Slide 1: Investor Overview April 2023
INVESTOR OVERVIEW APRIL 2023
Slide 2: Safe Harbor Disclosure
SAFE HARBOR DISCLOSURE This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are
Slide 3: Q1'23 Highlights
Connected Q 1 ’ 2 3 H I G H LHome IGHTS Quarterly Revenue of $180.9 Million NETGEAR U.S. Retail Home Networking Share at 39%1 772,000 Paid Service Subscribers Gross Margin at 33%+ Cash and Short Term Investments of $239 Million 1Source: Combination of third party market data and product sales throug
Slide 4: Our Mission
OUR MISSION Be the innovative leader in connecting the world to the internet.
Slide 5: Technologies and applications: life revolves around the internet
TECHNOLOGIES A P P L I C AT I O N S Life revolves Quad-band Mesh around the Sports & Events internet AV over IP Whole Home WiFi Virtual experiences displace physical experiences 5G - mmWave Video Conferencing All enabled by PoE++ leading edge WiFi First Responders and Ethernet technologies WiFi 6 •
Slide 6: Connected Home: Products & Technology
Connected Home CONNECTED HOME Products & Technology
Slide 7: Demand for premium WiFi at home and on-the-go
The demand for always-on, high-speed, secure WiFi, at home and on-the-go has led to an expanding segment of premium WiFi.
Slide 8: Highly differentiated, premium connectivity solutions only from NETGEAR
HIGHLY DIFFERENTIATED, PREMIUM CONNECTIVITY SOLUTIONS, ONLY FROM NETGEAR QUAD-BAND
Slide 9: WiFi leadership in every single category
WIFI LEADERSHIP IN EVERY SINGLE CATEGORY BEST MESH NETWORK MESH ROUTER RANGE EXTENDER CABLE
Slide 10: Premium WiFi
PREMIUM WIFI The best multi-gigabit WiFi. Everywhere. Widest coverage, highest speed, biggest capacity of connected devices.
Slide 11: Orbi 9 Series unrivalled performance
ORBI 9 SERIES UNRIVALLED PERFORMANCE Elite mesh kit delivers mega speeds, maximum coverage “The Netgear Orbi RBKE963 is a stellar (albeit quite expensive) three-piece Wi-Fi 6E mesh system that harnesses the 6GHz band to offer some of the fastest throughput speeds we’ve ever seen.” “Of all the mesh r
Slide 12: NETGEAR Direct – curated premium brand experience
NETGEAR DIRECT–CURATED PREMIUM BRAND EXPERIENCE Exclusive destination to engage with premium customers Rich content, product selectors, concierge service
Slide 13: Value Added Subscription Services
VALUE ADDED SUBSCRIPTION SERVICES SECURITY PRIVACY SUPPORT
Slide 14: Protects connected devices
PROTECTS CONNECTED DEVICES TRADITIONAL ANTI-VIRUS ONLY PROTECTS PERSONAL DEVICES
Slide 15: Nighthawk M6 Pro: industry's first 5G + WiFi 6E mobile hotspot router
NIGHTHAWK M6 PRO INDUSTRY’S FIRST 5G + WiFi 6E MOBILE HOTSPOT ROUTER • Secure WiFi and 5G connectivity - at home, at work or anywhere on-the-go • World’s first hotspot using Qualcomm SDX62 and SDX65 chipsets • With mmWave, M6 Pro delivers the fastest 5G speeds on global Service Provider Partners' 5G
Slide 16: Always-on, secure, high-speed internet connectivity anywhere
ALWAYS-ON, SECURE, HIGH-SPEED INTERNET CONNECTIVITY ANYWHERE AND EVERYWHERE AFFLUENT JETSETTERS MOBILE WORKFORCES WIRED LINE REPLACEMENT Traveling for business or pleasure Instant and secure connectivity for Reliable 5G internet as primary or Secure connection for critical business team members at a
Slide 17: Meural premium display for NFTs and digital art
M E U R A L P R E M I U M D I S P L AY F O R N F T S A N D D I G I TA L A R T • Old art, new art, NFT crypto-art and everything in between Mumbot • Meural lets you enjoy over $3 Billion of art in >3M+ followers one digital frame • Share life’s moments, instantly. Take your favorite photos from phone
