JNPR - Earnings call transcript Q3 2021

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Operator

Greetings. Welcome to the Juniper Networks Q3 2021 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. the to turn host. now will conference your over I begin. Jess may Lubert, you

Jess Lubert

afternoon. Thank Conference XXXX you, And to Operator. Good welcome our Third Quarter Call.

Ken and risks based on are Executive current expectations. Today's today Rahim, are our contains Miller, subject statements and to call statements me and actual in Officer. uncertainties X-K recent XX-Q, Chief forward-looking Joining certain most results in discussed our our filings. SEC might These and other Financial with press our differ CFO and Rami Officer, release are filed furnished materially. today These Chief risks commentary the

Our any speak as forward-looking Juniper and update forward-looking statements of no today, statements. to only obligation undertakes

financial we the company's discussion a under our today's can Reconciliation of website information on consider useful Reports. view is section results Our press non-GAAP be on Commentary non-GAAP release. of will Financial today information why results. in included the include financial found Investor Relations

you our have prepared hand yourself like over With we questions. call question will ask to who take Following I will ask that, remarks, chance. the to that question many a possible people please to Rami. one would as limit a so as now that We

Rami Rahim

in now extremely territory. a QX on at ending second executing With double-digit each by to demand than more growth, lead grew thank even today's experienced We our XX% account our well. consecutive team afternoon geographies. categories period. year-end for growth year-over-year increased time. adjusted vertical, these and of year-over-year to consecutive is quarter Needless supply saw fifth Order joining solution, compared XXXX. the quarter growth the Good Orders of was discuss mid-teens to extended and by our experiencing And quarter. billion is momentum strong though everyone, more customer challenges September basis, for of year-over-year you strong into for XXXX $X backlog during call well and unadjusted another orders us [Indiscernible] say, an revenue impacted when results. to very than On quarter delivered chain a

place. working. us technologies operations investments user allowing customers we to is networking serve. and In these experience-first differentiate are we that capable Juniper capabilities, are end also XXX-gig deployment These silicon the engagement strategy and and in fast-growing our differentiated and also next across the enabling call we the business over us Mist new across the our a system, a I'm And early trouble for our secure operating experience, to interest beginning in have and customers the Hyperscale maintain seeing factors the have only strong platforms also in Our our of paying our to we've Astra, we of core our should the Cloud enhance to direct that some meaningful opportunities to that with enterprise present market, transitions what large made improve but tailwinds unfold dramatically in the serve. and customer years. logos take maintained where we we due the recognizing along strength differentiation problems. markets capitalize market Juniper not to as off the to the time. investments bulk platform but campus value that pull customer reduced on for service with deployment ticket, datacenter, which share and with deep historically market in that franchises, by metro footprint, organization are early our us new This few to by enabling technical encouraged serve. meantime portfolio, expand customers. in we're other go-to-market us not resolution the over of important made eliminate delivered and These the new are products verticals did reduced are to only big vertical, particularly time, win wind routing we and is where the large such provider through increasingly true enabling to This platforms present are network adoption including

we our We is provider expect developed the year bottom to likely deliver order and supply XXXX the investments and momentum believe despite are us that prove chain remain and products improved through strong we nature. beyond. as currently extremely XG challenges the challenges future to this I these are I The and come up market growth steadily course profitability new And the have set's optimistic backlog navigating. seeing line we're increase. to transitory opportunity ramp very well of next to steadily regarding in prospects service in

in in deliver early, to it outlook based continuing detailed results mid-single the digit August currently We our QX backlog While Expansion sales point at XXXX. on the remains we and report a Operating see least at provide of growth strength we're more expect we'll market. XXXX when and Margin and least to current a

XXXX assume constraints. improvement Our not material do a expectations for chain in supply

Cloud constraints, automated to solid Now both insights declined strong address year-over-year quarter products, another WAN and entirely with into newer both solutions, some I'd to some the and service a as momentum experienced seeing solutions Starting of adoption We segment. and portfolio. strong we're key additional we our supply product demand NF our quarter our and perspective. like family with due as while well provider growth our healthy customer from software chain developments provide order our saw automation PTF of across in revenue

well not I our but scale that footprint, large orders several these saw our secure second to enabled includes year-over-year. Cloud only are also us consecutive Cloud quarter Our opportunities up in triple-digit XXX-gig new a part opportunities, existing to the including Driven with our wins previously hybrid and protect by referenced. solutions growth customers, performing opportunity

our chain by for customer automated see demand strong LAN these the impacted currently While are we solution, challenges. are supply products continuing most to

revenue a year seeing. this continue expect segment our X% despite we model result, the the to calling strong of be growth to decline a we long-term X% are demand, from for range this a As within to

Cloud-Ready Data XX% order QX, provider Center growth from Cloud encouraging trends and another in customers. Our our revenue experienced service year-over-year of quarter enterprise solutions and

with and see We momentum than deal strong new $X greater continued logos to million.

high Center As interest in And I Customer mentioned last is quarter, is is Astra we our a the more only which to datacenter continue Cloud-Ready also significant market, to full-stack opportunities, creating high. leading but buzz wins. not Data seeing; portfolio in software long-term X% model of be is ready growth to tracking exceed year-over-year. of looking datacenter optimistic outlook Cloud now business meet or end this X% our business. for about on the are we the the our momentum Based to

outpaced AI our solutions Finally, enterprise significantly driven market XX% Year-over-year. grew and the

to million. the market another quarter win orders with continues mid Our deals record AI greater as digit growth triple than of experienced number in wireless record $X and differentiation a

