F5 Inc Q3 2023 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : Francois, if I can sort of go back to the comments about the stabilization of demand and dig into that a bit more. I mean you did comment about the stabilization in a quarter when we saw systems revenue decline significantly as you sort of have worked through the backlog. So I'm just wondering when we interpret those comments to both hardware and software, is that -- should we be interpreting this as sort of a more normalized mix based on what you're seeing in the macro and that sort of as we think about fiscal '24, means that you're sort of looking at $700 million or $2.8 billion annualized sort of number as being at least where the floor is where you track if the macro remains the same? Is that the way to sort of interpret the demand stabilization comment?

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : Got it. Okay. And Francois, a question that I'm getting a lot from investors really is about AI. And the investors are expecting an inflection again in terms of application growth because of use cases and really more about your application security capabilities. How do you think they're positioned to navigate sort of that inflection in application growth? And where -- how do you think about the challenges in managing that growth as well at the same time?