PRESS RELEASE

F5 Reports 11% Fourth Quarter Revenue Growth and 11% Fiscal Year Revenue Growth Fueled by Strong Software and Systems Demand

Published October 26, 2021

PRESS CONTACTS

Suzanne DuLong
VP, Investor Relations
(206) 272-7049
s.dulong@f5.com

Teri Daley
F5 Communications
(469) 939-3712
t.daley@f5.com

 

SEATTLE -- F5 Networks, Inc. (NASDAQ: FFIV) today announced financial results for its fiscal fourth quarter and year ended September 30, 2021.

“Our very strong fourth quarter results cap a year of robust financial performance for F5,” said François Locoh-Donou, F5’s President and CEO. “With software revenue representing 45% of product revenue in the fourth quarter, and 80% of this software revenue coming from subscriptions, we continue to mark milestone after milestone in our rapid transformation to a software led business model.”

Locoh-Donou continued, “Skyrocketing application usage and heightened security awareness are driving strong demand for F5 solutions on premises, in the cloud, and across multiple clouds. Our expanded solutions portfolio and vision for enabling Adaptive Applications puts us at the intersection of these strong and sustainable secular trends and positions F5 for continued strong revenue and earnings growth.”

Fiscal Year 2021 Performance Summary

Fiscal year 2021 GAAP revenue was $2.60 billion, up 11% from GAAP revenue of $2.35 billion and 10% from non-GAAP revenue of $2.36 billion in fiscal year 2020. Fiscal year 2021 non-GAAP revenue growth was driven by 21% product revenue growth and 2% global services revenue growth over the prior year. Non-GAAP product revenue growth was driven by 37% software revenue growth and 12% systems revenue growth compared to the year ago period.

GAAP net income for fiscal year 2021 was $331 million, or $5.34 per diluted share compared to fiscal year 2020 GAAP net income of $307 million, or $5.01 per diluted share.

Non-GAAP net income for fiscal year 2021 was $671 million, or $10.81 per diluted share, compared to $575 million, or $9.37 per diluted share, in fiscal year 2020.

Fourth Quarter Performance Summary

Fourth quarter fiscal year 2021 GAAP revenue was $682 million, up 11% from GAAP revenue of $615 million and non-GAAP revenue of $617 million in the fourth quarter of fiscal year 2020. Fourth quarter fiscal year 2021 non-GAAP revenue growth was driven by 21% product revenue growth and 2% global services revenue growth over the prior year. Non-GAAP product revenue was driven by 35% software revenue growth and 12% systems revenue growth compared to the year ago period.

GAAP net income for the fourth quarter of fiscal year 2021 was $111 million, or $1.80 per diluted share compared to fourth quarter fiscal year 2020 GAAP net income of $78 million, or $1.26 per diluted share.

Non-GAAP net income for the fourth quarter of fiscal year 2021 was $185 million, or $3.01 per diluted share, compared to $150 million, or $2.43 per diluted share, in the fourth quarter of fiscal year 2020.

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 first quarter of fiscal year 2022 ending December 31, 2021, F5 expects to deliver revenue in the range of $665 million to $685 million, with non-GAAP earnings in the range of $2.71 to $2.83 per diluted share.

For fiscal year 2022, F5 expects to deliver revenue growth of 8% to 9%, including software revenue growth of 35% to 40%.

All forward-looking non-GAAP measures included in the outlook exclude estimates for amortization of intangible assets, share-based compensation expenses, significant effects of tax legislation and judicial or administrative interpretation of tax regulations (including the impact of income tax reform), non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of any future acquisitions or divestitures, acquisition-related charges and write-downs, restructuring charges, facility exit costs, or other non-recurring charges that may occur in the period. F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding U.S. generally accepted accounting principles or GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically varied and may continue to vary significantly from quarter to quarter.

Live Webcast and Conference Call

F5 will host a live webcast and conference call to review its financial results and outlook today, October 26, 2021, at 4:30 pm ET. The live webcast can be accessed from the investor relations portion of F5.com. To participate in the live call via telephone in the U.S. and Canada, dial (833) 714-0927. Outside the U.S. and Canada, dial +1 (778) 560-2886. Reference Meeting ID 687-9935. Please call at least 5 minutes prior to the call start time. The webcast replay will be archived on the investor relations portion of F5’s website.