Marvis this revenue wired achieve enabled the access, more Network associated pull-through, sales mystified of revenue pull-through LAN, than of and wireless since EX Our EX pull-through level XXX% year-over-year. period. experienced doubled in Virtual the to EX XXXX. nearly year-over-year. Assistant momentum growing highest With we record And This

our - On in -driven Smart [Indiscernible] fabric including year-to-date record and a We doubled traction quarter. in has the mystified technology AI value year-over-year Router new a which seeing our future expect Juniper momentum Edge visionary saw our EVPN recognize like distinction strong plus VXLAN triple-digit solution, which in growth quarters Session federal the operations, various as has SD-WAN also basis, Quadrant for the revenue year-over-year. quarter AI management such WAN Mist increasingly and earned Magic only acquired customers Gartner positive the as very XXX of portfolio sectors the Cloud retail more with driven from and We're banking, We this to innovative in quarter. published than with results Cloud, especially features as this continue government. last with launched

The provided off SRX Cloud AI-driven developed last benefits for our unique Juniper two-year hit assured by AI prospects gravitating both a with are branch client In quarter towards high. as the strong, experiences. is and partners SD-WAN addition, to pipeline

seeing AI access, this the the with stack momentum and We to by the a access, I Juniper encouraged across user this in all and that our including continues unique seeing verticals Where their of Marvis, offer And wins to wireless and are expect full campus least branch. operator we're companies we're for combination virtual of XXXX. the enterprise in solution are in by our self-driving wired turning particularly We and driven market-leading AI multi-million-dollar number and construction of very now to in driven growth XX% see differentiation, America to customers we AI assistant, and actions leading value and resulting highlights business. believe our best offerings and Europe. Geo's. at am partners pleased This [inaudible Europe the in experiences. in providers services managed all enterprise company and predictive network North driven and international XX:XX:XX] retailer operation

strong total offerings. high-end, our revenue in increasing as broad-based mid-range well our branch security results with growth. experienced revenue with consecutive year-over-year. double-digit Strength X% year-over-year, and quarter products, SRX third marks by across which Our of a SRX XX% Product as virtual revenue QX, product growing

quarters our year. technical will competitive third-party from accolades and Our security in security with provide continue as market to We connected current the both besting Net fax in solutions the us believe we of future us receive during competitors a to provides networking our security and strategy is grow and should to enable security on in often advantage. such because the open tailwinds convergence all gaining head-to-head tech. traction ICFA And organizations strength networking and continue our in business

Our software momentum, accelerated in QX.

to Based momentum Momentum long-term in at as with software Investor mention across software licenses. security a rattible recent due services and as Day. and certain Software target Flex is grew these uptake offerings. ahead presented we're like of customer combination growth another and grow the to and of on broad-based our strong driven as in year-over-year service year-over-year our on offering, we solid due year-over-year, subscription, and the that verticals ratable a currently We bluff services tracking team continued rate. orders tax strong onbox of to revenue well and of on to related related mid strength delivered sales XX% strong we're licenses. ARR XX% ARR we to software the seeing, flex with by quarter subscriptions both experienced software grew record subscriptions, solutions. software perpetual a experienced renewal licenses, associated our total solid offerings, basis, and the ratable services I'd quarter

to discuss team especially to well Juniper. extremely partners, our and support would thanks customers, will our like our our turn results in to creating who I continued confidence to will and the my thank services essential detail. to for our which is over in financial Our excellent their for to dedication, work customers continues quarterly now shareholders value and more receive I for employees an to execute ensure I want call extend their hard experience. stakeholders. Ken,

Ken Miller

our Thank up the will midpoint you, modest I XXXX earnings to per as in in start and of afternoon on below color Rami. our We was revenue. share X% ended XXX good impact $X.XX guidance, with some discussing the And of but the to guidance, chain due results negative X% billion [Indiscernible] and quarter Slightly third quarter revenue our our third guidance. shortfall line $X Non-GAAP by The million Outlook. of at compared everyone. supply was our year-over-year sequentially. constraints.

all orders quarter, verticals, consecutive geographies, We quarter. solutions. growth the and saw all product remained significant customer the second exceptional third for momentum strong, and order across growth showing year-over-year all During

product of causing estimated supply order these increased than grown certain after adjusting an mention that to have the the adjusting this customers early is third backlog consecutive growth for attributable $X early the continues Some relative be chain in needed. place strength orders are has effort of our secure for orders in to when quarter Even, total early challenges supply more It's bookings important that industry to are billion year-over-year. to after orders, start to mid-teens of orders. the This mid-teens to year. by to

growth got We've a on grew grew Cloud Looking XX% Year-over-year our vertical order service year-over-year service Enterprise provider. in and provider declined revenue X%, double-digit by X%. at basis,

to However, revenue. supply impacted timing due constraints shipments of the

solutions impacted and basis, enterprise AI-driven Year-over-year increased customer to and was supply increased Turning negatively on Cloud-Ready constraints Data declined XX%. a Automated XX% Center Land by XX% revenue Year-over-year. Solutions

