Application security and delivery vendor F5 beat third-quarter revenue and profit estimates this week, benefiting from higher customer spending on its cloud-related technology.
After a cut back in expenses related to software and hardware for several quarters, analysts say companies are now slowly increasing their spending in certain areas.
"We are seeing some early signs of demand stabilisation," F5 president and chief executive François Locoh-Donou said.
The company, which provides software and hardware that support applications over the Internet, said revenue in the June quarter grew more than 4 per cent to US$702.6 million, higher than analysts' average estimate of US$699.1 million, according to Refinitiv data.
It earned US$3.21 per share on adjusted basis, beating the expectations of US$2.86.
The company had in April lowered its fiscal 2023 revenue growth forecast and reduced its workforce by 9 per cent, citing macroeconomic headwinds that affected customer spending.
F5's revenue and profit forecasts for the fourth quarter were largely in line with estimates.
It expects revenue in the range US$690 million to US$710 million. Analysts polled by Refinitiv expected US$701.3 million.
Per share earnings are seen in the range US$3.15 to US$3.27, compared to the estimate of US$3.22.
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