EXTR - Earnings call transcript Q1 2025

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Extreme Networks' first quarter fiscal year '25 financial results. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to the Vice President of Corporate Development and Investor Relations, Stan Kovler.

Stan Kovler

Thank you, Carmen. Good morning and welcome to the Extreme Networks' First Quarter Fiscal Year 2025 Earnings Conference Call. detailing Extreme CFO, and a Kevin and an are and Ed press today for filed and results EVP Rhodes. We X-K me Networks' CEO, President Meyercord; release the With quarter. financial Extreme's just distributed

statements call press include at a to on our future our extremenetworks.com, based is in along the reconciliations, certain section Relations presentation. Today's which the includes with and For your operational Investor expectations of and of strategies. current release, may about convenience, financial available copy business, forward-looking our results, GAAP discussion non-GAAP expectations our growth our earnings website Extreme's and

the of made on non-GAAP Our XX, financial in report from for update as law. statements statements as those may duty our reflect involve results have presentation. plans Any risks call risks can of in reconciliation caution non-GAAP We you materially to a disclosures not can or required statements. These are to described and to differ XXXX factors uncertainties the press the analysis as SEC. found release except on they no that period A the to filed And risk this reliance on our cause forward-looking forward-looking call be put we actual anticipated unless with these otherwise. XX-K will basis these in GAAP stated undue our by them, this June today. on results by ended be and financial

I Extreme's and call to prepared Following President will questions. And will Meyercord. turn Ed remarks, our the now, we take CEO, over

Edward Meyercord

morning. you us thank and joining Stan, this you, for Thank all

of market are we of early Our a broad results the ahead recovery. plan reflect and what the believe in quarter first stages networking were

This new higher quarter. in a win usually resulted earlier from sequential anticipated. than few large benefited a and in down growth projects is that closed what also rates We logo

grew our campus XX% market of of offering. of of and value is fabric, year-over-year, continue of the management ARR and campus integrated stickiness capabilities, return differentiation is in primary funnel demonstrating with our our demand opportunities enterprise second of growing. security solution quarter expansion. The the driver as logo SaaS the cloud to expect cloud AI combination We our new the service to our the licensing and data the get services advantages from player wide most only out unmatched premier competitive of network ranked brings with significantly #X from campus to We're modern are Extreme. end-to-end for and investment infrastructure area significant the simplicity customers derisk enterprise offer networking Extreme. solutions across edge center one their customer ensure that the migration enterprise cloud. We to the The

secure have in most We the solution and industry. the simple, networking resilient enterprise

services by competitors. We our Provisioning is Our the deliver the end-to-end configuring eliminate unrivaled network. our virtual Touch at of LANs Zero by network to the of enabled edge fabric any process time-intensive campus of

fabric This means of customers our network our convergence. downtime because an maintenance. competitors our campus the limiting lateral enabling risk significantly When the eliminating of also attacks. Our the win movement within cyber-attacks campus networks drastically radius reduces of by blast benefits rate segmentation, fabric, granular security micro never see finally, interruption. unbreakable network increases. And The X this. which experience is end-users of itself, sub-second can unmatched heals resiliency upgrades offers campus match during fabric means and None our or it and

time. the Extreme's vendor team Trust Universal easy-to-use Access, in very to the availability NAC is for Fortune which one biggest Zero in manufacturing of policy network XXX most In IT large cloud-based reduce deals significant helps history. This slated and fact, control week, extended we ExtremeCloud only security with footprint we single access a solution be the access remote a this single This We're of ZTNA. troubleshooting sub-second Network SaaS convergence networking to boost was combines won with our offer our which engine mature company Trust application our Zero reason offering. productivity a the and quarter,

as an our of vendor. reinforced the most our we quarter, early This innovative adopter position from technology coming chipset

high-performance analytics driven XX/XX across augmented reality, for and environments We'll the innovation access set and points. X to connectivity better expand enhanced over continue It our applications. Demand are and of enterprise-grade streaming, data virtual to Wi-Fi standards shipping and from Wi-Fi reality portfolio and use and delivers latency, X the only benefits, our the continue player We and mission-critical coming AP throughput crossed cases XK capacity, is and Wi-Fi improvements first substantial lower new for high-density X chasm like being has real-time XK including automation. performance reliability. months.

