JNPR - Earnings call transcript Q4 2021

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Juniper Networks Q4 2021 FY 2021 Financial Results Conference Call. At this time, all participants have been placed on a listen-only mode. And we'll open the floor for your questions and comments after the presentation. It’s now my pleasure to turn the floor over to your host, Jess Lubert. Sir, the floor is yours.

Jess Lubert

operator. you, Thank welcome and fourth XXXX quarter Good to call. conference afternoon, our

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

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

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

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

Rami Rahim

of a and an high share times. consecutive our non-GAAP despite per everyone, growth pandemic. call a quarter, discuss strong guidance, expectations Demand Order during XXXX these for out all $X.X go results QX our strong account adjusted from basis, more chain more earnings who joining each year-over-year quarter, exceeding of increased grew delivered strong double-digit revenue year-over-year remained the We order to supply thank us solutions those teens to geographies momentum be families by affected year On and orders global for categories challenges all by for XX% customer and you when on continue extended than the strong fourth with orders third record the continued to with perspective. backlog billion. results. our exceeded to and level seeing verticals, and and both today's full than with and growth ending midpoint year-over-year. hope lead thoughts my you our I unadjusted and all your afternoon, well, was Good a of are to experiencing across all

results despite QX XXXX, Our be increases for which us grow our fifth very business overlooked, year, and absorbing business capped in material our operating for Provider expanded supply saw a non-GAAP Not a and Enterprise year strong third business year-over-year, to our consecutive both grow we margin growth. our to acquisition-related consecutive Service Cloud return costs. a also chain

we executing XXXX. strong as are momentum. the and forward strategic confidence teams is pillars actions, being and that entering by four give with we year me Our new driven are our are momentum This well, there to extremely look

commitment to networking experience. First, delivering the experience improve our technologies simplify end user and that first and customer operations

our the create give multiplier a Juniper not solutions that software-centric products, through pull new benefit that Paragon While the our with Mist to provider and market then center Automation Apstra vision experienced effect These strategic will us and other we AI-Driven creating suite. opportunities, point control extended growth acquisition the our differentiate with data the this in portfolio, revenue and Enterprise also XXX to Technology first only but with important subsequently in come. recurring service started journey years

product across believe future resonating prospects. is differentiation for our is customers a in we point vision that and our providing confidence experience-first key Our of

focusing on go-to-market use us handful the within to enabled cases, in AI-Driven of use from tailwinds attractive next Second, to several a continue differentiation This Each aligned to to the three a also all we be highly WAN, likely and these to we XXXX. technical our are we Data meaningful to them. our market years, to security Automated over and inflection Center new Enterprise market Cloud-Ready that the to company of and and is embedded are and focus unfolding in see solutions, major enabling focused XXXX us cases of see and enables beyond. growth opportunities, growing to on management capitalize big deliver accelerate engineering product innovations seamlessly

incremental our in Third, back and XXXX, meaningful sales change with meaningful capabilities quota-carrying in XXXX. enablement yielding XXXX transformation sales go-to-market sales a started was is results. reps leadership by increase in which early a followed during This in and development

by investments which in quarter, investment reflects but our the in year-over-year to investments This continue than a have channel, solely competitive sales we generated increasing registration, in robust and than more to where capture also enabled channel XX% deal only number share. year. by in have We since meaningful us as advantage channel also accelerate resulted XXX% go-to-market be demand position more our our record to the made will and channel. These organizations not partners XXXX. invest in growth total channel again upcoming of our past Juniper clear, we do this sales view increase organization us to so should To

to sales continue software-centric more monetize we the our subscription training and licenses, transforming a software to of term-based Finally, offerings of offerings perpetual to This organization ratable includes more stack. introducing value our our transition more model. to our business better

software XX% the the QX momentum year-over-year. in in saw frame, innings, orders services than early XXX% related and remain more year-over-year by efforts total experienced increased which revenue these encouraging and While time we grow

and which of due solely consists and recurring related Mist strong annualized to increased Our subscriptions truly services security demand for year-over-year XX% software ratable revenue, certain subscriptions.

software efforts critical not also improving making growth, as but accelerating to we're only progress to customer margin. our the and stickiness view by encouraged more capture we are revenue, which We in

access XXX-gig to upgrade, markets and the which driven This importance Metro, the likely momentum build should Service is against beyond of backdrop investments healthy the by us Core growth that being a strategic years. only and the well- Provider aligned Edge enterprise, network, strategy of end years network. Provider coming Service the Our portions the clarification few over as to growth accelerate and the is initiatives XG in digital is transformation position for and next increase of layer radio Cloud expand

While I'm I and are years go-to-market us developed seeing, encouraged products conditions. delivering, position gain come, market investments believe and we've in deliver to strongly by organization the market will we share we've the growth our regardless the to dynamics the customer made end we're of engagement in sustainable the

profitability up the As X% recent the order seeing backlog beyond. Based navigate. and point and to levels a you the am regarding our growth despite current believe at to prove least and to backlog margin can currently very in solid assumptions we our projects, continuing likely on tell, deliver us and growth have developed we chain in deliver we're regarding to challenges optimistic challenges and of improved momentum operating and I these to are sales I we're transitory, future supply, order strong XXXX X% supply extremely sets XXXX. expect momentum, well our expansion

