F5 Networks, Inc. (NASDAQ:FFIV) Q3 2021 Earnings Conference Call July 26, 2021 4:30 PM ET Company Participants Suzanne DuLong - Vice President of Investor Relations François Locoh-Donou - President & Chief Executive Officer Frank Pelzer - Executive Vice President & Chief Financial Officer Kara Sprague - Executive Vice President & General Manager of BIG-IP Conference Call Participants Tim Long - Barclays Samik Chatterjee - JP Morgan Rod Hall - Goldman Sachs James Fish - Piper Sandler Meta Marshall - Morgan S ...

| --- | --- | --- | |--------------------------------------------|-------|-------| | | | | | Q3FY21 Results PERIOD ENDING JUNE 30, 2021 | | | | Published July 26, 2021 | | | Forward-looking statements This presentation and associated commentary forward-looking statements including, among other things, statements regarding the continuing strength and momentum of F5's business, past and future financial performance including revenue, operating targets, earnings and earnings per share ranges, demand for applic ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, no par value FFIV NASDAQ Global Select Market Emerging Growth Company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transiti ...

Financial Performance - F5's Q2FY21 revenue increased to $645.3 million, compared to $583.4 million in Q2FY20[7] - Software revenue grew by 20%[8, 10] - Systems revenue increased by 17%[8, 10] - Global Services revenue increased by 4%[8] - Non-GAAP gross margin was 83.4% in Q2FY21, compared to 84.9% in Q2FY20[15, 27] - Non-GAAP operating margin was 30.3% in Q2FY21, compared to 29.1% in Q2FY20[15, 28] - Non-GAAP diluted EPS was $2.50 in Q2FY21, compared to $2.23 in Q2FY20[17, 28] Revenue Mix and Geography - Software accounted for 21% of revenue in Q2FY21, with subscriptions making up 79% of that software revenue[11] - North America contributed 54% of total revenue with $346 million, EMEA 27% with $172 million, and APAC 20% with $127 million[12] - Revenue growth in North America was 15%, EMEA 16%, and APAC 6%[12] Capital Allocation - F5 initiated a $500 million accelerated share repurchase (ASR) program in Q2FY21[22] - Approximately $400 million of shares were retired during Q2FY21 under the ASR program[22]

F5 Networks, Inc. (NASDAQ:FFIV) Q1 2021 Earnings Conference Call April 27, 2021 4:30 PM ET Company Participants Suzanne DuLong - Vice President of Investor Relations François Locoh-Donou - President & Chief Executive Officer Frank Pelzer - Executive Vice President & Chief Financial Officer Kara Sprague - Executive Vice President & General Manager of BIG-IP Conference Call Participants James Fish - Piper Sandler Meta Marshall - Morgan Stanley Sami Badri - Credit Suisse Tim Long - Barclays Samik Chatterjee - ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, no par value FFIV NASDAQ Global Select Market Emerging Growth Company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the trans ...

Table of Contents Emerging Growth Company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 000-26041 F5 Networks, Inc. (Exact name of Registrant as specified in its charter) Washing ...

| --- | --- | --- | |---------------------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Q4FY20 & FY20 Results PERIOD ENDING SEPTEMBER 30, 2020 | | | | Published October 26, 2020 | | | Forward-looking statements This presentation and associated commentary contains forward-looking statements including, among other things, statements regarding the continuing strength and momentum of F5's business, future financial performance, projected and target revenue and e ...

Financial Data and Key Metrics Changes - For Q4 2020, GAAP revenue was $615 million, with non-GAAP revenue of $617 million, representing a 4% year-over-year increase and exceeding guidance [9][10] - Full-year 2020 GAAP revenue totaled $2.35 billion, while non-GAAP revenue grew 5% to $2.36 billion [19][20] - Non-GAAP net income for Q4 was $150 million, or $2.43 per share, while for the full year, it was $575 million, or $9.37 per share [16][20] Business Line Data and Key Metrics Changes - Q4 product revenue was $280 million, up 6% year-over-year, with software revenue at $113 million, growing 36% [10][12] - For FY 2020, software revenue grew 52%, while systems revenue declined 10% [19][20] - Services revenue for Q4 was $336 million, growing 3% year-over-year, and represented 55% of total revenue [12][20] Market Data and Key Metrics Changes - In Q4, the Americas delivered 4% revenue growth year-over-year, EMEA grew 9%, while APAC was down 1% [14] - Enterprise customers represented 70% of product bookings, with service providers at 15% and government customers at 16% [15] Company Strategy and Development Direction - The company is focused on transitioning to a software and subscription-driven business model, with expectations of continued software revenue growth of more than 35% in FY 2021 [21][23] - The strategy includes expanding the application security portfolio and enhancing cloud service offerings, particularly through partnerships with cloud providers like AWS [33][34][35] - The company aims to leverage its strengths in application security and delivery to meet growing customer demands in a rapidly evolving digital landscape [37][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the ongoing challenges posed by COVID-19, with expectations for continued strong demand in application security and software solutions [22][30] - The outlook for FY 2021 anticipates a moderate decline in systems revenue, while software revenue is expected to accelerate significantly [23][36] - Management noted that the current environment has reset customer expectations for application performance and security, creating opportunities for F5 to deliver enhanced solutions [38][39] Other Important Information - The company generated $175 million in cash flow from operations in Q4, with cash and investments totaling approximately $1.3 billion [17] - Deferred revenue increased 6% year-over-year to $1.3 billion, indicating strong future revenue visibility [18] Q&A Session Summary Question: Changes in order behavior from service providers - Management indicated no fundamental change in order behavior from service providers, with continued momentum in 5G activity expected to contribute in the second half of 2021 [42][44] Question: Drivers for hardware choices - Management noted that security has become a more significant factor in hardware business, which is not declining as previously expected [45][46] Question: Strength of application security portfolio - Management expressed confidence in the application security portfolio, highlighting the acceleration of growth due to increased online fraud and security demands [49][50] Question: APAC sales recovery - Management acknowledged ongoing challenges in specific APAC geographies due to COVID-19 but noted a positive outlook for the software pipeline in the first half of 2021 [51][52] Question: Enterprise order momentum - Management reported strong enterprise demand, particularly in financial services, technology, and government sectors, with limited exposure to negatively impacted verticals [59][60] Question: Software growth composition - Management clarified that the recent software growth is broad-based and not concentrated on specific customers, indicating a healthy subscription model [66] Question: Revenue synergies from Nginx and Shape - Management highlighted substantial increases in average deal sizes and new logo acquisitions due to the integration of Nginx and Shape into F5's go-to-market strategy [77] Question: Shape adoption and vendor consolidation concerns - Management noted that Shape's adoption is driven by increased security needs, and they do not foresee significant vendor consolidation post-COVID [81]

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, no par value FFIV NASDAQ Global Select Market Emerging Growth Company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transitio ...