F5, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>F5, Inc. filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance and operations.</b>

AI Summary

F5, INC. (FFIV) filed a Quarterly Report (10-Q) with the SEC on February 5, 2024. F5, Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on September 30th. F5, Inc. was formerly known as F5 Networks, Inc. The company is incorporated in Washington state.

Why It Matters

For investors and stakeholders tracking F5, INC., this filing contains several important signals. This 10-Q filing provides investors with an updated view of F5, Inc.'s financial health and operational status for the most recent fiscal quarter. Understanding the details within this report is crucial for assessing the company's performance against its previous periods and market expectations.

Risk Assessment

Risk Level: low — F5, INC. shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not inherently contain new, significant risks beyond those typically associated with public companies in the technology sector.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand F5, Inc.'s performance and outlook.

Key Numbers

• 2023-12-31 — Period End Date (Conformed period of report)
• 2024-02-05 — Filing Date (Filed as of date)
• 0930 — Fiscal Year End (Fiscal year end)
• 2023-10-01 — Quarter Start Date (Reporting period start date)
• 2023-12-31 — Quarter End Date (Reporting period end date)

Key Players & Entities

• F5, INC. (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240205 (date) — Filed as of date
• 0001048695 (company) — Central Index Key
• WA (location) — State of incorporation
• F5 NETWORKS, INC. (company) — Former company name
• 20190625 (date) — Date of name change
• SEATTLE (location) — Business address city

Forward-Looking Statements

• F5, Inc. will continue to see a shift in its revenue mix, with services becoming a larger proportion of total revenue. (F5, Inc.) — medium confidence, target: 2024-09-30
• Product revenue for F5, Inc. will face continued pressure in the next fiscal quarter. (F5, Inc.) — medium confidence, target: 2024-03-31

FAQ

Industry Context

F5, Inc. operates in the computer communications equipment industry, providing products and services related to application delivery networking and security.

Regulatory Implications

The filing is a standard 10-Q, a mandatory quarterly report filed with the SEC under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow.
2. Review the Management's Discussion and Analysis (MD&A) for operational performance and strategic outlook.
3. Identify any new risk factors or changes in existing risks disclosed in the filing.

Year-Over-Year Comparison

This is a 10-Q filing for the period ending December 31, 2023. Specific comparative data from the previous filing (likely a 10-Q for the period ending September 30, 2023) is not detailed in this header information.

Filing Documents

• ffiv-20231231.htm (10-Q) — 816KB
• ffiv10qex31112312023.htm (EX-31.1) — 10KB
• ffiv10qex31212312023.htm (EX-31.2) — 10KB
• ffiv10qex32112312023.htm (EX-32.1) — 7KB
• 0001048695-24-000012.txt (&nbsp;) — 5431KB
• ffiv-20231231.xsd (EX-101.SCH) — 40KB
• ffiv-20231231_cal.xml (EX-101.CAL) — 69KB
• ffiv-20231231_def.xml (EX-101.DEF) — 137KB
• ffiv-20231231_lab.xml (EX-101.LAB) — 573KB
• ffiv-20231231_pre.xml (EX-101.PRE) — 348KB
• ffiv-20231231_htm.xml (XML) — 710KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 4 Consolidated Balance Sheets 4 Consolidated Income Statements 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Shareholders' Equity 7 Consolidated Statements of Cash Flows 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 27

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 29

Other Information

Item 5. Other Information 29

Exhibits

Item 6. Exhibits 29

SIGNATURES

SIGNATURES 30 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements F5, INC. CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) December 31, 2023 September 30, 2023 ASSETS Current assets Cash and cash equivalents $ 822,572 $ 797,163 Short-term investments 3,287 6,160 Accounts receivable, net of allowances of $ 3,879 and $ 3,561 513,176 454,832 Inventories 35,840 35,874 Other current assets 586,876 554,744 Total current assets 1,961,751 1,848,773 Property and equipment, net 167,113 170,422 Operating lease right-of-use assets 192,174 195,471 Long-term investments 6,170 5,068 Deferred tax assets 307,119 295,308 Goodwill 2,288,678 2,288,678 Other assets, net 425,850 444,613 Total assets $ 5,348,855 $ 5,248,333 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 60,084 $ 63,315 Accrued liabilities 278,920 282,890 Deferred revenue 1,185,456 1,126,576 Total current liabilities 1,524,460 1,472,781 Deferred tax liabilities 5,210 4,637 Deferred revenue, long-term 644,654 648,545 Operating lease liabilities, long-term 235,001 239,565 Other long-term liabilities 78,553 82,573 Total long-term liabilities 963,418 975,320 Commitments and contingencies (Note 8) Shareholders' equity Preferred stock, no par value; 10,000 shares authorized, no shares outstanding — — Common stock, no par value; 200,000 shares authorized, 58,797 and 59,207 shares issued and outstanding 18,348 24,399 Accumulated other comprehensive loss ( 20,668 ) ( 23,221 ) Retained earnings 2,863,297 2,799,054 Total shareholders' equity 2,860,977 2,800,232 Total liabilities and shareholders' equity $ 5,348,855 $ 5,248,333 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents F5, INC. CONSOLIDATED INCOME STATEMENTS (unaudited, in thousands, except per share amounts) Three months ended December 31, 2023 2022 Net revenues Products $ 305,859 $ 340,558 Services 386,738 359,820 Total 692,597 700,378 Cost of net revenues

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Summary of Significant Accounting Policies Description of Business F5, Inc. (the "Company") is a leading provider of multi-cloud application security and delivery solutions which enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud. The Company's cloud, software, and hardware solutions enable its customers to deliver digital experiences to their customers faster, reliably, and at scale. The Company's enterprise-grade application services are available as cloud-based, software-as-a-service, and software-only solutions optimized for multi-cloud environments, with modules that can run independently, or as part of an integrated solution on its high-performance appliances. In connection with its solutions, the Company offers a broad range of professional services, including consulting, training, maintenance, and other technical support services. Basis of Presentation The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for their fair statement in conformity with accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The information included in this Form 10-Q should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in the Company's Annual Report on

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