Our backlog chain to expectations for the XXXX returns tailwinds we persist creating during year, assume improves that unable current more levels. once longer-term work challenges supply down and and for potentially are to supply the backlog normal business chain our

times orders, the to While we stabilize gross for orders fewer grow orders we decline adjusted would early we XXXX and seeing lead year. as in start to expect expect

with we're provide Solutions, strong the solutions as as key perspective, both a additional seeing perspective. insights of Starting saw address revenue We well Automated a customers. to Service our and our strong Cloud product and which momentum products, portfolio. both I'd particularly our customer of Now, across order like into demand our from with MX quarter and newer some WAN saw developments from and some adoption PTX Provider our and healthy Automation Paragon families the

Our performing the a wide to revenue well, should perspective in area now years come. and XXX-gig building that tailwinds present XXX solutions we have than are more from wins

invest our that next-gen We silicon to in efficiency Automated are WAN just offer portfolio, investment while power platform throughput, recently continuing and MX maintaining and logical industry-leading for all and custom families will scale, our protection. announced PTX

Provider silicon hand. built for who is are at in investments no as optimized with silicon further are our use interest we portfolio invest is early prefer to cases appreciate that and strong single resonating and Cloud the later that where We for this Metro all continuing also the portfolio, see our job to continue These purpose with systems should Service customers, year. ACX that complete we family build purchase to

investments We the capitalize are Edge and and believe playing to present our over win Core, customers' solutions needed across all making to of opportunities growth automated years. the areas that requirements LAN we next several for on Metro

XX% growing execute, in year-over-year our to Magic to revenue XX% the and for and It QX vision basis. with the cloud, a Mist in to top especially a a Our Quadrant a unique we cool Gartner AIOps exciting has AI-Driven leading and buoyed technology differences, full from several microservices on both wired access solution to ability go been access, see year including market, our significantly leader architectural XXXX scores and Enterprise record see and by in numbers in business. modern continue wireless outpaced wireless wired

strong virtual multimillion Mist For patented units major doubled also switching the sold orders year-over-year bank We're with location quarter. our continues and in winning multinational as record portfolio, leverage more seeing example, which QX, in experienced that and services pull-through technology. operations closed win recently simplified our revenue via dollar wireless than based we a a on the BLE of fourth AIOps our and EX

approximately and than Marvis Virtual in year-over-year. a our Network wireless surpassed and Our million as revenue doubled last EX in full-year and basis, compared nearly LAN, Mistified Mistified doubled more QX $XXX year was order quarter. of XXXX our access, Assistant revenue the to pull-through in wired million rate run annualized On $XXX associated

a to X SSR confident full expect the quarters. our our technical turning access their outlook of remain wired and note for highly for stack, the access, bundled companies special operation platform on saw AI-Driven government. year. security validation deployed and are Mist multimillion deploy same the sites capabilities, inside and business wireless further opportunities driven recent and like in WAN we AI by Christmas, ease customer growth QX, AI-driven technology Smart new in year-over-year with by and solution and XXX the and of key Our of Mist enhancements before the in We triple-digit the wins SD-WAN announced X month, various highlighting Juniper Cloud, combines One needs. AI-Driven via new continue retail revenue the I Of strong where Enterprise and Juniper federal Edge Enterprise we third-party week the order Routing new SD-WAN to with following and the including dollar product Technology, in are scale upcoming portfolio, combination during win momentum, footsteps. day the is regarding of superiority which With build sectors the hardware Mist the within Based banking AI. order this to traction solution, Session acquired future and unique automation our XXX demand

While across trend, of of chain by Data revenue QX our another solely in Center the encouraging to due challenges, driven verticals to broad-based we order strength declined supply Cloud-Ready related quarter timing geographies. and shipments experienced

large enterprise We about have but only platform center creating X industry's strong. service We the Apstra, to our not networking during and prospects day which across high, to We're secured open-fabric provider and growth remains is for provides upcoming deals enablement $X Center XXX-gig in continue driving only the software-only our with that the needed new Key and upcoming majors, the full in also center this day accounts. competitors a Cloud-Ready continued logos, with management X, experience market, Data in versus solution to to stack we see remains growth X than is that strong year. we data investing win. leading million. Apstra a in and our optimistic greater include superior record intent-based users than center interest wins sales the day the data the of momentum Apstra-driven number XXX-gig on data momentum and continue is be opportunities, now operation. more portfolio success management accelerate XX tools year. our business Customer the cloud

networking technical believe security services us a both security like advantage services and QX, quarters but our our with we currently portions in orders double-digit to to due competitive We team was convergence of strong in networking quarter, in remain mention to another security of our during growth. security confident us in where believe provides to and connected enable flat are security Our continues tailwinds future the that I'd business year-over-year the the strength grow provide grow renewals market attach should will revenue strategy, focused. current continue record the saw essentially and rate. our our We in impressive and delivered year. and to and year-over-year business

Our up due customer compared lower satisfaction all-time year. basis, year achieved higher highs, revenue margins the scores full expected costs. On XX.X%, service of points our once margins basis came again better to XXX set our and a and service in new prior new all-time record to a as than

continues Our new execute is revenue services benefit experience. automation to margin driving and to on cloud-delivered insights extremely incremental and through only focused and also organization create customer opportunities, well but efficiencies not

