Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — Q1 FY2022 Earnings Presentation
22 slides from Netscout Systems's earnings presentation, Jul 29, 2021
Slide 1: Q1 FY 2022 Conference Call
Q1 FY 2022 Conference Call NETSCOUT SYSTEMS, INC. July 29, 2021 ©2021 NETSCOUT July 29, 2021
Slide 2: Agenda
Agenda • Introduction & Safe Harbor – Tony Piazza, Vice President, Corporate Finance • CEO Perspective – Anil Singhal, President and CEO • COO Update – Michael Szabados, Chief Operating Officer • CFO Financial Review – Jean Bua, EVP and CFO July 29, 2021 ©2021 NETSCOUT 2
Slide 3: Safe Harbor
Safe Harbor Forward Looking Statements: Forward-looking statements in this release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and other federal securities laws. Investors are cautioned that statements in this press release, which are not str
Slide 4: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics Regulation G Disclosure: This presentation makes reference to the following non-GAAP metrics: non-GAAP total revenue, non-GAAP product revenue, non-GAAP service revenue, non-GAAP income from operations, non-GAAP gross profit, non-GAAP operating margin, non-GAAP net income,
Slide 5: CEO Perspective
CEO Perspective Anil Singhal President and Chief Executive Officer N E T S C O U T.C O M July 29, 2021
Slide 6: Q1 FY'22 Non-GAAP Financial Results
Q1 FY’22 Non-GAAP Financial Results Non-GAAP Q1 FY’22 Q1 FY’21 ($ in millions, except per share data) 6/30/2021 6/30/2020 Revenue $ 190.3 $ 183.8 Gross Margin 74.2% 74.6% Operating Margin 11.4% 11.2% EPS $ 0.20 $ 0.17 • Solid start to fiscal year 2022 • Strong product revenue growth in both Service
Slide 7: Business Insights and Market Trends
Business Insights and Market Trends • Service Provider Customer Vertical • Enterprise Customer Vertical July 29, 2021 ©2021 NETSCOUT 7
Slide 8: FY'22 Outlook & Summary
FY’22 Outlook & Summary • Solid start to fiscal year 2022 • Focused on meeting our customers needs and advancing our new solutions and “NETSCOUT without Borders” initiative • Reiterating our non-GAAP outlook issued May 6, 2021, while updating our GAAP diluted EPS outlook for recent events July 29, 2
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S C O U T.C O M July 29, 2021
Slide 10: COO Update
COO Update • Customer Wins • Go-to-Market Activities July 29, 2021 ©2021 NETSCOUT 10
Slide 11: Financial Review & FY'22 Outlook
Financial Review & FY’22 Outlook Jean Bua Executive Vice President and Chief Financial Officer N E T S C O U T.C O M July 29, 2021
Slide 12: Q1 FY'22 Results
Q1 FY’22 Results Q1 FY’22 Q1 FY’21 Q1 FY’22 Q1 FY’21 GAAP GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 6/30/2021 6/30/2020 Change 6/30/2021 6/30/2020 Change Revenue: Product $ 82.0 $ 71.7 14.3% $ 82.0 $ 71.7 14.3% Service $ 108.3 $ 112.1 -3.4% $ 108.3 $ 112.1 -3.4% Total revenue $
Slide 13: Q1 FY'22 Revenue Trends: Customer Verticals
Q1 FY’22 Revenue Trends: Customer Verticals Total Non-GAAP Revenue by Customer Vertical Total Non-GAAP Revenue Composition by Customer Vertical ($ in millions) Q1 FY’22 Q1 FY’21 $190.3 $183.8 Non-GAAP Non-GAAP $103.1 $104.3 46% 57% 43% 54% $87.2 $79.5 Q1 FY'22 Q1 FY'21 Service Provider Enterprise Fi
Slide 14: Q1 FY'22 Revenue Trends: Geographic Mix on a GAAP Basis
Q1 FY’22 Revenue Trends: Geographic Mix on a GAAP Basis Q1 FY’22 Q1 FY’21 GAAP GAAP 6/30/21 6/30/20 Q1 FY’22 Q1 FY’21 Total Revenue $190.3 $183.8 United States $102.9 $107.3 9% 8% International $87.4 $76.5 54% 46% 58% 42% 20% 17% 19% 15% Europe $38.6 $34.8 Asia $17.3 $13.7 Rest of World $31.5 $28.0
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Q1 FY'22 Q1 FY’22 6/30/2021 (Unaudited) 6/30/21 Operating Cash Flow $ 24.1 Cash and Securities* $ 493.9 Purchase of Fixed Assets & Intangible Assets $ (2.6) Free Cash Flow $ 21.5 Accounts Receivable, Net $ 146.2 Note: Free cash flow is def
Slide 16: FY'22 Outlook
FY’22 Outlook Revenue FY’21 FY’22 Outlook Other FY’22 Outlook Assumptions $ millions GAAP &Non-GAAP GAAP & Non-GAAP * Tax rate anticipated to be in the range Revenue $831.3 ~$835 to ~$865 of 21% to 23% * Weighted average of approximately 75 million diluted shares outstanding EPS (Diluted) FY’21 FY’2
Slide 17: Upcoming Investor Events
Upcoming Investor Events Date Event Location September 14, 2021 Lake Street 5th Annual Big Ideas Conference Virtual September 15, 2021 Jefferies 2021 Software Conference Virtual July 29, 2021 ©2021 NETSCOUT 17
Slide 18: Appendix
Appendix N E T S C O U T.C O M July 29, 2021
Slide 19: FY'22 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’22 Financial Outlook: GAAP to Non-GAAP Reconciliation NETSCOUT SYSTEMS, INC Reconciliation of GAAP Financial Guidance to Non-GAAP Financial Guidance (Unaudited) (In millions, except net income per share - diluted) FY'21 FY'22 GAAP & Non-GAAP revenue $ 831.3 ~$835 million to ~$865 million FY'21 FY
Slide 20: GAAP to Non-GAAP Reconciliation: Q1'FY22, Q1'FY21 & Q4'FY21
GAAP to Non-GAAP Reconciliation: Q1’FY22, Q1’FY21 & Q4’FY21 Gross Profit, Income from Operations and Net Income (loss) NETSCOUT SYSTEMS, INC. Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures (In thousands, except per share data) (Unaudited) Three Months Ended Thre
Slide 21: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q1’FY22, Q1’FY21 & Q4’FY21 Itemization NETSCOUT SYSTEMS, INC. Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures - Continued (In thousands) (Unaudited) Three Months Ended Three Months Ended June 30, March 31, 2021 2020 2021 (1) Share
Slide 22: Thank You
Thank You N E T S C O U T.C O M July 29, 2021