Slide 1: Investor Overview February 2024
INVESTOR OVERVIEW FEBRUARY 2024
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: Q4'23 Highlights
Connected Q 4 ’ 2 3 H I G HHome LIGHTS Quarterly Revenue of $188.7 Million 35% Share in U.S. Retail WiFi Market1 877,000 Service Subscribers Q4 service revenue growth of 27.7% y/y Cash & Short-term Investments Increased $55.6 Million During the Quarter 1Source: Combination of third party market data
Slide 4: Our Mission
OUR MISSION Be the innovative leader in connecting the world to the internet.
Slide 5: Life revolves around the internet
TECHNOLOGIES A P P L I C AT I O N S Life revolves around the Quad-band Mesh Sports & Events internet AV over IP Whole Home WiFi Virtual experiences displace physical experiences Video Conferencing 5G - mmWave All enabled by leading edge WiFi PoE++ and Ethernet First Responders technologies WiFi 6 •
Slide 6: Connected Home Products & Technology
Connected Home CONNECTED HOME Products & Technology
Slide 7: Demand for premium WiFi
The demand for always-on, high-speed, secure WiFi in every corner of the home and on-the-go has led to an expanding segment of premium WiFi.
Slide 8: Highly Differentiated, Premium Connectivity Solutions
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 ADAPTER
Slide 10: Premium WiFi
PREMIUM WIFI The best multi-gigabit WiFi. Everywhere.
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.” "The results have
Slide 12: Quad-Band Mesh System
QUAD-BAND MESH SYSTEM 970 SERIES • New WiFi 7 technology delivering speeds up to 27 Gbps, 2.4x faster than WiFi 6 • Exclusive, patented Quad-Band technology and unique Enhanced Dedicated Backhaul • Slim, elegant design and high-performance antennas for 360- degree coverage • Multi-Gig Speeds with on
Slide 13: WiFi 7 Tri-Band Router
WIFI 7 TRI-BAND ROUTER • WiFi 7 speeds up to 19Gbps, 2.4X faster than WiFi 6 • Sleek new body and high-performance antenna design for up to 3,500 sq. ft. of coverage • 10 Gig internet port unleashes the fastest download speeds. Connect to cable or fiber plans up to 10Gbps. • One 10 Gig and four 1 Gi
Slide 14: 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 15: Value Added Subscription Services
VALUE ADDED SUBSCRIPTION SERVICES SECURITY PRIVACY SUPPORT
Slide 16: Protects Connected Devices
PROTECTS CONNECTED DEVICES TRADITIONAL ANTI-VIRUS ONLY PROTECTS PERSONAL DEVICES
Slide 17: Nighthawk M6 Pro 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 18: Always-On, Secure, High-Speed Internet Connectivity
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 19: 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 • Meural Opus Display is designed to showcase your NFTs the way they’re meant to be seen • Old art, new art and everything in between • Meural Canvas lets you enjoy over $3 Billion of art in one digital frame • Share life’
Slide 20: CHP Growth Strategy
C H P G R O W T H S T R AT E GY Premium WiFi World class direct to Subscription services align and 5G devices consumer experience with premium segment
Slide 21: NETGEAR Business & NETGEAR AV
NETGEAR BUSINESS & NETGEAR AV Products & Technology
Slide 22: Comprehensive and Differentiated Solutions
COMPREHENSIVE AND DIFFERENTIATED SOLUTIONS M4300 SWITCHES M4350 SWITCHES PRO ROUTER M4250 SWITCHES
Slide 23: ProAV Applications
PROAV APPLICATIONS Digital Conference Rooms Broadcast and 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
Slide 24: Business Solutions
BUSINESS SOLUTIONS WiFi 6/6E, secure, mesh Simple to set up Easy network management capable
Slide 25: Leading the WiFi Transition
LEADING THE WIFI TRANSITION BUSINESS ESSENTIALS PRO WIFI ACCESS POINTS
Slide 26: Insight & Insight Pro 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 27: NETGEAR Business Growth Strategy
N E T G E A R B U S I N E S S G R O W T H S T R AT E GY Total Network Solution Residential/Commercial/Broadcast AV
Slide 28: Priority ESG Topics
PRIORITY ESG TOPICS READ 2023 ESG REPORT EMPLOYEE GHG PRODUCT DATA SUPPLY CHAIN ENGAGEMENT, PROFESSIONAL EMISSIONS& SECURITY PRIVACY MANAGEMENT DIVERSITY & INTEGRITY ENERGY INCLUSION MANAGEMENT
Slide 29: Financials
FINANCIALS
Slide 30: Quarterly Net Revenue
Q U A R T E R LY N E T R E V E N U E (Net Revenue, $ Millions) $300 $250 $250 $249 $223 $200 $211 $198 $189 $181 $173 $150 $100 $50 $0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 31: Segment Performance
SEGMENT PERFORMANCE (Net Revenue, $ Millions) CONNECTED HOME SMB 160 100 140 90 120 80 70 100 60 80 50 60 40 40 30 20 20 10 0 0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Retail Service Provider
Slide 32: Regional Performance
REGIONAL PERFORMANCE (Net Revenue, $ Millions) AMERICAS EMEA A PA C 180 60 60 160 50 50 140 120 40 40 100 30 30 80 60 20 20 40 10 10 20 0 0 0 22 22 22 22 23 23 23 23 22 22 22 22 23 23 23 23 22 22 22 22 23 23 23 23 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 33: Operating Margin
O P E R AT I N G M A R G I N (Non-GAAP, % Of Revenue) 5% 3% 2.7% 1% 1.4% 0.7% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 -1% -1.9% -1.6% -3% -3.9% -4.4% -5% -6.2% -7%
Slide 34: Earnings Per Share
EARNINGS PER SHARE (Non-GAAP, $ Per Share) $0.40 $0.30 $0.20 $0.23 $0.21 $0.10 $0.09 -$0.03 $0.00 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 -$0.10 -$0.16 -$0.19 -$0.19 -$0.20 -$0.28 -$0.30
Slide 35: Cash Balance
CASH BALANCE (Cash, Cash Equivalents And Short-Term Investments, $ Millions) $350 $300 $284 $250 $264 $250 $233 $239 $227 $228 $200 $203 $150 $100 $50 $0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 36: Appendix
OPP INA. NETGEAR
Slide 37: 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 38: Reconciliations of GAAP Measures to Non-GAAP Measures
NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (Unaudited)