Finally, our with CoPilot issues issues, facilities universities, AIOps they continuity. to business on and detect care which how proactive or remediate health uptime before customers and associated day-to-day manufacturers solution anomalies provides network retailers, is critical to money impact for save It management. recommendations time large and helps identify network

Technology and Leveraging enables the and at simplified where are sensitive Japan. connectivity resources, season enhanced Wi-Fi their of including Fabric consecutive LA in This and upgraded campus Texans teams, we Campus both and insights the Tech the XXXX XXth end-to-end a resources. We data league's research Vikings, switches meet center WiFi facilities. Texas Innovation to Extreme's Houston our Hardware, Quantum ExtremeCloud Science helps marks for deployments the analytics. with official new IQ which classroom quarter, wins securely and and XE, data Fabric. with The that Packers management seamless displaced Green Institutes XX security, and access Universal we Edge built Wi-Fi Extreme's network to had from University, and testing users benefits Photon and to, a easily provider NFL stadiums as ExtremeCloud Extreme's business Chargers, Minnesota them for and with university demands solutions and practice leveraging for technology. the Bay venues recently across deliver growing highly and at large Network competitor and Connect, Science they've Center large-scale National Universal facilities online

the hospitals Haaglanden on Medisch deal ideal Netherlands, Finally, to of our chief and case largest Centrum. we campus displaced in clinical plans one hospital use an the for infrastructure of to network This aging fabric. modern cloud-based competitor refresh new its its the buildings extend a our the campus, to in more network with a one

to and flexibility to included and quarter, positive closed with our be transaction technology a we're private subscription to gives the more a pricing large innovation, company. and Fortune which models. We major addition working seeing first customers X commercial us European the technology and scalable aggressive momentum this XXX months. we've models in been new XX Extreme service In providers traction supporting with starting get for past on offer our flexible retailer

We of simplicity of the partners at offers licensing this MSP poolable also from economics. and and end unique quarter, level billing model XX Partners and up one doubled industry in is QX, the platform services billings had love managed licensing. resonating. No consumption-based flexibility this consumption XX the of the sequentially. first Our in else

to Turning guidance.

us this CFO, We the market QX based cash full and over share growth sequential expect expect and to accompanied guidance. We to gains to the to of be Rhodes, like and year. by increased anticipate our for continued And growth revenue quality size we turn the the results further in through and walk growth I'd flow. With Kevin margins on our call funnel. that,

Kevin Rhodes

per our gradually operating and by our with initial in the the range. trends midpoint We improve in the continued the revenue outlook leverage exceeded achieved which you, our $X.XX earnings high of we saw exceeded Customer guidance of in of demand end to as quarter. improvement Ed. sequential share model. coupled first demonstrated The in gross quarter, Thank $X.XX, upside the the margin

protracted and revenue quarter in $XXX.X attached geographic strength gradual subscription recovery has of in First EMEA year-over-year. X% been basis, recovery million based sequentially a on in APAC America. with several grew contracts. grew case grew Americas' North digits quarter sequentially revenue support continued On government spending, sales across reflects double and the and this product sequentially for also quarters. recovery The which

well continue line improvement bookings however center trends our consistent our million and quarter were we in backlog X during region, stronger The switching. in share revenue wireless campus of the range. prior with growth reflects sequential and in to was are within compete our And again once fair quarters. of revenue our with was $XXX.X expected Overall, opportunities. Product product winning the and X% sequentially. We revenue data grew the

continue with we customers XX spent Extreme on customers, solutions million gain $X in new this over total As to share quarter.