Year-over-year double-digits were XX% grew million, software orders However, Total was services increase which grew revenue of related XX% last year. the $XXX an ARR year-over-year. and and versus

for the provider, was year-over-year. XX% X% our and record Investor at tracking enterprise. revenue Rami XX our and top are grew Total third that revenue levels were the we ahead were X service was As year-over-year. X February. quarter, targets $XXX Security mentioned, million, were security the quarter of metrics pleased In product Day shared in in we growing software-related X at in customers are our reviewing Cloud,

we sequentially, top in mix. share shares which Operating and with We If with paid was approximately XXXX. equivalents midpoint. flow Operating midpoint, $X.X XX% the of total was dividends, slightly the due consistent our for driven million exit $XXX below to quarter. exceeded margin $XX of Our gross $XX for investments not total was X% from million a would gross perspective, third dividend year-over-year in XX.X% for revenue XX cash, slightly of worth per non-GAAP elevated and operations of guidance third Non-GAAP above product Margin have by Expense quarter margin favorable million quarterly accounted customers the and posted our was third COVID-XX, primarily quarter, customer essentially quarter. was flat supply-chain expectations. costs which increased and return XX.X%. non-GAAP cash of $X.XX guidance the in our Non-GAAP quarter the billion. repurchased From third of our reflecting Cash a we capital XX.X%,

pandemic. in the impacting is by like website. are worldwide Consistent color continuation details find can costs COVID-XX I times the available our prior quarters semiconductors the would others, guidance, components Relations ongoing which in of industries. to lead you and commentary with add and on which on in in Similar Investor extended Now, our elevated component part has CFO XXXX, shortage of some of other shortages, products. resulted Caused many certain to we experiencing the

We work levels the chain resolve inventory an effect of to continue increased and purchase challenges supply commitments. to the at

of believe and will few to at for that control. next persist the We actions, times our suppliers with costs with outside quarters. are our extended and effects elevated working even resiliency our closely the further enhance lead recent least We these mitigate of likely disruptions

to we X.X%. point This sixth forecast. year-over-year at we quarter midpoint financial other dynamic, of in semi-conductors the revenue At While is expected the meet time, of grow have and is situation to consecutive components be growth. this supplies access revenue believe to will the would sufficient guidance, of at our our

point for be supply non-GAAP not transitory in over expect expected time, to forecasted I'd elevated to to We quarters. XX%. elevated higher is of remains full-year that costs sequential the decline a provided chain our non-GAAP but believe approximately guidance related fourth-quarter constraints due decline basis, If will on prove likely approximately to out costs, next product despite previously. an would the have gross line non-GAAP which several margin sequentially We remain these to like our we costs XX.X%, supply supply elevated with for and in Margin we margin gross chain in mix. QX, Gross will what

QX, full-year for a expect other While at XXXX XXXX. to mid-single-digit and there outlook on Presuming XXXX. would growth COVID-XX is anticipated a the revenue unknown related a our due basis further momentum the economic lot backlog, and on in ending we future least current pandemic order to no the macroeconomic based like provide seeing the we're about comments deterioration, uncertainty, on we few

Operating In of addition, basis to on lead we guidance improvements dependent full-year constraints. Expansion times see XXX chain expect not of points or supply Margin basis. easing least industry at This on a is Non-GAAP in

a Non-GAAP to and patterns from expense operating Non-GAAP perspective. gross revenue see margin, expect We seasonal

volume-related tends margin year. gross our about a of to with course lower the As Non-GAAP in improvements reminder, be quarter first the gradual sequentially the

team In environment. Juniper's In due expense would in dedication like compensation fringe in to commitment the first and success. this closing thank to and I typically Especially and to their operating continued higher challenging is addition, the our for reset, sequentially variable costs. quarter

to call like would the for I questions. Now, open

Operator

a time, [Operator At we conducting be question-and-answer will session. Instructions]. this

remind limit pose from your everyone we Goldman We is proceed with themselves please And for question. one Hall also moment, our questions. with to to only One please, question. Rod question while first Sachs,

Rod Hall

happened I if on as in got that guys. the like opportunity I then lot automated Hi, into seems just number you've you how months? Year-over-year the wanted color, of -- little out next the to thinking, was in guess you head WAN us it but year. also was year quarter, quarter? supply Maybe mainly, you're as that look a next does question. you it see Thanks Thanks. what a more the and you next for bit the I check give that wanted And to what look but was down for XX

Rami Rahim

Thanks for the question, Rod.

introduced the when automated it most WAN we the very lot happens should our performing PTX WAN going challenges. a line provider. a answer market that be and early thing win which for that as need the the with I'm chain automated hasn't revenue to I'll But in. part So, I which And nonetheless, in helped cards and like the product is, more the driven of automated is short closely. so a that, orders it's imagine, significant into might by just when ready amount XXX-gig greater product opportunity. next large both say pleased momentum, that orders products just ACX rate. newer solution our Cloud line, came routing, between our the the for for components. we're enterprise datacenter to really the They every XX%. biggest from said impact reason, are if That's the predominant really the I that fact metro booking and to about limited. very monitor seeing that year the is from Having mention and last cards sophisticated automated Metro we I had discrepancy talked AI for supply any service that of line routing for We've well. record supply-chain when WAN had for in It's MX, and positively area which WAN that we've also a complex And for the absolutely something use provider is opportunity, with service way think build. encouraging, It really, us that about automated predominantly solid is very you point stand semiconductor kicked it's connection that very WAN momentum growth our the automated order our when especially in is after used products year is over

we orders yet, deployments, WAN is with tone also don't we the growth. revenue which wins this point, at are necessarily growing reflected of while in So, and gig solid very see looking XXX at order a automated

Rod Hall

can year-to-date, Okay. And And that said that, comment backlog increase, on -- the following it's a know seeing composition I this board. automated I thanks about that Rami. could the -- just of for I is billion-dollar up, I'm think you're just where just increase you the of in in just the backlog, you curious backlog? area most that as quarter WAN across-the

Rami Rahim

Yes.

