Slide 1: Q3 FY 2025 Conference Call
Q3 FY 2025 Conference Call NETSCOUT SYSTEMS, INC. January 30, 2025 ©2025 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: Q3 & YTD FY'25 Non-GAAP Financial Results
Q3 & YTD FY’25 Non-GAAP Financial Results Non-GAAP Q3 FY’24 Q3 FY’25 YTD FY'24 YTD FY'25 ($ in millions, except per share data) 12/31/2023 12/31/2024 12/31/2023 12/31/2024 Revenue $ 218.1 $ 252.0 $ 626.0 $ 617.7 Gross Margin 81.8% 82.8% 80.2% 80.2% Operating Margin 29.0% 35.6% 23.6% 23.9% EPS $ 0.73
Slide 7: Business and Market Insights
Business and Market Insights Service Assurance Cybersecurity 7
Slide 8: FY'25 Outlook & Summary
FY’25 Outlook & Summary Strong performance in the third quarter, along with the acceleration of certain orders, have increased our visibility and confidence in achieving our full fiscal year 2025 financial objectives Narrowing our fiscal year 2025 outlook ranges for revenue and non-GAAP EPS, whi
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 Industry Events 10
Slide 11: CFO Financial Review Q3 & YTD FY'25 Results
CFO Financial Review Q3 & YTD FY’25 Results Jean Bua Executive Vice President and Chief Financial Officer
Slide 12: Q3 & YTD FY'25 Results
Q3 & YTD FY’25 Results Q3 FY’24 Q3 FY’25 YTD FY'24 YTD FY'25 Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 12/31/2023 12/31/2024 Change 12/31/2023 12/31/2024 Change Revenue: Product $ 95.8 $ 128.2 33.8% $ 271.0 $ 270.4 -0.2% Service $ 122.2 $ 123.8 1.3% $ 355.0 $ 347.3
Slide 13: YTD FY'25 Revenue Trends: Product Lines & Customer Verticals
YTD FY’25 Revenue Trends: Product Lines & Customer Verticals Total Revenue by Product Line Total Revenue by Customer Vertical ($ in millions) ($ in millions) $626.0 $617.7 $626.0 $617.7 $201.6 $216.4 32% 35% $338.6 $350.9 54% 57% $424.4 $401.3 68% 65% $287.4 $266.7 46% 43% YTD FY'24 YTD FY'25 YTD FY
Slide 14: YTD FY'25 Revenue Trends: Geographic Mix
YTD FY’25 Revenue Trends: Geographic Mix YTD FY’24 YTD FY’25 12/31/23 12/31/24 YTD FY’24 YTD FY’25 Total Revenue $626.0 $617.7 United States $367.1 $365.1 8% 7% International $258.9 $252.6 59% 41% 59% 41% 18% 16% 18% 15% Europe $111.5 $110.1 Asia $48.0 $47.2 Rest of World $99.4 $95.4 United States I
Slide 15: GAAP Balance Sheet & Free Cash Flow Review
GAAP Balance Sheet & Free Cash Flow Review (in millions) Q3 FY'25 Q1 FY’25 Q2 FY’25 Q3 FY’25 (Unaudited) 12/31/24 6/30/2024 9/30/2024 12/31/2024 Operating Cash Flow $ 38.3 $ (3.6) $ 41.5 Cash and Securities* $ 427.9 Purchase of Fixed Assets & Intangible Assets $ (1.3) $ (2.2) $ (1.9) Free Cash Flow
Slide 16: Narrowing FY'25 Non-GAAP Outlook
Narrowing 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 $810-$820 • Anticipate annual tax rate of approx. 20% • Anticipate approx. 73 million weighted EPS (Diluted) average diluted shares outstanding FY’24
Slide 17: Appendix
Appendix
Slide 18: Q3 & YTD FY'25 Results
Q3 & YTD FY’25 Results Q3 FY’24 Q3 FY’25 YTD FY'24 YTD FY'25 Q3 FY’24 Q3 FY’25 YTD FY'24 YTD FY'25 GAAP GAAP % GAAP GAAP % Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 12/31/2023 12/31/2024 Change 12/31/2023 12/31/2024 Change 12/31/2023 12/31/2024 Change 12/31/2023 12/
Slide 19: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations and Net Income
GAAP to Non-GAAP Reconciliation: Q3’FY25, Q3’FY24, Q2’FY25, YTD FY’25, YTD FY’24 Gross Profit, Income (loss) from Operations and Net Income (loss) 19
Slide 20: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q3’FY25, Q3’FY24, Q2’FY25, YTD FY’25, & YTD FY’24 Itemization 20
Slide 21: FY'25 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’25 Financial Outlook: GAAP to Non-GAAP Reconciliation 21
Slide 22: Thank You
Thank You