Citrix Systems recently reported its second-quarter financial results, with non-GAAP earnings of $1.24 per share, down from $1.53 in the same quarter last year. Revenue for the quarter was $812 million, a 2% increase year-over-year, despite challenges in product and licensing revenues due to a shift towards a subscription-based model. The company is implementing changes to its sales organization and go-to-market strategies to drive its SaaS business, resulting in a revised 2021 revenue guidance of $3.22 billion to $3.25 billion.
The company’s total annual recurring revenue (ARR) grew to $3.02 billion, up 19% year-over-year, with subscription ARR reaching $1.65 billion. Citrix’s acquisition of Wrike contributed $27 million in revenue in Q2 and added $160 million to SaaS ARR. The company also reported an increase in SaaS paid subscribers and future committed revenue. Regional revenues were strongest in the Americas, while APJ saw a decline.
Margins saw a decline in the quarter, with total operating expenses increasing and non-GAAP operating margin dropping to 26%. Citrix’s balance sheet showed cash and investments of $532 million and long-term debt of $3.47 billion. Cash flow from operations was $144 million, and dividends worth $46 million were paid out. The company also announced a quarterly dividend of 37 cents per share.
Looking ahead, Citrix forecasts revenue of $765 million to $775 million for the third quarter, with non-GAAP earnings of 85 to 90 cents per share. The company adjusted its full-year outlook, expecting non-GAAP earnings of $4.75 to $4.95 per share, down from the previous forecast of $5.60 to $5.80 per share. Management also revised its operating margin and SaaS bookings projections.
Citrix currently has a Zacks Rank #3 (Hold), with top-ranked stocks in the technology sector including Avnet, CyberArk Software, and Digital Turbine. These companies are set to report their results in the coming weeks, with strong long-term earnings growth rates. Investors are advised to stay updated on recommendations from Zacks Investment Research for potential investment opportunities.
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