Juniper Networks (NYSE:JNPR) is off slightly after hours, -1.5%, after its Q2 results featured beats on top and bottom lines but also Q3 profit guidance to the low side of expectations.
Revenues reversed course sequentially, growing 11%, but were flat Y/Y. Net income fell 11% on a GAAP basis and 8% on a non-GAAP basis (up 35% sequentially).
For Q3, the company says it will "continue to prudently manage operating expenses. However, it expects gross margins to remain approximately at their Q2 levels in the near-term. As a result, Juniper expects operating margins for the full year 2016 to decline slightly relative to the full year 2015." It's guiding to revenues of about $1.25B (vs. consensus for $1.244B) and non-GAAP EPS of $0.48-$0.54 (vs. $0.54 consensus). It expects gross margin of about 63%; operating margin of 23% at the revenue midpoint, and a tax rate of about 26.5%.
313M total MAUs, 66M in United States (+1% Y/Y) and 247M globally (+4% Y/Y).
+226% Y/Y change in ad engagements.
-64% Y/Y change in cost per ad engagement.
Revenue of $602M (+20% Y/Y) with data licensing and other revenues +35% Y/Y and advertising revenue +18% Y/Y.
Global advertising revenue of $222M (+33% Y/Y), United States advertising revenue of $313M (+10% Y/Y).
Quarterly net loss of $107M vs. $137M Y/Y.
+45% quarterly adjusted EBITDA of $175M.
Q3 projected revenue between $590M-$610M vs. consensus of $678M.
From Twitter's CEO Jack Dorsey: "We've made a lot of progress on our priorities this quarter. We are confident in our product roadmap, and we are seeing the direct benefit of our recent product changes in increased engagement and usage. We remain focused on improving our service to make it fast, simple and easy to use, like the ability to watch live-streaming video events unfold and the commentary around them."