NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT), a leading provider of
performance management, cybersecurity, and DDoS attack protection
solutions, today announced financial results for its third quarter
ended December 31, 2023.
Remarks by Anil Singhal, NETSCOUT’s President and Chief
Executive Officer:
“We delivered third fiscal quarter revenue ahead of expectations
as we benefitted from the timing of calendar year-end customer
budget spending. While the market environment remains challenging
with constrained customer spending and elongated sales cycles,
primarily impacting our service assurance business, our
cybersecurity business once again grew year-over-year as enterprise
and service provider customers continue to prioritize spending in
this area.
“Looking ahead, we expect to deliver full fiscal year 2024
revenue at the low-end of our previously disclosed target range as
we continue to navigate the current market environment. From a
bottom-line standpoint, our GAAP results for the fiscal year will
include a third quarter non-cash goodwill impairment charge. Our
non-GAAP EPS performance is expected to be at the higher end of our
previously disclosed range due to benefits from our ongoing cost
containment actions. Strategically, we remain focused on leveraging
our industry leading ‘Visibility Without Borders’ platform to help
customers tackle the performance, availability, and security
challenges of the increasingly complex connected digital world
while delivering shareholder value.”
Q3 FY24 Financial Results
Total revenue (GAAP and non-GAAP) for the third quarter of
fiscal year 2024 was $218.1 million, compared with $269.5 million
(GAAP and non-GAAP) in the third quarter of fiscal year 2023. A
reconciliation of GAAP and non-GAAP results is included in the
financial tables below.
Product revenue (GAAP and non-GAAP) for the third quarter of
fiscal year 2024 was $95.8 million, or approximately 44% of total
revenue in the period. This compares with product revenue (GAAP and
non-GAAP) of $149.5 million in the third quarter of fiscal year
2023, which was approximately 55% of total revenue in the
period.
Service revenue (GAAP and non-GAAP) for the third quarter of
fiscal year 2024 was $122.2 million, or approximately 56% of total
revenue in the period. This compares with service revenue (GAAP and
non-GAAP) of $120.1 million in the third quarter of fiscal year
2023, which was approximately 45% of total revenue for the
period.
NETSCOUT’s third quarter of fiscal 2024 loss from operations
(GAAP) was $134.4 million, which includes a non-cash goodwill
impairment charge of $167.1 million. This compares with income from
operations of $63.8 million in the third quarter of fiscal year
2023. The Company’s operating margin (GAAP) was -61.7% in the third
quarter of fiscal year 2024, versus 23.7% in the same period of
fiscal year 2023. Non-GAAP income from operations was $63.2 million
with a non-GAAP operating margin of 29.0% in the third quarter of
fiscal year 2024. This compares to non-GAAP income from operations
of $95.6 million and a non-GAAP operating margin of 35.5% in the
third quarter of fiscal year 2023. Non-GAAP EBITDA from operations
in the third quarter of fiscal year 2024 was $67.6 million, or
31.0% of non-GAAP quarterly revenue for the period. This compares
to non-GAAP EBITDA from operations of $100.9 million in the third
quarter of fiscal year 2023, or 37.4% of non-GAAP quarterly revenue
for the period.
Net loss (GAAP) for the third quarter of fiscal year 2024 was
$132.6 million, or ($1.87) per share (diluted), which includes the
previously mentioned non-cash goodwill impairment charge, versus
net income (GAAP) of $52.6 million, or $0.72 per share (diluted),
for the third quarter of fiscal year 2023. On a non-GAAP basis, net
income for the third quarter of fiscal year 2024 was $52.0 million,
or $0.73 per share (diluted), compared with $73.0 million, or $1.00
per share (diluted), for the third quarter of fiscal year 2023.
As of December 31, 2023, cash, cash equivalents, short- and
long-term marketable securities, and investments were $330.1
million, compared with $427.9 million as of March 31, 2023. During
the third quarter of fiscal year 2024, NETSCOUT repurchased a total
of 705,892 shares of its common stock at an average price of $26.66
per share for an aggregate purchase price of approximately $18.8
million. The Company’s outstanding debt balance under its revolving
credit facility was $100 million as of December 31, 2023. The
Company’s $800 million revolving credit facility will expire in
July 2026.