I our change. and to empower mission state that Before I’d power to Juniper connections conclude, like is at

our Now, more combat we low-carbon ensuring networking in for that than and global supply building and for climate resilience to ever, chain solutions business committed this force is risk are world, future. to throughout a good enabling includes a

action. need to our corporate report monitor environmental, our social and CDP urgent Today, responsibility and are make, the bold responses. responding to and annual continue report and We through social progress for governance we

XXXX. facility are committing global our neutral be carbon We by to

thank You like discuss for shareholders extend my I our hard the customers, our our to is will results financial Juniper. page, to can on call new progress and I more who to quarterly their confidence continued work our to want employees our now our in and partners to creating climate for web and value in follow over essential stakeholders. thanks dedication, would especially support turn juniper.net/climate. will detail. I their Ken, which for

Ken Miller

share of fourth at I ended and XXXX discussing start XXXX some will afternoon, on you, million X%, everyone. end solid $X,XXX our of and quarter and per and team. the by We Thank then both chain fiscal global our non-GAAP outlook. good with the of cover fourth Rami, color despite environment. strong results and earnings year the grew above results challenging execution of our Revenue X% sequentially, quarter by guidance. exceeding $X.XX, the our year-over-year expectations were by midpoint These driven revenue supply

XX% customer to Gross growth. continued all saw we significant orders quarter, solutions. third of than fourth year-over-year growth the and consecutive order quarter verticals, a across During see geographies greater

supply attributable was Some supply of challenges, an chain secure early order this needed. after orders causing Even these when to orders, part in industry strength customers certain to for early to ongoing place continued we estimated adjusting total Due the backlog have in $X.X more year the orders than billion. are the and teens to constraints in strength with supply, to the to of grown high year-over-year. ended record related orders component effort

grew X%. decreased by revenue grew XX%, a Provider On and basis, X% vertical. Looking year-over-year at Service Cloud Enterprise our

growth of While Enterprise revenue declined strong posted exceeded shipments, year-over-year due to and Enterprise our expectations. orders the year-over-year double-digit timing

X%. customer Total more $XXX ARR, orders million strong strength year five grew software-centric X% entirely XX%, to Enterprise or Center of services a was double-digit software order transform million, year-over-year four with solutions. Turning fourth as XX Data year-over-year a On AI-Driven exited to timing reviewing year-over-year. an basis, of and year. revenue business. due to an $XXX Cloud-Ready million, top and Provider year-over-year. growth grew Automated and decline and was flat WAN declined timing XX% growth recurring the grew the last quarter, quarter in increase efforts revenue Security the XX% our were to Center were This shipments of reflects customers Total This Data experienced for year-over-year, we ARR. revenue Enterprise. orders strong shipments, Annual our was due product $XXX Cloud, In Service related revenue, to the but posted Cloud-Ready of Solutions one versus was

of for expenses to posted above postponement X%, quarterly due The cash XX increased We the $X.X we product Our favorable cash, $XXX XX% costs, guidance a COVID-XX a in total year-over-year Non-GAAP a event quarter operations share. revenue X% that per non-GAAP of quarter. $X.XX elevated in fourth million which software the for approximately Cash and gross the customers dividend million surge sequentially. margin not of from of was compared investments dividends, to would margin as higher-than-anticipated XX.X%. by our year. expense the gross paid $XX If $X top quarter, kickoff mix. driven in total for result operating the flow a million our costs accounted We fourth XX% Non-GAAP equivalents of and cases. with onetime have and the quarter were XX.X% midpoint, of was last exited as anticipate primarily we related billion. COVID-XX-related was reflecting sales to recent of

million $XXX in of repurchased the shares also worth quarter. We

on saw of all Moving growth results. to and customer was full solutions revenue XXXX year for million, we up verticals, pandemic our Total XXXX. chain constraints, was X% which versus $X,XXX supply the geographies. and across Despite

increased compared technology Enterprise Our as services is Cloud go-to-market Enterprise our X% on and year-over-year. Center a and on an our $XXX perspective, Service In across as both grew up revenue X% Cloud-Ready Provider Total was From year-over-year. we focus top year of WAN customer exceeding a million, business transforming X Enterprise. reviewing customer solutions expectations. year-over-year, The last experienced have Security Security our the and Automated driven XX Data X% line Provider year. our Service grew basis. AI-Driven Solutions which software revenue Cloud, was Total X and $XXX verticals million, investments grew XX%, increase organization. XX%, by we while for X% XX% and X top strength were made, full grew an customers solution to revenue was related was were XX% year, the Product grew well

XX% for Our the Despite Non-GAAP expansion. XXX primarily basis, basis of by and service in have these year, as top COVID-XX-related XX increase acquisitions gross we to would posted of an year. elevated XXXX. compared versus we improvement in with margin XX% revenue operating higher variable to costs, XX points $X.XX, supply an approximately on Apstra. compared last increased earnings due share expanded estimate our Non-GAAP to margin for XXXX. of XX increased margin operating the Technology of X% total costs diluted margin XX% increased per last by basis If associated not XX% customers driven XXXX XXXX a accounted costs, gross of points gross and XXXX. non-GAAP primarily compensation expenses XX.X%, was versus to Netrounds, non-GAAP

from year, $XXX We dividends our to the dedication of during team's resiliency increase and the return an total our capital in of repurchased compared free For a in million financial cash flow $XXX with these $XX both we performance XXXX. $XXX of paid quarter for of shares challenging operations to million pleased worth had cash million XXX% of and testament very is The and times. XXXX. to a and performance, shareholders flow I'm through XXXX. dynamic million, fourth