Forward Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the continuing strength and momentum of F5’s business, future financial performance including revenue, revenue growth and earnings growth; demand for application security and delivery services, and software products; expectations regarding future customers, markets and the benefits of products; and other statements that are not historical facts are forward-looking statements. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors. Such forward-looking statements involve risks and uncertainties, as well as assumptions and other factors that, if they do not fully materialize or prove correct, could cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: customer acceptance of offerings; potential disruptions to F5’s business and distraction of management as F5 integrates acquired businesses, teams, and technologies; F5’s ability to successfully integrate acquired businesses’ products with F5 technologies; the ability of F5’s sales professionals and distribution partners to sell acquired businesses’ product and service offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into F5’s markets, and new product and marketing initiatives by our competitors; increased sales discounts; the business impact of the acquisitions and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of completion of acquisitions; uncertain global economic conditions which may result in reduced customer demand for our products and services and changes in customer payment patterns; potential disruptions to the global supply chain resulting in inability to source required parts for F5’s products or the ability to only do so at greatly increased prices thereby impacting our revenues and/or margins; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; litigation involving patents, intellectual property, shareholder and other matters, and governmental investigations; potential security flaws in the Company’s networks, products or services; cybersecurity attacks on its networks, products or services; natural catastrophic events; a pandemic or epidemic; F5’s ability to sustain, develop and effectively utilize distribution relationships; F5’s ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5’s ability to expand in international markets; the unpredictability of F5’s sales cycle; the ability of F5 to execute on its share repurchase program including the timing of any repurchases; future prices of F5’s common stock; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K and other documents that we may file or furnish from time to time, which could cause actual results to vary from expectations. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in F5’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. All forward-looking statements in this press release are based on information available as of the date hereof and qualified in their entirety by this cautionary statement. F5 assumes no obligation to revise or update these forward-looking statements.

GAAP to non-GAAP Reconciliation

F5’s management evaluates and makes operating decisions using various operating measures. These measures are generally based on the revenues of its products, services operations, and certain costs of those operations, such as cost of revenues, research and development, sales and marketing and general and administrative expenses. One such measure is GAAP net income excluding, as applicable, stock-based compensation, amortization of purchased intangible assets, acquisition-related charges, net of taxes, restructuring charges, facility-exit costs, significant litigation and other contingencies and certain non-recurring tax expenses and benefits, which is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. This measure of non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that the company would accrue if it used non-GAAP results instead of GAAP results to calculate the company’s tax liability.

The non-GAAP adjustments, and F5's basis for excluding them from non-GAAP financial measures, are outlined below:

Acquisition-related write-downs of assumed deferred revenue.Included in its GAAP financial statements, F5 records acquisition-related write-downs of assumed deferred revenue to fair value, which results in lower recognized revenue over the term of the contract. F5 includes revenue associated with acquisition-related write-downs of assumed deferred revenue in its non-GAAP financial measures as management believes it provides a more accurate depiction of revenue arising from our strategic acquisitions.

Stock-based compensation. Stock-based compensation consists of expense for stock options, restricted stock, and employee stock purchases through the company’s Employee Stock Purchase Plan. Although stock-based compensation is an important aspect of the compensation of F5’s employees and executives, management believes it is useful to exclude stock-based compensation expenses to better understand the long-term performance of the company’s core business and to facilitate comparison of the company’s results to those of peer companies.

Amortization of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Management does not believe these charges accurately reflect the performance of the company’s ongoing operations, therefore, they are not considered by management in making operating decisions. However, investors should note that the use of intangible assets contributed to F5’s revenues earned during the periods presented and will contribute to F5’s future period revenues as well.

Facility-exit costs.In fiscal year 2019, F5 relocated its headquarters in Seattle, Washington, and recorded charges in connection with this facility exit as well as other non-recurring lease activity. These charges are not representative of ongoing costs to the business and are not expected to recur. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.

Acquisition-related charges, net. F5 does not acquire businesses on a predictable cycle and the terms and scope of each transaction can vary significantly and are unique to each transaction. F5 excludes acquisition-related charges from its non-GAAP financial measures to provide a useful comparison of the company’s operating results to prior periods and to its peer companies. Acquisition-related charges consist of planning, execution and integration costs incurred directly as a result of an acquisition.

