AI-driven momentum fueling record-setting Q3

0:00 foreign

0:00 [Music]

0:04 s propelling Juniper Networks to a Q3

0:08 earnings beat provider of automation Ai

0:11 and Cloud delivered and software-based

0:14 Technologies Juniper Network's CEO Rami

0:16 Rahim joining us now Rami good to see

0:18 you sir what do we learn in the quarter

0:21 well it was a great quarter we had

0:23 record revenue for the quarter record

0:26 Enterprise Revenue we had double-digit

0:28 growth rates in all of our strategic

0:30 verticals record software record ARR so

0:33 I'm delighted with the execution of the

0:35 team I think we've got some great

0:36 Technologies out there it's really

0:37 working for us I mean we take a look

0:39 over the next couple of quarters

0:41 obviously we're an environment where

0:42 some businesses are beginning to pull

0:44 back on spending are you seeing that

0:46 happen at all and what are you seeing

0:48 are you seeing any orders be canceled

0:50 yet

0:51 you know we're seeing some customers

0:53 scrutinize their budgets a little bit

0:54 more and the timing of their projects

0:56 but by and large I'm delighted with the

0:59 order momentum and the demand dynamics

1:02 that are exist in the market today uh I

1:05 think we have seen no cancellations

1:07 maybe a few push-ups uh I really do

1:10 believe that we have a very large Market

1:12 opportunity and we have a huge a very

1:15 differentiated technology solution about

1:17 AI driven operations AI driven

1:20 experience and and the ability to grow

1:23 share even in an environment where we

1:25 might see some pull back in spending but

1:27 so far we haven't really seen anything

1:29 brought me Much Ado About the Azure

1:32 Cloud numbers from yesterday what are

1:34 you seeing in the cloud space from your

1:36 own numbers

1:37 so are Cloud customers are very

1:40 important to Juniper Networks and our

1:43 Cloud business has been performing very

1:45 well over the last few years I honestly

1:47 don't pay too much attention to the

1:49 results of Any Given quarter because

1:51 generally speaking Cloud providers

1:54 business is doing exceptionally well in

1:56 the long term they will have to continue

1:58 to invest in their Network

2:00 infrastructure to keep Pace with the

2:02 insatiable demand from consumers and

2:05 Enterprises for cloud services and we

2:07 power many of the cloud networks that

2:10 are out there all of the hyperscalers

2:11 many of the tier 2 tier three Cloud

2:13 providers as well with great

2:15 Technologies for automation

2:17 Asic technologies that drive capacity

2:20 requirements for our customers so I'm

2:22 delighted with the performance that

2:23 we're seeing in the cloud space speaking

2:25 of performance we have a three-month

2:26 chart up right now but if you take a

2:27 look at how the stock has fared year to

2:29 date clearly outpacing so many of your

2:32 Rivals out there what do you think

2:33 Juniper has done to really better

2:36 position yourself than some of the major

2:38 competitors because you're all 15 but

2:41 when you compare that to some of the

2:42 massive losses that we're seeing within

2:43 the tech sector it looks pretty good

2:46 you know the future of networking is

2:48 around AI driven operations and this is

2:51 where we have performed exceptionally

2:53 well you know we saw our Enterprise

2:55 business grow double digits both from

2:58 orders and a revenue standpoint and the

3:02 magic The Secret Sauce here is our AI

3:05 capabilities that is crushing the cost

3:07 of running networks for our customers as

3:09 well as vastly improving the end user

3:12 experience of using those networks to do

3:14 practically anything today that

3:17 differentiation is working for us in the

3:19 market today better than it has in the

3:21 history of our company

3:23 the release cites a worldwide shortage

3:25 of semiconductors and other components

3:27 you also say we're experiencing ongoing

3:30 supply chain challenges can you talk

3:32 about those challenges and do you see

3:34 them improving on the horizon

3:36 we grew Revenue in Q3 19 year-over-year

3:40 which means that roughly speaking we

3:43 shipped 19 more volume of products this

3:46 quarter than we did a year ago so

3:48 clearly things are improving but they

3:52 remain challenging and in fact that

3:54 we're sitting on record backlog for the

3:57 company which means that there are a lot

3:58 of customers out there that are waiting

4:00 for their products to be shipped I do

4:02 anticipate things to start to get better

4:05 not completely normal but better next

4:08 year we're obviously working very

4:10 closely with our strategic suppliers to

4:13 understand what the Dynamics are like

4:15 and we've invested in our supply chain

4:18 to keep Pace with or as close as

4:20 possible with the demand from our

4:21 customers that's worked for us in Q3 I

4:25 expected to continue to work for us

4:26 through the rest of this year and I

4:28 think it should get better next year

4:31 um you mentioned earlier that you

4:32 haven't really seen a Slowdown at least

4:33 when it comes to some of your customers

4:35 out there in this weakening economy but

4:38 more specifically what does it mean for

4:40 your business for your growth because

4:41 here we are up against a strong dollar

4:43 rates are rising how are you adjusting

4:47 so we are in fact making sure that we

4:50 are pivoting our investments to areas of

4:53 the market that are going to be most

4:55 resilient to any sort of economic

4:57 downturn even if you don't necessarily

4:59 see anything just now you know we are in

5:01 fact looking at investing in new areas

5:04 uh in our go to market organization and

5:06 our technologies that could make us more

5:09 resilient in the event of that downturn

5:11 so for example public sector uh college

5:14 campuses Healthcare are new areas where

5:18 our Technologies are really really

5:19 suited for we just have to Pivot our

5:21 sales motion our playbooks in that

5:23 direction and I think that sets us up

5:25 for Success even in the event of a of a

5:28 downturn Rami rahima CEO of juniper

5:31 Network thanks so much for joining us