Slide 1: Investor Overview February 2022
INVESTOR OVERVIEW FEBRUARY 2022
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: Q4'21 Highlights
Q4’21 HIGHLIGHTS Quarterly Revenue Of $251.2 Million 44% Share In U.S. Retail WiFi Market1 52% Share In U.S. Retail Switch Market2 20.4 Million Registered Users Worldwide 13 Million Registered App Users Worldwide 584,000 Service Subscribers 1The NPD Group/Weekly Retail Tracking Service, U.S., Gatewa
Slide 4: Our Mission
OUR MISSION Be the innovative leader in connecting the world to the internet.
Slide 5: Technologies and Applications
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 PRODUCTS & TECHNOLOGY
Slide 7: The pandemic has irreversibly accelerated the world's dependence on WiFi
The pandemic has irreversibly accelerated the world’s dependence on WiFi
Slide 8: WiFi Leadership in Every Single Category
W I F I 6 L E A D E R S H I P I N E V E R Y S I N G L E C AT E G O R Y BEST MESH NETWORK BEST MESH SYSTEM MESH ROUTER RANGE EXTENDER CABLE
Slide 9: NETGEAR Mesh Offerings in the Premium Mesh Segment
NETGEAR MESH OFFERINGS IN THE PREMIUM MESH SEGMENT $1000+ $500+ $300-$500 $1499 $1299 $999 $699 $499
Slide 10: Introducing WiFi 6E Stands Alone
Introducing W I F I 6 E S TA N D S A L O N E Maximize your speed with an exclusive 6GHz band available only with WiFi 6E 200% more Spectrum 4x more channels Less legacy WiFi traffic Less interference, lower latency
Slide 11: Introducing Orbi Quad-Band WiFi 6E Mesh System
INTRODUCING ORBI QUAD -BAND WIFI 6E MESH SYSTEM The world’s most powerful WiFi system - Industry’s first quad-band WiFi 6E mesh system - New 6GHz band for faster WiFi, 2X the capacity of 5GHz - Combined WiFi speeds up to 10.8Gbs* - 10 Gigabit WAN Port for blazing fast Internet plans up to 10Gbps Bes
Slide 12: Premium WiFi
PREMIUM WIFI T H E B E S T M U LT I - G I G A B I T W I F I . E V E R Y W H E R E .
Slide 13: Orbi 9 Series Unrivalled Performance
ORBI 9 SERIES UNRIVALLED PERFORMANCE “The RBKE960 is the most powerful generation of Orbi Mesh Networking system to date.” “Orbi WiFi 6E promises to future proof WiFi tech in your home… for me, it has checked all those boxes and then some; including bumped up security, and my favorite: set-and-forge
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
VA L U E A D D E D S U B S C R I P T I O N S E R V I C E S SECURITY PRIVACY PERFORMANCE SUPPORT
Slide 16: Protects All Connected Devices
PROTECTS ALL CONNECTED DEVICES TRADITIONAL ANTI-VIRUS ONLY PROTECTS CONSUMER DEVICES
Slide 17: NETGEAR Armor
NETGEAR ARMOR • Subscription $99.99/year • Advanced security on your NETGEAR router • Detect and block cyber threats • Such as phishing, malicious URLs and privacy attacks • Unlimited device protection • BitDefender VPN for secure internet browsing1 • Notifications to Orbi or Nighthawk App 1 Include
Slide 18: Smart Parental Controls
S M A R T PA R E N TA L C O N T R O L S • Subscription $69.99/year • Managing the family’s internet time has never been easier • Create healthy internet habits • Schedule off time and give positive rewards • Manage profiles, devices and content • Monitor online activity at home or away (WiFi or LTE)
Slide 19: NETGEAR Game Booster
NETGEAR GAME BOOSTER • Subscription $49.99/year • Reduce gaming ping rates by up to 93%† • Find the best game servers based on distance and ping rates • Track game server’s ping history • Build geo boundaries to connect to the lowest ping servers • Prioritize network traffic for bandwidth, including
Slide 20: 4G/5G WiFi Hotspot - Connectivity Anywhere, Anytime
4G/5G WIFI HOTSPOT - CONNEC TIVITY ANYWHERE, ANYTIME ONLINE LEARNING FIRST RESPONDERS M O B I L E H E A LT H C A R E MOBILE SERVICE RV USERS CONSTRUCTION SITE R U R A L L O C AT I O N BUSINESS TRAVEL – SECURE CONNECT U LT R A - FA S T 5 G
Slide 21: Mobile & Fixed Wireless: Better WiFi. Anywhere.
