The software provider reported fourth quarter revenue of $778 million, a 6 percent increase over last year’s fourth quarter. For the entire fiscal year 2017, Citrix had an annual revenue of $2.82 billion, a 3 percent increase over the fiscal year 2016.
The company reported non-GAAP net income of $248 million, or $1.66 per share, compared to $218 million, or $1.38 per share, in the fourth quarter of the previous year.
In the company’s earnings call with investors Citrix CEO and President David Henshall noted the company’s fourth quarter growth and its strategy of “aggressively driving operational transformation across the company in our go-to-market.”
Additionally, Citrix’s networking business showed strength, particularly in the enterprise segment. The company said this was due to three factors — easy integration across its Workspace accounts, its software-first approach for its Netscaler Application Delivery Controller accounts, and its increased visibility within its Analytics software.
Henshall noted that within the networking business, Citrix “introduced new licensing models to share capacity across hybrid environments, and we shipped tech previews our latest analytics platform, for behavioral security analytics and application performance analytics.”
Citrix didn’t say much about its NetScaler software-defined wide area network (SD-WAN) platform other than to report that it is starting to see larger deployments, including a home goods retailer that deployed the service in more than 1,000 individual locations.
In the company’s previous earnings call with investors, Citrix outlined a new threefold business strategy which was based in the company’s move toward a subscription model. In the Q4 2017 call this week, Henshall said that Citrix’s customers and partners were “really embracing the new subscription model, driving a faster conversion story than even I had hoped for.”
During the fourth quarter, the subscription business contributed to 12 percent of the company’s total revenue, and 11 percent of the fiscal year 2017’s total revenue.
Citrix said that moving forward it believes its cloud-delivered services will represent half of its market opportunity by 2020. It also said that it plans to push into new areas of business such as security, analytics, and a secure digital parameter.
“What drove the outlook was just the operating performance. It’s – we’re disciplined. We’re investing, and we’re focused on things that are going to drive future growth,” said Henshall.