I Now, in detailed our our website. on guidance, to on you available some would the which find like CFO provide could Relations Investor commentary color

$XX million, We expect first X% of minus quarter million, revenue growth plus or is of year-over-year. $X,XXX which

We first associated with significant still continue the component elevated and which chain-related costs, supply the to half least are headwinds are rising year. at through of experiencing expected freight

While we sequential an or quarter margin we minus have Therefore, these headwinds, we expect decrease. X%, plus non-GAAP expect the do approximately later offset a pricing of first these taken impact year. actions not gross actions XX%, to have until to in

non-GAAP to of Our approximately approximately a share earnings million. per assuming share or is count plus expected $X.XX, $X.XX, be XXX minus

full XXXX. to year expectations for our Turning the of

we not are and does further exiting throughout for growth the remains are the experiencing Given strong growth. XXXX supply current deteriorate. and guidance This momentum current similar our chain X% assumes order to at environment X% mid-single-digits to backlog, updating levels to revenue year, constrained expectations least the from we our

the quarter, first the sequentially of grow revenue the we Beyond year. course to expect throughout

and throughout supply particularly year. the tight expect be during the challenged the chain of constraints first remainder to half remain We

the backlog throughout at anticipate also year. and remain levels We elevated largely unchanged to

XX%, decline we non-GAAP expect of is can margin margin XX% XXXX year full be a to which difficult slight from While gross predict, levels. gross to

of increases guidance trend first volume the to be operating margin to year in year range for the as said, XXXX. We through actions of remain the management basis least logistics. to to non-GAAP That we XXX expect we the elevated points is to expected half range announcement. take the to and the continue advantage flow and high We basis, our results. end non-GAAP will of we for XXXX is have full margins to to on year of quarter due to during like earnings with the to the pricing second committed market lower potential the expense full provided and to of invest half and by at disciplined mention we gross versus be expense third taken operating see components year the that I'd end of a cost non-GAAP expected margin opportunities, consistent expand at the gross up the

on earnings non-GAAP non-GAAP Our our rate to be to than revenue EPS year plus basis. And expected expected is minus tax faster grow on or worldwide XX%, is full X%. a

to increase would to declared our $X.XX in record. stockholders continued to Finally, paid quarter Juniper's thank and per environment. to this dedication closing, announce be dividend cash like their commitment pleased to quarterly X% I'm to success, of I we In challenging share have for especially a in this team our

to for call questions. Now, I'd open like the

Operator

is question Long first the And Instructions] from Barclays. coming from [Operator Tim

Tim Long

follow Thank but to down from here. on could talk little over did you orders XX%, want just quarter. Rami, bit the you. the a I if still prior little a about up

next companies few Provider of as touch It forward? larger nicely second, on these have well. as they this new business, of most seems follow-up, But year. bit do Are you do some shipments -- orders So, correct? ordering to just as far from as years talked volatile little do which see for how pretty are a seems around of to kind you for and like out out expecting then a see there hearing pretty you they go not solid you're in were buying what And Service be can you the And customers? turned how as a you see lot about -- the the previously?

outlook more you. you you your particularly just there push touch can on and as Thank into the So, Edge? Metro

Rami Rahim

questions, the for Yes, certainly. Tim. Thanks

XX% strong quarters just now. last growth around year, with strong remain the in have I'll been the the So, start I'll orders year-over-year for And momentum. over they order three And that one orders. last say first

Our solid, order very and market all the seeing of key and the what is momentum, our there strategic encouraging we're out very Enterprise. across true market, segments, opportunity in Cloud, SP it's vertical

I'd continue over growth that's mean, to So, say to basis on able continuous XX% to unrealistic. love be going that I year-over-year to see a we're forever.

our been early there don't But is the order, -- certain the the clear this decline. adjusted a our basis, We strong enjoy the business amount organic to true that reflection that that's will eventually I of we ordering of that think the of because eventually And will exactly last the will know environment, and on that addition great over have of demand said, grow in when, in we year. an happened health solutions. to start gradually year, that differentiation but

has the the SP very our business. Orders double-digit we're do We're in with grew backlog as area also performance I'm with into our year-over-year. the full time was the seeing year pleased territory record to X% grew Revenue XXXX exiting for On in house, of side solid. very that well The a QX focus. in go-to-market of the this with frame. strength basis well. Orders nature broad-based

I Tier space, And us for just opportunity, the And lot the and about seeing that opportunities on carriers revenue of tailwinds segment, where some provider now. are think of Service last cable X, Metro. in also future. accounts. some North Tier Provider terms not only in a will especially those but amounts bode actually XXX-gig, momentum, an the X, but good in as right least, core are Tier significant well winning touched America not you the encouraging in for cloud opportunities talked here out we've we to international which it apply and doesn't it's So, There X are space. we in

the we If the on benefit our bookings which And you switch, encouraging we're by to from the to invest we in significant. I will signs rate the that's a the of XG but aggregation solution, think tell hit, that in seen of why data today, we've anticipate that don't of it RAN network ACX that certainly are made we which have as and portfolio, is that will something for Metro, point, happening is $XXX will And time, strategic just decision space. the about a be complete end now million family something QX. have And run in which deployments I'd yet you the this part products, have year. this the Metro-focused most first

very point that that So especially next the see later year some tailwinds and that's suggests we a encouraging this data Metro good should from opportunity year.