Impairment charges.In fiscal year 2021, F5 recorded impairment charges related to the permanent exit of certain floors at its Seattle headquarters. These charges are not representative of ongoing costs to the business and are not expected to recur. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.

Restructuring charges. F5 has incurred restructuring charges that are included in its GAAP financial statements, primarily related to workforce reductions and costs associated with exiting facility-lease commitments. F5 excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.

Management believes that non-GAAP net income per share provides useful supplemental information to management and investors regarding the performance of the company’s core business operations and facilitates comparisons to the company’s historical operating results. Although F5’s management finds this non-GAAP measure to be useful in evaluating the performance of the core business, management’s reliance on this measure is limited because items excluded from such measures could have a material effect on F5’s earnings and earnings per share calculated in accordance with GAAP. Therefore, F5’s management will use its non-GAAP earnings and earnings per share measures, in conjunction with GAAP earnings and earnings per share measures, to address these limitations when evaluating the performance of the company’s core business. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP.

F5 believes that presenting its non-GAAP measures of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the company’s core business and is used by management in its own evaluation of the company’s performance. Investors are encouraged to look at GAAP results as the best measure of financial performance. However, while the GAAP results are more complete, the company provides investors these supplemental measures since, with reconciliation to GAAP, it may provide additional insight into the company’s operational performance and financial results.

For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section in our attached Condensed Consolidated Income Statements entitled “Non-GAAP Financial Measures.”

About F5

F5 (NASDAQ: FFIV) is a multi-cloud application security and delivery company that enables our customers—which include the world’s largest enterprises, financial institutions, service providers, and governments—to bring extraordinary digital experiences to life. For more information, go to f5.com. You can also follow @F5 on Twitter or visit us on LinkedIn and Facebook for more information about F5, its partners, and technologies.

F5 is a trademark, service mark, or tradename of F5 Networks, Inc., in the U.S. and other countries. All other product and company names herein may be trademarks of their respective owners.

F5 Networks, Inc.
Consolidated Balance Sheets
(unaudited, in thousands)
         
         
   

September 30,

 

September 30,

   

2021

 

2020

         
Assets        
Current assets        
Cash and cash equivalents  

$

580,977

 

 

$

849,556

 

Short-term investments  

 

329,630

 

 

 

360,333

 

Accounts receivable, net of allowances of $3,696 and $3,105  

 

340,536

 

 

 

296,183

 

Inventories  

 

22,055

 

 

 

27,898

 

Other current assets  

 

337,902

 

 

 

259,506

 

Total current assets  

 

1,611,100

 

 

 

1,793,476

 

         
Property and equipment, net  

 

191,164

 

 

 

229,239

 

Operating lease right-of-use assets  

 

244,934

 

 

 

300,680

 

Long-term investments  

 

132,778

 

 

 

102,939

 

Deferred tax assets  

 

128,193

 

 

 

45,173

 

Goodwill  

 

2,216,553

 

 

 

1,858,966

 

Other assets, net  

 

472,558

 

 

 

347,447

 

Total assets  

$

4,997,280

 

 

$

4,677,920

 

         
Liabilities and Shareholders’ Equity        
Current liabilities        
Accounts payable  

$

62,096

 

 

$

64,472

 

Accrued liabilities  

 

341,487

 

 

 

321,398

 

Deferred revenue  

 

968,669

 

 

 

883,134

 

Current portion of long-term debt  

 

19,275

 

 

 

19,275

 

Total current liabilities  

 

1,391,527

 

 

 

1,288,279

 

         
Deferred tax liabilities  

 

2,414

 

 

 

602

 

Deferred revenue, long-term  

 

521,173

 

 

 

389,498

 

Operating lease liabilities, long-term  

 

296,945

 

 

 

338,715

 

Long-term debt  

 

349,772

 

 

 

369,047

 

Other long-term liabilities  

 

75,236

 

 

 

59,511

 

Total long-term liabilities  

 

1,245,540

 

 

 

1,157,373

 

         
Commitments and contingencies        
         
Shareholders’ equity        
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding  

 

-

 

 

 

-

 

Common stock, no par value; 200,000 shares authorized, 60,652 and 61,099 shares issued and outstanding  

 

192,458

 

 

 

305,453

 

Accumulated other comprehensive loss  

 

(20,073)

 

 

 

(18,716)

 

Retained earnings  

 

2,187,828

 

 

 

1,945,531

 

Total shareholders' equity  

 

2,360,213

 

 

 

2,232,268

 

Total liabilities and shareholders' equity  

$

4,997,280

 

 

$

4,677,920

 

 

F5 Networks, Inc.