So, that but is more mean, others, the slanted as building it bit customer solutions. automated well it in up been really than a backlog noted, with bit Rod. as more build healthy and we've a WAN towards the say grow across-the-board across really throughout backlog is up automotive little all QX little the I WAN. would the is is year across board. backlog I you did an quite It

the it you say, will. and is, all when I we healthiest, automated So, products, healthy entering but the quarter, I across year would believe next with a if fourth very backlog are

Rod Hall

Great.

you guys. Okay, very Thank much.

Rami Rahim

Sure. Thank you.

Operator

JPMorgan. with proceed Chatterjee Our your with is Q question. - Samik from Please question next

Samik Chatterjee

front? and gross are have on a supply where please. you down for when it's can just the of follow-up, different chain with the point the -- If driven taking do the to finding pricing asking to that take? actions take net you get in headwinds pricing. we wanted relation more What on difficult margin can where price that taken in to Another break Where it kind you you by be just actions guess start verticals. question. neutral been pricing, Thanks more that on some off I I you easier to

Ken Miller

Yeah.

for that. take the to Thanks question So, me. I'll

believe where So, there year. to that the it's reduction, we remain point, elevated next next the could might I see still at that be But expecting of this transitory supply-chain elevated and I going late positively some cost to maybe surprised side. we we're on costs year. are remain presuming throughout

play we to little On that's are protect are the Gross our much this actions be pricing call out. Margin. too try exactly I protect we taking of pricing to our At a absolutely Margins how to to going feel early able side, to point, to Gross that going

I from some the actions The at little to other and I also particularly that can timing. as a feather expect in, the we add time will have a the us results. started such old earlier large would Costs you cost to hit already thing the pricing see take to have prices. us backlog is do because the hit

forward, burn So, we the at XXXX, realize will And not we be evenly pricing throughout of pricing the kind but need if we you legacy make to will. as but might through in going backlog it actually benefit that year.

Samik Chatterjee

it. Got

gigs mid-single-digit the provider far follow-up, you growth you've have service revenue XXX X-plus wanted As guiding have drivers, the I and about as and by you expectations in Momentum of some past, just different you is benefit as are XXXX. the in growth vertical, color -- can the call it, Cloud, revenue to In see you growth as lenders. given a

probably next directionally If of strongest for be in about think growth growth vertical order you can to terms year? vertical which going your us and rank expectations them help is for next

Rami Rahim

would to Ken more Let some add maybe me that take and it.

mid-single-digit say are guided chain you would a at least to And not providing -- keep as in that we X% mid-single-digit just I First, we're limited right outlook We're growth. guiding an really growth, we're supply now. or mind mentioned. of

there meaningful If I then situation upside next no think to is improve number. materially supply to assumes chain start that provided the we supply does improvement the situation. chain to that outlook that So year,

start would I just So, with that.

is Every enterprise, growth going a where comes in. well. solution driver area performing I'd vertical for to extremely significant of us. it's every extremely growth terms In is be that performing say In and well,

and think do rate, backlog significant up service even perform supply differentiation we we provider, with win thus net that I that well. the market, enterprise extremely vertical goes the us the standpoint wins our sets against just assuming well the have with in new the the chain think we're compete way, to could standpoint getting exceptionally far. built enterprise an from the I So, of -- actually A

So, it's that chain predict very difficult contributors supply going very to by situation. to to going primarily much be stack exact to ordering because it's growth, of determined the be

Ken Miller

I'll The in on we'll add, next beginning only more the our provide color thing call of as do we typically XXXX.

So, our at color QX 'XX more on provide call, time. FY that we'll

Samik Chatterjee

Thank thank Rami, Ken. you clarifying remarks, you. Thank for these and you,

Ken Miller

Okay.

Operator

And our with next question with Sandler. proceed is question. Fish from Piper James Please your

Clinton

question. share? especially Clinton strong this business. for should Q quarters, within is for the the seeing side, about the we've on against Maybe some puts more we or Is touching winning returning Enterprise strength? we kind Are guys, and Hey of the it really our gaining think incumbents? taking Enterprise [Indiscernible] Thanks takes Juniper more seen again [Indiscernible] base - How the by Thank delayed driven projects are more you. of

Rami Rahim

thanks the good for Yes, question.

I'm the space. share very we're taking in confident So, enterprise that

uncertainty fact driven our of weakness entirely by due federal that the the year-over-year. enterprise significantly difference said between You X% actually I primarily difference revenue the Order revenue, our we routing routing routing saw performance in performance, and there's space mean is performance I enterprise and budget. that our enterprise I I some Year-over-year. more still to X% where performance, But think had think enterprise is big than the

are that's revenue strength campus growth significant there and of remove that, enterprise for the Triple-digit the driven of to net our WAN significant solution, of the quarter Mist branch portfolio, One is that opportunities Mist, Mist business. is that EX that achieving all wins you seeing wireless, wired, wired in if Mist are single AI phenomenal. every records of driving bookings our and that triple-digit includes pull-through switching Enterprise these portion contributing things for enterprise quarter. So, and for the first the new two are new We're today. wireless,

management growth the datacenter, order of well, second solid vector The Enterprise over as datacenter, is Apstra as differentiation solution the XX% a within growth. there rate. very for the with win Significant year-over-year

portfolio Juniper. taking I my that time of has think at our never I differentiated mean, we're just of in strength which So, share been least at the this because

