Extreme Networks FQ4’21 Financial Results July 28, 2021
Slide 2: Cautionary Statement on Financial Measures
Cautionary Statement on Financial Measures Non-GAAP Measures: In preparing the accompanying information Extreme Networks Inc. (the “Company”) has excluded, where applicable, the impact of certain Non-GAAP costs as listed at the end of this presentation. The Company believes these Non-GAAP measures p
Slide 3: FQ4'21 Financial Results
FQ4’21 Financial Results 3
Slide 4: GAAP Financial Highlights – Financial Operations
GAAP Financial Highlights – Financial Operations (In $M’s except percentages and EPS) Quarter Full Year FQ4'20 FQ3'21 FQ4'21 FY20 FY21 GAAP Product Revenue $141.5 $176.3 $195.8 $653.6 $699.4 Services Revenue $74.0 $77.1 $82.3 $294.4 $310.0 Total Revenue $215.5 $253.4 $278.1 $948.0 $1,009.4 Total GM
Slide 5: Non-GAAP Financial Highlights – Financial Operations
Non-GAAP Financial Highlights – Financial Operations (In $M’s except percentages and EPS) FQ4'20 FQ3'21 FQ4'21 FY20 FY21 1,2 Non-GAAP Product Revenue $141.5 $176.3 $195.8 $653.6 $699.4 Services Revenue $74.0 $77.1 $82.3 $294.4 $310.0 Total Revenue $215.5 $253.4 $278.1 $948.0 $1,009.4 Total GM % 59.4
Slide 6: Quarterly Results of Operations
Quarterly Results of Operations (In $M’s except percentages) Gross Profit - GAAP vs Non-GAAP Total Revenue $300M $180M 66% $160M 64% $250M $140M 62% $200M $120M 60% $100M 58% $150M $80M 56% $100M $60M 54% $40M 52% $50M $20M 50% $0M $0M 48% 2020 Q 1 2020 Q 2 2020 Q 3 2020 Q 4 2021 Q 1 2021 Q 2 2021 Q
Slide 7: Quarterly Results of Operations
Quarterly Results of Operations (In $M’s except percentages and EPS) Operating Expenses - GAAP vs Non-GAAP EPS - GAAP vs Non-GAAP $160M 75% $0.40 $140M 70% $0.30 $120M 65% $0.20 $100M 60% $0.10 $80M 55% $0.00 $60M 50% -$0.10 $40M 45% -$0.20 $20M 40% -$0.30 $0M 35% -$0.40 2020 Q 1 2020 Q 2 2020 Q 3 2
Slide 8: Revenue by Geography
Revenue by Geography (In $M’s except percentages) YoY % QoQ % YoY % FQ4'20 FQ3'21 FQ4'21 FY20 FY21 Change Change Change Product Revenue Americas $ 71.6 $ 80.8 $ 104.4 45.8% 29.2% $ 310.9 $ 338.8 9.0% EMEA 54.8 76.8 78.5 43.3% 2.1% 273.8 $ 295.9 8.1% APAC 15.1 18.7 12.9 (14.1%) (30.7%) 68.9 $ 64.7 (6
Slide 9: Revenue by Type and by Geography
Revenue by Type and by Geography (In $M’s except percentages) Total Revenue by Type Americas Revenue - Product vs Service $300M $175M 90% $150M 80% $250M $125M 70% $200M $100M 60% $150M $75M 50% $100M $50M 40% $50M $25M 30% $0M 20% $0M 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4
Slide 10: Revenue by Type and by Geography Cont.
