Slide 1: Q1FY25 Results
Q1FY25 Results PERIOD ENDING December 31, 2024 Published January 28, 2025
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements including, among other things, F5’s alignment with significant secular trends, that opportunities are emerging in hybrid multicloud and AI, F5’s innovation in anticipation of widespread hybrid multicloud adoption means
Slide 3: GAAP to non-GAAP presentation
GAAP to non-GAAP presentation In addition to financial information prepared in accordance with U.S. GAAP, this presentation also contains adjusted financial measures that we believe provide investors and management with supplemental information relating to operating performance and trends that facil
Slide 4: Today's speakers
Today’s speakers François Locoh-Donou Cooper Werner CEO, President Chief Financial Officer, EVP Intro & Business Overview Q1FY25 Results & Business Outlook 4 © 2025 F5
Slide 5: Business Overview
Business Overview François Locoh-Donou, President & CEO 5 © 2025 F5
Slide 6: GAAP & non-GAAP results
GAAP & non-GAAP results GAAP results Non-GAAP results Q1FY25 Q1FY24 Q1FY25 Q1FY24 Revenue $766M $693M Revenue $766M $693M Gross profit $626M $556M Gross profit $643M $575M Gross margin 81.7% 80.3% Gross margin 83.9% 83.1% Operating profit $205M $165M Operating profit $286M $246M Operating margin 26.
Slide 7: Q1FY25 performance highlights
Q1FY25 performance highlights +11% +22% +18% Total revenue growth Software revenue Systems revenue growth Y/Y growth Y/Y +20% +189bps 12% Product revenue Non-GAAP operating margin Non-GAAP EPS growth Y/Y improvement Y/Y growth Y/Y See appendix for GAAP to non-GAAP reconciliation 7 © 2025 F5
Slide 8: Q1FY25's strength is multi-faceted and reflects a continuation of trends
Q1FY25’s strength is multi-faceted and reflects a continuation of trends from the second half of FY24 Consistently strong expansion of software subscriptions Continued growth of new software demand Increasing technology refresh activity 8 © 2025 F5
Slide 9: Q2FY25 guidance and raised FY25 revenue growth outlook
We are providing Q2FY25 guidance and raising our FY25 revenue growth outlook Q2FY25 Outlook FY25 Outlook $705 to $725M Q2FY25 total revenue 6% to 7% Total revenue growth Y/Y (up from 4% to 5% previously) 5% Growth Y/Y at midpoint 9 © 2025 F5
Slide 10: Hybrid multicloud brings advantages and new challenges
Hybrid multicloud brings advantages and new challenges AWS SaaS Azure Colocation High costs Operational complexity Google Data Centers Escalating cyber risk Cloud Traditional & Private Cloud Edge 10 © 2025 F5 CONFIDENTIAL
Slide 11: Hybrid multicloud brings advantages and new challenges
Hybrid multicloud brings advantages and new challenges AWS SaaS AI exacerbates these challenges Azure Colocation High costs Operational complexity Google Data Centers Escalating cyber risk Cloud Traditional & Private Cloud Edge 11 © 2025 F5 CONFIDENTIAL
Slide 12: F5 stands alone with the only complete hybrid multicloud portfolio
F5 stands alone with the only complete hybrid multicloud portfolio for app security and delivery 1 App & API Security F5 has the industry’s most effective and comprehensive app and API security platform 12 © 2025 F5
Slide 13: Q1FY25 customer examples: App Security
Q1FY25 customer examples App Security F5 has the industry’s most comprehensive app and API security platform Integrated and comprehensive suite F5 enables customers to consolidate of best-in-class app & API security multiple point products onto a single, capabilities integrated platform Financial Se
Slide 14: F5 stands alone with the only complete hybrid multicloud portfolio
F5 stands alone with the only complete hybrid multicloud portfolio for app security and delivery 1 2 App & API Security Consolidation F5 has the industry’s most effective F5’s hybrid multicloud strategy and comprehensive app and API enables consolidation on a single security platform vendor for app
Slide 15: Q1FY25 customer examples
