Juniper Networks Reports Fall in FY24 Revenue and Updates on HPE Acquisition

February 05, 2025 03:53 PM AEDT | By Team Kalkine Media

Juniper Networks Reports Fall in FY24 Revenue and Updates on HPE Acquisition — Image source: Shutterstock

Regulatory Hurdle for HPE Acquisition

The proposed all-cash acquisition by HPE, valued at $40.00 per share, was announced on January 9, 2024. However, the U.S. Department of Justice (DOJ) filed a lawsuit on January 30, 2025, to block the transaction. Juniper Networks and HPE have vowed to fight the complaint, reaffirming their commitment to finalizing the deal.

Q4 2024: Revenue Growth and Profitability Surge

Despite the regulatory uncertainty, Juniper Networks delivered strong fourth-quarter results, showing both sequential and year-over-year improvements:

Revenue: $1.4 billion, up 3% YoY and 5% sequentially.
GAAP Operating Margin: 11.9%, up from 9.2% in Q4 2023 and 7.1% in Q3 2024.
GAAP Net Income: $162 million, up 30% YoY and 75% from the prior quarter, translating to $0.48 per diluted share.
Non-GAAP Net Income: $216.6 million, reflecting 10% YoY growth and 36% sequential growth, with $0.64 per diluted share.

Full-Year 2024: Revenue Decline and Margin Contraction

While Q4 delivered strong numbers, full-year 2024 results showed a decline compared to 2023:

Revenue: $5.07 billion, down 9% YoY.
GAAP Operating Margin: 5.8%, a drop from 8.4% in 2023.
GAAP Net Income: $287.9 million, down 7% YoY, with diluted EPS falling 9% to $0.86.
Non-GAAP Net Income: $574.5 million, down 22% YoY, with diluted EPS dropping 24% to $1.72.

Juniper attributed the decline to lower revenue, which was partially offset by improved gross margins and higher other income.

Financial Position and Cash Flow Growth

Despite revenue declines, Juniper bolstered its balance sheet, ending 2024 with $1.77 billion in cash and investments, up from $1.32 billion at the end of 2023.

Operating Cash Flow: Q4 generated $279.8 million, a significant rise from $9.1 million in Q4 2023.
Capital Expenditures: $27.2 million, with depreciation and amortization expenses of $38.4 million.
Days Sales Outstanding (DSO): Increased to 75 days, up from 69 days in Q4 2023.

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