Juniper Networks, Inc. (JNPR) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 27, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings. Welcome to the Juniper Networks Q2 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Jess Lubert. You may begin.

Jess Lubert

Thank you, operator. Good afternoon, and welcome to our second quarter 2023 conference call. Joining me today are Rami Rahim, Chief Executive Officer, and Ken Miller, Chief Financial Officer.

Today's call contains certain forward-looking statements based on our current expectations. These statements are subject to risks and uncertainties and actual results might differ materially. These risks are discussed in our most recent 10-Q, the press release furnished with our 8-K filed today, the CFO commentary posted on the Investor Relations portion of our website today, and in our other SEC filings. Our forward-looking statements speak only as of today and Juniper undertakes no obligation to update any forward-looking statements. Our discussion today will include non-GAAP financial results. Reconciliation information can be found on the Investor Relations section of our website under Financial Reports. Commentary on why we consider non-GAAP information a useful view of the Company's financial results is included in today's press release.

Following our prepared remarks, we will take questions. We ask that you please limit yourself to one question, so that as many people as possible who would like to ask a question have a chance.

With that, I will now hand the call over to Rami.

Rami Rahim

Good afternoon, everyone, and thank you for joining us on today's call to discuss our Q2 2023 results. We delivered better-than-expected results during the second quarter, with total revenue of $1.430 billion, growing 13% year-over-year and exceeding the midpoint of our guidance. Product revenue grew by 15% year-over-year and we saw year-over-year growth across all geographies.

Profitability was also strong in Q2, as our non-GAAP gross and operating margin, both exceeded expectations, resulting in non-GAAP earnings per share of $0.58, towards the high-end of our quarterly guidance range. Our Q2 results reflect strong execution by our team, as well as the improvements we're seeing in the availability of supply.

We remain confident in our positioning from a technology perspective and our ability to capitalize, as our customers build their networks for the next decade, which we believe will leverage AI powered software automation, an area where we have invested meaningfully over the last few years. We believe these investments, along with our go-to-market focus, will enable us to not only deliver sustained top-line growth, but also improve profitability, even in a challenged end market environment.