Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — Q1 2025 Earnings Presentation
22 slides from Netscout Systems's earnings presentation, Jul 25, 2024
Slide 1: Q1 FY 2025 Conference Call
Q1 FY 2025 Conference Call NETSCOUT SYSTEMS, INC. July 25, 2024 ©2024 NETSCOUT 1
Slide 2: Agenda
Agenda ▪ Introduction ➢ Tony Piazza, Deputy Chief Financial Officer • Safe Harbor & Non-GAAP Metrics ▪ CEO Perspective ➢ Anil Singhal, President & Chief Executive Officer (CEO) • Summary Results, Business & Market Insights, FY’25 Outlook and Summary ▪ COO Update ➢ Michael Szabados, Chief Operating O
Slide 3: Safe Harbor
Safe Harbor Forward Looking Statements: Certain information provided in this presentation includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Liti
Slide 4: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics To supplement the financial measures presented in NETSCOUT's press release in accordance with accounting principles generally accepted in the United States (GAAP), NETSCOUT also reports the following non-GAAP measures: non-GAAP gross profit, non-GAAP income from operations
Slide 5: CEO Perspective
CEO Perspective Anil Singhal President and Chief Executive Officer
Slide 6: Q1 FY’25 Non-GAAP Financial Results
Q1 FY’25 Non-GAAP Financial Results Non-GAAP Q1 FY’24 Q1 FY’25 ($ in millions, except per share data) 6/30/2023 6/30/2024 Revenue $ 211.1 $ 174.6 Gross Margin 78.3% 77.1% Operating Margin 14.0% 8.0% EPS $ 0.31 $ 0.28 ▪ Q1 revenue was at the higher end of the Company’s expectations ▪ YoY revenue comp
Slide 7: Business and Market Insights
Business and Market Insights ▪ Service Assurance ▪ Cybersecurity 7
Slide 8: FY’25 Outlook & Summary
FY’25 Outlook & Summary ▪ Reiterating our fiscal year 2025 revenue and non-GAAP EPS outlooks ▪ Expect to benefit from significant portion of savings in FY25 related to the voluntary separation program ▪ Priorities include enhancing our Cybersecurity offerings given the expanding cyber threat landsca
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer
Slide 10: COO Highlights
COO Highlights ▪ Customer Wins ➢ Service Assurance ➢ Cybersecurity ▪ Go-To-Market Activities ➢ Recent & Upcoming Customer Events 10
Slide 11: Financial Review Q1 FY’25 Results
Financial Review Q1 FY’25 Results Jean Bua Executive Vice President and Chief Financial Officer
Slide 12: Q1 FY’25 Results
Q1 FY’25 Results Q1 FY’24 Q1 FY’25 Non-GAAP Non-GAAP % (in millions except EPS and % data) 6/30/2023 6/30/2024 Change Revenue: Product $ 94.7 $ 61.2 -35.4% Service $ 116.5 $ 113.4 -2.6% Total revenue $ 211.1 $ 174.6 -17.3% Gross profit margin 78.3% 77.1% Operating Margin 14.0% 8.0% Net income $ 22.7
Slide 13: Q1 FY’25 Revenue Trends: Product Lines & Customer Verticals
Q1 FY’25 Revenue Trends: Product Lines & Customer Verticals Total GAAP & Non-GAAP Revenue by Product Line Total GAAP & Non-GAAP Revenue by Customer Vertical ($ in millions) ($ in millions) $211.1 $211.1 $174.6 $174.6 $65.1 31% $57.8 $110.8 33% 52% $94.1 54% $146.1 $116.7 $100.3 69% $80.5 67% 48% 46%
Slide 14: Q1 FY’25 Revenue Trends: Geographic Mix
Q1 FY’25 Revenue Trends: Geographic Mix Q1 FY’24 Q1 FY’25 6/30/23 6/30/24 Q1 FY’24 Q1 FY’25 Total Revenue $211.1 $174.6 United States $127.9 $99.9 7% 7% International $83.2 $74.6 61% 39% 16% 57% 43% 18% 16% 18% Europe $34.0 $31.4 Asia $16.0 $11.9 Rest of World $33.2 $31.3 United States International
Slide 15: GAAP Balance Sheet & Free Cash Flow Review
GAAP Balance Sheet & Free Cash Flow Review (in millions) Q1 FY'25 Q1 FY’25 (Unaudited) 6/30/24 6/30/2024 Operating Cash Flow $ 38.5 Cash and Securities* $ 407.2 Purchase of Fixed Assets & Intangible Assets $ (1.3) Free Cash Flow $ 37.2 Accounts Receivable, Net $ 129.3 Note: Free cash flow is defined
Slide 16: Reiterating FY’25 Non-GAAP Outlook
Reiterating FY’25 Non-GAAP Outlook Revenue FY’24 FY’25 Outlook Other FY’25 Outlook Assumptions $ millions GAAP & Non-GAAP GAAP & Non-GAAP Revenue $829.5 $800-$830 • Anticipate annual tax rate of approx. 20% • Anticipate approx. 73 million weighted EPS (Diluted) average diluted shares outstanding FY’
Slide 17: Appendix
Appendix
Slide 18: Q1 FY’25 Results
Q1 FY’25 Results Q1 FY’24 Q1 FY’25 Q1 FY’24 Q1 FY’25 GAAP GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 6/30/2023 6/30/2024 Change 6/30/2023 6/30/2024 Change Revenue: Product $ 94.7 $ 61.2 -35.4% $ 94.7 $ 61.2 -35.4% Service $ 116.5 $ 113.4 -2.6% $ 116.5 $ 113.4 -2.6% Total revenue
Slide 19: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations, Net Income
GAAP to Non-GAAP Reconciliation: Q1’FY25, Q1’FY24, & Q4’FY24 Gross Profit, Income (loss) from Operations and Net Income (loss) 19
Slide 20: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q1’FY25, Q1’FY24, & Q4’FY24 Itemization 20
Slide 21: FY’25 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’25 Financial Outlook: GAAP to Non-GAAP Reconciliation 21
Slide 22: Thank You
Thank You