Citrix Reports First Quarter 2019 Financial Results
Quarterly revenue of $719 million up 3% year-over-year. Quarterly subscription revenue of $142 million up 37% year-over-year. Quarterly SaaS revenue of $85 million up 43% year-over-year. Workspace Revenue of $515 million up 13% year-over-year. Quarterly GAAP diluted EPS of $0.78; non-GAAP diluted EPS of $1.27. Deferred and unbilled revenue up 21% year-over-year. Board of Directors declares $0.35 per share quarterly dividend.
FORT LAUDERDALE, Fla. - April 24, 2019 - Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the first quarter of fiscal year 2019 ended March 31, 2019.
For the first quarter of fiscal year 2019, Citrix achieved revenue of $719 million, compared to $697 million in the first quarter of fiscal year 2018, representing 3 percent revenue growth.
Net income for the first quarter of fiscal year 2019 was $110 million, or $0.78 per diluted share, compared to net income of $144 million, or $0.99 per diluted share, for the first quarter of fiscal year 2018.
Non-GAAP net income for the first quarter of fiscal year 2019 was $172 million, or $1.27 per diluted share, compared to $184 million, or $1.29 per diluted share for the first quarter of fiscal year 2018. Non-GAAP net income for the first quarter of fiscal years 2019 and 2018 excludes the effects of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt discount, restructuring charges and the tax effects related to these items. Non-GAAP net income per diluted share for the first quarter of fiscal years 2019 and 2018 reflects the anti-dilutive impact of the company’s convertible note hedges.
In addition to financial results, Citrix also announced that its Board of Directors declared a quarterly cash dividend of $0.35 per share payable on June 21, 2019 to all shareholders of record as of the close of business on June 7, 2019.
“We’re pleased to report solid first quarter results, which were driven by accelerated revenue growth in our Workspace business,” said David Henshall, president and CEO of Citrix. “Workspace revenue grew 13% year-over-year, its fastest rate of growth since 2012. Our subscription model transition continues to progress well, and SaaS, which accounted for 60% of our subscription business, delivered strong 43% year over year growth.”
Q1 Financial Summary
The results for the first quarter of fiscal year 2019 compared to the first quarter of fiscal year 2018 are as follows:
During the first quarter of fiscal year 2019(1):
Financial Outlook for Second Quarter 2019(1)
Citrix management expects to achieve the following results for the second quarter of fiscal year 2019:
Financial Outlook for Fiscal Year 2019(1)
Citrix management expects to achieve the following results for fiscal year 2019:
The above statements are based on current targets. These statements are forward-looking, and actual results may differ materially.
(1) A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Reconciliation of Non-GAAP Financial Measures to Comparable U.S. GAAP Measures."
Fourth Quarter Earnings Letter and Conference Call
Our first quarter earnings letter, discussing financial results, quarterly highlights and business outlook is posted at http://www.citrix.com/investors. Citrix will host a conference call today at 4:45 p.m. ET to address questions.
The conference call may be accessed by dialing: (888) 799-0519 or (706) 634-0155, using passcode: CITRIX. A replay of the conference call can be accessed for approximately 90 days on the Investor Relations section of the Citrix corporate website at http://www.citrix.com/investors.
Full Financial Report
Citrix (NASDAQ:CTXS) is powering a better way to work with unified workspace, networking, and analytics solutions that help organizations unlock innovation, engage customers, and boost productivity, without sacrificing security. With Citrix, users get a seamless work experience and IT has a unified platform to secure, manage, and monitor diverse technologies in complex cloud environments. Citrix solutions are in use by more than 400,000 organizations including 99 percent of the Fortune 100 and 98 percent of the Fortune 500. Learn more at www.citrix.com.
For Citrix Investors
This release contains forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements by Citrix's CEO and president, statements contained in the Financial Outlook sections and under the Non-GAAP Financial Measures Reconciliation section, and statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitation, risks associated with our ability to continue to grow the company's Workspace business and continued demand for Citrix Workspace; our ability to transition to a subscription business model, including our ability to deepen our subscription customer relationships, and our ability to grow the percentage of subscription bookings and paid subscribers; the impact of the global economic and political environment on our business, volatility in global stock markets, foreign exchange rate volatility and uncertainty in IT spending; the risks associated with maintaining the security of our products, services, and networks, including securing customer data, and the risks associated with our ability to manage our recent cyber security incident, and the impact of that incident; changes in Citrix’s pricing and licensing models, promotional programs and product mix, all of which may impact Citrix's revenue recognition; our ability to expand our customer base and attract more users within our customer base; the introduction of new products by competitors or the entry of new competitors into the markets for Citrix's products and services; the concentration of customers in Citrix’s networking business; the company's ability to innovate and develop new products and services while growing its established virtualization and networking products and services; changes in our revenue mix towards products and services with lower gross margins; seasonal fluctuations in the company's business; failure to execute Citrix's sales and marketing plans; failure to successfully partner with key distributors, resellers, system integrators, service providers and strategic partners, such as Microsoft; transitions in key personnel and succession risk; the company's ability to maintain and expand its business in large enterprise accounts and reliance on large service provider customers; the size, timing and recognition of revenue from significant orders; the success of investments in its product groups, foreign operations and vertical and geographic markets; the ability of Citrix to make suitable acquisitions on favorable terms in the future; risks associated with Citrix's acquisitions and divestitures, including failure to further develop and successfully market the technology and products of acquired companies, failure to achieve or maintain anticipated revenues and operating performance contributions from acquisitions, which could dilute earnings, the retention of key employees from acquired companies, difficulties and delays integrating personnel, operations, technologies and products, and disruption to our ongoing business and diversion of management's attention from our ongoing business; the recruitment and retention of qualified employees; risks in effectively controlling operating expenses, and our ability to improve our operating margin in the second half of the year; ability to effectively manage our capital structure and the impact of related changes on our operating results and financial condition; the effect of new accounting pronouncements on revenue and expense recognition; failure to comply with federal, state and international regulations; litigation and disputes, including challenges to our intellectual property rights or allegations of infringement of the intellectual property rights of others; the ability to maintain and protect our collection of brands; charges in the event of a write-off or impairment of acquired assets, underperforming businesses, investments or licenses; international market readiness, execution and other risks associated with the markets for Citrix's products and services; risks related to servicing our debt; risks of political uncertainty and social turmoil; and other risks detailed in Citrix's filings with the Securities and Exchange Commission. Citrix assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
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