Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — Q4 2023 Earnings Presentation
24 slides from Netscout Systems's earnings presentation, May 4, 2023
Slide 1: Q4 & Full FY 2023 Conference Call
Q4 & Full FY 2023 Conference Call NETSCOUT SYSTEMS, INC. May 4, 2023 ©2023 NETSCOUT May 4, 2023
Slide 2: Agenda
Agenda • Introduction & Safe Harbor – Tony Piazza, SVP, Corporate Finance • CEO Perspective – Anil Singhal, President and CEO • COO Update – Michael Szabados, Chief Operating Officer • CFO Financial Review – Jean Bua, EVP and CFO May 4, 2023 ©2023 NETSCOUT 2
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: 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-GA
Slide 5: CEO Perspective
CEO Perspective Anil Singhal President and Chief Executive Officer N E T S CO U T.CO M May 4, 2023
Slide 6: Q4 & Full FY'23 Non-GAAP Financial Results
Q4 & Full FY’23 Non-GAAP Financial Results Non-GAAP Q4 FY’23 Q4 FY’22 FY'23 FY'22 ($ in millions, except per share data) 3/31/2023 3/31/2022 3/31/2023 3/31/2022 Revenue $ 208.1 $ 191.2 $ 914.5 $ 855.6 Gross Margin 77.6% 77.6% 77.5% 77.4% Operating Margin 15.7% 12.4% 22.6% 21.0% EPS $ 0.38 $ 0.29 $ 2
Slide 7: Market and Business Insights
Market and Business Insights • Service Provider • Enterprise May 4, 2023 ©2023 NETSCOUT 7
Slide 8: FY'24 Outlook & Summary
FY’24 Outlook & Summary • Remain committed to operating NETSCOUT’s business with a balanced approach to growth and profitability as we manage the dynamic macro-economic environment. • Expect to continue to grow revenue, improve margins and diluted EPS performance, and generate solid free cash flow.
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S CO U T.CO M May 4, 2023
Slide 10: COO Highlights
COO Highlights • Customer Wins • Go-to-Market Activities May 4, 2023 ©2023 NETSCOUT 10
Slide 11: Financial Review & FY'24 Guidance
Financial Review & FY’24 Guidance Jean Bua Executive Vice President and Chief Financial Officer N E T S CO U T.CO M May 4, 2023
Slide 12: Q4 & Full FY'23 Results
Q4 & Full FY’23 Results Q4 FY’23 Q4 FY’22 FY'23 FY'22 Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 3/31/2023 3/31/2022 Change 3/31/2023 3/31/2022 Change Revenue: Product $ 91.3 $ 82.1 11.2% $ 450.8 $ 410.1 9.9% Service $ 116.8 $ 109.2 7.1% $ 463.7 $ 445.5 4.1% Total re
Slide 13: FY'23 Revenue Trends: Customer Verticals & Product Lines
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) $914.5 $855.6 $914.5 $855.6 $235.8 $232.6 $440.0 26% $438.2 27% 48% 51% $678.7 $623.0 $474.5 $417.4 74% 73% 52% 49% FY'23 FY'22
Slide 14: FY'23 Revenue Trends: Geographic Mix
FY’23 Revenue Trends: Geographic Mix FY’23 FY’22 3/31/23 3/31/22 FY’23 FY’22 Total Revenue $914.5 $855.6 United States $583.5 $501.0 7% 8% International $331.0 $354.6 64% 36% 13% 59% 41% 19% 14% 16% Europe $145.7 $165.2 Asia $61.7 $65.0 Rest of World $123.6 $124.4 United States International Europe
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Q4 FY'23 Q1 FY’23 Q2 FY'23 Q3 FY'23 Q4 FY'23 FY'23 6/30/2022 9/30/2022 12/31/2022 3/31/2023 3/31/2023 (Unaudited) 3/31/23 Operating Cash Flow $ (12.5) $ 10.1 $ 46.3 $ 112.8 $ 156.7 Cash and Securities* $ 427.9 Purchase of Fixed Assets & In
Slide 16: FY'24 Outlook
FY’24 Outlook Revenue FY’23 FY’24 Outlook Other FY’24 Outlook Assumptions $ millions GAAP & Non-GAAP GAAP & Non-GAAP Revenue $914.5 ~$915 to ~$945 * Anticipate tax rate to be in the range of 20% and 22% EPS (Diluted) * Anticipate 74 to 75 million weighted average diluted shares outstanding FY’23 FY’
Slide 17: Upcoming Investor Events
Upcoming Investor Events Date Event Location May 18, 2023 18th Annual Needham Technology & Media Conference Virtual June 12, 2023 5th Annual Mizuho Cybersecurity Summit 2023 Virtual June 14, 2023 2023 Cantor Fitzgerald Technology Conference NYC May 4, 2023 ©2023 NETSCOUT 17
Slide 18: Appendix
Appendix N E T S CO U T.CO M May 4, 2023
Slide 19: Q4 FY'23 & Full FY'23 Results
Q4 FY’23 & Full FY’23 Results Q4 FY’23 Q4 FY’22 FY'23 FY'22 Q4 FY’23 Q4 FY’22 FY'23 FY'22 GAAP GAAP % GAAP GAAP % Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 3/31/2023 3/31/2022 Change 3/31/2023 3/31/2022 Change 3/31/2023 3/31/2022 Change 3/31/2023 3/31/2022 Change Re
Slide 20: Total Revenue Composition: Service Assurance & Cybersecurity
Total Revenue Composition: Service Assurance & Cybersecurity (in millions, GAAP & Non-GAAP) Full Full Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year FY’22 FY’22 FY’22 FY’22 FY’22 FY’23 FY’23 FY’23 FY’23 FY’23 Total Revenue 190.3 211.9 262.2 191.2 855.6 208.8 228.1 269.5 208.1 914.5 Service Assurance 134.8 162.5
Slide 21: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations and Net Income
GAAP to Non-GAAP Reconciliation: Q4’FY23, Q4’FY22, Q3’FY23, FY23 & 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 Month
Slide 22: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q4’FY23, Q4’FY22, Q3’FY23, FY23 & 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 Twelve Months Ended March 31, D
Slide 23: FY'24 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’24 Financial Outlook: GAAP to Non-GAAP Reconciliation NETSCOUT SYSTEMS, INC Reconciliation of GAAP Financial Outlook to Non-GAAP Financial Outlook (Unaudited) (In millions, except net income per share - diluted) FY'23 FY'24 GAAP & Non-GAAP revenue $ 914.5 ~$915 million to ~$945 million FY'23 FY'2
Slide 24: Thank You
Thank You N E T S CO U T.CO M May 4, 2023