Executive Vice President and Chief Financial Officer at F5
Thank you, Francois, and good afternoon, everyone. I'll review our Q1 results before providing our Q2 outlook and updated fiscal year 2022 guidance. As Francois outlined, our team delivered another very strong Q1. First quarter revenue of $687 million is up 10% year-over-year and above the top end of our guidance range. Please note, as I review our revenue mix, I will be referring to non-GAAP revenue measures for the year-ago period.
Q1 product revenue of $343 million is up 19% year-over-year, representing 50% of total revenue. Q1 software revenue grew 37% to $163 million, representing 47% of product revenue, up from 38% in the year-ago period. Systems revenue of $180 million is up 1% compared to Q1 last year. Rounding out our revenue picture, we see continued strength from our global services with $344 million in Q1 revenue. This is up 2% compared to last year and represents 50% of revenue in Q1.
Taking a closer look at our software revenue. Subscription-based revenue represented 81% of total software revenue, up from 77% in the year-ago period. Subscription-based revenue includes a ratably recognized as-a-service offerings and our solutions sold as term-based licenses. Revenue from recurring sources, which includes term subscriptions, as-a-service and utility-based revenue, as well as the maintenance portion of our services revenue totaled 68% of revenue in the quarter.
On a regional basis in Q1, Americas delivered 17% revenue growth year-over-year, representing 59% of total revenue. EMEA was flat year-over-year, representing 24% of revenue and APAC delivered 2% growth, accounting for 18% of revenue. The strength in Q1 span customer verticals as well. Enterprise customers represented 71% of product bookings in the quarter, service providers represented 15% and government customers represented 14%, including 4% from US Federal.
I will now share our Q1 operating results. GAAP gross margin was 80.3%. Non-GAAP gross margin was 83%. Along with our increased component prices, we anticipate continued pressures related to our supply chain in the next several quarters. We expect these pressures will result in some increased cost related to expedite fees and sourcing of long lead time components. GAAP operating expenses were $438 million. Non-GAAP operating expenses were $345 million. Our GAAP operating margin in Q1 was 16.6%. Non-GAAP operating margin was 32.7%. Our GAAP effective tax rate for the quarter was 16.3%. Our non-GAAP effective tax rate was 19.5%. GAAP net income for the quarter was $93.6 million or $1.51 per share. Non-GAAP net income was $179 million or $2.89 per share.
I will now turn to the balance sheet. We generated $90 million in cash flow from operations in Q1. We tend to see cash flow dip in Q1 as a result of the timing of cash receipts and billings amongst other factors. Q1's cash flow is below our recent range because of two primary factors. First, we have strong multi-year subscription sales in the quarter. As a reminder, our multi-year subscriptions are generally sold on three-year terms. We billed only one-third of the contracted signing with the remainder going to unbilled assets.
Second, during the quarter, we also had some significant prepayments with our contract manufacturer associated with the components for future bills. DSO for the quarter remained strong at 55 days. Cash and investments totaled approximately $936 million at quarter end. During the quarter, we repurchased approximately $125 million worth of F5 shares or approximately 539,000 shares at an average price of $232. Capital expenditures for the quarter were $11 million.
Deferred revenue increased 16% year-over-year to $1.576 billion, up from $1.359 billion. The growth in total deferred was largely driven by subscription and SaaS bookings and to a lesser extent deferred service maintenance. Finally, we ended the quarter with approximately 6,550 [Phonetic] employees, up approximately 98 from Q4. This includes employees added with the Threat Stack acquisition, which closed in the quarter.
Francois shared our Q2 revenue outlook and our updated fiscal year 2022 outlook in his remarks. I'll recap our full Q2 guidance for fiscal year 2022 updates with you now. Unless otherwise stated, please note that my guidance comments reference non-GAAP metrics. Let me start with Q2. We expect Q2 revenue in the range of $610 million to $650 million, as a result of supply chain-related systems production constraints. Taking into account continued component cost increases and the cost related to actions we are taking to mitigate supply chain pressures, we expect Q2 gross margins of approximately 82% to 82.5%.
As Francois discussed, because we believe that current supply chain challenges are transitory and do not reflect the underlying growth trajectory of the business, we do not intend to adjust our operating model. We believe doing so would risk compromising our ability to deliver future revenue growth. As a result, we are likely to see operating margin pressure in Q2 and for the next several quarters. I'll remind you that historically, Q2 is our seasonal low for operating margins as a result of annual payroll tax and retirement benefit resets.
That said, we estimate Q2 operating expenses of $357 million to $371 million. We anticipate our full fiscal year effective tax rate will be in the range of 20% to 21%, including the impact of our 19.5% Q1 tax rate with some fluctuations during the quarter. Our Q2 earnings target is $1.75 to $2.15 per share. We expect Q2 share-based compensation expense of approximately $65 million to $67 million.
Let me now review our updated fiscal year 2022 outlook. We expect fiscal year 2022 revenue growth in the range of 4.5% to 8%, reflecting a reduction of $30 million to $90 million to our prior fiscal year 2022 revenue guidance. The higher end of this range provides for the potential of some additional supplier decommits. It does not however, assume another step function deterioration from the level of decommit we have seen recently. We continue to be very confident in our software revenue growth range of 35% to 40% and expect to be closer to the top end of the range for the year. We also anticipate global services revenue growth of 1% to 2% for the year.
Like other vendors, we have seen component cost and expedite fees escalate over the last year. As a result, in December, we announced we would be implementing a price increase of approximately 8% to our iSeries appliance platform effective February 1. We expect this pricing change will begin to positively impact gross margins in the second half of our fiscal year. We expect non-GAAP operating margin in the range of 29% to 31% for fiscal '22, with Q2 representing the low point for the year and operating margins improving in Q3 and Q4. We remain committed to regaining our target Rule of 40 operating benchmark where the combination of our revenue growth and non-GAAP operating margins total 40. We also remain committed to repurchasing $500 million in shares during fiscal year.
With that, I will turn the call back over to Francois. Francois?