Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — Q1 FY2021 Earnings Presentation
22 slides from Netscout Systems's earnings presentation, Jul 30, 2020
Slide 1: Q1 FY 2021 Conference Call
Q1 FY 2021 Conference Call NETSCOUT SYSTEMS, INC. July 30, 2020 ©2020 NETSCOUT July 30, 2020
Slide 2: Agenda
Agenda • Introduction & Safe Harbor – Tony Piazza, Vice President, Corporate Finance • CEO Perspective – Anil Singhal, President and CEO • COO Update – Michael Szabados, Chief Operating Officer • CFO Financial Review – Jean Bua, EVP and CFO ©2020 NETSCOUT 2 July 30, 2020
Slide 3: Safe Harbor
Safe Harbor Forward Looking Statements: Forward-looking statements in this communication are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and other federal securities laws. Investors are cautioned that statements in this communication, which are n
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 ot
Slide 5: CEO Perspective
CEO Perspective Anil Singhal President and Chief Executive Officer N E T S C O U T.C O M July 30, 2020
Slide 6: Q1 FY’21 Non-GAAP Financial Results
Q1 FY’21 Non-GAAP Financial Results Non-GAAP Q1 FY’21 Q1 FY’20 ($ in millions, except per share data) 6/30/2020 6/30/2019 Revenue $ 183.8 $ 186.1 Gross Margin 74.6% 74.9% Operating Margin 11.2% 6.5% EPS $ 0.17 $ 0.07 • Strong EPS growth on relatively consistent revenue Non-GAAP • ($ in millions, exc
Slide 7: Business Insights
Business Insights • Market Perspective • Enterprise Vertical • Service Provider Vertical ©2020 NETSCOUT 7 July 30, 2020
Slide 8: FY’21 Outlook & Summary
FY’21 Outlook & Summary • We will continue to defer providing fiscal year 2021 guidance until there is a clearer outlook on the duration and magnitude of the effects of the COVID-19 global pandemic • We remain committed to improving operations, maintaining our disciplined cost control, and enhancing
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S C O U T.C O M July 30, 2020
Slide 10: COO Highlights
COO Highlights • Customer wins • Go-to-market activities ©2020 NETSCOUT 10 July 30, 2020
Slide 11: Financial Review & FY’21 Commentary
Financial Review & FY’21 Commentary Jean Bua Executive Vice President and Chief Financial Officer N E T S C O U T.C O M July 30, 2020
Slide 12: Q1 FY’21 Results
Q1 FY’21 Results Q1 FY’21 Q1 FY’20 Q1 FY’21 Q1 FY’20 GAAP GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 6/30/2020 6/30/2019 Change 6/30/2020 6/30/2019 Change Revenue: Product $ 71.7 $ 75.7 -5.3% $ 71.7 $ 75.7 -5.3% Service $ 112.1 $ 110.3 1.6% $ 112.1 $ 110.4 1.5% Total revenue $ 18
Slide 13: Q1 FY’21 Revenue Trends: Customer Verticals
Q1 FY’21 Revenue Trends: Customer Verticals Total Non-GAAP Revenue by Customer Vertical Total Non-GAAP Revenue Composition by Customer Vertical ($ in millions) Q1 FY’21 Q1 FY’20 $183.8 $186.1 Non-GAAP Non-GAAP $104.3 $86.2 57% 43% 46% 54% $79.5 $99.9 Q1 FY'21 Q1 FY'20 Service Provider Enterprise Fig
Slide 14: Q1 FY’21 Revenue Trends: Geographic Mix on a GAAP Basis
Q1 FY’21 Revenue Trends: Geographic Mix on a GAAP Basis Q1 FY’21 Q1 FY’20 GAAP GAAP 6/30/20 6/30/19 Q1 FY’21 Q1 FY’20 Total Revenue $183.8 $186.0 United States $107.3 $107.1 8% 7% 58% 42% 58% 42% 19% International $76.5 $78.9 19% 15% 17% Europe $34.8 $31.3 Asia $13.7 $12.6 Rest of World $28.0 $35.1
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Q1 FY'21 Free Cash Flow Q1 FY’21 (Unaudited) 6/30/20 6/30/2020 Cash and Securities* $ 426.5 Operating Cash Flow $ 44.9 Purchase of Fixed Assets & Intangible Assets $ (6.8) Accounts Receivable, Net $ 138.8 Free Cash Flow $ 38.1 Inventories
Slide 16: FY’21 Commentary
FY’21 Commentary Given the continuing and rapidly evolving Q2 FY’21 Capital Structure Items COVID-19 situation, it is not possible, with reasonable accuracy, to estimate the impact of * Anticipate a tax rate of 23% the pandemic on future financial performance. Therefore, the Company will defer provi
Slide 17: Upcoming Investor Events
Upcoming Investor Events Date Event Location August 12, 2020 Oppenheimer 23rd Annual Technology, Internet & Virtual Communications Conference September 15, 2020 Jefferies Virtual Software Conference Virtual ©2020 NETSCOUT 17 July 30, 2020
Slide 18: Appendix
Appendix N E T S C O U T.C O M July 30, 2020
Slide 19: GAAP to Non-GAAP Reconciliation: Q1’FY21, Q1’FY20 & Q4 FY’20 Revenue
GAAP to Non-GAAP Reconciliation: Q1’FY21, Q1’FY20 & Q4 FY’20 Revenue NETSCOUT SYSTEMS, INC. Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures (In thousands, except per share data) (Unaudited) Three Months Ended Three Months Ended June 30, March 31, 2020 2019 2020 P
Slide 20: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations and Net Income
GAAP to Non-GAAP Reconciliation: Q1’FY21, Q1’FY20 & Q4’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 Months Ended Thre
Slide 21: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q1’FY21, Q1’FY20 & Q4’FY20 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 June 30, March 31, 2020 2019 2020 (1) Share
Slide 22: Thank You
Thank You N E T S C O U T.C O M July 30, 2020