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Extreme Networks Reports Q3 Earnings Beat, Raises FY23 Revenue Growth Outlook

Published 26/04/2023, 13:42
© Reuters.  Extreme Networks Reports Q3 Earnings Beat, Raises FY23 Revenue Growth Outlook
EXTR
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Benzinga - Extreme Networks, Inc (NASDAQ: EXTR) reported third-quarter FY23 revenue growth of 16% Y/Y to $332.5 million Wednesday, beating the consensus of $319.5 million.

  • Product revenue grew by 22% Y/Y to $241.1 million. Service and subscription revenue grew 5% Y/Y to $91.4 million.
  • SaaS ARR was $117 million, up 22% Y/Y.
  • Adjusted EPS of 29 cents beat the consensus estimate of 26 cents.
  • Adjusted gross margin expanded to 59.1% from 58.0% a year ago. Adjusted operating margin improved to 15.6% from 12.5% in prior year.
  • EXTR generated $48.2 million in operating cash flow and held $203 million in cash balance at the end of the quarter.
  • At the end of Q3, net debt was down to $34 million from $149.2 from the prior year.
  • Repurchases: The company repurchased shares worth $25 million in Q3.
  • President and CEO Ed Meyercord stated: "We believe the improving supply chain and cloud software subscription growth will support an over 20% year-over-year revenue increase in Q4. We also expect earnings to more than double year-over-year, on both a GAAP and Non-GAAP basis, driven by gross margin expansion and operating leverage."
  • "We've raised our full year FY23 revenue outlook to 16% year-over-year, which is the midpoint of our guidance. We remain committed to our long-term outlook of mid-teens topline growth and margin expansion through FY25."
  • Outlook: EXTR sees Q4 revenue of $340 million-$350 million, above the consensus of $332.4 million.
  • It sees Q4 Non-GAAP EPS of 28-34 cents compared to the consensus of 30 cents.
  • EXTR Price Action: EXTR shares were rallying 9.4% to $17.22 premarket Wednesday.
  • Photo via Shutterstock.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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