Consolidated Income Statements
(unaudited, in thousands, except per share amounts)
                 
                 
    Three Months Ended   Years Ended
    September 30,   September 30,
   

2021

 

2020

 

2021

 

2020

                 
Net revenues                
Products (1)  

$

339,921

 

 

$

278,451

 

 

$

1,247,084

 

 

$

1,025,856

 

Services  

 

342,076

 

 

 

336,365

 

 

 

1,356,332

 

 

 

1,324,966

 

Total  

 

681,997

 

 

 

614,816

 

 

 

2,603,416

 

 

 

2,350,822

 

                 
Cost of net revenues (2)(3)(4)(5)(6)                
Products  

 

76,992

 

 

 

62,634

 

 

 

286,293

 

 

 

215,275

 

Services  

 

51,686

 

 

 

49,333

 

 

 

206,853

 

 

 

192,612

 

Total  

 

128,678

 

 

 

111,967

 

 

 

493,146

 

 

 

407,887

 

Gross profit  

 

553,319

 

 

 

502,849

 

 

 

2,110,270

 

 

 

1,942,935

 

                 
Operating expenses (2)(3)(4)(5)(6)                
Sales and marketing  

 

233,154

 

 

 

220,379

 

 

 

929,983

 

 

 

843,178

 

Research and development  

 

124,700

 

 

 

120,300

 

 

 

512,627

 

 

 

441,324

 

General and administrative  

 

69,101

 

 

 

63,557

 

 

 

273,635

 

 

 

258,366

 

Restructuring charges  

 

-

 

 

 

-

 

 

 

-

 

 

 

7,800

 

Total  

 

426,955

 

 

 

404,236

 

 

 

1,716,245

 

 

 

1,550,668

 

                 
Income from operations  

 

126,364

 

 

 

98,613

 

 

 

394,025

 

 

 

392,267

 

Other income, net  

 

(2,865)

 

 

 

(1,090)

 

 

 

(7,088)

 

 

 

4,130

 

Income before income taxes  

 

123,499

 

 

 

97,523

 

 

 

386,937

 

 

 

396,397

 

Provision for income taxes  

 

12,781

 

 

 

19,860

 

 

 

55,696

 

 

 

88,956

 

Net income  

$

110,718

 

 

$

77,663

 

 

$

331,241

 

 

$

307,441

 

                 
                 
Net income per share - basic  

$

1.83

 

 

$

1.27

 

 

$

5.46

 

 

$

5.05

 

Weighted average shares - basic  

 

60,526

 

 

 

61,149

 

 

 

60,707

 

 

 

60,911

 

                 
Net income per share - diluted  

$

1.80

 

 

$

1.26

 

 

$

5.34

 

 

$

5.01

 

Weighted average shares - diluted  

 

61,606

 

 

 

61,636

 

 

 

62,057

 

 

 

61,378

 

                 
                 
Non-GAAP Financial Measures                
                 
Net income as reported  

$

110,718

 

 

$

77,663

 

 

$

331,241

 

 

$

307,441

 

Acquisition-related write-downs of assumed deferred revenue  

 

-

 

 

 

1,963

 

 

 

1,283

 

 

 

6,824

 

Stock-based compensation expense  

 

60,522

 

 

 

52,198

 

 

 

243,279

 

 

 

201,949

 

Amortization of purchased intangible assets  

 

12,879

 

 

 

10,720

 

 

 

48,722

 

 

 

34,604

 

Facility-exit costs  

 

4,057

 

 

 

11,045

 

 

 

14,930

 

 

 

16,601

 

Acquisiton-related charges  

 

16,867

 

 

 

11,321

 

 

 

86,094

 

 

 

56,483

 

Impairment charges  

 

-

 

 

