Page 1

Q3 FY21 Earnings Release For more information contact : Investors Suzanne DuLong ( 206 ) 272-7049 s.dulong@f5.com Media Rob Gruening ( 206 ) 272-6208 r.gruening@f5.com Page 1 of 4 F5 Reports Third Quarter Fiscal Year 2021 Results Delivering Double - Digit Annual Revenue Growth for the Third Sequential Quarter SEATTLE , WA - July 26 , 2021 - F5 Networks , Inc. ( NASDAQ : FFIV ) today announced financial results for its fiscal third quarter ended June 30 , 2021 . " Our very strong third quarter results demonstrate the powerful alignment of F5's expanded solution portfolio and our customers ' most important application needs , " said François Locoh - Donou , F5's President and CEO . " Robust software growth and resilient demand for systems drove 12 % GAAP revenue growth in our third quarter , and 11 % revenue growth versus the prior year's third quarter non - GAAP revenue . " Locoh - Donou continued , “ Customers ' traditional applications are generating more revenue and more engagement than ever before . At the same time , customers also are accelerating adoption of modern application architectures , like Kubernetes , for new applications . With our expanded application security and delivery portfolio , we are uniquely positioned to solve our customers ' most significant modern and traditional application challenges on premises , in the cloud , and across multiple clouds . " Third Quarter Performance Summary Third quarter fiscal year 2021 GAAP revenue was $ 652 million , up 12 % from GAAP revenue of $ 583 million and up 11 % from non - GAAP revenue of $ 586 million in the third quarter of fiscal year 2020. Third quarter fiscal year 2021 non - GAAP revenue growth was driven by 21 % product revenue growth and 4 % global services revenue growth over the prior year . Non - GAAP product revenue was driven by 34 % software revenue growth and 13 % systems revenue growth compared to the year ago period . GAAP net income for the third quarter of fiscal year 2021 was $ 90 million , or $ 1.46 per diluted share compared to third quarter fiscal year 2020 GAAP net income of $ 70 million , or $ 1.14 per diluted share . Non - GAAP net income for the third quarter of fiscal year 2021 was $ 169 million , or $ 2.76 per diluted share , compared to $ 134 million , or $ 2.18 per diluted share , in the third quarter of fiscal year 2020. Non - GAAP net income for the third quarter of fiscal year 2021 excludes $ 61 million in stock - based compensation , $ 24 million in acquisition - related charges , $ 13 million in amortization of purchased intangible assets , and $ 4 million in facility - exit costs . A reconciliation of revenue , net income , earnings per share , and other measures on a GAAP to non - GAAP basis is included in the attached Consolidated Income Statements . Additional information about non - GAAP financial information is included in this release . Business Outlook For the fourth quarter of fiscal year 2021 ending September 30 , 2021 , F5 expects to deliver revenue in the range of $ 660 million to $ 680 million , with non - GAAP earnings in the range of $ 2.68 to $ 2.80 per diluted share .