Slide 1: Q2 FY 2025 Conference Call
Q2 FY 2025 Conference Call NETSCOUT SYSTEMS, INC. October 24, 2024 ©2024 NETSCOUT 1
Slide 2: Agenda
Agenda Introduction Tony Piazza, Deputy Chief Financial Officer • Safe Harbor & Non-GAAP Metrics CEO Perspective Anil Singhal, President & Chief Executive Officer (CEO) • Summary Results, Business & Market Insights, FY’25 Outlook and Summary COO Update Michael Szabados, Chief Operating O
Slide 3: Safe Harbor
Safe Harbor Forward Looking Statements: Certain information provided in this presentation includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Liti
Slide 4: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics To supplement the financial measures presented in NETSCOUT's press release in accordance with accounting principles generally accepted in the United States (GAAP), NETSCOUT also reports the following non-GAAP measures: non-GAAP gross profit, non-GAAP income from operations
Slide 5: CEO Perspective
CEO Perspective Anil Singhal President and Chief Executive Officer
Slide 6: Q2 & 1H FY'25 Non-GAAP Financial Results
Q2 & 1H FY’25 Non-GAAP Financial Results Non-GAAP Q2 FY’24 Q2 FY’25 1H FY'24 1H FY'25 ($ in millions, except per share data) 9/30/2023 9/30/2024 9/30/2023 9/30/2024 Revenue $ 196.8 $ 191.1 $ 407.9 $ 365.7 Gross Margin 80.3% 79.7% 79.3% 78.4% Operating Margin 28.0% 23.1% 20.8% 15.9% EPS $ 0.61 $ 0.47
Slide 7: Business and Market Insights
Business and Market Insights Service Assurance Cybersecurity 7
Slide 8: FY'25 Outlook & Summary
FY’25 Outlook & Summary Reaffirming our fiscal year 2025 revenue and non-GAAP EPS outlooks Expect to benefit from a significant portion of the voluntary separation program related savings in FY25 Priorities include enhancing Cybersecurity offerings given expanding cyber threat landscape and co
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer
Slide 10: COO Highlights
COO Highlights Customer Wins Service Assurance & Cybersecurity Go-To-Market Activities Recent Announcements & Customer Events 10
Slide 11: CFO Financial Review Q2 & 1H FY'25 Results
CFO Financial Review Q2 & 1H FY’25 Results Jean Bua Executive Vice President and Chief Financial Officer
Slide 12: Q2 & 1H FY'25 Results
Q2 & 1H FY’25 Results Q2 FY’24 Q2 FY’25 1H FY'24 1H FY'25 Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 9/30/2023 9/30/2024 Change 9/30/2023 9/30/2024 Change Revenue: Product $ 80.5 $ 81.0 0.6% $ 175.2 $ 142.2 -18.8% Service $ 116.3 $ 110.1 -5.3% $ 232.7 $ 223.5 -4.0% T
Slide 13: 1H FY'25 Revenue Trends: Product Lines & Customer Verticals
1H FY’25 Revenue Trends: Product Lines & Customer Verticals Total GAAP & Non-GAAP Revenue by Product Line Total GAAP & Non-GAAP Revenue by Customer Vertical ($ in millions) ($ in millions) $407.9 $407.9 $365.7 $365.7 $132.5 32% $127.3 $217.6 35% 53% $217.6 60% $275.5 $238.4 68% $190.3 $148.1 65% 47%
Slide 14: 1H FY'25 Revenue Trends: Geographic Mix
1H FY’25 Revenue Trends: Geographic Mix 1H FY’24 1H FY’25 9/30/23 9/30/24 1H FY’24 1H FY’25 Total Revenue $407.9 $365.7 United States $243.4 $211.2 8% 8% International $164.6 $154.5 60% 40% 17% 58% 42% 17% 16% 17% Europe $66.2 $63.5 Asia $30.7 $28.9 Rest of World $67.7 $62.1 United States Internatio
Slide 15: GAAP Balance Sheet & Free Cash Flow Review
GAAP Balance Sheet & Free Cash Flow Review (in millions) Q2 FY'25 6/30/2024 9/30/2024 Operating Cash Flow $ 38.3 $ (3.6) (Unaudited) 9/30/24 Purchase of Fixed Assets & Intangible Assets $ (1.3) $ (2.2) Cash and Securities* $ 401.9 Free Cash Flow $ 37.0 $ (5.8) Accounts Receivable, Net $ 118.6 Note:
Slide 16: Reaffirming FY'25 Non-GAAP Outlook
Reaffirming FY’25 Non-GAAP Outlook Revenue FY’24 FY’25 Outlook Other FY’25 Outlook Assumptions $ millions GAAP & Non-GAAP GAAP & Non-GAAP Revenue $829.5 $800-$830 • Anticipate annual tax rate of approx. 20% • Anticipate approx. 73 million weighted EPS (Diluted) average diluted shares outstanding FY’
Slide 17: Upcoming Investor Events
Upcoming Investor Events Date Event Location November 20, 2024 RBC Capital Markets Global Technology, Internet, New York, NY Media, and Telecommunications (TIMT) Conference December 4, 2024 UBS Global Technology and AI Conference Scottsdale, AZ 17
Slide 18: Appendix
Appendix
Slide 19: Q2 & 1H FY'25 Results
Q2 & 1H FY’25 Results Q2 FY’24 Q2 FY’25 1H FY'24 1H FY'25 Q2 FY’24 Q2 FY’25 1H FY'24 1H FY'25 GAAP GAAP % GAAP GAAP % Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 9/30/2023 9/30/2024 Change 9/30/2023 9/30/2024 Change 9/30/2023 9/30/2024 Change 9/30/2023 9/30/2024 Chang
Slide 20: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations, Net Income
GAAP to Non-GAAP Reconciliation: Q2’FY25, Q2’FY24, Q1’FY25 & 1H’FY25,1H’FY24 Gross Profit, Income (loss) from Operations and Net Income (loss) 20
Slide 21: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q2’FY25, Q2’FY24, Q1’FY25, 1H’FY25, & 1H’FY24 Itemization 21
Slide 22: FY'25 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’25 Financial Outlook: GAAP to Non-GAAP Reconciliation 22
Slide 23: Thank You
Thank You