CEO Rami Rahim highlights fifth quarter of year-over-year growth for the networking company, while pessimistic about the supply chain in 2022.

Kelsey Ziser, Senior Editor

October 29, 2021

3 Min Read
Juniper's $1.2B in Q3 revenue shadowed by supply chain shortages

Juniper Networks reported net revenues of $1.2 billion for the third quarter, up 4% year-over-year and an increase of 1% sequentially. CEO Rami Rahim said this was the fifth consecutive quarter of year-over-year growth for the networking company, but was pessimistic about a return to normalcy for the supply chain next year.

"Our expectations for 2022 do not assume a material improvement in supply chain constraints," said Rahim during a financial call with analysts.

Figure 1: Always sunny: The Silicon Valley based networking company has seen five consecutive quarters of year-over-year growth. (Source: Sundry Photography / Alamy Stock Photo) Always sunny: The Silicon Valley based networking company has seen five consecutive quarters of year-over-year growth.
(Source: Sundry Photography / Alamy Stock Photo)

"Starting with our automated WAN solutions, while revenue declined year-over-year due entirely to supply chain constraints, we experienced another quarter of strong order growth with solid momentum in both our service provider and cloud segment."

Juniper's automated WAN segment brought in $385 million in revenue this quarter, down from $437 million in Q3 of 2020.

For the cloud and service provider verticals, Rahim said Juniper is "seeing strong early adoption of our 400-gig capable platform due to the strength of our Juniper bulk operating system, our differentiated silicon capabilities and the deep engagement we maintained with these important customers."

However, Juniper took a slight hit to its service provider vertical, and CFO Ken Miller echoed Rahim's concerns over the ongoing impact of supply chain troubles.

"Looking at our revenue by vertical on a year-over-year basis, cloud grew 20%, enterprise grew 7%, and service provider declined 6%. We've got double-digit year-over-year order growth in service provider. However, the timing of shipments due to supply constraints impacted revenue."

In addition, Rahim was optimistic for future growth of Juniper's automation software portfolio, and metro routing portfolio as service providers' 5G deployments take off over the next year.

"Our cloud-ready data center solutions experienced 26% year-over-year revenue growth in Q3," said Rahim.

"Based on the momentum we are seeing, our cloud-ready data center business is now tracking to meet or exceed the high end of our long-term model looking for 5% to 9% growth year-over-year."

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Juniper's AI enterprise services also grew 35% year-over-year, and revenue for Marvis Virtual Network Assistant nearly doubled, added Rahim. The company forecasts at least 20% growth of its AI enterprise services for 2021.

Juniper's $450 million acquisition of 128 Technology continues to pay off – "We saw a record quarter for our Session Smart Router portfolio acquired from 128 technology with triple-digit year-over-year growth," said Rahim.

Security revenue also grew 9% year-over-year to $160 million, with product revenue increasing by 16% year-over-year for the third consecutive quarter of double-digit product growth.

Rahim hinted at Juniper's approach to SASE – the joining of networking and security services – as an advantage in the growth of its security vertical. "Our connected security strategy is gaining traction in the market because the convergence of networking and security provides us with a competitive advantage."

Juniper predicts revenue in Q4 to reach $1.3 billion.

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— Kelsey Kusterer Ziser, Senior Editor, Light Reading

About the Author(s)

Kelsey Ziser

Senior Editor, Light Reading

Kelsey is a senior editor at Light Reading, co-host of the Light Reading podcast, and host of the "What's the story?" podcast.

Her interest in the telecom world started with a PR position at Connect2 Communications, which led to a communications role at the FREEDM Systems Center, a smart grid research lab at N.C. State University. There, she orchestrated their webinar program across college campuses and covered research projects such as the center's smart solid-state transformer.

Kelsey enjoys reading four (or 12) books at once, watching movies about space travel, crafting and (hoarding) houseplants.

Kelsey is based in Raleigh, N.C.

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