Looking at middle sequentially. the $XXX more in continue robust we're share gains a recovery support our additions. where see revenue customer up new million, net Total subscription X% market, customer we to segments, seeing and was and

stream cloud driven Total and quarter been the and XX% predictable by our in is of growth revenue for revenue strength services Our business. revenue. support and revenue growth visible first revenue of and was sequential subscription our recurring highly recurring a has revenue

And million. $XXX up subscription revenue revenue deferred year-over-year $XXX year-over-year. deferred to was was XX% million, XX% up total Our our

again grow revenue XX support and the results. product drove XX.X%, this sequential year. Gross the throughout rest moved The fixed to subscription of expect favorable up sequentially. better overhead cover up fiscal revenue basis costs to higher points combination of We more and to product another mix continue to margin

We in range throughout expect our gross or XXXX. similar better margin remain to a fiscal

year were and First operating from up ago expenses quarter $XXX sequentially quarter. down million, $XX million million the $XX

in focus to for our and the driving higher year. continue improvement operating on We margin profitability

all reflects $XX.X profit the million $XXX million and quarter throughout cash business. Non-GAAP million first We operating to recovery The of $X.XX, revenue and for $XXX.X the was of the quarter expenses EPS of quarter $XX were increase higher $XX debt ended $XXX to rest expect and or above XX.X% million. million in quarter to expected first our in with solid of quarter the free cash per along profitability. the with range We the flow operating was of ranges. our a net million year, revenue in

fiscal recovery XXXX out and on flow we expect in have the revenue, cash We profitability inventory continued sell we improve in hand. grow a as

heading new of the guidance. encouraged well of bode which are to we logo turning should level the quarter customer and for the rest activity year. the us and Now We're second into improving seeing, by

For million, range a per the gross margin margin of to to range to to $XXX second share operating $X.XX. to quarter, $X.XX as earnings of and XX.X% to guidance XX.X% in of in we $XXX of Revenue to follows: in be in the range XX%; XX% to million a a be be range be expect

share around Our shares. be to expected count is million fully XXX diluted

to pass fiscal $X,XXX of I'll begin For with million range be the the call million. And to that, we year the to now operator a now to back question-and-answer the $X,XXX full over revenue expect in session. 'XX,

Operator

the comes It from line of with Rosenblatt Securities. Genovese Instructions] Mike [Operator

Michael Genovese

the the Europe to obviously has get just recovery of out started. and the progressing U.S. but lay Guys, can geography. the It in how whether by is regionally, just on here, like clear sounds recovery want what's going driving versus message just the U.S. things kind you EMEA? I U.S. is on

Edward Meyercord

and Kevin up. feel then is and free to Stan, follow This I'll and Ed jump in

You're absolutely causing project coalition yet we some and leading narrow QX right, seeing macro we're what I Mike, a Europe, trends that that's have the And Germany are caution seeing that gives delays. with encouraged majority by official that we terms charge an doesn't and the of budget in there. we're is recovery but we're U.S. -- in think at look have seeing our guide. We're out what as us very a with still

in U.K. new budget. We together government the have its putting a

think they're we speak. presenting I today budget the as

sector, are And so is to being in public projects, happen, our going that lot which what our are delayed. some with of business it a means of being the

have. the so second funnel particularly of if impact. projects, anything as EMEA, we want Stan, important at our seen I that's -- know, our fiscal of to the year the we of slide you we've we see. And what add and a we in or we're half a funnel, Kevin, else. And into look of are opportunities seeing lot lot confident But that's in don't

Kevin Rhodes

will Ed. America. good. North greatly here I in spending America, improvement but spending half, think down, North that's would strength And And see CapEx you're come starting we on believe the that the help it to start which IT is interest in right, one America, second We're to in do the back. in EMEA rates us second some we half. North Obviously, as some help seeing come is in

Michael Genovese

at? talk right share the about competitive helpful. versus looking us of do HPs gaining And share and terms you share the you're Just out then would Cisco, the be What you just Who my the of other you to seeing about any from -- are environment What question, world. now? think comments gain in metrics the there? gain Juniper, are

