Slide 1: Q2 FY 2022 Conference Call
Q2 FY 2022 Conference Call NETSCOUT SYSTEMS, INC. November 4, 2021 ©2021 NETSCOUT November 2021
Slide 2: Agenda
Agenda • Introduction & Safe Harbor – Tony Piazza, Vice President, Corporate Finance • CEO Perspective – Anil Singhal, President and Chief Executive Officer • COO Update – Michael Szabados, Chief Operating Officer • CFO Financial Review – Jean Bua, EVP and Chief Financial Officer November 2021 ©2021
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 revenue, non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share (diluted) and non-GAAP earnings before interest and ot
Slide 5: CEO Perspective
CEO Perspective Anil Singhal President and Chief Executive Officer N E T S C O U T.C O M November 2021
Slide 6: Q2 & 1H FY’22 Non-GAAP Financial Results
Q2 & 1H FY’22 Non-GAAP Financial Results Non-GAAP Q2 FY’22 Q2 FY’21 1H FY'22 1H FY'21 ($ in millions, except per share data) 9/30/2021 9/30/2020 9/30/2021 9/30/2020 Revenue $ 211.9 $ 205.3 $ 402.2 $ 389.2 Gross Margin 78.3% 74.7% 76.3% 74.7% Operating Margin 22.3% 19.4% 17.2% 15.5% EPS $ 0.47 $ 0.38
Slide 7: Market Trends and Business Insights
Market Trends and Business Insights • Enterprise Customer Vertical • Service Provider Customer Vertical November 2021 ©2021 NETSCOUT 7
Slide 8: FY’22 Outlook & Summary
FY’22 Outlook & Summary • Solid foundation to build on heading into the second half of the fiscal year • Focused on meeting our customers’ needs and advancing our “NETSCOUT without Borders” initiative • Reiterating our outlook for fiscal year 2022 November 2021 ©2021 NETSCOUT 8
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S C O U T.C O M November 2021
Slide 10: COO Highlights
COO Highlights • Customer Wins • Go-to-Market Activities November 2021 ©2021 NETSCOUT 10
Slide 11: Financial Review & FY’22 Outlook
Financial Review & FY’22 Outlook Jean Bua Executive Vice President and Chief Financial Officer N E T S C O U T.C O M November 2021
Slide 12: Q2 & 1H FY’22 Results
Q2 & 1H FY’22 Results Q2 FY’22 Q2 FY’21 1H FY'22 1H FY'21 Q2 FY’22 Q2 FY’21 1H FY'22 1H FY'21 GAAP GAAP % GAAP GAAP % Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 9/30/2021 9/30/2020 Change 9/30/2021 9/30/2020 Change 9/30/2021 9/30/2020 Change 9/30/2021 9/30/2020 Chang
Slide 13: First Half FY’22 Revenue Trends: Customer Verticals
First Half FY’22 Revenue Trends: Customer Verticals Total Non-GAAP Revenue by Customer Vertical Total Non-GAAP Revenue Composition by Customer Vertical ($ in millions) 1H FY’22 1H FY’21 $402.2 $389.2 Non-GAAP Non-GAAP $210.6 $195.8 52% 48% 50% 50% $191.6 $193.3 1H FY'22 1H FY'21 Service Provider Ent
Slide 14: First Half FY’22 Revenue Trends: Geographic Mix on a GAAP Basis
First Half FY’22 Revenue Trends: Geographic Mix on a GAAP Basis 1H FY’22 1H FY’21 GAAP GAAP 9/30/21 9/30/20 1H FY’22 1H FY’21 Total Revenue $402.2 $389.2 United States $236.6 $227.4 8% 7% 59% 41% 58% 42% International $165.6 $161.8 18% 15% 19% 16% Europe $73.1 $72.7 Asia $32.3 $27.6 Rest of World $6
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Free Cash Flow Q1 FY’22 Q2 FY'22 1H FY'22 6/30/2021 9/30/2021 9/30/2021 Q2 FY'22 Operating Cash Flow $ 24.1 $ 23.3 $ 47.4 Purchase of Fixed Assets & Intangible Assets $ (2.6) $ (1.7) $ (4.3) (Unaudited) 9/30/21 Free Cash Flow $ 21.5 $ 21.6
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 21% to 23% * ~75 million weighted average diluted shares outstanding EPS (Diluted) FY’21 FY’22 Outlook GAAP
Slide 17: Upcoming Investor Events
Upcoming Investor Events Date Event Location November 16, 2021 Needham’s 15th Security, Networking, and Virtual Communications Conference November 17, 2021 2021 RBC Capital Markets Global Technology, Virtual Internet, Media, and Telecom Conference December 1, 2021 Credit Suisse 25th Annual Technolog
Slide 18: Appendix
Appendix N E T S C O U T.C O M November 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 & Non-GAAP revenue $ 831.3 ~$835 million to ~$865 million FY'21 FY
Slide 20: GAAP to Non-GAAP Reconciliation: Q2’FY22, Q2’FY21, Q1’FY22, 1H’FY22 & 1H’FY21
GAAP to Non-GAAP Reconciliation: Q2’FY22, Q2’FY21, Q1’FY22, 1H’FY22 & 1H’FY21 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
Slide 21: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q2’FY22, Q2’FY21, Q1’FY22, 1H’FY22 & 1H’FY21 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 Six Months Ended Septembe
Slide 22: Thank You
Thank You N E T S C O U T.C O M November 2021