Slide 1: Investor Overview October 2023
INVESTOR OVERVIEW OCTOBER 2023
Slide 2: Safe Harbor Disclosure
SAFE HARBOR DISCLOSURE This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are
Slide 3: Q3'23 Highlights
Connected Q 3 ’ 2 3 H I G H LHome IGHTS Quarterly Revenue of $197.8 Million 35% Share in U.S. Retail WiFi Market1 844,000 Service Subscribers 1Source: Combination of third party market data and product sales through NETGEAR.com.
Slide 4: Our Mission
OUR MISSION Be the innovative leader in connecting the world to the internet.
Slide 5: Technologies and Applications
TECHNOLOGIES A P P L I C AT I O N S Life revolves Quad-band Mesh around the Sports & Events internet AV over IP Whole Home WiFi Virtual experiences displace physical experiences 5G - mmWave Video Conferencing All enabled by PoE++ leading edge WiFi First Responders and Ethernet technologies WiFi 6 •
Slide 6: Connected Home: Products & Technology
Connected Home CONNECTED HOME Products & Technology
Slide 7: Demand for premium WiFi in every corner of the home
The demand for always-on, high-speed, secure WiFi in every corner of the home and on-the-go has led to an expanding segment of premium WiFi.
Slide 8: Highly Differentiated, Premium Connectivity Solutions
HIGHLY DIFFERENTIATED, PREMIUM CONNECTIVITY SOLUTIONS, ONLY FROM NETGEAR QUAD-BAND
Slide 9: WiFi Leadership in Every Single Category
WIFI LEADERSHIP IN EVERY SINGLE CATEGORY BEST MESH NETWORK MESH ROUTER RANGE EXTENDER CABLE ADAPTER
Slide 10: Premium WiFi
PREMIUM WIFI The best multi-gigabit WiFi. Everywhere.
Slide 11: Orbi 9 Series Unrivalled Performance
ORBI 9 SERIES UNRIVALLED PERFORMANCE Elite mesh kit delivers mega speeds, maximum coverage “The Netgear Orbi RBKE963 is a stellar (albeit quite expensive) three-piece Wi-Fi 6E mesh system that harnesses the 6GHz band to offer some of the fastest throughput speeds we’ve ever seen.” “The new WiFi 7 ch
Slide 12: WiFi 7 Tri-Band Router
WIFI 7 TRI-BAND ROUTER • WiFi 7 speeds up to 19Gbps, 2.4X faster than WiFi 6 • Sleek new body and high-performance antenna design for up to 3,500 sq. ft. of coverage • 10 Gig internet port unleashes the fastest download speeds. Connect to cable or fiber plans up to 10Gbps. • One 10 Gig and four 1 Gi
Slide 13: Quad-Band Mesh System
QUAD-BAND MESH SYSTEM 970 SERIES • New WiFi 7 technology delivering speeds up to 27 Gbps, 2.4x faster than WiFi 6 • Exclusive, patented Quad-Band technology and unique Enhanced Dedicated Backhaul • Slim, elegant design and high-performance antennas for 360- degree coverage • Multi-Gig Speeds with on
Slide 14: NETGEAR Direct – Curated Premium Brand Experience
NETGEAR DIRECT–CURATED PREMIUM BRAND EXPERIENCE Exclusive destination to engage with premium customers Rich content, product selectors, concierge service
Slide 15: Value Added Subscription Services
VALUE ADDED SUBSCRIPTION SERVICES SECURITY PRIVACY SUPPORT
Slide 16: Protects All Connected Devices
PROTECTS ALL CONNECTED DEVICES TRADITIONAL ANTI-VIRUS ONLY PROTECTS INDIVIDUAL DEVICES
Slide 17: Nighthawk M6 Pro 5G + WiFi 6E Mobile Hotspot Router
NIGHTHAWK M6 PRO INDUSTRY’S FIRST 5G + WiFi 6E MOBILE HOTSPOT ROUTER • Secure WiFi and 5G connectivity - at home, at work or anywhere on-the-go • World’s first hotspot using Qualcomm SDX62 and SDX65 chipsets • With mmWave, M6 Pro delivers the fastest 5G speeds on global Service Provider Partners' 5G
Slide 18: Always-On, Secure, High-Speed Internet Connectivity Anywhere
ALWAYS-ON, SECURE, HIGH-SPEED INTERNET CONNECTIVITY ANYWHERE AND EVERYWHERE AFFLUENT JETSETTERS MOBILE WORKFORCES WIRED LINE REPLACEMENT Traveling for business or pleasure Instant and secure connectivity for Reliable 5G internet as primary or Secure connection for critical business team members at a
Slide 19: Meural Premium Display for NFTs and Digital Art
M E U R A L P R E M I U M D I S P L AY F O R N F T S A N D D I G I TA L A R T • Old art, new art, NFT crypto-art and everything in between Mumbot • Meural lets you enjoy over $3 Billion of art in >3M+ followers one digital frame • Share life’s moments, instantly. Take your favorite photos from phone
