Actions in F5 Inc.. were up more than 10% in late trading today after the application security company reported higher earnings and revenue in its fourth quarter of fiscal 2024 and forecast a brighter revenue outlook than expected for the first quarter of fiscal 2025.

For the quarter ended September 30, F5 reported adjusted earnings per share of $3.67, compared to $3.50 per share in the same quarter a year ago, on revenue of $747 million, up 5.65% over one year. Both numbers were higher than $3.45 per share and revenue of $730.39 million. expected by analysts.

By industry, F5 reported software revenue of $228 million in the quarter, up 19% year-over-year, global services revenue of $388 million, up 2%. , and systems revenue of $130 million, the latter down 3% year-on-year. .

Unadjusted gross profit for the quarter was $603 million, compared to $566 million a year earlier, and unadjusted operating profit was $191 million, compared to $172 million. .

For full fiscal 2024, F5 reported adjusted earnings per share of $13.37, compared to $11.70 per share for fiscal 2023, on revenue of $2.82 billion , compared to $2.81 billion the previous year. Software revenue was $735 million, up 11% year over year; global services revenue increased 4% to $1.54 billion and systems revenue decreased 20% to $537 million.

The key software growth numbers that resulted in F5’s strong numbers were part of a shift the company began in 2017 to move to a subscription model from its previous software licensing model. During this period, subscription revenue grew up from 20% of total software revenue to 85%. Recurring revenue also now represents 76% of F5’s total revenue compared to 52% in 2017.

“In fiscal 2024, despite a challenging macroeconomic environment at the start of the year, we delivered revenue at the upper end of our guidance, exceeded our software growth expectations and maintained discipline rigorous operational performance, resulting in double-digit earnings per share growth for the year,” said François Locoh-Donou, Chairman and CEO of F5, in the F5 press release. publication of results.

“In a relatively short period of time, we have significantly reshaped F5 from a single-product, hardware-centric company to a security and software leader in today’s hybrid multi-cloud world,” he said. added Locoh-Donou. “Our transformation has redefined F5’s role beyond the data center, increasing our value to customers, diversifying our revenue and expanding our total addressable market.

For its first fiscal quarter 2025, F5 expects to generate adjusted earnings per share of $3.29 to $3.41 on revenue of $705 million to $725 million. At the midpoint, the outlook for adjusted earnings per share was lower than the $3.37 analysts expected, but revenue was well above the $706 million expected.

For the full year, the company expects adjusted earnings per share growth of 5-7% versus fiscal 2024 and revenue growth of 4-5%.

Photo/Image: F5