What Drives Juniper’s Revenue Growth


Jun. 17 2019, Updated 4:14 p.m. ET

Enterprise business is healthy

Juniper (JNPR) is optimistic about its enterprise business, which saw YoY (year-over-year) growth in this year’s first quarter. With a large financial service transaction, Juniper’s enterprise revenue run rate grew by a double-digit percentage in Q1.

Juniper also closed its acquisition of Mist Systems, a player in the cloud-managed wireless network space. Juniper reports that customers’ early feedback has been positive for Mist, which Juniper expects could disrupt the $6 billion LAN (local area network) market.

Article continues below advertisement

Software is a key revenue driver

In the first quarter, Juniper’s software business grew 8.0% YoY and accounted for over 10.0% of its sales. Juniper CEO Rami Rahim stated during the company’s first-quarter earnings call that “this strength was driven by a combination of on-box and off-box offerings, with revenue from our Contrail family of SDN-enabled management and control software solutions increasing nearly 40% year-over-year.”

Juniper expects its software sales as a percentage of overall revenue to increase as it introduces new products and offerings. Its service business also grew in the first quarter, by 3.0%, and accounted for 38.0% of its total sales. The business saw strong recurring revenue due to robust renewal and attach rates.

Weakness in the cloud vertical

Juniper’s revenue was impacted by weakness in its cloud and service provider verticals. However, the company expects demand to rise in this year’s second half and is confident of leveraging its expertise in the space.


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.