Extreme Networks, Inc. · NASDAQ:EXTR

Extreme Networks — Q1 2023 Earnings Presentation

14 slides from Extreme Networks's earnings presentation, Oct 27, 2022

  1. Slide 1: FQ1'23 Financial Results

    10/26/2022 FQ1’23 Financial Results October 27, 2022 1 CAUTIONARY STATEMENT ON FINANCIAL MEASURES Non-GAAP Measures: Forward-Looking Statements: In preparing the accompanying information Extreme This presentation contains forward-looking statements Networks Inc. (the “Company”) has excluded, where a

  2. Slide 2: FQ1'23 Results Summary

    10/26/2022 FQ1’23 ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 3 3 FQ1’23 RESULTS SUMMARY DOUBLE-DIGIT GROWTH FUELED BY STRONG DEMAND AND EXECUTION • Continued Strong Bookings Growth Y/Y Continued • Record Revenue on 11% Y/Y Revenue Growth Strong Growth • Product Backlog Grew to $555 million Cl

  3. Slide 3: FQ1'23 Highlights; Vertical Trends and Contribution to Bookings

    10/26/2022 FQ1’23 HIGHLIGHTS CLOUD ADOPTION DRIVING GROWTH PROFITABILITY AND CASH FLOW Backlog $555M SaaS ARR2 $111M Total Revenue 11.2% Non-GAAP Gross Margin %1 57.6% Growth (Y/Y %) Product Revenue 12.1% $0.20 11.4% Recurring $171M Growth (Y/Y %) Non-GAAP Operating Non-GAAP Revenue 29% Margin%1 EPS

  4. Slide 4: GAAP and Non-GAAP Financial Highlights

    10/26/2022 GAAP FINANCIAL HIGHLIGHTS – FINANCIAL OPERATIONS (IN M’S EXCEPT PERCENTAGES AND EPS) Quarter FQ1'22 FQ4'22 FQ1'23 GAAP Product Revenue $185.2 $187.1 $206.3 Services Revenue $82.5 $91.1 $91.4 Total Revenue $267.7 $278.2 $297.7 Total GM % 58.1% 55.4% 56.0% Operating Income $ $18.3 $10.5 $17

  5. Slide 5: Quarterly Results of Operations

    10/26/2022 QUARTERLY RESULTS OF OPERATIONS (IN M’S EXCEPT PERCENTAGES AND EPS) ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 9 9 QUARTERLY RESULTS OF OPERATIONS (IN M’S EXCEPT PERCENTAGES AND EPS) ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 10 10 5

  6. Slide 6: Quarterly Results of Operations

    10/26/2022 QUARTERLY RESULTS OF OPERATIONS (IN M’S EXCEPT PERCENTAGES AND EPS) ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 11 11 QUARTERLY RESULTS OF OPERATIONS (IN M’S EXCEPT PERCENTAGES AND EPS) ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 12 12 6

  7. Slide 7: Revenue by Geography; Balance Sheet Highlights

    10/26/2022 REVENUE BY GEOGRAPHY EMEA $116M Product $85M Services $31M Americas $158M Product $103M Services $55M APAC $24M Product $19M Services $6M Note: May not foot due to rounding ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 13 13 FINANCIAL HIGHLIGHTS – BALANCE SHEET (IN M’S EXCEPT DAYS) Ba

  8. Slide 8: Appendices: Non-GAAP Free Cash Flow

    10/26/2022 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 inf

  9. Slide 9: Historical SaaS Disclosures

    10/26/2022 HISTORICAL SAAS DISCLOSURES SAAS ARR & SAAS DEFERRED ENDING REVENUE (IN $M’S) Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring revenue of ExtremeCloud™ IQ (XIQ) and other subscription revenue, based on the annualized value of quarterly subscription

  10. Slide 10: GAAP to Non-GAAP Reconciliations

    10/26/2022 GAAP TO NON-GAAP RECONCILIATIONS REVENUE + GROSS MARGIN (IN M’S EXCEPT PERCENTAGES) Quarter FQ1'22 FQ4'22 FQ1'23 Product Revenue $ 185.2 $ 187.1 $ 206.3 Service Revenue 82.5 91.1 91.4 Total Revenue - GAAP $ 267.7 $ 278.2 $ 297.7 Gross Margin - GAAP 155.6 154.2 166.7 Gross Margin % - GAAP

  11. Slide 11: GAAP to Non-GAAP Reconciliations

    10/26/2022 GAAP TO NON-GAAP RECONCILIATIONS NET INCOME (IN M’s EXCEPT EPS) Quarter FQ1'22 FQ4'22 FQ1'23 Net Income - GAAP $ 12.7 $ 5.4 $ 12.6 Shares - GAAP 133.2 132.3 132.9 EPS - GAAP (Diluted ) $ 0.10 $ 0.04 $ 0.09 Amortization of Product Intangibles 5.2 3.6 3.6 Total Share-Based Compensation 10.4

  12. Slide 12: FQ2'23 Guidance – GAAP

    10/26/2022 FQ2’23 ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 23 23 FQ2’23 GUIDANCE – GAAP (IN M’s EXCEPT PERCENTAGES AND EPS) FQ2’23 FQ1’23 Guidance Revenue ($M) $297.7 $299.0 – $309.0 Gross Margin % 56.0% 56.0% – 58.0% Net Income $12.6 $11.6 – $18.2 EPS $0.09 $0.09 – $0.14 ©2022 EXTREME NETW

  13. Slide 13: FQ2'23 Guidance – Non-GAAP

    10/26/2022 FQ2’23 GUIDANCE – NON-GAAP (IN M’s EXCEPT PERCENTAGES AND EPS) FQ2’23 FQ1’22 Guidance Revenue ($M) $297.7 $299.0 – $309.0 Gross Margin % 57.6% 57.5% – 59.5% Net Income $27.1 $27.9 – $35.0 EPS $0.20 $0.21 – $0.26 ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 25 25 FQ2’23 GUIDANCE – GAA

  14. Slide 14: ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

    10/26/2022 ©2022 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 27 27 14

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