MOBILE & FIXED WIRELESS Better WiFi. Anywhere. • Areas underserved by wired internet • Nighthawk M5 5G mmWave/Sub6 Mobile Router • Temporary or on-demand internet solution • Orbi 5G Advanced WiFi 6 Mesh • 5G, LTE Advanced & WiFi 6 • Nighthawk LTE WiFi Router
Slide 22: Enhanced Online Gaming Experience
ENHANCED ONLINE GAMING EXPERIENCE NETGEAR Differentiation Cloud gaming needs low latency WiFi Online game revenue is expected to Gaming server selection WiFi 6 is key to success in gaming Game specific QoS Real time ping monitoring reach $26B in 2022* * https://www.statista.com/outlook/dmo/digital-m
Slide 23: 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 Premium Digital Canvas for NFT display BossLogic >3M+ followers Old art, new art, NFT crypto-art and everything in between. "Meural digital art frames will now be able to show off nonfungible Meural lets you enjoy over $3
Slide 24: Fast Growing Premium WiFi Segment and Subscription Services
C H P CGHRPOSWT TR H ATSETGRYAT E G Y Fast Growing Premium WiFi World Class Direct to Consumer Subscription Services Align with Segment Experience Premium Segment
Slide 25: SMB Segment: Products & Technology
SMB SEGMENT PRODUCTS & TECHNOLOGY
Slide 26: 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 27: Leading the SMB WiFi Transition
LEADING THE SMB WIFI TRANSITION BUSINESS ORBI PRO INSIGHT MANAGED a ESSENTIALS MESH SYSTEMS ACCESS POINTS
Slide 28: 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 DIY MANAGED SERVICE PROVIDERS BUSINESS VPN $5 per year per device $15 per year per device Secure one-step VPN
Slide 29: 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 30: ProAV Applications
PROAV APPLICATIONS NEXT GENERATION RECORDING STUDIOS DIGITAL UMPIRING OF SPORTING EVENTS ROBOT ASSISTED SURGICAL PROCEDURES DATA VISUALIZATION FOR SPORTING AND OTHER DIGITAL GREEN SCREENS FOR THE DIGITAL SIGNAGE AT TRANSPORTATION HUBS EVENTS MOVIE INDUSTRY
Slide 31: SMB Growth Strategy
S M B G R O W T H S T R AT E G Y Wireless ProAV
Slide 32: Financials
FINANCIALS
Slide 33: Quarterly Net Revenue
Q U A R T E R LY N E T R E V E N U E (Net Revenue, $ Millions) $400 $378 $350 $367 $300 $318 $309 $290 $280 $250 $251 $230 $200 $150 $100 $50 $0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Slide 34: Segment Performance
SEGMENT PERFORMANCE (Net Revenue, $ Millions) CONNECTED HOME SMB 350 100 90 300 80 250 70 60 200 50 150 40 100 30 20 50 10 0 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Retail Service Provider
Slide 35: Regional Performance
REGIONAL PERFORMANCE (Net Revenue, $ Millions) AMERICAS EMEA A PA C 300 80 80 70 70 250 60 60 200 50 50 150 40 40 30 30 100 20 20 50 10 10 0 0 0 1Q202Q203Q204Q201Q212Q213Q214Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q202Q203Q204Q201Q212Q213Q214Q21
Slide 36: Operating Margin
O P E R AT I N G M A R G I N (Non-GAAP, % Of Revenue) 14% 13.3% 12% 10.9% 11.0% 10% 8% 8.6% 7.5% 6% 6.7% 4% 3.6% 2% 2.7% 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Slide 37: Earnings Per Share
EARNINGS PER SHARE (Non-GAAP, $ Per Share) $1.20 $1.13 $1.00 $0.99 $0.99 $0.80 $0.60 $0.66 $0.54 $0.50 $0.40 $0.20 $0.27 $0.21 $0.00 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Slide 38: Cash Balance
CASH BALANCE (Cash, Cash Equivalents And Short-Term Investments, $ Millions) $400 $350 $371 $353 $335 $300 $307 $292 $250 $272 $259 $200 $210 $150 $100 $50 $0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Slide 39: Appendix
APPENDIX NETGEAR’
Slide 40: Reconciliations of GAAP Measures to Non-GAAP Measures
NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except percentage data) (Unaudited) Three Months Ended March 29, June 28, September 27, December 31, March 28, June 27, October 3, December 31, 2020 2020 2020 2020 2021 2021 2021 2021 GAAP operating income $ 669 $ 8,8
Slide 41: Reconciliations of GAAP Measures to Non-GAAP Measures
NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except percentage data) (Unaudited) Three Months Ended March 29, June 28, September 27, December 31, March 28, June 27, October 3, December 31, 2020 2020 2020 2020 2021 2021 2021 2021 NET INCOME (LOSS) PER DILUTED SHA