Extreme Networks Q1 revenue beats estimates on Platform ONE demand
EXTR•Extreme Networks reported fiscal first-quarter revenue of $341.1 million, up 10% year over year and above the $336.72 million estimate. Adjusted EPS rose 50% to $0.33, topping the $0.28 estimate; the company forecast second-quarter revenue of $345.8 million to $350.8 million and adjusted EPS of $0.32 to $0.34.
1. Quarterly results
Extreme Networks said fiscal first-quarter revenue increased 10% year over year to $341.1 million, beating analyst estimates of $336.72 million. Adjusted EPS rose 50% to $0.33, above the $0.28 estimate. Adjusted gross margin was 62.6% and adjusted operating margin was 17.4%.
2. Demand and outlook
The company said accelerating demand for Extreme Platform ONE drove subscription gains and contributed to revenue growth. SaaS annual recurring revenue increased 22% year over year, while customer engagement with its second-generation AI platform Agent ONE Coworker was 10 times higher than with the previous version. Extreme Networks expects second-quarter revenue of $345.8 million to $350.8 million and non-GAAP EPS of $0.32 to $0.34; it targets full-year revenue of $1.40 billion to $1.41 billion. It repurchased $25 million in shares during the quarter.