Ken Miller

to to I on And just that want little a add bit.

from way than make about we being little service constraints. And all is cuts, an Price. revenue growth revenue of expect talked one you So perspective a whether mid-teens difference as but compared All year-over-year Automated our otherwise absolute not Ready it of up automated supply. stunted that Cloud been, are SP, is on give the a in look aware to than as lower and between a I to Rami on perspective not mentioned, would because product our just Enterprise adjusted it was sure if is bit X%. or have to were perspective Datacenter a We're [Indiscernible] Enterprise at in XX% going it's a it WAN X%. to [Indiscernible] bookings for want product but perspective, supply QX number, which We could or everyone already provider actually or revenue Cloud from numbers

to would that not easily XX% Enterprise, have extra there's it's lifted of revenue really NSP. Cloud, constraints. and growth due happen So, supply an that did all that boats, imply to

Clinton

Super helpful. you. Thank

Operator

Our next Raymond proceed question is Leopold question. from your James, with with please Simon

Simon Leopold

or are the talk taking the at about during costs particularly Thanks the chips see quarter, trend I you're ordering question. components, ordered your could higher up to pondering show now is XX, specifically what in if the likely and XX I'm wanted weeks that in you general to points. input for price

with? you impact think of something better gross that want particular about understanding could the Is margins. how that in So, headwind to get to a help XX us

Ken Miller

Yes.

also So, we the above to reported gross the been actual can this quarter, about to weren't been as provided But if product being would we have mix costs margin favorable. midpoint see which for talked of XX.X XX.X%. it you have it due what from was -- close would elevated which

next costs say, purchase I XX In year. all thing we yes, hitting have out other are us of Simon, now. And orders cases, elevated one in would cases, weeks, these So, some throughout - out with out environment in and And to secure window. throwing orders are supply. purchase the these taking XX that said, this is it cancelable non attempt an pricing committed That weeks, pricing.

are going orders that We despite in seeing costs have fact we place. the up

being we price of expecting Whether sense. not to we costs an etc., up we're we orders variance, fulfilled in necessarily the purchase those fee going -- of advance seeing disguised are it's in the going orders or So, makes pay. have in expedite place are are if price form the that

Simon Leopold

does. it think I

your being to mix now. Is be else margins for equal XXXX in clarify, the right the same, than are that fair? same, all gross Just would lower they products customers

Ken Miller

providing at uncertainty. this too Not much there's just specific margin XXXX gross point, guidance

a for on our You of this, dependent I margin. say we're could count XX improvement XXX margin basis operating on better hit from days next on commitment us not gross least will us call. year at giving next improvement points in you our understanding now to

profits. we're committed to gross year do expanding and very to that, on we margin very So, are committed expanding next to but not profitability we're dependent

Simon Leopold

Okay, thank That's you. helpful.

Ken Miller

Yes.

Operator

proceed question is George with question. your with Please next from Notter Our Jefferies.

George Notter

dynamic across growth of lines stats, out Certainly, year. the Thanks listened I triple-digit yet lot a I next have but mid-single, customers and I like you number And the we're between least ordered numbers. mid-single-digit guess areas, think triple expect I very backlog, play these like at additional call, I'm you it have forward? that out think, numbers. Certainly, all at of about wondering see understand and terms guys. level mean, and the rates trying sort some that I Hi, billion-dollars does how you. caveated of as business of much. seems your going that how that for to talking some I in in you to order turned delta eye-popping customer double guess some I I'm guess, you with guys your and a of

Rami Rahim

start. Hi I'll George.

that to we're fact So, said situation, in least of it does guiding it at with better. improve, not not providing outlook and you the If We're that not providing get doing start in an We're we're I major situation mid-single really digits. supply the supply could mean, and outlook assumption that it. of an an an does by or will fact you number, in I the of that based this time think to for half visibility, it. not situation improving. second That's supply with it outlook net would the we you on really At to based be of prudent upside outlook us on provided. see point the year. next we felt provide this Then

However, year. that next could be actually better false Things could be a assumption.

Ken Miller

holds If there's going nominate next year. year. that came mean, supply purely with with have to year. doubt next our much much this it also, guidance that that into factor This for I supply. to where how to be has input the is primary no that. or outlook than think mid-single greater to do we're or the would access the limiting we really year equation, that's up And true were least at And demand digits. But we a number next Absolutely.

George Notter

you Thank very much. Okay.