Slide 20: CHP Growth Strategy
C H P G R O W T H S T R AT E G Y Premium WiFi World class direct to consumer Subscription services align with and 5G devices experience premium segment
Slide 21: NETGEAR Business & NETGEAR AV
NETGEAR BUSINESS & NETGEAR AV Products & Technology
Slide 22: Switches Engineered for AV over IP
SWITCHES ENGINEERED FOR AV OVER IP O U T-O F -T H E-B OX S U PP ORT FO R E VE RY N E TWOR K ED AV S O LU T I ON
Slide 23: ProAV Applications
PROAV APPLICATIONS Digital Conference Rooms Corporate Recording Studios Digital Classrooms Live Event Streaming Robot Assisted Surgical Procedures Resort/Casino/Commercial Video Walls Digital Signage at Transportation Hubs Digital Umpiring Data Visualization for Sporting Events Digital Green Screens
Slide 24: Small Business & Home Office Solutions
SMALL BUSINESS & HOME OFFICE SOLUTIONS WiFi 6, secure, mesh capable Simple to set up Easy network management
Slide 25: Leading the WiFi Transition
LEADING THE WIFI TRANSITION BUSINESS ESSENTIALS PRO WIFI ACCESS POINTS
Slide 26: Insight & Insight Pro - Easy Network Management
I N S I G H T & I N S I G H T P R O - E A S Y N E T W O R K M A N A G E M E N T, L O C A L & R E M O T E SCREENSHOT PREMIUM PRO $9.99 per year per device $22 per year per device
Slide 27: NETGEAR Business Growth Strategy
N E T G E A R B U S I N E S S G R O W T H S T R AT E G Y Pro WiFi Access Points Pro AV Switches AV
Slide 28: Priority ESG Topics
PRIORITY ESG TOPICS READ 2023 ESG REPORT EMPLOYEE GHG EMISSIONS& PRODUCT DATA SUPPLY CHAIN ENGAGEMENT, PROFESSIONAL ENERGY SECURITY PRIVACY MANAGEMENT DIVERSITY & INTEGRITY MANAGEMENT INCLUSION
Slide 29: Financials
FINANCIALS
Slide 30: Quarterly Net Revenue
Q U A R T E R LY N E T R E V E N U E (Net Revenue, $ Millions) $300 $250 $251 $250 $249 $223 $200 $211 $198 $181 $173 $150 $100 $50 $0 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 31: Segment Performance
SEGMENT PERFORMANCE (Net Revenue, $ Millions) CONNECTED HOME SMB 200 100 180 90 160 80 140 70 120 60 100 50 80 40 60 30 40 20 20 10 0 0 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Retail Service Provider
Slide 32: Regional Performance
REGIONAL PERFORMANCE (Net Revenue, $ Millions) AMERICAS EMEA A PA C 180 60 70 160 60 50 140 50 120 40 100 40 30 80 30 60 20 20 40 10 10 20 0 0 0 4Q211Q222Q223Q224Q221Q232Q233Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q211Q222Q223Q224Q221Q232Q233Q23
Slide 33: Operating Margin
O P E R AT I N G M A R G I N (Non-GAAP, % Of Revenue) 5% 3% 2.7% 2.7% 1% 0.7% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 -1% -1.9% -1.6% -3% -3.9% -4.4% -5% -6.2% -7%
Slide 34: Earnings Per Share
EARNINGS PER SHARE (Non-GAAP, $ Per Share) $0.40 $0.30 $0.27 $0.20 $0.23 $0.21 $0.10 -$0.03 $0.00 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 -$0.10 -$0.16 -$0.19 -$0.19 -$0.20 -$0.28 -$0.30
Slide 35: Cash Balance
CASH BALANCE (Cash, Cash Equivalents And Short-Term Investments, $ Millions) $350 $300 $272 $250 $264 $250 $233 $239 $227 $228 $200 $203 $150 $100 $50 $0 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23
Slide 36: Appendix
APPENDIX
Slide 37: Reconciliations of GAAP to Non-GAAP Measures: Operating Income
GAAP operating income (loss) GAAP operating margin Amortization of intangibles Stock-based compensation expense Goodwill impairment Intangibles impairment Restructuring and other charges Litigation reserves, net Non-GAAP operating income (loss) Non-GAAP operating margin NETGEAR, INC. RECONCILIATIONS
Slide 38: Reconciliations of GAAP to Non-GAAP Measures: EPS
NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (Unaudited) Three Months Ended December 31, April 3, July 3, October 2, December 31, April 2, July 2, October 1, 2021 2022 2022 2022 2022 2023 2023 2023 NET INCOME (LOSS) PER DILUTED SHARE: GAAP net income (loss) per diluted share s