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What Were the Major Highlights for F5 Networks in Fiscal 2Q16?

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GBB bookings see significant growth

F5 Networks (FFIV) stated that its “Good, Better, Best” (or GBB) pricing models continue to form a significant percentage of its bookings, with YoY (year-over-year) growth of 25%. Customer adoption of the “Best” category remains strong.

Software revenue remained strong in fiscal 2Q16, with over 33% of product revenue generated from software sales driven by security module sales, GBB, and software-only VE (virtual environment) solutions. F5 Networks had a number of wins in fiscal 2Q16, driven by its application security modules with strong YoY growth in large transactions.

A global Fortune 25 company invested $1 million in the F5’s APM (Access Policy Management) solution to enable identification and access management for their employees into Microsoft Office (MSFT) 365.

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F5 Networks continues to expand service range

In fiscal 2Q16, FFIV won a project with a US regional airline that invested $1 million in F5 Networks’ on-premise web application firewall. The project will help mitigate malicious and organic DDoS-oriented (distributed denial of service) service interruptions.

F5 Networks delivered solid sequential and YoY growth from Silverline, its cloud-based subscription DDoS and web security service. The pipeline for Silverline services continues to grow, and the company will invest in additional sales and support resources to take advantage of this growth opportunity.

F5 Networks launched an inside sales initiative in fiscal 2Q16, targeting a mid-range market opportunity where there is a need for application and DDoS protection suited to a subscription service model.

A large European (FEP) (EFA) banking customer also purchased several hundred thousand dollars worth of VE subscription licenses through the Amazon Web Services’ (AMZN) marketplace. Its aim is for the deployment of a new customer engagement portal that coexists with existing infrastructure. This will support more than 10 million customers.

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