Edward Meyercord

to competitive way think the gain Sure. And share about to think, just I distribution is Mike, way think the share. the of industry about the and

capability it partners we expect the So landscape? And that aggregation, mean we most closes. also Juniper make. cloud. first are think visibility say differences are what why is until we is market see that's the I to network cloud -- referenced entire we coming that data to the from network transaction reason opportunities through tough commensurate tough with to then we place the HPE. But that one that us. But some share center cloud. then I I out decisions in The share we the as Cisco. mentioned for for of take the closing with winning Cisco. we're the road have stranding new edge They the about anticipating the create there to of and it -- and would that we of to network positions think in foremost, some HP campus expect to have with don't customers, it taking will end-to-end way disruption the means have on wins we -- truly some deal. What of and one for the break through their the from you'll bring the the in to of have terms edge of one from complete And area does are wide news And They across the investments for we're Juniper maps. from wireless

check we thing have ours. say, we they will you technology. do combined They'll technology fabric is with campus technology. But very than box." say campus have that second our unique different "Oh, Every The player single that fabric they the can

go SPB, IP-based. is Ours and are Their in things fabrics campus. for not that campus all designed the on theirs the is

frankly, is a switch you I link, a change you the down able one or a capabilities our win. So could with mentioned in if the which competitors this -- that customer. And when you We convergence customer to or XXX site. to the weeks of capability to the fabric in replicate disrupts Fortune not the X add we resiliency. unmatched sub-second it make our network our were case, mattered This demonstrate that And something network. quite really take convergence, have is unique bring that for trying largest on

that only quite in you're has points. care can't savings to start a turning hyper-segmentation networks do of one When We the turning automatic access and you automatically it physical So that And And massive fabric. create and to are about in helpful have services ability big they and very deal time it up that our services, campus frankly, out us. We we're don't and switch a every that every your security, building can on talk build new the advantages. the network teams connect and within easily. resiliency. And fabric. to energy, all player lot these our talk the environment. These was And with that site. fabric to up customers. to is port means switches capability. We they new up zero-touch clients And adding replicate this request brings about mentioned I to competitors you turn a a that means a provisioning; our the health site very

to out closing is the And Juniper. could the share. is combination marketplace fabric and so the as what's us of see And I consistent, mentioned we with cloud distribution win it of before, that in kind today. when change And competitive HP of allowing

Operator

with Martinuzzi Lake Street line next Eric question of from comes the Markets. Our Capital

Eric Martinuzzi

a the recovery of took year And better if anticipate just customer segment? your recovery robust the And the is in kind of note outlook of event? comment enterprise does near-term in larger that demand wondering market. I more regarding a a or or middle full

Edward Meyercord

And answer the Thanks is for question. yes. the

is as confidence that in and we around scrubbing a anticipating return projects. And have of timing all projects. funnel team are the larger the answer more, of the opportunities of based on our We intelligence the we're

Eric Martinuzzi

seeing And market, challenges then you and also the particularly sector, the you Okay. talked being Germany public still about European U.K., mentioned. in on

having the out Just processes know I that lag would guess, with impacting that time a to that from -- to curious actually have? trickling procurement budget down guide the what the is you to balance like

Edward Meyercord

government created the modern to cases, their And board. to modernize not are new networking the in a have just would tools like some question same in all networks. AI cases, equal. I all technology it's modern And of They Not agencies say, across technology. It's networking capabilities with investments. have They have modern and bring they along the kind to security of timing. tools. make Eric,

budget. have in by the the end that completed to plays And case how so in budget They're to X. their November. spending to fiscal We'll budget, happens infrastructure. temporary should government is The U.K. their have which But on starts coming Their that strings be how on release expected they see And that with year out to prior the that. Germany, labor funds. the out. released a means plan, agenda and expect of would of we Their is first their spend. new March