Operator

is Marshall Stanley. from with with Please (ph.) Our next question. Morgan question Meta proceed your

Meta Marshall

maybe a on the App side. were growth or on just much Store the or could you kind the seeing be or to then attraction Thanks enterprise Great question you if the traction inorganic? was And seeing with just see most its remind second how would thanks. the of business of any year-on-year side and I'm hyperscale you just -- where us QX cloud trying were

Rami Rahim

Yeah.

question Let me start with Astra. your about

anticipated rates, at would and I'll I encouraging opportunity it's some technology X hyperscale: Enterprise, extremely new Where develop outside in absolutely automation space. earlier, we significant down is in which And opportunities. there very the we companies. the demand that for we space. of mid-size taking software never aspects service enterprise, as just enterprise opportunity. biggest far is pipeline Astra hyperscale the mentioned own have tend of unique customers top everything rate quickest is are win software. seeing That our automation the to be first, build kind a So large because the the an datacenter a to said, their offering. this thus the hyperscale Astra are for major, Cloud even to There that quickly Primarily say being provider, very

only peer of today. automation their the open the it's anything market foremost, on None own switching in and solutions First solution infrastructure. but our work

is our very manufacturing, in operational a ground-up services, market. concept turns and out -- standpoint, of switches. from financial our to the nothing Apstra designed highly as enterprises on the to as datacenters. an meaningful intent-based verticals. invented large Apstra experience competitor That's especially and as similar the in other sonic technology. so And pioneered of to is networking for own really there as switching good works it as that the feature Astra scale well well be desirable largest as

pleased great think be and going is with a in very So, driver I far, to the thus performance I'm the future. this us for growth very,

Ken Miller

question started revenue about the them Yes, We that's add as million inorganic. on to would out called Juniper. and about it's exactly believe inorganic we we acquisitions versus that and in expected. year, X of growth aggregate, $XX X% organic know of second all the When holding your we we

take the inorganic exact indication going QX, million. million start you number year $XX not give that I XX the you that, you in in the some if that So, am of revenue to with for but gives can you QX. quarterize a and

Meta Marshall

Great, thanks, guys.

Ken Miller

Sure.

Operator

Our with Daryanani ISI. with next your is from Amit proceed question. Evercore Please question

Michael Fisher

guys. Fisher driven growth. Michael on AI on - the on Amit. Q was for the of one revenue I comments Hey, enterprise curious

products, was trajectory you You curious, EX both growth grew decelerating, Mist and families the give accelerating, moving for year-over-year. rates much product of each mentioned color too I more can not there some and families? around are if those whether on

Rami Rahim

a for Yeah, second. there glitched I you sorry,

- asking the. and you're also I Wi think about then Mist Fi,

Michael Fisher

Yes.

Rami Rahim

Got it. Thank you.

and a bookings acquisition revenue by units, take was for incredible it's think any into verticals, has hit and business in about in I did QX all put in the I in Networks, technology. Growth both enterprise double-digits that first, bracing and Mist are I significant record Juniper growth WIFI, and measure, it and So of trajectory. share really SP an time of Enterprise on a been our Cloud of well. has just was but driven us. AI well for of driven make. in the the for record - saw mention all Wi-Fi___XX not record triple-digit continue EX a was growth although difference in terms - providers record quarter AI quarter-over-quarter first as revenue And that also is Order it think customers number and a itself to the pull-through, orders This We enterprise we record and QX quarter timeframe. no

the is that the year. and the end this happen happening and connection see strategy which as has to Mist, effect on LAN, as going we first wired, not entire just we'll in part for been of We're of the a to really So Cloud WAN. pull-through includes wireless into always technology seeing that that benefit I integrate And by year, XXX the next about think wired, Wi-Fi___XX, that full client similar it's well. side Wi-Fi___XX,

has expect continue strong. really sure. momentum just I the to for So, been that

Michael Fisher

taking Great. question. Thanks my for

Operator

proceed question David next Our from is with your questions. with Vod UBS. Please

David Vod

guys. for Hey question. Thanks Great. the

in So, XX about commentary I that to can math the actual back year? product there suggesting XQ And XX revenue I shows that it's up you're XX million. June backlog same your or product order product just if do you maybe next growth to revenue. quarter, Are recognize probably in the that million go product going roughly deferred of about in that versus was million

next the you that a revenue And I quick think be that about it? that is will follow-up. to it year? way have Is think right So, recognized then

Ken Miller

Yes.

are our talked growing is than a think much We've faster backlog those adjusted an ballpark you're I billion. referring about So, in the numbers actual than to from greater perspective, bookings that.

bookings numbers. QX. would revenue the are have more or that were you is arguably constraints, are just much So you much million much approximately to the just faster or backlog at build right, already, want plus which referring is math a than you the if have adjusted revenue to could greater rate. I mid-teen supply that the not orders were quoted you From XX%, delta numbers we and number, go those customers is because number, should really recognized But understand. that revenue we our there recognized that that $XX That have bigger to. That that if a placing in

David Vod

just maybe then follow-up. quick as a So

guess So XX be recognized your calendar backlog, I in that's given would million XXXX.

X.X sounds I of expecting would something right think I outlook? and XQ XQ to QX. to your when least some benefit into in a growth about about 'XX growth, pushed backlog say way comes going the imagine, XQ like about about What Is your revenue from let's that XQ. from that at So, that's the mid-single-digit commentary push-out think There's similar you're that in XXXX? revenue from,

Ken Miller

whether that unadjusted, the that going build, the or it's adjusted matter, essentially. backlog the to is for backlog ship even do bookings I think build

The supply least our in of think reason least guiding confidence So, at gives I constrained. not growth. revenue is that at outlook us we're revenue than why single-digits mid-single-digit more

supply to supply today So, constrained as well. next and year we we're are be expecting constrained

enjoy. point, So at able ship how much of on due momentum that the bookings quickly side, are but it still the least good is we depart backlog how and growth and differentiation very of to about we honestly, we of the quite the uncertain due have to execution strength backlog, we field the the feel we're strength in our this to seeing at mid-single-digit

the mid-single this that's at to of the of level keeping at supply reasons lot is somewhat reason point. one least us a and at digit be more that's be something bullish, there's So, to prudent kind

David Vod

color. for thanks Great, the

Ken Miller

Sure.

