Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — Q4 FY2021 Earnings Presentation
24 slides from Netscout Systems's earnings presentation, May 6, 2021
Slide 1: Q4 & Full FY 2021 Conference Call
Q4 & Full FY 2021 Conference Call NETSCOUT SYSTEMS, INC. May 6, 2021 ©2021 NETSCOUT May 6, 2021
Slide 2: Agenda
Agenda • Introduction & Safe Harbor – Tony Piazza, Vice President of Corporate Finance • CEO Perspective – Anil Singhal, President and CEO • COO Update – Michael Szabados, Chief Operating Officer • CFO Financial Review – Jean Bua, EVP and CFO May 6, 2021 ©2021 NETSCOUT 2
Slide 3: Safe Harbor
Safe Harbor Forward Looking Statements: Forward-looking statements in this presentation 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 presentation, which are not
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 May 6, 2021
Slide 6: Q4 and Full FY'21 Non-GAAP Financial Results
Q4 and Full FY’21 Non-GAAP Financial Results Non-GAAP Q4 FY’21 Q4 FY’20 FY'21 FY'20 ($ in millions, except per share data) 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Revenue $ 213.4 $ 229.4 $ 831.3 $ 892.0 Gross Margin 77.2% 76.0% 76.4% 76.4% Operating Margin 22.4% 21.2% 20.8% 18.3% EPS $ 0.49 $ 0.50 $
Slide 7: Market Trends and Business Insights
Market Trends and Business Insights • Market Trends • Service Provider Vertical • Enterprise Vertical May 6, 2021 ©2021 NETSCOUT 7
Slide 8: FY'22 Outlook & Summary
FY’22 Outlook & Summary • Excited about the future and the opportunities we see to capitalize on the technology market trends that favor NetScout. • Focused on advancing our new and existing products, growing revenue, further enhancing EPS, and generating strong FCF. • Strategy focused on existing c
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S C O U T.C O M May 6, 2021
Slide 10: COO Highlights
COO Highlights • Customer Wins • Go-to-Market Activities May 6, 2021 ©2021 NETSCOUT 10
Slide 11: Financial Review & FY'22 Guidance
Financial Review & FY’22 Guidance Jean Bua Executive Vice President and Chief Financial Officer N E T S C O U T.C O M May 6, 2021
Slide 12: Q4 FY'21 and FY'21 Results
Q4 FY’21 and FY’21 Results Q4 FY’21 Q4 FY’20 FY’21 FY’20 Q4 FY’21 Q4 FY’20 FY’21 FY’20 GAAP GAAP % GAAP GAAP % Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 3/31/2021 3/31/2020 Change 3/31/2021 3/31/2020 Change 3/31/2021 3/31/2020 Change 3/31/2021 3/31/2020 Change Reven
Slide 13: FY'21 Revenue Trends: Customer Verticals
FY’21 Revenue Trends: Customer Verticals Total Non-GAAP Revenue by Customer Vertical Total Non-GAAP Revenue Composition by Customer Vertical ($ in millions) FY’21 FY’20 $831.3 $892.0 Non-GAAP Non-GAAP $396.3 $431.8 48% 52% 48% 52% $435.0 $460.2 FY'21 FY'20 Service Provider Enterprise Figures in char
Slide 14: FY'21 Revenue Trends: Geographic Mix on a GAAP Basis
FY’21 Revenue Trends: Geographic Mix on a GAAP Basis FY’21 FY’20 GAAP GAAP 3/31/21 3/31/20 FY’21 FY’20 Total Revenue $831.3 $891.8 United States $484.1 $545.6 7% 7% International $347.2 $346.2 58% 42% 19% 16% 61% 39% 15% 17% Europe $160.4 $154.5 Asia $56.6 $59.9 Rest of World $130.2 $131.8 United St
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Q4 FY'21 Q1 FY’21 Q2 FY'21 Q3 FY'21 Q4 FY'21 FY'21 6/30/2020 9/30/2020 12/31/2020 3/31/2021 3/31/2021 (Unaudited) 3/31/21 Operating Cash Flow $ 44.9 $ 11.7 $ 65.3 $ 92.0 $ 213.9 Cash and Securities* $ 476.5 Purchase of Fixed Assets & Intan
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 20% and 22% * Approximately 75 million weighted average diluted shares outstanding EPS (Diluted) FY’21 FY’22
Slide 17: Upcoming Investor Events
Upcoming Investor Events Date Event Location May 18, 2021 Piper Sandler RSA “Coffee and Chat” Security Event Virtual May 20, 2021 Needham Virtual Technology & Media Conference Virtual May 6, 2021 ©2021 NETSCOUT 17
Slide 18: Appendix
Appendix N E T S C O U T.C O M May 6, 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 revenue $ 831.3 ~$835 million to ~$865 million Deferred service re
Slide 20: Q1 FY'22 Outlook: GAAP to Non-GAAP Reconciliation
Q1 FY’22 Outlook: GAAP to Non-GAAP Reconciliation NETSCOUT SYSTEMS, INC Q1 FY'22 Reconciliation of GAAP Financial "Color" to Non-GAAP Financial "Color" (Unaudited) (In millions, except net income per share - diluted) Q1 FY'21 Q1 FY'22 GAAP revenue $ 183.8 ~$184 million to ~$188 million Deferred serv
Slide 21: GAAP to Non-GAAP Reconciliation: Revenue
GAAP to Non-GAAP Reconciliation: Q4’FY21, Q4’FY20, Q3’FY21, FY21 & FY20 Revenue 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 Three Months Ended Twelve Months Ended Marc
Slide 22: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations and Net Income
GAAP to Non-GAAP Reconciliation: Q4’FY21, Q4’FY20, Q3’FY21, FY21 & FY20 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 Month
Slide 23: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q4’FY21, Q4’FY20, Q3’FY21, FY21 & FY20 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 Twelve Months Ended March 31, D
Slide 24: Thank You
Thank You N E T S C O U T.C O M May 6, 2021