Citrix reports Q2 revenue growth despite fall in consumer confidence
Virtualisation giant lauds cloud, desktop and datacentre success in its second quarter results.
Citrix achieved 16 per cent year-on-year revenue growth during its second quarter, despite the ongoing economic uncertainty in EMEA.
The virtualisation giant banked a revenue of $615 million in Q2 and reported a 50 per cent year-on-year rise in the number of deals it closed that exceeded $1 million.
We saw customers becoming more conservative late in the quarter, delaying orders or reducing the size of transactions.
Nine of these deals originated in EMEA, with the Americas (26) and Pacific (4) regions accounting for the remaining transactions in this group.
Overall, the revenue generated by the EMEA region was up 21 per cent on the previous year’s quarter, despite the firm noting a marked decline in the region's economic confidence.
In a conference call with analysts, David Henshall, Citrix’s chief financial officer, explained: “We saw customers, particularly in EMEA, becoming more conservative late in the quarter, delaying orders or reducing the size of transactions, based on uncertainty and the economic environment.”
The company also reported good growth in its datacentre and cloud business, where revenue topped $112 million. This is 20 per cent higher than in Q2 2011.
Henshall said Netscaler, Citrix’s cloud delivery platform, had been responsible for much of this growth, with licence revenue up 15 per cent on Q2 2011.
The revenue generated by the company’s Sofware-as-a-Service division grew by 18 per cent this year, thanks to the growing popularity of Citrix’s collaboration and data sharing product, ShareFile.
“We saw steady gains in new customer acquisition from both direct and online channels, as well as solid retention rates across the subscriber base,” said Henshall.
“Overall, the datacentre and cloud business had a strong first half of 2012, up 25 per cent through midyear.”
Meanwhile, the revenue generated by Citrix’s desktop solutions division topped $343 million, with the company closing 144 deals involving more than 1,000 seats of its VDI XenDesktop offering.
“In Q2, there were 20 different million-dollar-plus deals for the desktop products,” said Henshall.
“We now have 1,800 cloud providers delivering several hundred thousand desktop licenses as a subscription service to their end customers,” he added.
Looking ahead, Henshall said the company expects to close the year with a total revenue of around $2.58billion.