Slide 1: Q4 FY 2024 Conference Call
Q4 FY 2024 Conference Call NETSCOUT SYSTEMS, INC. May 9, 2024 ©2024 NETSCOUT May 9, 2024 1
Slide 2: Agenda
Agenda Introduction Tony Piazza, SVP, Corporate Finance • 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 Officer (
Slide 3: Safe Harbor
Safe Harbor Forward Looking Statements: Certain information provided in this press release 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 Lit
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 May 9, 2024
Slide 6: Q4 & FY'24 Non-GAAP Financial Results
Q4 & FY’24 Non-GAAP Financial Results Non-GAAP Q4 FY’23 Q4 FY’24 FY'23 FY'24 ($ in millions, except per share data) 3/31/2023 3/31/2024 3/31/2023 3/31/2024 Revenue $ 208.1 $ 203.4 $ 914.5 $ 829.5 Gross Margin 77.6% 77.2% 77.5% 79.4% Operating Margin 15.7% 19.2% 22.6% 22.6% EPS $ 0.38 $ 0.55 $ 2.18 $
Slide 7: Business and Market Insights
Business and Market Insights Service Assurance Cybersecurity May 9, 2024 7
Slide 8: FY'25 Outlook & Summary
FY’25 Outlook & Summary Revenue is expected to be relatively flat to slightly down year over year o Cybersecurity growth is expected to be offset by lingering Service Assurance headwinds NETSCOUT will invest in Cybersecurity go-to-market activities while undertaking further cost containment effo
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer May 9, 2024
Slide 10: COO Highlights
COO Highlights Customer Wins Service Assurance Cybersecurity Go-To-Market Activities Recent & Upcoming Industry Events Recent Announcements 10 May 9, 2024
Slide 11: FY'24 Results & FY'25 Outlook
FY’24 Results & FY’25 Outlook Jean Bua Executive Vice President and Chief Financial Officer May 9, 2024
Slide 12: Q4 & FY'24 Results
Q4 & FY’24 Results Q4 FY’23 Q4 FY’24 FY'23 FY'24 Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 3/31/2023 3/31/2024 Change 3/31/2023 3/31/2024 Change Revenue: Product $ 91.3 $ 89.4 -2.0% $ 450.8 $ 360.4 -20.0% Service $ 116.8 $ 114.0 -2.4% $ 463.7 $ 469.0 1.1% Total reve
Slide 13: FY'24 Revenue Trends: Product Lines & Customer Verticals
FY’24 Revenue Trends: Product Lines & Customer Verticals Total GAAP & Non-GAAP Revenue by Product Line Total GAAP & Non-GAAP Revenue by Customer Vertical ($ in millions) ($ in millions) $914.5 $829.5 $914.5 $829.5 $235.8 26% $271.8 $440.0 33% 48% $439.0 53% $678.7 $557.6 74% $474.5 $390.5 67% 52% 47
Slide 14: FY'24 Revenue Trends: Geographic Mix
FY’24 Revenue Trends: Geographic Mix FY’23 FY’24 3/31/23 3/31/24 FY’23 FY’24 Total Revenue $914.5 $829.5 United States $583.5 $470.3 8% 7% International $331.0 $359.1 64% 36% 13% 57% 43% 16% 18% 17% Europe $145.7 $146.9 Asia $61.7 $65.4 Rest of World $123.6 $146.8 United States International Europe
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Q4 FY'24 Q1 FY’24 Q2 FY'24 Q3 FY'24 Q4 FY'24 FY'24 6/30/2023 9/30/2023 12/31/2023 3/31/2024 3/31/2024 (Unaudited) 3/31/24 Operating Cash Flow $ (22.3) $ (26.4) $ 13.9 $ 93.6 $ 58.8 Purchase of Fixed Assets & Intangible Assets $ (2.0) $ (1.
Slide 16: FY'25 Outlook
FY’25 Outlook Revenue FY’24 FY’25 Outlook Other FY’25 Outlook Assumptions $ millions GAAP & Non-GAAP GAAP & Non-GAAP Revenue $829.5 $800-$830 • Anticipate tax rate of approx. 20% • Anticipate approx. 74 million weighted EPS (Diluted) average diluted shares outstanding FY’24 FY’25 EPS GAAP EPS (dilut
Slide 17: Upcoming Investor Events
Upcoming Investor Events Event Location May 16, 2024 Needham Technology, Media, & Consumer Virtual Conference June 12, 2024 Mizuho Technology Conference 2024 New York City May 9, 2024 17
Slide 18: Appendix
Appendix May 9, 2024
Slide 19: Q4 & FY'24 Results
Q4 & FY’24 Results Q4 FY’23 Q4 FY’24 FY'23 FY'24 Q4 FY’23 Q4 FY’24 FY'23 FY'24 GAAP GAAP % GAAP GAAP % Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 3/31/2023 3/31/2024 Change 3/31/2023 3/31/2024 Change 3/31/2023 3/31/2024 Change 3/31/2023 3/31/2024 Change Revenue: Prod
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’23 FY’23 FY’23 FY’23 FY’23 FY’24 FY’24 FY’24 FY’24 FY’24 Total Revenue 208.8 228.1 269.5 208.1 914.5 211.1 196.8 218.1 203.4 829.5 Service Assurance Revenue 149.
Slide 21: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations and Net Income
GAAP to Non-GAAP Reconciliation: Q4’FY24, Q4’FY23, Q3’FY24, FY24 & FY23 Gross Profit, Income (loss) from Operations and Net Income (loss) May 9, 2024 21
Slide 22: GAAP to Non-GAAP Reconciliation Itemization
GAAP to Non-GAAP Reconciliation: Q4’FY24, Q4’FY23, Q3’FY24, FY24 & FY23 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'25 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’25 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'24 FY'25 GAAP & Non-GAAP revenue $ 829.5 ~$800 million to ~$830 million FY'24 FY'2
Slide 24: Thank You
Thank You May 9, 2024