Operator

Notter is next from from The question Jefferies. coming George

George Notter

through Cloud. I guess, would in like I of of there? terms customers of later wanted you're seeing in just of bit Can a easier ask you kind terms talk pricing about your Provider coming you what and pricing, about said heard maybe the customer a your of walk Enterprise timing can those some increases. I just But but what that to in I taking the in are of more Service year. imagine you negotiation receptivity? on

Ken Miller

Yes. Thanks, George.

customers do think, last aren't increases. playing I I you're year happy out. say the largely did imagining referred I is that we what mean, price I you’re -- mean, about would pricing we to. increases

an pricing we I cases, right? are are majority to statement. expected think able understanding, for And But actions obvious that's of they to. the the as implement vast the we

So this we've that of pay which as market of the And about go for to we rolling line, second more good top reception in should half the us about the off that starts year. anticipate feel what it done, overall. feel good through

George Notter

guess, and negotiations, pricing that the Cloud taking Service I Provider And Is this, guys. so they then, it. Provider to are higher underline Got pricing fair? you from

Ken Miller

acceptance doing we we are but mean, seeing deal it deal by I fair. is it and customer-by-customer are Yes, the situations, sometimes across board.

George Notter

QX remember of tell you can or you year? be raised anything back us year. earlier pricing guys end benefiting maybe the of pricing increases initially towards then tail in about QX this last correctly, if those year you last Should I And --

Ken Miller

Yes.

QX So, we didn't impact our first There took products. It you did and half of if action partial June. products. all in all year an action was our impacted a hardware was of more expansive around The in action, will. the of last we

two we take actions. So, did

action We realization first of action, more second are the for the seeing but from some think, would the I be us. impactful was,

Operator

question next Raymond Leopold is James. from from coming The Simon

Simon Leopold

see guys on opposed I cloud majors maybe bit to in have if more little want maybe some terms the what unpack of as you you to could hyperscalers. the vertical the termed the cloud color of behaviors a

of of to the the within differences an sense And some are X% follow-up, in contributions us price from that forecast much X% just are give Just the their are and assuming sales of is you as coming if like what increases? trends. how there growth, easy

Rami Rahim

the for Thanks question, Simon.

it me the start and our contribution to the this price I'll then growth question hand Ken about increases of the to on to talk over year. around cloud, Let revenue

continue So, momentum cloud with in our I'm to the vertical. see delighted we

the think between not within about we're like just the of this the the two, what most area diversity I categories. seeing is seeing, those in hyperscalers the that thing or and of cloud each the success we're majors I that those within

solid technology strength strength the of as It's know, that And across the So and lot our we accounts. in very really much growth hyperscale a speaks years. with that hyperscalers, footprint, the the of generated over a the a the last now I all the accounts. distributed engagement had of we to large think engagements, customer have hyperscale you traditionally, significant several of our number that more

Apstra provider we that much news really space, call very very much good The broadening so very have, of XXX-gig great data actually progress. focused simple addition the addition to cloud applies that, our center or makes automation in on X a the developing what is, Tier much technology investments. of act and to we our the within applicability made the cloud to hyperscale that networking in and We deploying develop wide for portfolio, space hyperscale, running been technology lot the and strong we've data or a cloud center But cloud of including majors, majors the major has segment. to now area

that and the delighted we see So, really to is have here. I'm it across momentum strength board, the

Ken Miller

pricing But is. how increases haven't exactly let of guidance price Yes. X% the to to this reason we was to can. we much considered did that offset know, it we the of quantified just And the have as action, why the provided year. And we on X% -- the pricing as action we really majority you growth when much the

protecting in and revenue about result factored It to and overall growth, into those headwinds. more some trying really the obviously, it's offset So, will guide. margin some margin is of

Operator

Liani next question is from Tal coming The from BoA.

Tal Liani

I have quarter question said reported, a before in ask of they XX further days the they there The was when follow-up question. quick just deterioration my one the same when environment I FPGAs ability FX, other the last it deterioration networking components, getting Do do to like today the and comes and to gear was as others. or in see see you you same before? supplies specialized source CPUs it that

Ken Miller

Yes.

last would pretty days. We last notable we So last say seen it's I'm It but for XX to I days. constrained, we've right? the quarters, still few XX supply the have haven't environment. seen, in anything we anything going noticeable seen remains say haven't in the constant constraints a not seen good

mean, year, the X% guiding right? line of in first year is going absolute growth we obviously remain cost full cost of the X% it's expect et volume the of to we extended growth. I components, we that the believe would for out, half, cetera. out remain although thing to to year-over-year, on be we're times one definitely going particularly a do contained to we lead increases point I revenue comment sight to have The expect We

we're to in that believe at getting supplies we enough So, like to with the point time, as as satisfy getting we're constrained environment, and revenue get, do much this outlook. even would not we

Tal Liani

I ask it. to about you specifically Got routing. in share, want market

better. getting is environment the So,

You where market don't areas. it routing and to break about, et you share Can like expectations, down, end market Service referring expect cetera. where Cloud, And Cloud, rate spoke gain share areas Providers, markets, you new maybe you in areas Enterprise, like in unique your expect talk about dynamics. products I'm certain to

