On this page of StockholderLetter.com we present the latest annual shareholder letter from EXTREME NETWORKS INC — ticker symbol EXTR. Reading current and past EXTR letters to shareholders can bring important insights into the investment thesis.

 •  9/27/2024 Letter Continued (Full PDF)
 •  9/26/2023 EXTR Stockholder Letter
 •  More "Application Software" Category Stockholder Letters
 •  EXTR Benford's Law Stock Score = 88

EXTR Shareholder/Stockholder Letter Transcript:

Dear Extreme Shareholders:
Extreme delivered another year of solid
performance against the backdrop of a
challenging industry environment. Revenue
for Fiscal    24 was $1.1 billion, based on strong
demand and improvements in our supply
chain, and Adjusted EPS of $0.70[1]. At the
close of Fiscal    24, we successfully completed
initiatives to eliminate channel and
inventory headwinds.
As the second largest cloud networking services provider, coupled
with a continued strong leadership position in the Gartner Magic
Quadrant, Extreme is poised to benefit from the industry disruption
from larger competitors in the enterprise market. These competitors
are either distracted by portfolio rationalization and integration, or
shifting business focus away from networking, which creates more
opportunity for Extreme to take share. Customers and channel
partners recognize our innovation, unparalleled flexibility, ease of
doing business, and simplicity. We de-risk the process for customers
to evolve their networks to the most modern AI-centric cloud
networking solution in the industry.
New logos are playing a substantial role in our growth. We believe
this demand will continue, as customers recognize the simplicity and
overall value of our solutions relative to the complexity and total cost
of ownership of our largest competitors.
The demand for Extreme from new customers contributed to record
opportunities is unprecedented, as evidenced by $167 million of SaaS
ARR we reported at the end of Fiscal    24, up 29% year-over-year. The
attach rates of hardware to our cloud platform continue to increase,
which shows that customers see real value in our innovative software
applications.
Convergence of Networking, AI, and Security
Extreme   s focus on the intersection of networking, security, and AI is
creating a compelling value proposition that's resonating with
customers as they look to simplify the way they deploy and manage
their network. We enhance network security, visibility and
performance through our AIOps and machine learning capabilities
and Zero Trust security posture. With our One Network, One Cloud
strategy, we make networking simple and flexible and help
customers drive meaningful impact across their organizations.
This year we previewed Extreme AI Expert, our generative AI solution
that delivers insights that improve productivity and make networking
simpler, smarter, faster and more resilient. In addition to leading cloudbased networking solutions and AI, we now offer a range of layered
security solutions with Network Access Control, UZTNA and Fabric    
which helps customers secure the network from the datacenter to the
edge in a simple, integrated way. Customers particularly love our Fabric
solution for its unmatched security, automation and visibility     as it helps
dramatically minimize the blast radius of lateral cyberattacks.
Growth and Innovation
More than 160 customers spent over $1 million with Extreme in Fiscal    24
and new logos constituted 20% of our bookings. From university
customers like Washington University and Bangor University,
manufacturing customers such as Samsung, LG, or ebm-papst, the
world's leading manufacturer of fans and motors, or major NHS
hospitals across the UK, customers turn to Extreme to help derisk their
investments in networking and drive better business outcomes.
Extreme is also a trusted provider to major sports organizations and
world-famous venues across the globe, delivering Wi-Fi and analytics to
MLB, NHL, Minor League Baseball, NASCAR, Olympiastadion Berlin,
Borussia Dortmund, Manchester United and Liverpool Football Club.
We also expanded our go to market and added 27 managed service
providers. These new partners open a new avenue for growth to go
along with our core business. MSPs love our unique consumption-based
billing model and poolable licenses, as no other vendor offers such
flexibility.
Leading in Cloud-Based Networking
For the sixth consecutive year, we were named a Leader in the 2024
Gartner   Magic QuadrantTM for Enterprise Wired and Wireless LAN
Infrastructure.] Of the 12 companies in the Magic Quadrant, Extreme
Networks was evaluated as a Leader based on Ability to Execute and
Completeness of Vision and with the pending merger of two
competitors, it effectively places Extreme as the number two player in
the space. Fast Company also recognized Extreme for innovation,
naming ExtremeCloud IQ as one of its    Next Big Things in Enterprise
Tech.

Improved Resilience and Financial Position
Our financial position remained strong during the year, we exited the
year with $157 million in cash on hand and net debt of $33 million. As
we enter Fiscal    25, we are confident that we   ve eliminated the
headwinds from both our channel and direct inventory and have now
put the challenges of the supply chain constraint cycle behind us.
Corporate Responsibility Efforts
We have made great progress against the Corporate Responsibility goals
we set in 2021. Since setting a baseline of scope 1 and 2 emissions in 2021,
we have achieved a combined 21% reduction in these measures. We also
launched our Environmental Take-Back Program, allowing our end
customers to return used equipment to ensure it is handled in an
environmentally responsible manner. Our commitment to our people is
reflected in our recognition as one of the    Best Places to Work    by the
Triangle Business Journal. We continue to support our Employee
Resource Groups and our mentoring program. Our governance program
continues to be robust, focusing on Information Security, data privacy, risk
management, and conducting business in an ethical manner. And,
Investor   s Business Daily recognized Extreme Networks on its list of the
best stocks for Environmental, Societal and Governance (ESG) investors.
In conclusion, our exposure to the fastest growing areas of the networking
market, share gains, and new go-to-market partnerships provide ample
growth opportunities to drive double-digit growth long-term.
As always, I would like to thank you for your support and dialogue over
this past fiscal year. Our team is executing our strategic plan and realizing
our vision of delivering industry leading networking solutions to our
valued customers. We are confident that the successful execution of our
strategy will drive accelerated revenue and cash flow growth and
shareholder returns.
Sincerely,
Edward Meyercord
President and CEO, Extreme Networks, Inc.
 The Company's reported Adjusted Earnings per Share amount for the
year ended June 30, 2024 included in this letter differs by a $0.02 as
compared to the amounts reported on the Company's Form 8-K filed
with the SEC on August 7, 2024 due to a correction in shares used in the
per share calculation for that period.
[1]
[2]
Gartner,    Magic Quadrant for Enterprise Wired and Wireless LAN
Infrastructure,    Tim Zimmerman, Christian Canales, Nauman Raja and
Mike Leibovitz, 6 Mar. 2024
Disclaimer
The Gartner content described herein (the    Gartner Content   ) represents research opinion or
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is not a representation of fact. Gartner Content speaks as of its original publication date (and not
as of the date of this Annual Report), and the opinions expressed in the Gartner Content are
subject to change without notice.
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https://www.gartner.com/reviews/market/enterprise-wired-wireless-lanaccess-infrastructure



 9/27/2024 Letter Continued (Full PDF)