Extreme Networks, Inc. · NASDAQ:EXTR
Extreme Networks — Q1 2021 Earnings Presentation
24 slides from Extreme Networks's earnings presentation, Oct 28, 2020
Slide 1: Extreme Networks FQ1'21 Financial Results
Extreme Networks FQ1’21 Financial Results Oct 28, 2020
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: FQ1'21 Financial Results
FQ1’21 Financial Results 3
Slide 4: GAAP Financial Highlights – Financial Operations
GAAP Financial Highlights – Financial Operations (In $M’s except percentages and EPS) Quarter FQ1'20 FQ4'20 FQ1'21 GAAP Product Revenue $185.1 $141.5 $161.4 Services Revenue $70.4 $74.0 $74.4 Total Revenue $255.5 $215.5 $235.8 Total GM % 53.7% 56.0% 57.3% Operating Loss $ ($32.2) ($13.1) ($0.1) Oper
Slide 5: Non-GAAP Financial Highlights – Financial Operations
Non-GAAP Financial Highlights – Financial Operations (In $M’s except percentages and EPS) Quarter FQ1'20 FQ4'20 FQ1'21 Non-GAAP1,2 Product Revenue $185.1 $141.5 $161.4 Services Revenue $70.4 $74.0 $74.4 Total Revenue $255.5 $215.5 $235.8 Total GM % 59.9% 59.4% 60.3% Operating Income $ $15.9 $11.2 $1
Slide 6: Quarterly Results of Operations
Quarterly Results of Operations (In $M’s except percentages) 6
Slide 7: Quarterly Results of Operations
Quarterly Results of Operations (In $M’s except percentages) 7
Slide 8: Revenue by Geography
Revenue by Geography (In $M’s except percentages) YoY % QoQ % FQ1'20 FQ4'20 FQ1'21 Change Change Product Revenue Americas $ 95.7 $ 71.6 $ 83.5 (12.8%) 16.6% EMEA 69.6 54.8 59.4 (14.6%) 8.4% APAC 19.8 15.1 18.5 (6.6%) 22.5% Total Product $ 185.1 $ 141.5 $ 161.4 (12.8%) 14.1% Service Revenue Americas
Slide 9: Revenue by Type and by Geography
Revenue by Type and by Geography (In $M’s except percentages) 9
Slide 10: Revenue by Type and by Geography
Revenue by Type and by Geography (In $M’s except percentages) 10
Slide 11: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet (GAAP, BS in $M’s except days) Balance Sheet Highlights FQ1'20 FQ4'20 FQ1'21 Cash and Cash Equivalents $161.1 $193.9 $193.1 Accounts Receivable $152.3 $122.7 $123.6 Inventories $82.4 $62.6 $55.8 Accounts Payables $63.5 $48.4 $59.4 Gross Debt* $380.0 $420.8 $396.0
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 FQ4’20 FQ1’21 Cloud Metrics FQ4’20 FQ1’21 Large Customers 23 22 Average Daily Traffic ~3PB ~5PB (Over $1M in bookings for the Quarter) Per Day Recurring Revenue* $ $73.5M $72.9M Managed Devices 1.14M 1.36M 2 sections: Total Dollar Amount for the Quarter Recu
Slide 14: Vertical Trends
Vertical Trends Extreme Exposure Demand Outlook Tailwinds Headwinds Strong continued trends in K-12, Demand in state / local government ~40% Higher Ed; Solid State / Local and Fed dependent on future government Government spending globally budgets and funding & Education Stable spending activity and
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 FQ1'20 FQ4'20 FQ1'21 Product Revenue $ 185.1 $ 141.5 $ 161.4 Service Revenue 70.4 74.0 74.4 Total Revenue - GAAP $ 255.5 $ 215.5 $ 235.8 Gross Margin - GAAP 137.2 120.6 135.0 Gross Margin % - GAAP 53.7% 56.0%
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Income (Loss) (In M’s except percentages) Quarter FQ1'20 FQ4'20 FQ1'21 Operating Loss - GAAP $ (32.2) $ (13.1) $ (0.1) Operating Margin- GAAP (12.6%) (6.1%) (0.0%) Adjustment to Acquired Inventories 3.9 - - Integration Costs in COGS 0.2 0.1 - Amortization o
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Net Income (Loss) (In $M’s except EPS) Quarter Full Year Quarter FQ1'20 FQ2'20 FQ3'20 FQ4'20 FY20 FQ1'21 Net Loss - GAAP $ (37.7) $ (23.5) $ (44.4) $ (21.2) $ (126.8) $ (8.8) Shares - GAAP 120.2 119.6 119.2 120.3 119.8 121.7 EPS - GAAP $ (0.31) $ (0.20) $ (0.37) $ (0
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations EBITDA (In $M’s) Quarter Full Year Quarter FQ1'20 FQ2'20 FQ3'20 FQ4'20 FY20 FQ1'21 Net Loss - GAAP $ (37.7) $ (23.5) $ (44.4) $ (21.2) $ (126.8) $ (8.8) Interest 4.5 5.8 5.8 6.3 22.3 6.5 Provision for Income Taxes 1.6 1.8 1.6 1.4 6.4 1.3 Depreciation/Amortization 15.
Slide 20: FQ2'21 Financial Guidance
FQ2’21 Financial Guidance 20
Slide 21: FQ2'21 Guidance – GAAP
FQ2’21 Guidance – GAAP (In M’s except percentages and EPS) FQ1’21 FQ2’21 Guidance Revenue ($M) $235.8 $235.0 - $245.0 Gross Margin % 57.3% 56.8% - 57.5% Net Loss ($8.8) ($9.2) – ($4.3) EPS ($0.07) ($0.7) – ($0.03) 21
Slide 22: FQ2'21 Guidance – Non-GAAP
FQ2’21 Guidance – Non-GAAP (In M’s except percentages and EPS) FQ1’21 FQ2’21 Guidance Revenue ($M) $235.8 $235.0 - $245.0 Gross Margin % 60.3% 60.0% - 60.6% Net Income $10.9 $10.6 – $15.5 EPS $0.09 $0.09 – $0.12 22
Slide 23: FQ2'21 Guidance - GAAP to Non-GAAP Reconciliation
FQ2’21 Guidance - GAAP to Non-GAAP Reconciliation Gross Margin Rate Operating Margin Rate Earnings per Share GAAP 56.8% - 57.5% (0.4)% - 1.4% ($0.07) – ($0.03) Estimated Adjustments for: Amortization of Product Intangibles 2.4% 2.4% $0.05 Stock-Based Compensation 0.4% 4.3% $0.08 Restructuring Charge
Slide 24: f= wirnus.
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