Operator

line comes Dave Riley. Our of B. next question Kang from with the

Dave Kang

question regarding First AI. is

Some AI have been capability. of touting their your competitors

an -- wanted get AI Just on strategy strategy. to your update

Edward Meyercord

suggesting talked first-generation marketing tuned. and AIOps, unusual We're be would in capabilities. AIOps capabilities, AIOps. falling the well, are things we effectively larger our we've the experts And internally. And are we ability call some of AI Dave, future remedies which journey, customers networking would at AI share, has all AI, the -- to our remarks, that fixes about of to competitors we've of in we in idea intelligent and including the environment. that AI our talked would remediations to network, generative precision one insights traffic, interface mentioned network. At harness to step around Copilot every announcements your or some of Extreme, are a you platform product. I think network using the of -- of AI AI, going interact people that looking the that about the I done building I some we platforms. about machine stay anomalous out leveraging of learning making my And call we're networking would the network behavior of some or then AI that personas into types a with to There's call And at with kinds in it with issues. These into our failures, AIOps. taking another have what category say the first-generation different networking provide really predicting

We have you're it see efficiency accessing of in for We're how kind more in stay it using that experience of internal. seen and we're sales terms will our bringing That's We're a what a about going users. lot to this service. marketing. lot tuned into different using generative of of a and information. assistance applications in in and you'll We've and What very AI next-generation AI different hear is platform service. create

any I here AWS are partners don't to suffice AI because think announcements. future our I'm to front-run Microsoft. want going and But right hold to it say I that

of We accurate far as very and innovative have around been very enhanced information to provide doing visibility, we a And a network et information, your as solution capabilities with work them. have cetera. about stream, knowledge lot reporting,

going So experience. fundamentally, think we it's change the networking to

Dave Kang

you have is, And -- major a table have regarding you my regarding verticals. follow-up -- some

your your health government major get major update vertical, wanted Just starting to verticals, of education. with an on the

Kevin Rhodes

versus Ed, Maybe, similar. in comment. last major seen Yes. they're what this There's quarter we've And no I'll very quarter. shift

same point, David, the at it's shown basically we've that this quarters. percentages we last several decided, the just So over

annually this it it's at point very opposed quarterly, to update probably as more we'll so And similar. but

Operator

of from the Timothy line with Horan it's Oppenheimer. And

Timothy Horan

from rate? point? you freeing of Do upgrade a going industry spent of to kind robust now? platforms Do or to what's for being back budgets X now? this, I for a kind or the I waiting guess kind be now what industry? more if mature? X X of still sense don't I'm rate Or the networks when are wait they run this an AI much think or to on versus year related enterprise, correct to the are to upgrade at guess AI? you And of up a I pitch or the a Why year I upgrade why Or have am normal much more is upgrade gets the be maybe X

Edward Meyercord

out. new AI I of from managing the yes, marketplace the the network a remote many seeing is trying now, so this Tim, Gen tools are security. presence whether or for of not to and Underlying convergence mean, coming and security. networking right capabilities got way, is to -- for you've trying in AI you X the baseline solve for to kind security, you're to solve has of different campus, both or networking and for that it. And and security what Security either you're elements AIOps solve for have we're to then workers

vendor landscape. there's best-in-class vendor the whether that solutions or not a a across provides single that's or not So the a entire multi-vendor, really single security

how And don't picking partner full I but stack, -- think to with wait. choice if of just the spots so a decide we're kind will. with have our you to we security And today customers really

other than moving seeing we're constraints, So forward. -- budgetary we're people

to it the and future as beneficiaries it All and relates the networks of relates existing -- environments will will you're hearing what customer about of the platforms? become platform. all As flow be of existing part the platform of just and and into sort AI of to

in today minds platform perspective has perspective of that will that new our a networking talking really into not flow the a So from investments your decision investment timing to we're networking there's naturally from decision because or a all made be about.

Timothy Horan

Does compatible have it your anyone other. will platform out else and backward Because capability? work with that is there

Edward Meyercord

in not networking, No, no.

