Juniper Networks reported Q4 2022 revenue of $1,448.8 million, an increase of 11% year-over-year, and an increase of 2% sequentially. GAAP operating margin was 14.0%, an increase from 11.8% in the fourth quarter of 2021, and an increase from 10.6% in the third quarter of 2022.
“We experienced strong business momentum during the December quarter, including a second consecutive quarter of double-digit year-over-year revenue growth, a record performance by our enterprise business, and our second-highest cloud revenue quarter,” said Juniper’s CEO, Rami Rahim. “Our experience-first networking strategy, focused on leveraging AI and cloud-delivered automation to improve customer operations and the end-user experience, continues to resonate across the markets we serve. We believe our differentiated solutions, along with our go-to-market investments and strong backlog, should position us to deliver another year of solid revenue growth in 2023.”
“In addition to record revenue results, we achieved strong profitability during the December quarter, as non-GAAP gross and operating margin both exceeded the mid-point of our forecast and enabled us to beat the mid-point of our non-GAAP EPS outlook,” said Juniper’s CFO, Ken Miller. “We remain focused on delivering profitable growth and are confident in our ability to expand our non-GAAP operating margin by at least 100 basis points in 2023.”
On an investor conference call, Juniper executives noted a "normalization of buying patterns" amongst Cloud and Service Provider customers, following a a year in which many of these accounts placed multiple quarters of demand in advance of knowing requirements to account for extended lead times.
During the fourth quarter, total product orders declined more than 20% year-over-year. Adjusted orders declined single digits year-over-year, versus difficult comparison but grew sequentially. Juniper ended the year with backlog of more than $2.0 billion, which is down sequentially, but up on a year-over-year basis.
- Enterprise had record revenue and was the largest vertical in the fourth quarter, increasing 32% year-over-year and 16% sequentially, 14% year-over-year and increased 1% sequentially.
- Service Provider declined 8% year-over-year and 10% seq revenue grew 30% year-over-year and 19% sequent grew 50% year-over-year and 13% sequentially.
- Automated WAN was down 4% year-over-year and 10% sequentially.
- Total Software and Related Services revenue was $305 million, an increase of 26% year-over-year.
- Annual Recurring Revenue (ARR3) grew 43% year-over-year. Juniper exited the year with $294 million in ARR.
- Total Security revenue was $169 million, up 5% year-over-year and up 21% sequentially.
- In reviewing top 10 customers for the quarter, six were Cloud, three were Service Provider, and one was Enterprise. Our top 10 customers accounted for 34% of our total revenue as compared to 33% in Q4'21.
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