F5 pushes transition to software consumption model

F5 Networks reported revenue of $544.9 million for the second quarter of fiscal year 2019, up 2% growth from $533.3 million in the second quarter of fiscal year 2018. GAAP net income for the second quarter of fiscal year 2019 was $116.1 million, or $1.93 per diluted share, and includes $39.5 million in stock-based compensation, $3.5 million in costs related to the announced acquisition of NGINX, $2.6 million in facility exit costs and $1.8 million in amortization of purchased intangible assets. This compares with second quarter fiscal year 2018 GAAP net income of $109.6 million, or $1.77 per diluted share. Non-GAAP net income for the second quarter of fiscal year 2019 was $154.4 million, or $2.57 per diluted share, compared to $143.3 million, or $2.31 per diluted share, in the second quarter of fiscal year 2018.

F5 said software solutions revenue grew 30%.

“The combination of demand for application security and our new software consumption models, including Enterprise Licensing Agreements, helped drive 30% software revenue growth in our second fiscal quarter,” said François Locoh-Donou, F5 President and Chief Executive Officer. "Security use cases are at the forefront of our customer conversations and customers globally rely on F5 to provide consistent application security and reliable performance as they deploy across private, public, hybrid, and multi-cloud environments.”