Operator

from question question. next your Bajaj with MGM is proceed our please And with Partners, Najam

John Najam

Thank you trend. I'm sense apologize in. if gross I I for but squeezing I better I missed want your repeating, the a margin to apologize. much me on of just call so get

you also environment on costs do and the your margin In and terms gross near-term impacting of of that -- does are a much can how us plays a freight pricing component percentage how some think offset color the pricing degree you give anything, to environment, for environment, that from and favorable I pricing Cisco probably who some likely year? benefit peers I of to are fourth benefit when highlight I it's -- the next the suspect your if quarter is you and if that. look like in at suspect out significantly

component color you how on out us plays a versus give can that costs? So,

Ken Miller

we better, shortages, freight, up actually is but expect So, of we we rates some application and a In elevated costs experiencing year. are all etc. little cost some next get the year elevated those. already little to seeing next elevated of we're remain expect are throughout cases, those perhaps throughout a already worse bringing costs and component

are Gross reported which transitory. costs extra account that, -meter given Gross we've by Margin believe just Margin, Nano Now to the you do Adjusted a for we those

assuming this to go point, at XXXX be we're not it'll it's going beyond However, that. away in

taking pricing are the actions. side, we On

beneficial back-end taking of -- I for take competitors XXXX, backlog. but our really the do time are think more to a for timing we loaded such will us large hit will to little carrying be P&L. expect a to similar actions be to because some I actions, our them many but are those

nearly confident outlook start some with a profitability is That early not to us started least the burn through of takes How will But plays for something quantify our We expand we're going what on see talked by much and we're overall provide nearly next basis XXX $X.X have you'll on. I so the is too we at at year all out million, orders over points. growing of actions just am backlog. be, billion. op will some that time -- pricing and $XXX benefit. it to margin year to the it's so as billion billion, $X.X as be We about that's to future impacted by and

John Najam

discipline us Can some price discounting give wouldn't have significantly you all customer has headwinds getting the discounting on on that a like of color that degree more the been a that feedback favorable else if market? highlighted? lot hikes, environment, you is especially offset you across how equal, environment, component should Can And the good are share it you've the you a pushback? being the

Ken Miller

Yes.

we goal as a in still what through think to help surprised. to the think would summarize willing much we'll that How I the it and it talk an why across outlook working I that not are is protect to about suppliers. should we able customer and price will. ability. think the This best but our increase much we're that and of joy don't feel understanding that And I provide I to protect we So, able that's capture gross it with for think our and pricing They're increases, that's are their their not most protect at actions. From taking our up be degree price margin, margin, across offset necessarily of actions the absolutely, surprising. degree margins But board, to not and seeing of upstream when acceptance something seeing to taking across perspective, is point? suppliers. our be overall, they of and at they're We're gross this we're it mind Obviously, a I it. jumping

David Vod

the you. Appreciate answer. Thank

Ken Miller

Yeah.

Operator

is question next from And proceed question. Jim our with your Suva Citigroup. Please with

Jim Suva

you next encouraging. is Thank for very year very your My question outlook is much.

bit not amount for inorganic said like Thank organic things in or including anything announced assume, or versus think I least a the next is not this outlook year sometimes next and you. and you year the of answer at digit. year's think pending recap versus I timing I mid-single that acquisitions. Can just layers organic can maybe you but you inorganic, just little

Ken Miller

Yeah.

new outlook. made year's any acquisitions approximately year's are run in next months does outlook growing. in and businesses not to we ago to now The are Next Those acquisitions. baked rate our XX assume baked

out, year we're we next But M&A. at that that our require back And break a is improvement for Juniper does if additional not as least not. see outlook Growth. which an have were year-on-year you organic into to so, would we mid-single-digit But today, this any

Jim Suva

much. Thank you so

Ken Miller

Sure.

Operator

your question. Cowen. with Please Silverstein next Our question from Paul is proceed with

Paul Silverstein

been appreciate asked me in has I do I answered. apologize squeezing this if you and all

I Johnson pretty with XX XX First Web top web-scale are X X. the know those off, but of been presiding there customers, has typical and Cloud all of were know your among quarters customers Skill I respect to with

Ken Miller

scale don't is where out love X What all that amongst a see to Paul, X? going hyperscale’s. as the break where of Capex that think giant fair I mean, you biggest I Are detail our We those assumption it's you're know, the customers.

our detail likely into going are. more and are is our spend XX X But the to get Cloud where to be top where say, customers. of top XX not I'm any So, customers going

Rami Rahim

strength provider second And is of growth. want triple-digit to businesses the seeing. our I order Cloud that that add I Paul, quarter just broad-based do love performing incredibly well. we're

and the across an customers. or within So, opportunities expansion Hyperscale we're hyperscale five of four seeing big diversity

growth, just providers provider traditionally customer that that element X well. additional largest Tier Cloud our strength diversity So, customers and There's performing space. other that, in X, not also to of technology driving that's add the broad-based is are and it's also major is an net that Cloud very Cloud Tier hyperscale and

segment. performing cloud provider are well really routing, So, the and switching, all security within