Rami Rahim

Provider Service Are Right. want separate understand to talking the referring space? sure make I specifically to I and Service then about Are segments? Service Provider, or question. three segment as you layers really you Enterprise of different Cloud the opportunities the and Provider within sort

Tal Liani

take break being market down cycle I'm the down a to it I and to it years, trying there's to And trying now. understand anywhere. flat take can to of routing going for so trying -- be understand We down. I'm many to I'm after areas are -- expect kind dynamics you areas where growth and the will you remain as you before? market are sort gains, anywhere and the believe expect it what and take share what the can the where What you are same want. areas the that of

Rami Rahim

Got it. it. Got

to specifically And Okay. routing.

two SP. opportunities the routing is and SP. that's particular, happening to I on key Cloud space, whenever to is So, in addition market our the opportunity. Metro that is take also that's The Cloud XXX-gig. obviously really about you is that to and right point the focus focusing that now and is but specific segments Enterprise should you're There But these in SP share big routing, for of into goes talking an in both us in routing, that, think on area. in be opportunity around And inflection

opportunity us. confident, let's in opportunity right? add Metro, I want and space, and confident throughout I where taking for the subsegment the momentum, clear. share, terms most am for about am no essentially now together yet to SP market but the on portfolio a be we're XXX-gig. building early revenue in still actual through. seen needs based well these last XG I confident very to fastest-growing Not it's That another the especially that of shipping for of networks, as of because So, momentum, because in that talk space way it's And comes to us of over SP take in we quarters, very area share. this brand-new the deployments the but three will seen I'm routing days there up very order where taking the we're growth traffic out that's within is terms XX% where we've because share. is year. very where flow It's order

Operator

coming The Cowen. from Paul Silverstein from next is question

Paul Silverstein

Yes. that your I of customer How it's your And my much appreciate as networking offer as with markets, of cases, growth. gain And with other of strength I of have is question share LAN, of in versus insight all Mist wireless market with a To aspect you've attribute much Any very Rami, there function nature? confluence the you Ken, on of But virtually albeit to is in every not follow-up? share across referencing been much a strong how well respect products? of a impossible. a business, do different for that I've to impact got begin how gain? trends you broader with, hard to if of fact such the it as number a before can of that the delineate, pull-through

Rami Rahim

Mist to this the differentiation the So for touched have of even area, frame, one rates And in enablement team. Enterprise area, year, in challenges the native how solid we using strength true Even really our reasons to has growth of our technology, strong and architectural AI-Driven in order overcome. Paul, I There and been a differences largest scale is revenue some had invested within And built enterprises cloud we've have where have solutions I full of this. results, the competitive sales revenue for scale-out posted because we difficult been strong and supply this strong. sales, can shown world, believe that face phenomenal. these the in on that in the the for QX One history of underlying time the results. in we're revenue think the channel the that we've our you leadership on chain company never architecture very couple sitting execution in we and key a is exceptional the our

share. posted that accelerate draw actual taking revenue down to honestly we very and backlog to that the more those confident that we huge we that of we think as again, translate And taking I So, share are start can built. orders that

Paul Silverstein

Rami, your then -- very have their different -- they terms in details, on of similar largest been and not seeing strength comments, of about well. given they're are the enterprise incumbent, the as being but the piece, risk business obviously, they Cisco bullish largest

is pause to a As this were this go XXXX, when evaluating back the look I there that was respect years, decisions. applications to the pregnant et How seeing what cetera? that network in an pregnant clouds, this as keep been term for enterprise passed on-prem? you've to reverberation beyond pause enterprise are cycle share to and now many going we XXXX, to what's -- pause longer and well of as as -- the deployment respect network or How peers you with Does to gains above up seeing out on a many parse much seeing incredibly And a there's investment that architecture, lot cause industry the that we were that cloud. public there's catch the from move is standpoint. really lasted beyond multiyear and in now not with to market sure, do beyond Are enterprise decision-making on enterprises referencing?

Rami Rahim

great question. Yes. It's a

I'll sort two time it break of First, say lines. into up I'll --

were of cases, more. to a couple actually were Enterprise but But we really COVID. affected. job pivoting only years, elements last not the in that invest that, of were had Over certainly to nice not the subsegments as result did of of affected, or They segments there some experienced a headwinds

public college box sector. campuses, big take So retailers,

need captured in I think differentiated we the look networking and really opportunity those more with that to an subsegments experienced solutions. strategically, increase at

course, best past. to complexity AI-driven operations. capture normalize, the And points. CTOs are looking think, for Now, of let's look the They to enterprise. inflection are also we are center gradually, of I CIOs enterprises I And forward. cloud-delivered, as going solutions equipped those They data looking be very honestly, things the enterprises on-prem for think albeit, that for those don't legacy are and of towards and start rushing to simple

tailwinds So, the I'm tailwinds here. only years. talking of will couple the market forward going the in what that last yes, experienced in increase the I we've view to Enterprise about relative

Operator

Fish is James question coming next from Sandler. from Piper The

James Fish

is with why any great the mix? Look, but data But that center higher And is as just it the cloud Is growing side to we versus something, roughly XXXX. faster? business data are orders way a chain switching to segments of product this been this supply there quarter. issues pick provider business spending space you could get quarter, one part given excluding business. the arguably other I'm center do break as for a issue really prioritizing nicely. center would in service demand that segments growing well very Juniper on and little we since being security And specifically? quarter a what these strong going and is try security hasn't terms have bit security to out data security have the grown I within not environment this The in of not the

Rami Rahim

Okay.

