The education sector has been significantly impacted by the pandemic. Lockdowns have forced colleges and universities to conduct online classes while local schools have also struggled over the past 18 months. In such an environment, education-related entities are turning to companies like Citrix Systems to help deliver lessons remotely. Citrix Systems is among the leading companies specializing in virtualization apps and cloud computing. Those interested in software application stock market investing will do well to take a closer look at companies like Citrix Systems.
Q22021 Results For Citrix
Highlight Growing Demand
Citrix Systems reported its second-quarter 2021 earnings results on 29th July 2021. Total ARR or annualized recurring revenue was up from $2.54 billion to $3.02 billion year-on-year. Out of the $3.02 billion total ARR, subscription ARR was $1.65 billion, up 74% year-on-year. Paid subscriber count for Citrix Cloud went up from 7.5 million in Q22020 to 11.4 million in Q22021. Software-as-a-Service recurring revenue nearly doubled from $590 million in Q22020 to over $1 billion. In terms of the geographic spread, the Americas accounted for 56% of the total revenue, Europe Middle East & Africa (EMEA) accounted for 34% of the total revenue, while Asia-Pacific & Japan contributed towards the remaining 10%. Net income went down mainly due to amortization-related expenses. Net income per share on a diluted basis came in at $0.5 as compared to $0.9 achieved in Q22020.
Company CEO David Henshall talked about how Citrix was focused on migrating its customers to the cloud. He also spoke about the company’s efforts to grow annualized recurring revenue. Citrix Systems is on track to benefit from the increasing demand for virtualization technologies and is among the software application stocks 2021 to follow.
Citrix Systems stock was trading around $103 on 23rd August 2021. The stock was up 45% on a 5-year basis. Being a technology company focused on growth, Citrix pays a reasonable dividend. It was trading at a dividend yield of 1.45% on 23rd August 2021.