Paul Silverstein

big the was routing, trying trying got assume in I Raleigh, too CapEx. extent, Where in was billion business your clever I by if recognize, increase clearly -- answer be assume trying this out, to I calendar those is light this that I 'XX do operators. assume portion not just large but with go statement, Cloud to than So, pointed to to I what of I you've any, to of you going $XX to have willing is Facebook's half a just as suspect to routing and large discern billion -- I'm $XX I'm leveraged. be you with but to more that. massive, were you of leverage, you're really

to follow-up. quick Let I are, have let and a great. If me I you would pause and then you not, -- you like respond, ask If

Rami Rahim

am I answer going that Well, a not question specific a to to customer.

that. very within to seeing as footprint need and and take demand at with from as the earnings Cloud just not routing routing, Cloud footprint and slices XX in attempts then that that you about And away the The many competitors we top simplest they're about routing major, their for We've looking Hyperscale to our off at up However, capex well, rates as phenomenal. that get infrastructure in maintained to the and us. feeling us. will switching is -- performing the I into that benefit it's invest strength, keep by is the it's our hot looking will maintain say, from from it despite their of good that Hyperscale about long they to business because I'm will press results providers their

Paul Silverstein

for longer-term relative forecasts, [Indiscernible] is assume as in you Is that customers last a quick year most follow-up. assume increasing proceeding and just more to solid. and more your number believe for your relatively are, outlook hope forecast, given? providing let's knowledge years. that of others. assuming I I and simply fact, And 'XX -- is There's I underlying,

Ken Miller

way our of mean, strength to in much the percentage hard a look we given than for normally greater would next I most entering a of that's year's the and backlog think I revenue Yeah, at order we have tangible it. year. the place

are gives visibility So, enter better I absolutely in that than periods. accustomed we us to think as we future

Paul Silverstein

I [Indiscernible]. appreciate the responses guys. Thanks,

Rami Rahim

Paul. Thanks,

Operator

Needham In our last question. question would be Henderson Alex XX, from with whichever

Alex Henderson

a talk bit in doing, of of what and rather Thanks. your or are you're actions you about little what from to umbrella I can under but your competitors in categories what they're just what necessarily umbrella are talk context pricing hoping environment. was seeing you're price Not your extent the ahead relative and your broader could you the to an doing. about

Ken Miller

pricing I can of that tell look you XX:XX:XX] an it. many pretty implementing forward. dramatically. but costs actions, protect All are doing in getting effort where be something I don't are we'll assume continue gross taken at group, but they'd they're individually, exploring [inaudible discount whether absolutely opportunities going our just that costs some and or get actions, to industries want margin. what tell input rising. to we I specific The companies Many on Yes. are Juniper far, other rising And you in can absolutely others controls, list actions, or types I actions even super are so other have to Companies, Price not

a looking not starts are to upstream to and secret. fast, then customers. with component think pass those higher and those the we're cost, pass seeing they're onto into that's and I us, our and moves the looking It on suppliers, and to our wafers,

so from too taking, just gross And for we feel it's year. input that going we're outputs gross far, early -- to benefit margin commit the to margin are confident to we actions feel -- but next

Alex Henderson

there. that. particularly, aggressive the competing? -- mechanics real steam. any But asking call price it describe are and general, competition the not are is, aggressive trying or focus the here, think on more on understand I'm person But little than is I the versus And And company. aggressive on more particular the a to for rather your push you which competition? you pricing or less your you aggressive a I categories surprises everybody campus And are I less There question on that are to you per does. of be you in don't shouldn't or in bit can specific important market, Certainly, you Growth

Rami Rahim

quantitatively going stronger in anywhere And [inaudible pressures and that us what sort take do question. because answer thing to differentiation attempting know XX:XX:XX] I value. -- just compete lot would Yeah, win are win we of the Alex, are it. a And this other. is like is, then we're be doing, makes each me cost to feel that campus at differentiation. allows it that order all stab me which peers the to of to going to and that detail is that's I offset to But in difficult with in increases, about to our the never There software-led a to else. essentially don't It's has roughly yes. doing. and campus And of very good what how and let first there the very of in extent is then everybody answer been level else magnitude think particular, branch cost is line be on But

we price we of dip a there have greater not routinely, the and opportunities differentiation we are that fairly leaders, So, now able that winning are to where we're are price because solution. that with garner yet

Alex Henderson

And interest any an categories. is you are prices between the by there I gone between large where thoughts are have my taken your area, guess there think could that differences and be actions meaningfully is so that rapidly, on is competitors, due being but exposure point? respect, that up if campus all the more differentials your necessarily have them to locations that With Price

Rami Rahim

thoughts additional appreciate for input, Thanks time. Alex. that No at this I it.

Alex Henderson

you. Thank

Operator

you. Thank

question-and-answer the back now will the reached session. end for remark. to We I have over call of Rahim a turn Rami the closing

Rami Rahim

thank today for to the just call wanted with a in everybody questions. you of just the and leave for will I I couple thoughts. great Briefly, participating

diversity of and remain I the in the the momentum we're especially areas. very and that across we're seeing that encouraged market First, segments by seeing strength the solution business technologies

next with seeing team strength is sets very then of us we I also proud from well. I'm of think the both right think now up the to growth, team year, And for not we're demand backlog our executing and built achieving the the a well least, our profits standpoint extremely that revenue last I coupled doing as Juniper for great that. but commitment but expanding

I'll again. with So, that Thanks you leave thought.

Operator

concludes Thank you this today's at And this line you time. your conference, and for disconnect participation. your may

Juniper Networks (JNPR) 27 Oct 212021 Q3 Earnings call transcript