Juniper Networks reported a decline in net revenues to $1,189.6 million, down 17% year-over-year, but up 4% sequentially. The GAAP operating margin fell to 3.8% from 9.9% in the same quarter last year, yet improved from (1.2)% in the previous quarter. Non-GAAP operating margin also decreased to 10.9% from 16.9% year-over-year but saw a slight increase from 10.6% sequentially. GAAP net income increased by 40% year-over-year to $34.1 million, translating to $0.10 per diluted share, while non-GAAP net income dropped 46% year-over-year to $101.6 million, or $0.31 per diluted share, though it rose 5% sequentially.
Juniper experienced stronger-than-expected demand, particularly from cloud customers investing in AI initiatives and robust enterprise demand, driven by its Mist-led Campus & Branch business and Enterprise data center offerings. This performance was in line with expectations and reflects the company’s optimistic outlook for long-term financial prospects.
• Net Revenues: $1,189.6 million, down 17% YoY, up 4% sequentially.
• GAAP Operating Margin: 3.8%, down from 9.9% YoY, up from (1.2)% sequentially.
• Non-GAAP Operating Margin: 10.9%, down from 16.9% YoY, up from 10.6% sequentially.
• GAAP Net Income: $34.1 million, up 40% YoY.
• Non-GAAP Net Income: $101.6 million, down 46% YoY, up 5% sequentially.
• Total Cash and Investments: $1,430.3 million as of June 30, 2024.
• Net Cash Flows Used by Operations: $8.9 million in Q2 2024.
• Days Sales Outstanding: 66 days in Q2 2024.
• Capital Expenditures: $23.4 million.
• Declared Dividend: $0.22 per share, payable on September 23, 2024.
“We experienced better than expected demand during the June quarter, with orders growing double-digits sequentially and year-over-year,” said Juniper’s CEO, Rami Rahim. “We saw particularly robust orders from our cloud customers, many of which have digested prior purchases and are investing to support AI initiatives. We also experienced better than expected enterprise demand due to continued momentum in our Mist-led Campus & Branch business and strong demand for our Enterprise data center offerings.”
“Our Q2 financial results were largely in-line with our expectations at the beginning of the quarter,” said Juniper’s CFO, Ken Miller. “Our teams continue to execute well and we remain optimistic regarding our long-term financial prospects.”
