Cybersecurity and cloud services company F5 forecast fourth-quarter revenue and profit above Wall Street estimates on Monday, expecting resilient spending by businesses and sending its shares 13.6% higher in premarket trading Tuesday.
Companies are increasingly digitizing their operations and trying to cash in on the AI boom, boosting demand for F5's services and hardware designed to support applications over the internet.
A surge in online threats and high-profile breaches has also led to businesses investing more in cybersecurity solutions.
The Seattle, Washington-based company expects revenue between $720 million and $740 million for the fourth quarter, compared with analysts' average estimate of $717.4 million, according to LSEG data.
It sees earnings per share (EPS) in the range of $3.38 to $3.50, excluding items, higher than expectations of $3.33.
The company forecast annual revenue towards the top end of its prior expectations, at about $2.8 billion, or roughly flat from last year, compared with estimates of $2.78 billion.
F5 also raised its adjusted EPS growth forecast for the year to nearly 12% from its prior forecast for growth of 7% to 9%.
Revenue for the third quarter ended June 30 came in at $695 million, compared with estimates of $686.1 million.
