F5 Networks reported GAAP revenue of $583.4 million for its second quarter of fiscal year 2020, reflecting a 7% growth from $544.9 million in the second quarter of fiscal year 2019. GAAP net income for the second quarter of fiscal year 2020 was $61.4 million, or $1.00 per diluted share compared to second quarter fiscal year 2019 GAAP net income of $116.1 million, or $1.93 per diluted share.
Following its acquisition of Shape Security, to provide transparency to what F5 management believes reflects its ongoing business results, F5 is reporting both GAAP and non-GAAP revenue. Non-GAAP revenue excludes the impact of the purchase accounting write-down on Shape’s assumed deferred revenue. Non-GAAP revenue for the second quarter of fiscal year 2020 was $585.6 million, reflecting 7% growth in total revenue and 96% growth in software revenue in the year ago period.
“During our second quarter, we saw continued rapid acceptance of our software and subscription-based offerings as enterprises and service provider customers worldwide look to F5 to ensure consistent application access, delivery and security,” said François Locoh-Donou, CEO and President of F5. “In the last month of the quarter, we also saw increased demand for capacity as customers looked to quickly and, in some cases, massively scale remote access capabilities to keep their employees safe and their businesses running.”
“As a result of transforming F5 to a more software-driven business, we have built greater resiliency into our business model,” continued Locoh-Donou. “With 65% recurring revenue, $182 million in cash flow from operations and cash and investments totaling $1 billion at the end of our second quarter, we can weather the economic uncertainty resulting from the COVID-19 pandemic and we are confident our multi-cloud vision, our investments, and our innovation are well aligned with both near- and longer-term customer demand.”
F5 completes its $1B acquisition of Shape Security
F5 completed its previously announced acquisition of Shape Security, a privately-held company supplying fraud and abuse prevention solutions, for approximately $1 billion in cash.
Shape provides protection from automated attacks, botnets, and targeted fraud. In particular, Shape defends against credential stuffing attacks, where cybercriminals use stolen passwords from third-party data breaches to take over other online accounts. Shape’s application protection platform evaluates the data flow from the user into the application and leverages highly sophisticated cloud-based analytics to discern good traffic from bad.
Shape was founded in 2011 and is based in Santa Clara, California.
“We welcome Shape to the team and look forward to the work we will do together to transform the application security landscape for customers,” said François Locoh-Donou, F5 President and CEO. “Shape’s advanced AI and analytics capabilities will help accelerate new ways of securing and enhancing the performance of every application, across any cloud.”
