Citrix Systems, Inc. (NASDAQ: CTXS) stock rose over 4.8% in the pre-market session of 23rd January, 2020 (Source: Google finance) after the company posted better than expected earnings for the fourth quarter of FY 19. The company posted fourth quarter subscription ARR of $743 million, which reflects an increase of 41% year-over-year, and SaaS ARR was $520 million, which reflects an increase of 49% year-over-year
Moreover, the company’s Subscription bookings as a percentage of total product bookings had increased to 69% in the fourth quarter up from 51% in the fourth quarter of 2018. For the full year, subscription bookings accounted for 62% of total product bookings compared to 42% in 2018. The company’s Workspace subscription bookings as a percentage of Workspace product bookings were 73% in the fourth quarter, which is up from 62% in the fourth quarter of 2018. For the full year, Workspace subscription bookings formed for 71% of Workspace product bookings compared to 58% in 2018. Networking subscription bookings as a percentage of total Networking product bookings were 63% in the fourth quarter, which is up from 18% in the fourth quarter of 2018. For the full year, Networking subscription bookings formed for 44% of Networking product bookings compared to 13% in 2018. The notable inflection of subscription as a percentage of Networking product bookings was on the back of a few large customers that elected to transition to pooled-capacity subscription agreements in the fourth quarter. One of these transactions was the largest Networking deal in Citrix’s history. Future committed revenue posted growth of 15% year-over-year to approximately $2.5 billion in the fourth quarter. Total average contract duration of deals booked in the fourth quarter was 1.7 years, which is up year-over-year due to the richer mix of subscription bookings which carry longer duration
CTXS in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.71, beating the analysts’ estimates for the adjusted earnings per share of $1.66, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 1 percent to $809.82 billion in the fourth quarter of FY 19, beating the analysts’ estimates for revenue by 1.24%.
Additionally, in January the company has increased the share repurchase authorization by $1 billion, bringing the total remaining authorization to approximately $1.75 billion. The company had also signed a $1 billion term loan credit facility, which the company plan to use to return capital through open market transactions, accelerated share repurchases, or other means.