Extreme Networks Reports Fiscal Q4 and FullYear 2024 Financial Results
Intellectia.AI2024-08-08
Extreme Networks Reports Fiscal Q4 and Full-Year 2024 Financial Results
Extreme Networks, Inc. (NASDAQ: EXTR) released its financial results for the fourth quarter and fiscal year ended June 30, 2024.
Key Financial Metrics
| Metric | Q4 2024 | Q3 2024 | Q4 2023 | YoY Change | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Revenue | $256.7M | $210.4M | $362.2M | -29% | 22% | $253.21M |
| GAAP EPS | -$0.42 | -$0.17 | $0.19 | N/A | N/A | $0.13 |
| Non-GAAP EPS | -$0.08 | $0.10 | $0.33 | N/A | N/A | $0.13 |
| Non-GAAP Adjusted EPS | $0.19 | $0.16 | $0.42 | -54% | 19% | N/A |
| GAAP Gross Margin | 44.7% | N/A | 58.9% | -24.1% pts | N/A | N/A |
| Non-GAAP Gross Margin | 45.4% | N/A | 60.2% | -14.8% pts | N/A | N/A |
| SaaS ARR | $167.0M | N/A | $129.4M | 29% | N/A | N/A |
In fiscal Q4 2024, Extreme Networks saw a significant year-over-year decline in revenue and earnings, but a quarter-over-quarter improvement in revenue. The posted GAAP loss per share reflects increased provisions and operational adjustments. Despite these challenges, the firm surpassed Wall Street’s revenue estimate and remains optimistic about future growth.
Revenue Performance Across Major Segments
| Segment | Q4 2024 | Guidance | Q3 2024 | Q4 2023 | YoY Change | QoQ Change |
|---|---|---|---|---|---|---|
| Total Revenue | $256.7M | $253.21M | $210.4M | $362.2M | -29% | 22% |
| SaaS ARR | $167.0M | N/A | N/A | $129.4M | 29% | N/A |
The major segments noted stable to positive performance with a strong SaaS ARR growth year-over-year.
Operational Data
| Metric | Q4 2024 |
|---|---|
| Cash Balances | $156.7M |
| Net Debt | $33.3M |
The company improved its liquidity with a higher cash balance compared to the previous quarter.
Comments from Company Officers
Ed Meyercord, President and CEO of Extreme Networks, highlighted the company’s robust global demand recovery and channel partner support. Kevin Rhodes, Executive Vice President and CFO, emphasized operational alignments and a return to growth expectations for fiscal 2025 with progressive gross margin improvement.
Dividends and Share Repurchase Program
No dividends or share repurchase programs were announced during this period.
Forward Guidance
For Q1 of fiscal 2025, Extreme Networks maintained a positive outlook driven by emerging cloud networking technology and alignment with customer demands.
Stock Price Movement
Post-earnings release, Extreme Networks' stock experienced a minor increase of approximately 0.85%, reflecting investor confidence in the company's future prospects.
Despite the headwinds and current losses, Extreme Networks’ strategic focus on cloud networking, AI, and security positions them well for upcoming industry opportunities.
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