F5(US:FFIV)2022-02-03 16:00Financial Performance - For the three months ended December 31, 2021, the Company reported net income of $93.6 million, an increase from $87.7 million in the same period of 2020, resulting in a basic net income per share of $1.54 compared to $1.43 in 2020[122]. - Total revenues for the three months ended December 31, 2021, were $687.1 million, up from $624.6 million in the same period of 2020, representing a year-over-year growth of approximately 10.0%[126]. - The Americas region generated $403.0 million in revenue for the three months ended December 31, 2021, compared to $343.1 million in 2020, reflecting a growth of approximately 17.5%[126]. - The Company’s net product revenues for the three months ended December 31, 2021, totaled $343.1 million, an increase from $288.0 million in the same period of 2020, indicating a growth of approximately 19.2%[126]. Deferred Revenue and Performance Obligations - The total deferred revenue balance at the end of the period was $1.576 billion, up from $1.359 billion year-over-year, representing a growth of about 16%[48]. - The company expects to recognize approximately 65.9% of the remaining performance obligations, valued at around $1.6 billion, over the next 12 months[49]. - The company recognized revenues of $365.5 million related to the opening balance of deferred revenue for the three months ended December 31, 2021, compared to $335.7 million for the same period in 2020[48]. Capitalized Contract Acquisition Costs - The company's beginning balance of capitalized contract acquisition costs was $77.8 million as of December 31, 2021, compared to $70.4 million for the same period in 2020, reflecting an increase of approximately 6.3%[46]. - Amortization of capitalized contract acquisition costs was $9.4 million for the three months ended December 31, 2021, compared to $8.2 million for the same period in 2020, indicating an increase of 14.6%[46]. - The company added $10.5 million in capitalized contract acquisition costs during the three months ended December 31, 2021, compared to $9.7 million in the same period of 2020, marking an increase of approximately 8.2%[46]. Acquisitions - The company acquired Threat Stack, Inc. for approximately $68.9 million in cash, with an additional $1.5 million in transaction costs incurred[72][74]. - The total assets acquired from Threat Stack amounted to $79,515,000, with goodwill recognized at $43,956,000[76]. - The acquisition of Volterra, Inc. was completed for approximately $427.2 million in cash, with $9.5 million in transaction costs incurred[80][81]. - Total assets acquired from Volterra were valued at $432,928,000, with goodwill recognized at $351,417,000[83]. Investments and Cash Position - As of December 31, 2021, total cash, cash equivalents, and restricted cash amounted to $515.8 million, a decrease from $584.3 million as of September 30, 2021[87]. - As of December 31, 2021, total short-term investments amounted to $346,901,000, with a fair value of $346,548,000, reflecting a gross unrealized loss of $363,000[68]. - The company reported long-term investments totaling $77,316,000, with a fair value of $76,991,000, indicating gross unrealized losses of $325,000[68]. - The company has no credit losses on any investments within its portfolio as of December 31, 2021[71]. - The company’s cash equivalents measured at fair value were $19.3 million as of December 31, 2021[60]. Impairments - The company recorded an impairment of $6.2 million against the Shape trade name intangible asset during the three months ended December 31, 2021[64]. - The total impairment charges for the three months ended December 31, 2021, were $6.2 million, compared to $6.9 million in the same period of 2020[67]. - The Company recorded an impairment of $6.7 million against the right-of-use asset related to the integration of the former Shape headquarters[102]. Debt and Lease Liabilities - The Company had $365.0 million outstanding under the Term Loan Facility as of December 31, 2021, with a weighted average interest rate of 1.282%[94]. - The Revolving Credit Facility, with an aggregate principal amount of $350.0 million, had no outstanding borrowings as of December 31, 2021[97]. - Operating lease liabilities totaled $334.5 million as of December 31, 2021, with future operating lease payments expected to be $384.8 million[102]. Tax and Compliance - The effective tax rate for the three months ended December 31, 2021, was 16.3%, a decrease from 25.1% in the same period of 2020, primarily due to the tax impact of stock-based compensation[114]. - The Company is currently under audit by various states and foreign jurisdictions for fiscal years 2015 through 2020, with potential changes in unrecognized tax benefits anticipated within the next twelve months[115]. - The financial covenant requires the Company to maintain a leverage ratio of consolidated total indebtedness to consolidated EBITDA, and it was in compliance as of December 31, 2021[94]. Restructuring and Share Repurchase - The Company initiated a restructuring plan in the first quarter of fiscal 2022, resulting in a restructuring charge of $7.9 million, affecting approximately 70 positions[128]. - The Company repurchased 539,000 shares at an average price of $232.14, totaling $125.0 million, with $647.5 million remaining authorized for future share repurchases as of December 31, 2021[120]. Market Risk and Currency - The majority of sales and expenses are denominated in U.S. dollars, resulting in minimal foreign currency transaction gains and losses[173]. - Management reports no material changes to quantitative and qualitative disclosures about market risk compared to the previous annual report[173].