Timothy Horan

And for so rate below think Like above the is -- the trend? industry? what you when do are trend, we correct run

Edward Meyercord

projects into placing coming which our and what rate for we we've this run see business, seen tick think we mentioned doing to We were orders were activity. of us saying volumes fiscal people lot encouraged just that players encouragement is are through We've rebound. of have -- expecting the larger distribution. These well. what the are of to the We projects a those lot seen. I quarter as is look, I we orders. mean, 'XX, of channel our by -- to smaller business, year. up, I saw call you kind -- listen start a the indication overall which second in for that an seen we But we've from

slip of next We some projects these into have out seen year.

when view see healthy And competitors the this on So see This of of we're larger more is to our expecting a half recovery. to we'll is consistent first governments. that 'XX saying budgets of with in are is these market. the returning kind some what

Operator

question Instructions] with [Operator next is Christian Craig-Hallum. from Schwab Our

Christian Schwab

Ed Congrats, and Kevin, on good quarterly performance.

of As middle we as get product gaining budget look positive competitive It of EMEA. run me question. at your to kind to positioning, comment in think your somewhat the the this that XX% should to share, last at resolution into 'XX, be be at. normalized top running a fair? Is rate, line market we that year market should recovery, seems you on We in XX% that lines CAGR business the fiscal operating

Edward Meyercord

jump going one. that I'm take and in to let you Kevin,

Kevin Rhodes

coming growth yet right? product people digits. that then probably be our come starting are -- perspective. will we still growth coming high double-digit at would whatnot. again to teens higher these support our double-digits believe percentage would say single and think the get blend of the the the there believe more of normally, of EMEA back growth, we that not the would that rate subscription -- back But double-digit we revenue in here in with budgets IT spending We're I a to with full-scale a when That's we're and obviously, things spending the wake drive probably out But hit do when that would number, and do to low that, a quite you with a back XXXX, think like from mid out would Christian, mean, to long-term low I opportunity a view. We we challenges I number. in Yes. is to

Christian Schwab

on in then fair? that long-term world I operating And math. Is from line it you achieve in XX% here of question, the fiscal a to growth approaching margins. guess us just should economy top at seem that XX% a But and to 'XX, on then follow-up here. hang doesn't a your sustainable it's heroic to year for basis target the

Kevin Rhodes

operating do of that, this as That's the improve that to will leverage even quarter, rest here continue right, -- saw I the an to we're mean we operating we're leverage in first in in that gross see bit to I the on leverage get fell our that identified, the going to Christian. we're we margin of continue time. the overage little And I up to way, quarter, think higher And bottom the operating we year. we I believe that our revenue throughout think a just over fourth at not by model. XX%. We could mean to tick will to just fourth We sequentially get year, the line. around of quarter up the going be continue quite year. margins XX%. the But drive to going certainly throughout of by see

Christian Schwab

that that logo And was dugouts on yesterday. Congrats then inside Series comment as the the at to hard lastly, World just it your not I'll see well.

Operator

line of Company. the Ryan it's Needham And Koontz & from with

Ryan Koontz

your I motion past made and pipeline over go-to-market in of from you've made what the on progress us efforts? And changes hoping could update you on any impacts quarters. your few seeing the from some bookings changes was sales you've you're

Edward Meyercord

year Yes, we have a made changes ago. from

him We sales and our have is up to a general. sales have in of the changes we organization Commercial And there. lot Chief Officer reporting Norman made Rice with

we much organization. as our Importantly, to we that a say a more bear alignment. the And and of talked we've gotten made differentiation motions, lot Officer. recruited we've terms how it I'd Marketing marketplace. have fabric, within Chief relates better of detailed selling about lot to in We've a And cloud changes new end-to-end specific in that bring very

from will, we're say if what organized. we playbooks, you going different and going some I'd we're specific where quarters we're parts we're We be some as our it not that creation further competitors we before. opportunities they're funnel. in teams the #X going that our after. going of are we're the And be targets this build funnel and to #X And year just doing able than and that very disruptions have create motions pods, next feel year, not have in differentiation that is very marketing with to marketing sales to have different to have be world. And market relates our we to upcoming looking that it targeting in in for calling with what's very to this And specific quarter. But quarter our now of going out future plays confident last just and

The we're other in that's rates that element also seeing remarks and to convert. And mentioned that us is higher how my I conversion giving we confidence.

generate in are the has some place. and general, to I higher the of putting quality of quality rates think differentiation It's ability our technology the made think to in seeing -- and as a funnel. go-to-market higher that organization. combination motions I incentives higher volume that that our well higher changes we're with as conversion changes leading we've So and to a And in we're channel the sales lot our do

