Extreme Networks updated it outlook on the financial results for its second quarter ended December 31, 2023, saying that it now expects revenues to be approximately $294 to $297 million, compared to the prior outlook of $312 to $327 million. The company expects annualized subscription and support revenue to be approximately $430 million, led by 41% year over year subscription growth, accelerating from 32% growth in Q1. The company expects recurring revenue to account for 33% of total revenue. Gross margin is expected to be toward the higher end of the prior guidance range for the quarter. The company’s ending cash balance for the quarter was $221.4 million, net of share repurchases during the quarter of $25 million.
“Our revised second fiscal quarter outlook reflects industry headwinds of channel digestion and elongated sales cycles. In late Q2, we saw multiple large deals pushing out to future quarters,” stated Ed Meyercord, President and CEO at Extreme. “We remain confident in our long-term strategy and our ability to achieve double-digit long-term revenue and EPS growth supported by competitive customer wins and the growth in our opportunity funnel. In addition, we’ve made significant progress advancing our strategic initiatives to launch our managed services commercial platform and unique subscription offering to large service providers.”