Slide 18: CHP Growth Strategy
C H P G R O W T H S T R AT E G Y Premium WiFi World class direct to consumer Subscription services align with and 5G devices experience premium segment
Slide 19: NETGEAR Business & NETGEAR AV
NETGEAR BUSINESS & NETGEAR AV Products & Technology
Slide 20: Switches engineered for AV over IP
SWITCHES ENGINEERED FOR AV OVER IP OUT - OF - THE - B OX S UPPORT FOR EVERY N ETWORK ED AV S OLUTI ON
Slide 21: ProAV applications
PROAV APPLICATIONS Digital Conference Rooms Corporate Recording Studios Digital Classrooms Live Event Streaming Robot Assisted Surgical Procedures Resort/Casino/Commercial Video Walls Digital Signage at Transportation Hubs Digital Umpiring Data Visualization for Sporting Events Digital Green Screens
Slide 22: Small business & home office solutions – booming demand
SMALL BUSINESS & HOME OFFICE SOLUTIONS – BOOMING DEMAND WiFi 6, secure, mesh capable Simple to set up Easy network management
Slide 23: Leading the SMB WiFi transition
LEADING THE SMB WIFI TRANSITION BUSINESS ESSENTIALS PRO WIFI ACCESS POINTS
Slide 24: Insight & Insight Pro easy network management
I N S I G H T & I N S I G H T P R O - E A S Y N E T W O R K M A N A G E M E N T, L O C A L & R E M O T E SCREENSHOT PREMIUM PRO $9.99 per year per device $22 per year per device
Slide 25: SMB Growth Strategy
S M B G R O W T H S T R AT E G Y Pro WiFi Access Points Pro AV Switches AV
Slide 26: Priority ESG Topics
PRIORITY ESG TOPICS READ 2022 ESG REPORT EMPLOYEE GHG EMISSIONS& PRODUCT DATA SUPPLY CHAIN ENGAGEMENT, PROFESSIONAL ENERGY SECURITY PRIVACY MANAGEMENT DIVERSITY & INTEGRITY MANAGEMENT INCLUSION
Slide 27: Financials
FINANCIALS
Slide 28: Quarterly Net Revenue
Q U A R T E R LY N E T R E V E N U E (Net Revenue, $ Millions) $350 $300 $309 $290 $250 $251 $250 $249 $223 $200 $211 $181 $150 $100 $50 $0 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23
Slide 29: Segment Performance
SEGMENT PERFORMANCE (Net Revenue, $ Millions) CONNECTED HOME SMB 250 100 90 200 80 70 150 60 50 100 40 30 50 20 10 0 0 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Retail Service Provider
Slide 30: Regional Performance
REGIONAL PERFORMANCE (Net Revenue, $ Millions) AMERICAS EMEA A PA C 250 70 70 60 60 200 50 50 150 40 40 30 30 100 20 20 50 10 10 0 0 0 2Q213Q214Q211Q222Q223Q224Q221Q23 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q213Q214Q211Q222Q223Q224Q221Q23
Slide 31: Operating Margin
O P E R AT I N G M A R G I N (Non-GAAP, % Of Revenue) 11% 9% 8.6% 7% 6.7% 5% 3% 2.7% 1% 0.7% -1% 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 -1.9% -1.6% -3% -4.4% -3.9% -5%
Slide 32: Earnings Per Share
EARNINGS PER SHARE (Non-GAAP, $ Per Share) $0.70 $0.66 $0.50 $0.50 $0.30 $0.27 $0.21 $0.10 -$0.03 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 -$0.10 -$0.19 -$0.19 -$0.28 -$0.30
Slide 33: Cash Balance
CASH BALANCE (Cash, Cash Equivalents And Short-Term Investments, $ Millions) $350 $335 $300 $292 $272 $250 $264 $250 $233 $239 $227 $200 $150 $100 $50 $0 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23
Slide 34: Appendix
APPENDIX NETGEAR’
Slide 35: Reconciliations of GAAP Measures to Non-GAAP Measures
NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except percentage data) (Unaudited)
Slide 36: Reconciliations of GAAP Measures to Non-GAAP Measures
NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (Unaudited)