Citrix Beats First-Quarter Estimates and Warns of Second-Half Challenges

Citrix Systems beats Wall Street's first-quarter earnings expectations and warns of possible challenges in the second half.
Publish date:

Citrix Systems  (CTXS) - Get Report beat Wall Street's first-quarter-earnings expectations due to increased business sparked by the coronavirus pandemic. 

But the Fort Lauderdale, Fla., software company warned of potentially challenging times in the second half.

Shares of Citrix at last check were off 6.4% to $142.

Citrix Systems reported net income of $181.2 million, or $1.42 a share, compared with $110.3 million, or 78 cents, in the year-earlier quarter. Adjusted earnings came to $1.73, ahead of FactSet's call for $1.17. 

Revenue climbed 20% to $861 million, beating the FactSet consensus of $733.7 million. 

Workspace revenue totaled $654 million, up 27% from a year ago, the company said.

The figure reflects "the strength in both perpetual and on-premises term license demand due to the sharp increase in customers expanding Citrix Workspace deployments for secure, remote work as a result of the covid-19 pandemic."

"Our first-quarter results reflect a surge in demand driven by the covid-19 outbreak - to ensure business continuity and employee productivity," President and Chief Executive David Henshall said in a statement. "This tailwind can be seen broadly across both perpetual and subscription licensing."

For 2020, Citrix said it expects adjusted earnings to range from $5.40 to $5.60 a share, ahead of the FactSet consensus of $5.39. Revenue should range from $3.1 billion to $3.16 billion, compared with Wall Street's forecast of $3.11 billion. 

Citrix's "solutions and our business model are highly resilient," Henshall said. 

"However, given the unknown magnitude, in terms of depth and duration, of this crisis, we view the upside we experienced in the first quarter as a potential offset against what could prove to be a more challenging macroeconomic backdrop in the second half of the year."