Revenue by Type and by Geography Cont. (In $M’s except percentages) EMEA Revenue - Product vs Service APAC Revenue - Product vs Service $120M 60% $30M 30% $100M 50% $25M 25% $80M 40% $20M 20% $60M 30% $15M 15% $40M 20% $10M 10% $20M 10% $5M 5% $0M 0% $0M 0% 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 20
Slide 11: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet (GAAP, BS in $M’s except days) Balance Sheet Highlights FQ4'20 FQ3'21 FQ4'21 Cash $193.9 $203.1 $246.9 Accounts Receivable $122.7 $130.6 $156.5 Inventories $62.6 $43.9 $32.9 Accounts Payables $48.4 $57.2 $60.1 Gross Debt* $420.8 $351.5 $346.8 Net Debt** $226.9 $1
Slide 12: Non-GAAP Free Cash Flow
Non-GAAP Free Cash Flow (In $M’s) Extreme uses the non-GAAP free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by operating activities, less purchases of property, plant and equipment. Extreme considers free cash flow as useful information f
Slide 13: Key Performance Metrics
Key Performance Metrics Financial Metrics FQ3’21 FQ4’21 Cloud Metrics FQ3’21 FQ4’21 Large Customers 27 32 Average Daily Traffic ~11.1PB ~6.2PB (Over $1M in bookings for the Quarter) Per Day Recurring Revenue* $ $73.9M $78.0M Managed Devices 1.6M 1.7M 2 sections: Total Dollar Amount for the Quarter R
Slide 14: Vertical Trends
Vertical Trends Extreme Exposure Demand Outlook Tailwinds Headwinds Strong seasonality in Education Budget approvals will dictate future ~40% supported by E-rate, Higher Ed and spending increases Government & Education State/Local Gov’t globally Global strength in healthcare, Some existing customers
Slide 15: Appendices - GAAP to Non-GAAP Reconciliations
Appendices- GAAP to Non-GAAP Reconciliations Note: The totals for some periods may not foot due to rounding. Please see press release for full reconciliation. 15
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Revenue & Gross Margin (In M’s except percentages) Quarter Full Year FQ4'20 FQ3'21 FQ4'21 FY20 FY 21 Product Revenue $ 141.5 $ 176.3 $ 195.8 $ 653.6 $ 699.4 Service Revenue 74.0 77.1 82.3 294.4 310.0 Total Revenue - GAAP $ 215.5 $ 253.4 $ 278.1 $ 948.0 $ 1,009.4 Gros
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Income (Loss) (In M’s except percentages) Quarter Full Year FQ4'20 FQ3'21 FQ4'21 FY20 FY 21 Operating Income (Loss) - GAAP $ (13.1) $ 11.1 $ 17.6 $ (98.9) $ 34.4 Operating Margin- GAAP (6.1%) 4.4% 6.3% (10.4%) 3.4% Deferred Revenue Adjustment - - - - - Adju
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Net Income (Loss) (In $M’s except EPS) Quarter Full Year FQ4'20 FQ3'21 FQ4'21 FY20 FY 21 Net Income (Loss) - GAAP $ (21.2) $ 3.5 $ 10.3 $ (126.8) $ 1.9 Shares - GAAP 120.3 130.0 132.4 119.8 127.7 EPS - GAAP $ (0.18) $ 0.03 $ 0.08 $ (1.06) $ 0.02 Adjustment to Acquire
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations EBITDA (In $M’s) Quarter Full Year FQ4'20 FQ3'21 FQ4'21 FY20 FY 21 Net Income (Loss) - GAAP $ (21.2) $ 3.5 $ 10.3 $ (126.8) $ 1.9 Interest 6.3 $ 5.5 $ 4.5 22.3 $ 22.5 Provision for Income Taxes 1.4 $ 2.4 $ 2.7 6.4 $ 8.2 Depreciation/Amortization 15.6 $ 13.2 $ 13.0 63
Slide 20: FQ1'22 Financial Guidance
FQ1’22 Financial Guidance 20
Slide 21: FQ1'22 Guidance – GAAP
FQ1’22 Guidance – GAAP (In M’s except percentages and EPS) FQ4’21 FQ1’22 Guidance Revenue ($M) $278.1 $250.0 - $265.0 Gross Margin % 57.9% 55.6% - 57.8% Net Income $10.3 $0.1 – $12.1 EPS $0.08 $0.00 – $0.09 21
Slide 22: FQ1'22 Guidance – Non-GAAP
FQ1’22 Guidance – Non-GAAP (In M’s except percentages and EPS) FQ4’21 FQ1’22 Guidance Revenue ($M) $278.1 $250.0 - $265.0 Gross Margin % 60.5% 58.0% - 60.0% Net Income $24.6 $16.7 – $26.7 EPS $0.19 $0.13 – $0.20 22
Slide 23: FQ1'22 Guidance - GAAP to Non-GAAP Reconciliation
FQ1’22 Guidance - GAAP to Non-GAAP Reconciliation Gross Margin Rate Operating Margin Rate Earnings per Share GAAP 55.6% - 57.8% 2.6% - 7.0% $0.00 – $0.09 Estimated Adjustments for: Amortization of Product Intangibles 1.7% 1.7% $0.03 Share-Based Compensation 0.3% 3.9% $0.08 Restructuring Charges, net
Slide 24: f= wirnus.
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