Citrix Systems, Inc.

Citrix delivered a mixed third quarter result while maintaining its strong position in the Virtual Desktop Infrastructure (DaaS) market and the Application Delivery Controller market. The company has built a large and dedicated global customer base and a strong presence in major industry verticals within its domain. It has demonstrated success in its cloud shift with over $1 billion in SaaS ARR, and it has largely migrated its model to recurring revenues with over $3 billion in ARR. The management believes that their total ARR will expand over 10% this year on an organic basis, demonstrating the overall strength and velocity of their business. Citrix has witnessed a fairly positive demand during the Covid-19 pandemic and the impact of the Omicron variant might not be too adverse. We are optimistic about the expected renewal rates as well and we give the company a ‘Hold’ rating with a revised target price.