Q1FY25 customer examples App Security Consolidation F5 has the industry’s most comprehensive app and API security platform F5 enables consolidation on a single vendor for application security and delivery Integrated and comprehensive suite F5 enables customers to consolidate F5 delivers solutions th
Slide 16: F5 stands alone with the only complete hybrid multicloud portfolio
F5 stands alone with the only complete hybrid multicloud portfolio for app security and delivery 1 2 3 App & API Security Consolidation Standardization & Automation F5 has the industry’s most effective F5’s hybrid multicloud strategy F5 streamlines operations with and comprehensive app and API enabl
Slide 17: Q1FY25 customer examples: Standardization & Automation
Q1FY25 customer examples Standardization & Automation F5’s solutions streamline customer operations with consistent policies, comprehensive automation, and rich analytics F5 enables customers to simplify operational management across all environments Bank • F5 displaced two point-security competitor
Slide 18: F5 tames the "Ball of Fire"
F5 tames the “Ball of Fire,” empowering our customers to run at the speed their businesses demand App Security Consolidation Standardization & Automation 18 © 2025 F5
Slide 19: Differentiated hybrid multicloud approach driving competitive displacement momentum
Our differentiated hybrid multicloud approach is driving competitive displacement momentum F5 achieved a record volume of competitive displacements in Q1 Retailer Insurance • Deployed F5 BIG-IP after a series of escalating challenges • Long-time F5 BIG-IP customer deployed F5 Distributed with its in
Slide 20: F5's AI Opportunities
F5’s AI Opportunities 20 © 2025 F5
Slide 21: F5's early AI opportunities concentrated on three areas
F5’s early AI opportunities are concentrated on three areas of high performance data delivery and security Delivering & Securing Data for AI model training & inference Secure AI Inferencing AI Factory Load Balancing AI Model Training: F5 BIG-IP moving incredible F5’s WAAP solutions protecting hybrid
Slide 22: Q1FY25 AI customer examples
Q1FY25 AI customer examples F5 achieved a record volume of competitive displacements in Q1 Delivering & Securing Data for AI model training & inference Mobility platform Bank • Net new customer using F5 BIG-IP for higher performance • F5 BIG-IP securing, optimizing, and scaling AI applications. data
Slide 23: Q1FY25 Results
Q1FY25 Results Cooper Werner, CFO & EVP 23 © 2025 F5
Slide 24: Revenue mix and year-over-year change
Revenue mix and year-over-year change Revenue mix Year/Year change +22% $800 $747 $766 $700 $693 $681 $695 $209 $228 Software $600 $170 $159 $179 $500 $160 +18% Revenue $ in millions $135 $142 $130 $130 $400 Systems $300 $200 $387 $381 $387 $388 $398 +3% Global services $100 $0 Q1FY24 Q2FY24 Q3FY24
Slide 25: Software revenue mix
Software revenue mix $250 $228 $209 +22% $24 $200 $179 $46 $170 Total software $24 revenue growth Y/Y $159 78% $150 $46 $18 Revenue $ in millions of Q1FY25 total software $204 revenue from subscriptions $100 $50 $125 $140 $155 $162 +30% Subscription software revenue growth Y/Y $0 Q1FY24 Q2FY24 Q3FY2
Slide 26: Recurring revenue grew 10%, 72% of Q1FY25 revenue
Recurring revenue grew 10%, with 72% of our Q1FY25 revenue coming from subscription, SaaS & managed services, and maintenance Recurring Non-recurring 27% 28% $503M $551M Recurring Recurring revenue revenue 73% 72% Q1FY24 Q1FY25 Recurring revenue includes term subscriptions, SaaS & managed services,
Slide 27: Revenue contribution by geography
Revenue contribution by geography % of revenue by geo Y/Y growth by region Q1FY25 18% 17% 18% 16% 17% +6% Growth APAC 26% 27% 26% 27% 28% +6% Growth EMEA 54% 57% 55% 58% 56% +15% Growth AMER Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Totals may not add to 100% due to rounding. Americas EMEA APAC 27 © 2025 F
Slide 28: Customer verticals as a % of product bookings