Ryan Koontz

would obviously versus and gross margin hear quick a right the a characterize is your your top-tier overall differentiation environment strong trajectory competitors? just here. follow-up. you on how your now And competitive I But pricing

Edward Meyercord

our been It's inventory from gross But our is actually maybe case something quarter larger looks at or we've in hear there. competitors, in that it our channel we is look you where better. in holding than competitors certain markets says when our was obviously, margin, discounting line. we've some distributors industry been better larger We've to the this like inventory -- been of uneconomic. hanging more What been the We've there's situations seen that which our always shape in our the doing certain move. are that

think there's inventory kind But as expect a the is -- maybe I just out nature than little far would distribution. as further from of our maybe some that's based of I that woods beast. Extreme of think feedback the on the I of issue that competitors

Ryan Koontz

this lot And said you that they you on seeing with irrationally. can the there Are largers there, inventory behave of or? a

Edward Meyercord

there's X% we with make builds depending But that's fly I players maybe of radar. decide normal given the and on of other. think a a some the depending -- get quite as statement. lot strategies. part mean, wins the geo, markets, to attention maybe Extreme inventory we If X% forth a timing, I it's industry, each and in I player, certain pressure think on share on have do large going they really up, to depending market maybe they the much might share, larger don't tend is that we back And market below as want a the

Operator

from David of line Vogt the And comes with UBS. it

Unknown Analyst

is This for on David. Brian

And then the first, on have earlier? margin follow-up. projects you that and of So a the revenue earlier Can those than impact you detail I provide closed closed that can expected? quantify gross projects

Edward Meyercord

do to that? want Kevin, you take

Kevin Rhodes

it anticipated very all, very fact, had Yes. extra -- say, -- I'd for normal. had at we in earlier our our actually I at in we would I very, $XXX would we in profile deals expected, of couple little that size, And of of closed than And the QX. gross were say of wouldn't was a similar had that and us. we but just first margin up to I to anything terms we a closed pipeline profile we the that us in the That a were million. little projects range tipped $XXX that's sequentially narrative I be million, those QX reason case. where why would be I of midpoint margin closing that, got wouldn't revenue, quarter-over-quarter say in would was bit obviously. the normal went up. a That's we say if false

high and our of at range so million. And the point $XXX was

bit million a $X $X it expected. than to little more call million, So we

Unknown Analyst

And for I'm my about curious sheet. follow-up, balance then the

last year, customer. concentrated to the outlook is next? come in So for down at outstanding, of what is at balance would one you today? was quarters the say coming highly Where receivables receivables And the end the

Kevin Rhodes

sheet say perspective, Yes, Sure. from I'd balance got good of first a all, we've DSO.

I ranges DSO the think our range. XX typically to XX in days

at now. We we not concerned receivables are what one a we from concentration from So perspective outstanding partners. did have a distribution little our year larger have last about right all of

comes probably XX about from Just to distributors. our about XX large a reminder revenue of XX%

that's So for not abnormal us.

receivables we anything call million receivable wouldn't We from million this had quarter. of quarter-over-quarter, it I last Our $XX had of different normal. $XX quarter.

I XX And that within think side receivable collect we all next days. will the cash it's the on of probably certainly reasonable enough.

pretty we good feel that. about So

Operator

Meyercord the his I see questions for I back no Ed further as closing queue, turn to the in will call And comments.

Edward Meyercord

to thanks, Extreme. appreciate thank and We Carmen, you, to have their always, stay interest a the Thank up tuned I quarter about work for into channel and and we mentioned employees your put on the for Thanks, as in strong on And have great some earlier everybody, hard to for for what's product want call. that that. for tuned we're in news exciting And and future stay We front a the day. I and the quarter. everybody, participating and our excited really this customers come 'XX. here partnership. their And

Operator

in participating for all today's you thank And conference.

now disconnect. may You

Extreme Networks (EXTR) 30 Oct 242025 Q1 Earnings call transcript