 

-

 

 

 

33,825

 

 

 

-

 

Restructuring charges  

 

-

 

 

 

-

 

 

 

-

 

 

 

7,800

 

Tax effects related to above items  

 

(19,804)

 

 

 

(15,276)

 

 

 

(88,408)

 

 

 

(56,726)

 

Net income excluding acquisition-related write-downs of assumed deferred revenue, stock-based compensation                
expense, amortization of purchased intangible assets, facility-exit costs, acquisition-related charges,                
impairment charges, restructuring charges and non-recurring tax expenses and benefits (non-GAAP) - diluted  

$

185,239

 

 

$

149,634

 

 

$

670,966

 

 

$

574,976

 

                 
Net income per share excluding acquisition-related write-downs of assumed deferred revenue, stock-based                
compensation expense, amortization of purchased intangible assets, facility-exit costs, acquisition-related charges,                
impairment charges, restructuring charges and non-recurring tax expenses and benefits (non-GAAP) - diluted  

$

3.01

 

 

$

2.43

 

 

$

10.81

 

 

$

9.37

 

                 
Weighted average shares - diluted  

 

61,606

 

 

 

61,636

 

 

 

62,057

 

 

 

61,378

 

                 
(1) GAAP net product revenues  

$

339,921

 

 

$

278,451

 

 

$

1,247,084

 

 

$

1,025,856

 

Acquisition-related write-downs of assumed deferred revenue  

 

-

 

 

 

1,963

 

 

 

1,283

 

 

 

6,824

 

Non-GAAP net product revenues  

 

339,921

 

 

 

280,414

 

 

 

1,248,367

 

 

 

1,032,680

 

GAAP net service revenues  

 

342,076

 

 

 

336,365

 

 

 

1,356,332

 

 

 

1,324,966

 

Acquisition-related write-downs of assumed deferred revenue  

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Non-GAAP net service revenues  

 

342,076

 

 

 

336,365

 

 

 

1,356,332

 

 

 

1,324,966

 

Total non-GAAP net revenues  

$

681,997

 

 

$

616,779

 

 

$

2,604,699

 

 

$

2,357,646

 

                 
(2) Includes stock-based compensation expense as follows:                
Cost of net revenues  

$

7,204

 

 

$

6,776

 

 

$

29,107

 

 

$

25,470

 

Sales and marketing  

 

25,896

 

 

 

22,258

 

 

 

104,578

 

 

 

88,446

 

Research and development  

 

17,109

 

 

 

13,367

 

 

 

67,155

 

 

 

50,271

 

General and administrative  

 

10,313

 

 

 

9,797

 

 

 

42,439

 

 

 

37,762

 

   

$

60,522

 

 

$

52,198

 

 

$

243,279

 

 

$

201,949

 

                 
(3) Includes amortization of purchased intangible assets as follows:                
Cost of net revenues  

$

9,468

 

 

$

7,382

 

 

$

35,156

 

 

$

23,814

 

Sales and marketing  

 

2,836

 

 

 

2,749

 

 

 

11,266

 

 

 

8,612

 

General and administrative  

 

575

 

 

 

589

 

 

 

2,300

 

 

 

2,178

 

   

$

12,879

 

 

$

10,720

 

 

$

48,722

 

 

$

34,604

 

                 
(4) Includes facility-exit costs as follows:                
Cost of net revenues  

$

679

 

 

$

1,457

 

 

$

2,605

 

 

$

2,300

 

Sales and marketing  

 

1,115

 

 

 

3,272

 

 

 

4,166

 

 

 

5,100

 

Research and development  

 

1,309

 

 

 

3,328

 

 

 

4,661

 

 

 

5,257

 

General and administrative  

 

954

 

 

 

2,988

 

 

 

3,498

 

 

 

3,944

 

   

$

4,057

 

 

$

11,045

 

 

$

14,930

 

 

$

16,601

 

                 
(5) Includes acquisition-related charges as follows:                
Cost of net revenues  

$

10

 

 

$

114

 

 

$

2,532

 

 

$

127

 

Sales and marketing  

 

6,513

 

 

 

4,255

 

 

 

29,726

 

 

 

13,703

 

Research and development  

 

5,935

 

 

 

1,511

 

 

 

