Extreme Networks Inc (EXTR) Q1 2025 Earnings Call Highlights: Strong SaaS Growth and Market ...

GuruFocus.com10-31

Revenue: $269.2 million, up 5% sequentially. Earnings Per Share (EPS): 17, exceeding the midpoint of initial outlook by 5. Gross Margin: 63.7%, up 20 basis points sequentially. Product Revenue: $152.3...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nExtreme Networks Inc (EXTR) Q1 2025 Earnings Call Highlights: Strong SaaS Growth and Market ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-31 15:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/extreme-networks-inc-extr-q1-070440697.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $269.2 million, up 5% sequentially.\nEarnings Per Share (EPS): 17, exceeding the midpoint of initial outlook by 5.\nGross Margin: 63.7%, up 20 basis points sequentially.\nProduct Revenue: $152.3...</p>\n\n<a href=\"https://finance.yahoo.com/news/extreme-networks-inc-extr-q1-070440697.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EXTR","symbol_name":"极速网络","start_time":0,"source_url":"https://finance.yahoo.com/news/extreme-networks-inc-extr-q1-070440697.html","article_id":"2479721438","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/UTv_WTeKcbtQfK2CL7zrjQ--~B/aD0yMzQ7dz0yMzQ7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/2a06bef79520b16a548aa56e78bd08ef"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2479721438","pubTimestamp":1730358280,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Earnings Per Share : 17, exceeding the midpoint of initial outlook by 5.Gross Margin: 63.7%, up 20 basis points sequentially.Total Recurring Revenue: 38% of first quarter revenue.Subscription Deferred Revenue: $282 million, up 19% year over year.Total Deferred Revenue: $577 million, up 10% year over year.Operating Expenses: $138 million, up $10 million sequentially.Non-GAAP Operating Profit: $33.5 million or 12.4% of revenue.Cash and Net Debt: $159.5 million in cash and net debt of $28 million.Free Cash Flow: $12 million in the quarter.Q2 Revenue Guidance: $273 million to $283 million.Full Fiscal Year '25 Revenue Guidance: $1.117 billion to $1.137 billion.GuruFocus has detected 5 Warning Signs with EXTR.Extreme Networks Inc  reported first-quarter results that exceeded expectations, indicating early signs of a broad networking market recovery.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"EXTR":"极速网络"},"translate_title":"Extreme Networks Inc(EXTR)2025年第一季度收益看涨期权亮点：强劲的SaaS增长和市场……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EXTR":1},"content_text":"Revenue: $269.2 million, up 5% sequentially.\nEarnings Per Share (EPS): 17, exceeding the midpoint of initial outlook by 5.\nGross Margin: 63.7%, up 20 basis points sequentially.\nProduct Revenue: $152.3 million, grew 6% sequentially.\nTotal Recurring Revenue: 38% of first quarter revenue.\nSubscription Deferred Revenue: $282 million, up 19% year over year.\nTotal Deferred Revenue: $577 million, up 10% year over year.\nOperating Expenses: $138 million, up $10 million sequentially.\nNon-GAAP Operating Profit: $33.5 million or 12.4% of revenue.\nCash and Net Debt: $159.5 million in cash and net debt of $28 million.\nFree Cash Flow: $12 million in the quarter.\nQ2 Revenue Guidance: $273 million to $283 million.\nQ2 Gross Margin Guidance: 63% to 64%.\nQ2 Operating Margin Guidance: 11.3% to 13.4%.\nQ2 EPS Guidance: 16 to 20.\nFull Fiscal Year '25 Revenue Guidance: $1.117 billion to $1.137 billion.\n\n\nWarning! GuruFocus has detected 5 Warning Signs with EXTR.\n\nRelease Date: October 30, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nExtreme Networks Inc (NASDAQ:EXTR) reported first-quarter results that exceeded expectations, indicating early signs of a broad networking market recovery.\nThe company achieved a 23% year-over-year growth in SaaS, highlighting the value and stickiness of its cloud offerings.\nEXTR's enterprise campus solution, combining cloud management with AI and security capabilities, is driving new logo expansion.\nThe company is the first to ship enterprise-grade Wi-Fi 7 access points, offering significant performance improvements.\nEXTR's managed services platform is gaining traction, with a 32% increase in MSP partners and doubled consumption billings sequentially.\n\n Negative Points \n\nThe recovery in the EMEA region is protracted, with government spending delays impacting project timelines.\nEXTR faces macroeconomic challenges in Europe, particularly in Germany and the UK, causing project delays.\nDespite improvements, the company is still not operating at full IT spending levels, affecting growth potential.\nThe competitive environment remains challenging, with larger competitors potentially behaving irrationally due to inventory issues.\nEXTR's operating expenses are expected to increase, potentially impacting profitability despite revenue growth.\n\n Q & A Highlights \nQ: Can you discuss the recovery in the US versus EMEA and how each region is progressing? A: Edward Meyercord, CEO: The US is leading the recovery, while Europe is still facing macroeconomic challenges causing project delays. We are optimistic about Europe, but factors like Germany's pending budget and the UK's new government budget are causing delays in public sector projects. We expect these projects to happen but are seeing them slide into the second half of our fiscal year.\nQ: How are you gaining market share against competitors like Cisco, Juniper, and HPE? A: Edward Meyercord, CEO: We are primarily taking share from Cisco, with some wins against Juniper and HPE. Our end-to-end cloud capability and unique campus fabric technology provide unmatched resiliency and security, which are key differentiators. We expect further opportunities as the HP-Juniper deal progresses, potentially causing market disruption.\nQ: What is your strategy regarding AI, and how does it compare to competitors? A: Edward Meyercord, CEO: We are leveraging first-generation AI for network insights and anomaly detection with our Copilot product. We are also working on integrating generative AI into our platform, which will enhance user experience and network management. Our AI partners include AWS and Microsoft, and we are focused on providing accurate network information and enhanced capabilities.\nQ: Can you provide an update on your major verticals, particularly government and education? A: Kevin Rhodes, CFO: There have been no major shifts in our major verticals compared to previous quarters. The distribution remains consistent, and we plan to update these metrics annually rather than quarterly.\nQ: How do you view the current pricing environment compared to your top-tier competitors? A: Edward Meyercord, CEO: Our gross margins have remained strong, and our discounting this quarter was better than expected. Feedback from distributors suggests our inventory is in better shape than some larger competitors, which may lead to more aggressive pricing from them. However, we tend to fly under the radar due to our smaller market share.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2479721438"}