Customer verticals as a % of product bookings % of total product bookings 13% 12% 10% 13% 17% 18% 16% 19% 21% 19% 69% 67% 72% 71% 64% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Totals may not add to 100% due to rounding. Enterprise Government Service Provider 28 © 2025 F5
Slide 29: Non-GAAP gross and operating margins
Non-GAAP gross and operating margins Non-GAAP gross margin Non-GAAP operating margin 90.0% 40.0% 37.4% 35.5% 83.9% 34.4% 83.1% 83.1% 83.0% 33.4% 82.1% 30.9% % of non-GAAP revenue % of non-GAAP revenue 80.0% 30.0% 70.0% 20.0% 60.0% 10.0% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24
Slide 30: Non-GAAP net income and EPS
Non-GAAP net income and EPS Reflects 21.8% Q1FY25 and 19.9% Q1FY24 non-GAAP effective tax rate Non-GAAP net income Non-GAAP EPS +12% Y/Y $250 $4.00 $3.84 $227 $3.67 $217 $3.43 $205 $3.36 $199 $200 $3.00 $2.91 $173 $150 $ in millions $2.00 $100 $1.00 $50 $0 $0.00 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1
Slide 31: Cash flow from operations
Cash flow from operations $280 $247 $240 $222 $203 $200 $165 $159 $160 $ in millions $120 $80 $40 $0 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 31 © 2025 F5
Slide 32: Cash and investments
Cash and investments $1,250 $1,162 $1,083 $1,000 $943 $910 $832 $750 $ in millions $500 $250 $0 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 32 © 2025 F5
Slide 33: Deferred revenue
Deferred revenue $2,500 +6% Y/Y KEY INSIGHTS $2,000 $1,946 $1,830 $1,812 $1,798 Deferred revenue consists predominantly of $1,773 global services maintenance renewals and also includes term-based software $1,500 subscriptions. $ in millions $1,000 $500 $0 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 33 © 2025
Slide 34: We have consistently delivered on our repurchase commitments
We have consistently delivered on our repurchase commitments KEY INSIGHTS Share repurchases ($ in millions) 64% $600 • We repurchased $125 million in FFIV shares during Q1FY25. $500 $500 $500 of Q1FY25 • We used 64% of our Q1FY25’s $500 free cash flow* used toward $195M free cash flow* for share rep
Slide 35: Business Outlook
Business Outlook 35 © 2025 F5
Slide 36: Our Q2FY25 outlook
Our Q2FY25 outlook Q2FY25 outlook Total revenue $705 to $725M Non-GAAP gross margin 82.5% to 83% Non-GAAP operating expenses $362 to $374M Share-based compensation $58 to $60M Non-GAAP EPS $3.02 to $3.14 36 © 2025 F5
Slide 37: Our FY25 outlook
Our FY25 outlook FY24A FY25 outlook $2.82B 6% to 7% growth Total revenue (up from 4% to 5% growth previously) Software revenue growth 11% ≥10% (up from upper-single-digit growth previously) Non-GAAP gross margin 82.8% 83% to 84% Non-GAAP operating margin 33.6% ~35% Effective non-GAAP tax rate 19.2%
Slide 38: The only company that secures, delivers, and optimizes any app, any API, anywhere
The only company that secures, delivers, and optimizes any app, any API, anywhere. 38 © 2025 F5
Slide 39: Appendix
Appendix 39 © 2025 F5
Slide 40: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation Gross Profit Reconciliation ($ in thousands) Q1FY24 Q1FY25 GAAP revenue $692,597 $766,489 Acquisition-related write-downs of assumed deferred revenue $0 $0 Non-GAAP revenue $692,597 $766,489 GAAP gross profit $556,208 $625,979 Stock-based compensation $7,684 $7,400 Am
Slide 41: GAAP to non-GAAP reconciliation (continued)
GAAP to non-GAAP reconciliation (continued) Income from Operations Reconciliation ($ in thousands) Q1FY24 Q1FY25 GAAP operating income $164,516 $205,082 Total adjustments related to revenue $0 $0 Total adjustments related to gross profit $19,093 $16,808 Total adjustments related to operating expense
Slide 42: GAAP to non-GAAP reconciliation (continued)
GAAP to non-GAAP reconciliation (continued) The non-GAAP adjustments, and F5's basis for excluding them from non-GAAP financial measures, are Restructuring charges. F5 has incurred restructuring charges that are included in its GAAP outlined below: financial statements, primarily related to workforc
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