Slide 1: Q4 & Full FY 2022 Conference Call
Q4 & Full FY 2022 Conference Call NETSCOUT SYSTEMS, INC. May 5, 2022 ©2022 NETSCOUT May 5, 2022
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, Executive Vice President and Chief Financial Office
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 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 o
Slide 5: CEO Perspective
CEO Perspective Anil Singhal President and Chief Executive Officer N E T S C O U T.C O M May 5, 2022
Slide 6: Q4 and Full FY’22 Non-GAAP Financial Results
Q4 and Full FY’22 Non-GAAP Financial Results Non-GAAP Q4 FY’22 Q4 FY’21 FY'22 FY'21 ($ in millions, except per share data) 3/31/2022 3/31/2021 3/31/2022 3/31/2021 Revenue $ 191.2 $ 213.4 $ 855.6 $ 831.3 Gross Margin 77.6% 77.2% 77.4% 76.4% Operating Margin 12.4% 22.4% 21.0% 20.8% EPS $ 0.29 $ 0.49 $
Slide 7: Market Trends and Business Insights
Market Trends and Business Insights • Enterprise Customer Vertical • Service Provider Customer Vertical May 5, 2022 ©2022 NETSCOUT 7
Slide 8: FY’23 Outlook & Summary
FY’23 Outlook & Summary • Excited about advancing our Omnis Cybersecurity, DDoS, and visibility solutions • FY’23 Outlook: • Revenue of $895M to $925M • Non-GAAP EPS of $1.97 to $2.03 • Outlook incorporates a plan to initiate a $150M accelerated share repurchase program and repay up to $150M of outs
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S C O U T.C O M May 5, 2022
Slide 10: COO Highlights
COO Highlights • Customer Wins • Go-to-Market Activities May 5, 2022 ©2022 NETSCOUT 10
Slide 11: Financial Review & FY’23 Guidance
Financial Review & FY’23 Guidance Jean Bua Executive Vice President and Chief Financial Officer N E T S C O U T.C O M May 5, 2022
Slide 12: Q4 FY’22 and FY’22 Results
Q4 FY’22 and FY’22 Results Q4 FY’22 Q4 FY’21 FY'22 FY'21 Q4 FY’22 Q4 FY’21 FY'22 FY'21 GAAP GAAP % GAAP GAAP % Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 3/31/2022 3/31/2021 Change 3/31/2022 3/31/2021 Change 3/31/2022 3/31/2021 Change 3/31/2022 3/31/2021 Change Reven
Slide 13: FY’22 Revenue Trends: Customer Verticals
FY’22 Revenue Trends: Customer Verticals Total Non-GAAP Revenue by Customer Vertical Total Non-GAAP Revenue Composition by Customer Vertical ($ in millions) FY’22 FY’21 $855.6 $831.3 Non-GAAP Non-GAAP $438.2 $396.3 51% 49% 48% 52% $417.4 $435.0 FY'22 FY'21 Service Provider Enterprise Figures in char
Slide 14: FY’22 Revenue Trends: Geographic Mix on a GAAP Basis
FY’22 Revenue Trends: Geographic Mix on a GAAP Basis FY’22 FY’21 GAAP GAAP 3/31/22 3/31/21 FY’22 FY’21 Total Revenue $855.6 $831.3 United States $501.0 $484.1 8% 7% International $354.6 $347.2 59% 41% 19% 14% 58% 42% 19% 16% Europe $165.2 $160.4 Asia $65.0 $56.6 Rest of World $124.4 $130.2 United St
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Q4 FY'22 Q1 FY’22 Q2 FY'22 Q3 FY'22 Q4 FY'22 FY'22 6/30/2021 9/30/2021 12/31/2021 3/31/2022 3/31/2022 (Unaudited) 3/31/22 Operating Cash Flow $ 24.1 $ 23.3 $ 93.0 $ 155.6 $ 296.0 Cash and Securities* $ 703.2 Purchase of Fixed Assets & Inta
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 21% and 22% EPS (Diluted) * Approximately 73M to 74M weighted average diluted shares outstanding FY’22 FY’23
Slide 17: Upcoming Investor Events
Upcoming Investor Events Date Event Location May 18, 2022 17th Annual Needham Technology & Media Virtual Conference June 15, 2022 24th Annual Credit Suisse Communications New York Conference May 5, 2022 ©2022 NETSCOUT 17
Slide 18: Appendix
Appendix N E T S C O U T.C O M May 5, 2022
Slide 19: FY’23 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’23 Financial Outlook: GAAP to Non-GAAP Reconciliation Reconciliation of GAAP Financial Guidance to Non-GAAP Financial Guidance (Unaudited) (In millions, except net income per share - diluted) FY'22 FY'23 GAAP & Non-GAAP revenue $ 855.6 ~$895 million to ~$925 million FY'22 FY'23 GAAP net income $
Slide 20: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations and Net Income
GAAP to Non-GAAP Reconciliation: Q4’FY21, Q4’FY20, Q3’FY21, FY21 & FY20 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 21: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q4’FY22, Q4’FY21, Q3’FY22, FY22 & 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 Twelve Months Ended March 31, D
Slide 22: Thank You
Thank You N E T S C O U T.C O M May 5, 2022