So, which broadly center sort of first me the I the is James, data part to would have and part. supply let it able and, And currently easier supply of is if I security. question, we your that address the ties more around switching what of question, everything. for if chain are grown constraints. to in about course, of understood, our constraint both ship we're think Because Everything weren't chain revenue. Literally terms second

Throughout last well. we orders data Our is well into grown center have year, very business territory. switching performing of double-digit all

Our revenue year grew well. as full the last for year

orders QX, of declined standpoint. relative because to supply in crazy Center from world the in a Cloud-Ready Data in specific purely parts of availability the live we in timing revenue somewhat chain the of this Our

have available honestly, or don't and to all in demands compete with So our about to peers not -- concerned that the we I capture I'm at about solutions demand those industry. the

is that in frame. double-digit that is from a two our high-performance some think side, products, That security of to our time -- vary again, segment, very saw there these grew large orders, from grew characterized and high-end reflection, security larger QX There also look you're mainstream, And our the again, at really the actually offerings. of to into that There's security product a standpoints. just line that of the I very product going security lumpy. But think, true in going the high-performance our On SRX enterprise security of well sort which to more territory. I is you business broad-based attaches quarter-to-quarter. They're health with nicely. are

Ken Miller

our take product Yes. only security front if security view in the business The you would on business, year I is the add XX%. thing full grew

security this pleased year. We're the So, seeing the anomaly kind given any course QX results. in pretty you XX-day period performance the an throughout with of with of overall the are

Operator

Alex is next from question coming Needham. The Henderson from

Alex Henderson

handled a it. versus are off, want the gross to new high very full though teens. the nice the on see roughly than the you've And handling duration question It's obviously I lot First most companies the -- orders. compliment way clearer it's other XX% year. to in to growth that my question for acceleration I What adjusted from on guidance is increase you

last changed order have growth, changed baked that -- been on at hasn't did around price supply all, you there's but Given you front. hikes already in chain nothing year, you've that supply commentary And the the given very you're nice so the constrained. still

X% it outlook the So, in supply Is up X% you and Is a software improvements? for function no function it your X% a Is up take within to availability? and growth if growth expecting? higher? having allowed a towards much to rate software, from shift being I take chain you what change it there's improvement the function revenues question a by to higher in growth of guess, mid-singles allows a is of with a shift no what couple, X%, mix redesign? of revenues you're to What

Ken Miller

the Yes. No, for question. thanks

guidance built the seen, that much X% of access strength would revenue our we given is we've supply, given guide demand could the out. be absolutely to X% backlog So, XXXX the constrained we’ve If that supply. by higher, more likely

is supply-constrained forecast, if you it will. So, a

for XX that mid-single of were supply chain confidence Now, in said, to the is little the year challenged. to a going volatility about what need and least just had the believe changed right? a we supply ago. we That assumptions remain our line our nothing's we talking that in we has at So We more bit, procuring still sight said our digits. changed days --

we're XX X%. saying feel about X% to forward, better that days we Now

and basically our that on revenue raise procure to So, level to deliver to from we goal. least it ability to mid-single need we X% supply confidence did our X% at

Operator

Credit is question coming next The from Sami Badri Suisse. from

Sami Badri

Thank you.

to we other portfolio for this that's yet really to where specifically What to this call, and Metro are cables, on actually expand set. you twice the just double-click to so you just why looking they this? and isn't is piece. is add which said wanted So understand are alluded to this position what it's telcos, better conference need this? solution opportunity required? on what all can Rami, you've the are something just of you and SPs, and guys going first earlier, Like, going? I First, on Can What in

Could you actually this. mentioned encompassing your this The understand maybe tell -- of to all help just And are some you you actually I these that maybe use. earlier us could potentially us could for two just cloud second piece much more is customers you all customers using But expand on be your could think kind things? of if Apstra.

Rami Rahim

Absolutely. questions, Thanks Sami. for really good the

Metro So, the and the need? is opportunity, question we great on So, specifically routing we do have what technology.

and you're outer We systems systems, factor have to closer capture we Junos optimized customers on. are in platforms a Internet sort critical the so our fantastic and routing need stack, and of ingredients. the business operating of putting reaches the closer deploying all customers Junos end-to-end form and residential or because to and price What metro, are Evolved Metro really and opportunity

low-hanging relatively you it think So can it's standpoint, development technology about from a fruit.

exactly XG for that And because do we're complex are we're factor that and didn't priorities lot it opportunity. most terms this just pieces. now a making a that's what essentially have in bet. doing. we have had specific of earlier? power the investment form to We as Simply it that two We of of lining And component, that we in optimize elsewhere, we Why Mist becoming really and center. AI-Driven we've is in we're experience in data a I management at the the on Enterprise, mention the Metro, software components the recently, there day built with And just of a good very importantly emergence more based opportunity. that bet with should Apstra also the and operations the

largest to scales in reach scale. solution wrote XXX%. we leads standpoint. the data only have book We some Apstra or the center They Apstra really, is allowing stack look data world. opportunities. to just in Eventually, for win the the and that's the pure business on the do center, beyond and us intent-based And focused. question differentiation But more not It full that more customers we the with best is it's then us that's opportunities data the primary of -- open-management on focused want software center. and much opportunities. data of got deliver center our campus the expanding deployment the industry. other might sure primarily With experience the at formidable for it's I'm make higher space we the the now, customers. to center We've Apstra. the that and frankly, best But we operational is opportunity. It's Okay. to in to bulk on second the data data that have and the right competitors solutions possible today continue an the networking, quite center opportunity. this more Apstra the from The

