Netgear, Inc. · NASDAQ:NTGR
Netgear — Q1 2024 Earnings Presentation
25 slides from Netgear's earnings presentation, May 1, 2024
Slide 1: Earnings Presentation Q1 2024
EARNINGS P R E S E N TAT I O N Q1 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: Our Mission
OUR MISSION Be the innovative leader in connecting the world to the internet.
Slide 4: Technologies and Applications: 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 Virtual Whole Home WiFi experiences displace physical experiences 5G - mmWave Business Networking All enabled by leading edge WiFi PoE++ and Ethernet First Responders technologies WiFi 7 •
Slide 5: Connected Home: Products & Technology
Connected Home CONNECTED HOME Products & Technology
Slide 6: Premium WiFi: The best multi-gigabit WiFi. Everywhere.
PREMIUM WIFI The best multi-gigabit WiFi. Everywhere.
Slide 7: Powerful Performance. Secure Connectivity.
Powerful Performance. Secure Connectivity. The ultimate WiFi experience. Revolutionary performance. Unrivaled WiFi you can trust, Everywhere. WiFi speed. anywhere and everywhere.
Slide 8: We enable superior connected experiences
We enable superior connected experiences that make it faster, easier and more secure to do what you need and love to do.
Slide 9: NETGEAR for Business & NETGEAR AV: Products & Technology
NETGEAR FOR BUSINESS & NETGEAR AV Products & Technology
Slide 10: NETGEAR for Business: Total Network Solution
NETGEAR F O R B U SI NESS Total Network Solution Residential/Commercial/Broadcast AV
Slide 11: 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 12: Total Network Solution
TOTAL NETWORK SOLUTION Get more flexibility and increased efficiency of your business network with NETGEAR Insight managed routers, switches and access points with seamless remote management to deploy, monitor and manage your network.
Slide 13: New from NETGEAR
NEW FROM NETGEAR “We believe that the user-friendly design of the M4350 series with its template-based configurations “The new WiFi 7 will open up new opportunities for SMPTE ST 2110 champ. NETGEAR's in the video production market through our Orbi RBE973 is the collaboration.” fastest mesh kit avail
Slide 14: Q1 Results Summary
Q1Q 1summary ’ 2 4 R E S U LT S S U M M A R Y - Revenue of $164.6 million within guidance range; down 9.0% YoY and down 12.8% QoQ QUARTERLY NET - NFB sell through in line with expectations and continued to be driven by growth of ProAV REVENUE - Channel partners continued to reduce inventory levels b
Slide 15: Subscriptions: Strategy Update
Q1’24 SUBSCRIPTIONS 928K S T R AT E GY U P D AT E - Simplify the services offering SUBSCRIBERS - Improve value with new features $11.7M - Focus on growing recurring revenue SERVICES REVENUE 21.2% SERVICE REVENUE YoY GROWTH
Slide 16: 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 $198 $189 $181 $173 $150 $165 $100 $50 $0 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 17: Segment Performance
SEGMENT PERFORMANCE (Net Revenue, $ Millions) CONNECTED HOME NETGEAR FOR BUSINESS 160 100 140 90 120 80 70 100 60 80 50 60 40 30 40 20 20 10 0 0 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Retail Service Provider
Slide 18: 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 23 23 23 23 24 22 22 22 23 23 23 23 24 22 22 22 23 23 23 23 24 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 19: Operating Margin
O P E R AT I N G M A R G I N (Non-GAAP, % Of Revenue) 6% 4% 2% 2.7% 0.7% 1.4% 0% 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 -1.6% -1.9% -2% -3.9% -4% -6.2% -6% -8% -9.7% -10%
Slide 20: Earnings Per Share
EARNINGS PER SHARE (Non-GAAP, $ Per Share) $0.40 $0.30 $0.20 $0.23 $0.21 $0.10 $0.09 $0.00 -$0.03 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 -$0.10 -$0.19 -$0.16 -$0.19 -$0.20 -$0.28 -$0.30
Slide 21: Cash Balance
CASH BALANCE (Cash, Cash Equivalents And Short-Term Investments, $ Millions) $350 $300 $284 $289 $250 $250 $233 $239 $227 $228 $200 $203 $150 $100 $50 $0 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 22: 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 23: Appendix
APPENDIX NETGEAR’
Slide 24: Reconciliations of GAAP Measures to Non-GAAP Measures
NETGEAR, I NC . RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except percentage data) (Unaudited)
Slide 25: Reconciliations of GAAP Measures to Non-GAAP Measures
NETGEAR, I NC . RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (Unaudited)