Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — Q3 2022 Earnings Presentation
21 slides from Netscout Systems's earnings presentation, Jan 27, 2022
Slide 1: Q3 FY 2022 Conference Call
Q3 FY 2022 Conference Call NETSCOUT SYSTEMS, INC. January 27, 2022 ©2022 NETSCOUT January 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, EVP and Chief Financial Officer January 2022 ©2022
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 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 January 2022
Slide 6: Q3 FY’22 Non-GAAP Financial Results
Q3 FY’22 Non-GAAP Financial Results Non-GAAP Q3 FY’22 Q3 FY’21 YTD FY'22 YTD FY'21 ($ in millions, except per share data) 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Revenue $ 262.2 $ 228.7 $ 664.4 $ 617.9 Gross Margin 78.8% 78.6% 77.3% 76.1% Operating Margin 33.2% 28.2% 23.5% 20.2% EPS $ 0.89 $ 0.6
Slide 7: Market and Business Insights
Market and Business Insights • Market Insights • Service Provider Customer Vertical • Enterprise Customer Vertical January 2022 ©2022 NETSCOUT 7
Slide 8: FY’22 Outlook & Summary
FY’22 Outlook & Summary • Solid performance year to date • Q3 demonstrated the financial strength of our business model • Remain on track to meet our financial objectives for fiscal year 2022 • Updating our FY’22 outlook • Increasing revenue mid-point and EPS outlook • Expecting lower product revenu
Slide 9: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S C O U T.C O M January 2022
Slide 10: COO Highlights
COO Highlights • Customer Wins • Go-to-Market Activities January 2022 ©2022 NETSCOUT 10
Slide 11: Financial Review & FY’22 Outlook
Financial Review & FY’22 Outlook Jean Bua Executive Vice President and Chief Financial Officer N E T S C O U T.C O M January 2022
Slide 12: Q3 & YTD FY’22 Results
Q3 & YTD FY’22 Results Q3 FY’22 Q3 FY’21 YTD FY'22 YTD FY'21 Q3 FY’22 Q3 FY’21 YTD FY'22 YTD FY'21 GAAP GAAP % GAAP GAAP % Non-GAAP Non-GAAP % Non-GAAP Non-GAAP % (in millions except EPS and % data) 12/31/2021 12/31/2020 Change 12/31/2021 12/31/2020 Change 12/31/2021 12/31/2020 Change 12/31/2021 12/
Slide 13: YTD FY’22 Revenue Trends: Customer Verticals
YTD FY’22 Revenue Trends: Customer Verticals Total Non-GAAP Revenue by Customer Vertical Total Non-GAAP Revenue Composition by Customer Vertical ($ in millions) YTD FY’22 YTD FY’21 $664.4 $617.9 Non-GAAP Non-GAAP $326.8 49% 51% 49% 51% $303.6 $337.6 $314.3 YTD FY'22 YTD FY'21 Service Provider Enterp
Slide 14: YTD FY’22 Revenue Trends: Geographic Mix on a GAAP Basis
YTD FY’22 Revenue Trends: Geographic Mix on a GAAP Basis YTD FY’22 YTD FY’21 GAAP GAAP 12/31/21 12/31/20 YTD FY’22 YTD FY’21 Total Revenue $664.4 $617.9 United States $399.4 $364.5 7% 7% 60% 40% International $265.0 $253.4 18% 15% 59% 41% 19% 15% Europe $121.7 $116.9 Asia $46.8 $43.2 Rest of World $
Slide 15: GAAP Balance Sheet Highlights & Free Cash Flow
GAAP Balance Sheet Highlights & Free Cash Flow (in millions) Free Cash Flow Q1 FY’22 Q2 FY'22 Q3 FY'22 YTD FY'22 6/30/2021 9/30/2021 12/31/2021 12/31/2021 Operating Cash Flow $ 24.1 $ 23.3 $ 93.0 $ 140.4 Q3 FY'22 Purchase of Fixed Assets & Intangible Assets $ (2.6) $ (1.7) $ (2.7) $ (7.0) (Unaudited
Slide 16: FY’22 Outlook
FY’22 Outlook Revenue FY’21 FY’22 Outlook Other FY’22 Outlook Assumptions $ millions GAAP & Non-GAAP GAAP & Non-GAAP * ~75 million weighted average diluted Revenue $831.3 $850 to $855 shares outstanding EPS (Diluted) FY’21 FY’22 Outlook GAAP EPS (diluted) $0.26 $0.40 to $0.43 Adjustments $1.44 $1.35
Slide 17: Appendix
Appendix N E T S C O U T.C O M January 2022
Slide 18: FY’22 Financial Outlook: GAAP to Non-GAAP Reconciliation
FY’22 Financial Outlook: GAAP to Non-GAAP Reconciliation FY'21 FY'22 GAAP & Non-GAAP revenue $ 831.3 ~$850 million to ~$855 million FY'21 FY'22 GAAP net income $ 19.4 ~$30 million to ~$33 million Amortization of intangible assets $ 80.2 ~$73 million to ~$74 million Share-based compensation expenses
Slide 19: GAAP to Non-GAAP Reconciliation: Gross Profit, Income from Operations and Net Income
GAAP to Non-GAAP Reconciliation: Q3’FY22, Q3’FY21, Q2’FY22, YTD’FY22 & YTD’FY21 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) Thr
Slide 20: GAAP to Non-GAAP Reconciliation: Itemization
GAAP to Non-GAAP Reconciliation: Q3’FY22, Q3’FY21, Q2’FY22, YTD’FY22 & YTD’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 Nine Months Ended Decem
Slide 21: Thank You
Thank You N E T S C O U T.C O M January 2022