Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — Q1 2023 Earnings Presentation
23 slides from Netscout Systems's earnings presentation, Aug 4, 2022
Slide 1: Q1 FY 2023 Conference Call
Q1 FY 2023 Conference Call NETSCOUT SYSTEMS, INC. August 4, 2022 ©2022 NETSCOUT August 4, 2022
Slide 2: Agenda
Agenda • Introduction & Safe Harbor – Tony Piazza, Senior 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, Executive Vice President and Chief Financial
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 Regulation G Disclosure: This presentation makes reference to the following non-GAAP metrics: 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 other expense, incom
Slide 5: CEO Perspective
CEO Perspective Anil Singhal President and Chief Executive Officer N E T S C O U T.C O M August 4, 2022
Slide 6: Q1 FY'23 Non-GAAP Financial Results
Q1 FY’23 Non-GAAP Financial Results Non-GAAP Q1 FY’23 Q1 FY’22 ($ in millions, except per share data) 6/30/2022 6/30/2021 Revenue $ 208.8 $ 190.3 Gross Margin 74.5% 74.2% Operating Margin 11.7% 11.4% EPS $ 0.24 $ 0.20 • Achieved a strong top- and bottom-line performance in Q1, extending our business
Slide 7: Market and Business Insights
Market and Business Insights • Security • Service Provider • Enterprise August 4, 2022 ©2022 NETSCOUT 7
Slide 8: FY'23 Outlook & Summary
FY’23 Outlook & Summary • Remain excited about the market opportunities for both our existing and new solutions • While various macro headwinds persist, we remain confident in our underlying fundamentals and positioning • Reiterating our non-GAAP FY’23 outlook issued on May 5, 2022 August 4, 2022 ©2
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S C O U T.C O M August 4, 2022
Slide 10: COO Highlights
COO Highlights • Customer Wins • Go-to-Market Activities August 4, 2022 ©2022 NETSCOUT 10
Slide 11: Financial Review & FY'23 Outlook
Financial Review & FY’23 Outlook Jean Bua Executive Vice President and Chief Financial Officer N E T S C O U T.C O M August 4, 2022
Slide 12: Q1 FY'23 Results
Q1 FY’23 Results Q1 FY’23 Q1 FY’22 Non-GAAP Non-GAAP % (in millions except EPS and % data) 6/30/2022 6/30/2021 Change Revenue: Product $ 98.3 $ 82.0 19.9% Service $ 110.6 $ 108.3 2.1% Total revenue $ 208.8 $ 190.3 9.7% Gross profit margin 74.5% 74.2% Operating Margin 11.7% 11.4% Net income $ 18.1 $
Slide 13: Q1 FY'23 Revenue Trends: Customer Verticals & Product Lines
Q1 FY’23 Revenue Trends: Customer Verticals & Product Lines Total Non-GAAP Revenue by Customer Vertical Total Non-GAAP Revenue by Product Line ($ in millions) ($ in millions) $208.8 $190.3 $208.8 $190.3 $59.2 $98.2 28% $55.5 47% $103.1 29% 54% $149.6 $134.8 $110.6 72% $87.2 71% 53% 46% Q1 FY'23 Q1 F
Slide 14: Q1 FY'23 Revenue Trends: Geographic Mix
Q1 FY’23 Revenue Trends: Geographic Mix Q1 FY’23 Q1 FY’22 GAAP GAAP 6/30/22 6/30/21 Q1 FY’23 Q1 FY’22 Total Revenue $208.8 $190.3 United States $134.8 $102.9 6% 9% International $74.0 $87.4 65% 35% 13% 54% 46% 20% 17% 16% Europe $33.8 $38.6 Asia $13.7 $17.3 Rest of World $26.6 $31.5 United States In
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Q1 FY'23 Q1 FY’23 6/30/2022 (Unaudited) 6/30/22 Operating Cash Flow $ (12.5) Cash and Securities* $ 374.6 Purchase of Fixed Assets & Intangible Assets $ (2.4) Free Cash Flow $ (14.9) Accounts Receivable, Net $ 112.9 Note: Free cash flow is
Slide 16: FY'23 Outlook
FY’23 Outlook Revenue FY’22 FY’23 Outlook Other FY’23 Outlook Assumptions $ millions GAAP &Non-GAAP GAAP & Non-GAAP Revenue $855.6 ~$895 to ~$925 * Tax rate anticipated to be in the range of 20% to 22% EPS (Diluted) * Approximately 73 million to 74 million weighted average diluted shares FY’22 FY’23
Slide 17: Appendix
Appendix N E T S C O U T.C O M August 4, 2022
Slide 18: Q1 FY'23 Results
Q1 FY’23 Results Q1 FY’23 Q1 FY’22 Q1 FY’23 Q1 FY’22 GAAP GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 6/30/2022 6/30/2021 Change 6/30/2022 6/30/2021 Change Revenue: Product $ 98.3 $ 82.0 19.9% $ 98.3 $ 82.0 19.9% Service $ 110.6 $ 108.3 2.1% $ 110.6 $ 108.3 2.1% Total revenue $ 20
Slide 19: Total Revenue Composition: Service Assurance & Security
Total Revenue Composition: Service Assurance & Security (in millions, GAAP & Non-GAAP) Full Year Q1 FY’22 Q2 FY’22 Q3 FY’22 Q4 FY’22 FY’22 Q1 FY’23 Total Revenue 190.3 211.9 262.2 191.2 855.6 208.8 Service Assurance Revenue 134.8 162.5 191.8 133.9 623.0 149.6 Security Revenue 55.5 49.5 70.4 57.3 232
Slide 20: FY'23 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’23 Financial Outlook: GAAP to Non-GAAP Reconciliation FY'22 FY'23 GAAP & Non-GAAP revenue $ 855.6 ~$895 million to ~$925 million FY'22 FY'23 GAAP net income $ 37.0 ~$46 million to ~$50 million Amortization of intangible assets $ 73.1 ~$65 million Share-based compensation expenses $ 56.1 ~$60 mill
Slide 21: GAAP to Non-GAAP Reconciliation: Q1'FY23, Q1'FY22 & Q4'FY22
GAAP to Non-GAAP Reconciliation: Q1’FY23, Q1’FY22 & Q4’FY22 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 Months Ended Thre
Slide 22: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q1’FY23, Q1’FY22 & Q4’FY22 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 June 30, March 31, 2022 2021 2022 (1) Share
Slide 23: Thank You
Thank You N E T S C O U T.C O M August 4, 2022