Citrix had a below-par quarter as its transition to the subscription model continued. The company’s discontinuation of the perpetual license offerings particularly in the Workspace, App Delivery, and Security divisions caused a sharp fall in the revenues as the subscription revenues did not rise at the same pace. The management used the ARR (annualized recurring revenues) metric for the first time in this quarter and reported a $2.94 billion ARR, implying a 22% year-on-year growth (a 15% growth even if we exclude the Wrike acquisition). It is worth highlighting that Citrix did witness strong pandemic-related tailwinds and the management was expecting many of its short-term contracts associated with its cloud and remote work offerings to convert into longer term commitments which does not seem to have materialized at least in the first quarter of 2021. It is to be seen how the management handles the upcoming challenges and the transition. We keep a ‘Hold’ rating on the stock with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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