31,055

 

 

 

2,838

 

General and administrative  

 

4,409

 

 

 

5,441

 

 

 

22,781

 

 

 

39,815

 

   

$

16,867

 

 

$

11,321

 

 

$

86,094

 

 

$

56,483

 

                 
(6) Includes impairment charges as follows:                
Cost of net revenues  

$

-

 

 

$

-

 

 

$

4,388

 

 

$

-

 

Sales and marketing  

 

-

 

 

 

-

 

 

 

10,256

 

 

 

-

 

Research and development  

 

-

 

 

 

-

 

 

 

9,845

 

 

 

-

 

General and administrative  

 

-

 

 

 

-

 

 

 

9,336

 

 

 

-

 

   

$

-

 

 

$

-

 

 

$

33,825

 

 

$

-

 

 

F5 Networks, Inc.

Consolidated Statements of Cash Flows
(unaudited, in thousands)
         
         
   

Years Ended

   

September 30,

   

2021

 

2020

         
Operating activities        
Net income  

$

331,241

 

 

$

307,441

 

Adjustments to reconcile net income to net cash provided by operating activities:        
Stock-based compensation  

 

243,279

 

 

 

201,948

 

Depreciation and amortization  

 

115,424

 

 

 

95,857

 

Non-cash operating lease costs  

 

38,375

 

 

 

39,139

 

Deferred income taxes  

 

(76,930)

 

 

 

7,293

 

Impairment of assets  

 

40,698

 

 

 

9,673

 

Other  

 

737

 

 

 

2,122

 

Changes in operating assets and liabilities:        
Accounts receivable  

 

(46,289)

 

 

 

46,502

 

Inventories  

 

5,843

 

 

 

6,503

 

Other current assets  

 

(84,328)

 

 

 

(49,895)

 

Other assets  

 

(110,653)

 

 

 

(25,690)

 

Accounts payable and accrued liabilities  

 

22,933

 

 

 

34,742

 

Deferred revenue  

 

216,431

 

 

 

35,514

 

Lease liabilities  

 

(51,565)

 

 

 

(50,251)

 

Net cash provided by operating activities  

 

645,196

 

 

 

660,898

 

         
Investing activities        
Purchases of investments  

 

(472,165)

 

 

 

(584,240)

 

Maturities of investments  

 

197,279

 

 

 

543,065

 

Sales of investments  

 

271,521

 

 

 

309,687

 

Acquisition of businesses, net of cash acquired  

 

(411,319)

 

 

 

(955,574)

 

Purchases of property and equipment  

 

(30,651)

 

 

 

(59,940)

 

Net cash used in investing activities  

 

(445,335)

 

 

 

(747,002)

 

         
Financing activities        
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan  

 

65,752

 

 

 

52,835

 

Repurchase of common stock  

 

(500,000)

 

 

 

(100,016)

 

Proceeds from term debt agreement  

 

-

 

 

 

400,000

 

Payments on term debt agreement  

 

(20,000)

 

 

 

(10,000)

 

Payments for debt issuance costs  

 

-

 

 

 

(3,040)

 

Taxes paid related to net share settlement of equity awards  

 

(14,032)

 

 

 

(2,536)

 

Net cash provided by (used in) financing activities  

 

(468,280)

 

 

 

337,243

 

         
Net increase in cash, cash equivalents and restricted cash  

 

(268,419)

 

 

 

251,139

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash  

 

(74)

 

 

 

(567)

 

Cash, cash equivalents and restricted cash, beginning of period  

 

852,826

 

 

 

602,254

 

Cash, cash equivalents and restricted cash, end of period  

$

584,333

 

 

$

852,826

 

         
Supplemental disclosures of cash flow information        
Cash paid for taxes, net of refunds ...  

$

99,378

 

 

$

80,236

 

Cash paid for amounts included in the measurement of lease liabilities  

 

61,504

 

 

 

60,564

 

Cash paid for interest on long-term debt  

 

5,280

 

 

 

6,568

 

Supplemental disclosures of non-cash activities        
Right-of-use assets obtained in exchange for lease obligations  

$

13,051

 

 

$

402,007

 

# # #

This press release may contain forward looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or comparable terms. These statements are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including those identified in the company's filings with the SEC.