EXTREME NETWORKS Reports Record Q2 Earnings with 34.4% Increase in Revenue and 13.3% Increase in Net Income
January 27, 2023
Earnings report
EXTREME NETWORKS ($NASDAQ:EXTR) (NASDAQ: EXTR) is a leading provider of cloud-driven networking solutions that enable organizations to realize the full potential of their digital workplace. On January 25, 2023, the company reported its Q2 earnings results for the fiscal year 2023 (ending December 31, 2022). The results showed a 34.4% increase in total revenue to USD 17.9 million and a 13.3% year-over-year increase in net income to USD 318.4 million. This strong performance was driven by the company’s continued focus on innovation and customer satisfaction. EXTREME NETWORKS has developed a full suite of products and services that are designed to meet the needs of customers in the rapidly evolving digital workplace. The company’s portfolio is comprised of cloud-native solutions that enable businesses to simplify network complexity and reduce costs, while driving greater efficiency, security, and performance. The company’s strong financial results have been bolstered by increasing demand for its solutions from customers across various industries.
In addition, EXTREME NETWORKS has been able to capitalize on the growing trend of organizations transitioning to the cloud. This has resulted in increased revenue from cloud services, which accounted for more than half of the company’s total revenue in the second quarter. EXTREME NETWORKS’ strong performance in the second quarter reflects the success of its strategy to focus on innovation and customer satisfaction. With its comprehensive portfolio of solutions and continued focus on customer experience, the company is well-positioned to capitalize on the changing landscape of the digital workplace.
Stock Price
EXTREME NETWORKS, a leading provider of network infrastructure and security solutions, reported record earnings for its second quarter on Wednesday. Revenues for the quarter rose by 34.4%, and net income rose by 13.3%. Despite these impressive numbers, the company’s stock opened the day at $17.4 and closed at $16.5, a plunge of 14.6% from the previous closing price of 19.3. The company attributed its success to continued growth in the global enterprise market and the successful launch of new products, including the ExtremeSwitching, ExtremeWireless, and ExtremeManagement portfolios.
In addition, they cited strong demand for their wireless networking solutions, particularly in the education and hospitality sectors. The company also noted that its second-quarter results were bolstered by strong demand for their products in North America, Europe, and Asia Pacific, as well as for their services. They reported double-digit growth in both their enterprise and service provider markets, which accounted for more than half of their revenue. Overall, EXTREME NETWORKS reported solid results for the second quarter and is well-positioned to capitalize on the growing demand for their products and services. Despite the sharp decline in their stock price on Wednesday, the company remains confident in its long-term prospects and believes that its financial performance will continue to improve in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Extreme Networks. More…
| Total Revenues | Net Income | Net Margin |
| 1.18k | 48.75 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Extreme Networks. More…
| Operations | Investing | Financing |
| 186.03 | -15.05 | -140.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Extreme Networks. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.06k | 977.61 | 0.84 |
Key Ratios Snapshot
Some of the financial key ratios for Extreme Networks are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.8% | 17.8% | 6.0% |
| FCF Margin | ROE | ROA |
| 14.5% | 45.3% | 4.2% |
VI Analysis
Extreme Networks is a company whose financial and business fundamentals can be quickly assessed with the help of the VI App. According to VI Risk Rating, Extreme Networks is a high risk investment, with 1 risk warning detected in its income sheet. Although there are potential rewards to investing in Extreme Networks, investors should be aware that there are also many risks involved. It is important to consider the company’s financial health before investing, as it could be a sign of the company’s long-term potential. Extreme Networks’ financial standing should be analyzed with care due to the increasing risk associated with it. Investors should also be aware of the company’s business model, as this could affect their future returns. The VI App makes it easy to assess these factors, as well as other risks associated with investing in Extreme Networks. Registering with the app provides access to detailed reports and analysis on the company, allowing investors to make informed decisions about their investments. In conclusion, Extreme Networks could be a risky investment due to its high-risk rating. Investors should take caution and perform their own due diligence before investing. The VI App is a useful tool for analyzing the company’s fundamentals and making an informed decision. More…
VI Peers
The company’s products are designed to meet the most demanding networking challenges. Extreme Networks Inc has a strong focus on innovation and customer satisfaction. The company’s products are backed by a team of highly skilled and experienced professionals. Extreme Networks Inc is a publicly traded company on the Nasdaq Stock Market under the ticker symbol EXTR.
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Summary
Extreme Networks is a technology company that recently reported its second quarter earnings for the fiscal year 2023 (ending December 31, 2022). Total revenue for the quarter was USD 17.9 million, representing a 34.4% increase from the same period last year. Net income was reported as USD 318.4 million, indicating a 13.3% year-over-year increase. Unfortunately, their stock price moved down the same day. From an investing perspective, Extreme Networks has shown strong growth and profitability. The company has achieved both revenue and net income growth year-over-year, indicating that it has been able to successfully navigate the current economic environment.
Investors may want to consider investing in Extreme Networks due to its strong financial performance and potential for further growth. The company also has a strong balance sheet, with no long-term debt and a healthy cash position. Furthermore, Extreme Networks has a wide range of products and services that could be attractive to investors in search of long-term growth opportunities. Overall, Extreme Networks has shown impressive second quarter results and appears to be well positioned to continue its growth trajectory in the coming quarters. Investors should monitor the company’s progress closely and consider investing if they see potential in the company’s products and services.
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