Operator

Hall Rod is from from question coming Sachs. Goldman next The

Unidentified Analyst

you is? are Sanfer for question wondering supply the is MX better Max worse router This [ph] which we're And quarter? -- higher-speed -- on tight lines even my maybe chips previous taking question specific for Thank currently a had supply the question. and more than Rod. in the or supply. to of on it I is And constraints, shorter how can comment

Ken Miller

Yes.

board, problem, the and maybe solve ebbs and another flows you pops seeing are as constraints up. we across supply are really a So particular problem

see anyway, business specifically, was results our the up. could SP from relates and of overall actually kind to MX you As down revenue QX in was it QX

more ship than of we timing in that's to did on So more going in, importantly, but orders, quarter-to-quarter we did QX. vary But supply. QX timing of based say,

So cards. is or really It situation of supply and all across with kind solutions. of across board, there's I unique our a products MX constraint line don't the feel our

Operator

from next Samik coming The JP Chatterjee question Morgan. from

Samik Chatterjee

at expansion. of least operating that 'XX the to the points into -- a guidance basis there's retain compensation had baked that for talked indicated rising costs margin expansion? to XXX the your just I Is companies employees. question we some Does for that of on

Ken Miller

Yes.

total not retaining only but operating have So, XXXX, factored for cost investment for we expectations also our in employees. purposes,

So operating into to yes, margin. that plans plans, our our including fall factored expand is expansion

Operator

next coming The is Daryanani question Amit Evercore. from from

Michael Fisher

delta This XXX or down that's margins Amit. without is question. versus you what COVID-related between for having there is way taking have think, impact? basis-point XX.X%, I'm like that of break points else Michael wondering, Thanks that any I Fisher about cost, been mentioned you reported. freight curious my XXX on was for kind cost would gross versus input I basis inflation factors to an anything other so

Ken Miller

Yes.

well as tell costs fees. that just is both, you of So, freight as a and expedite component chunk I'll big it,

So the would costs categorize fees of bucket. component and kind I expedite is same

If you versus both combined are look a freight, that at equally as that to effectively impactful number. group

Operator

The is from question Morgan Stanley. coming from Marshall next Meta

Erik Lapinski

that mindful be any Erik there new of or be back if a is for guess, is if guess, And should by project-based would look web-scale Automated I customer, from that, we we that This existing any on we just volatility to Meta. driven WAN, when customer of? projects strength the at can you've in go mostly that I noted, was customers? new

Rami Rahim

Yes. It's actually question. great a

a routing our Those some to think, backlog to cloud new more XXX-gig and been and service to and we contributed competing been ago, for we our has have opportunities fairly quarters both existing revenue. footprint, in our I orders hyperscale deployments of large we driven by said cloud and think yet couple But I that last the And a momentum other over the have strength seen but of segments. existing we've WAN, our actually provider not a win. to both within might customers. words, starting alluded, year extent opportunities that winning in that, the provider having lot have to

that quick will continue is and tailwinds great the thus as this of us to actually the far give been start those most So, deploy. footprint, opportunities year summary to existing has but momentum year and win next strength the throughout

Operator

from The Citigroup. Jim next question coming is from Suva

Jim Suva

you. Thank

would a see when to XX-month to into customer just those start fold Is work consider we some and of expectations that relationships? hyperscaler about kind that that. few COVID your was it to like and wins about Does ask you. about Is design then quarters were a of to the such. I going directly that. lab longer? excited and greenfield on up going you And of recognition? what very for Following line typically Rami, I revenue play I it time topic, I'm I hyperscale, some remember revenue to you actually ask calibrate into new was model. ago, start and Thank trying we

Rami Rahim

Yes.

of to fair there's year, second testing will this of happen events throughout period of deployment part more is in think it's half think the ready it certification then and the RFP is feed as year. for to period with a into I process. and an There sequence deployment. this closely there's of winning the a probably Typically, the as the where trials early ultimately then opportunity testing do work use and customer case-specific you getting

of And service wins, provider space the sort second they year large-scale time of cloud maybe half WAN or whether So, the frame. of this be provider that's space. typically in true most

Operator

remarks. to management to the turn closing now like floor I'd for back Okay.

Rami Rahim

I we our for just in prospects, you as that interest, in can listen, on you just as basis. in growth have in as -- and everybody. my Well, our myself and Okay. see our I the terms to that appreciate time sustainable thank the the hope this year management well the confidence both wanted I team. confidence well of revenue to as placed not and in ability deliver profitability, but a

And thank So, talk soon. we'll you.

Operator

This Thank you, call. ladies conference does and today's conclude gentlemen.

You lines your day. time, may your and phone participation. Thank for wonderful a have disconnect this at you

Juniper Networks (JNPR) 28 Jan 222021 Q4 Earnings call transcript