Nine-Months FY24 Financial Results
- Total revenue (GAAP and non-GAAP) for the first nine months of
fiscal year 2024, was $626.0 million, compared with total revenue
(GAAP and non-GAAP) of $706.4 million in the first nine months of
fiscal year 2023. A reconciliation of GAAP and non-GAAP results is
included in the financial tables below.
- Product revenue (GAAP and non-GAAP) for the first nine months
of fiscal year 2024 was $271.0 million, compared with $359.5
million in the first nine months of fiscal year 2023.
- Service revenue (GAAP and non-GAAP) for the first nine months
of fiscal year 2024 was $355.0 million, compared with $346.9
million in the first nine months of fiscal year 2023.
- NETSCOUT’s loss from operations (GAAP) for the first nine
months of fiscal year 2024 was $112.9 million, which includes the
previously mentioned $167.1 million non-cash goodwill impairment
charge that occurred in the third quarter of fiscal year 2024. This
compares with income from operations (GAAP) of $76.0 million in the
first nine months of fiscal year 2023. The Company’s operating
margin (GAAP) for the first nine months of fiscal year 2024 was
-18.0%, versus 10.8% in the first nine months of fiscal year 2023.
The Company’s non-GAAP income from operations for the first nine
months of fiscal year 2024 was $148.0 million with a non-GAAP
operating margin of 23.6%, compared with non-GAAP income from
operations of $174.1 million and a non-GAAP operating margin of
24.6% for the first nine months of fiscal year 2023. The Company’s
non-GAAP EBITDA from operations for the first nine months of fiscal
year 2024 was $162.2 million, or 25.9% of non-GAAP total revenue,
versus non-GAAP EBITDA from operations of $189.8 million, or 26.9%
of non-GAAP total revenue, in the first nine months of fiscal year
2023.
- For the first nine months of fiscal year 2024, NETSCOUT’s net
loss (GAAP) was $115.3 million, or ($1.61) per share (diluted),
primarily due to the previously mentioned $167.1 million non-cash
goodwill impairment charge that occurred in the third quarter of
fiscal year 2024. This compares with a net income (GAAP) of $62.9
million, or $0.86 per share (diluted), for the first nine months of
fiscal year 2023. Non-GAAP net income for the first nine months of
fiscal year 2024 was $119.3 million, or $1.65 per share (diluted),
compared with non-GAAP net income of $132.4 million, or $1.81 per
share (diluted), for the first nine months of fiscal year
2023.
Financial Outlook
Upon review of its year-to-date performance and the future
timing and delivery of orders, NETSCOUT has updated its financial
outlook for fiscal year 2024 as follows:
- Revenue (GAAP and non-GAAP) is now expected to be approximately
$840 million, at the low end of the previously disclosed range of
$840 million to $860 million.
- GAAP loss per share is now expected to be in the range of
($1.29) to ($1.24), compared to the previous range of $0.69 to
$0.89, primarily due to the non-cash goodwill impairment charge in
the third quarter of fiscal 2024. Non-GAAP net income per share
(diluted) is now expected to be in the range of $2.15 to $2.20, at
the higher end of the previously disclosed range of $2.00 to
$2.20.
- NETSCOUT now expects the effective tax rate for fiscal year
2024 to be closer to the lower end of the outlook range of 20% to
22%. It also now expects approximately 72 million to 73 million
diluted shares outstanding at the end of fiscal year 2024, which
includes the benefit of its recent share repurchase program. This
compares with the prior estimated range of 73 million to 74 million
diluted shares outstanding.
- A reconciliation between GAAP and non-GAAP numbers for
NETSCOUT’s fiscal year 2024 outlook is included in the financial
tables below.
Conference Call
Instructions:
NETSCOUT will host a conference call to discuss its
third-quarter fiscal year 2024 financial results today at 8:30 a.m.
ET. This call will be webcast live through NETSCOUT’s website at
https://ir.netscout.com/investors/overview/default.aspx.
Alternatively, investors can listen to the call by dialing (203)
518-9708. The conference call ID is NTCTQ324. A replay of the call
will be available after 12:00 p.m. ET today, for approximately one
week. The number for the replay is (800) 839-2383 for U.S./Canada
and (402) 220-7202 for international callers.
Use of Non-GAAP Financial
Information:
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, non-GAAP operating margin, non-GAAP net income,
non-GAAP diluted net income per share and non-GAAP earnings before
interest and other expense, income taxes, depreciation, and
amortization (Non-GAAP EBITDA) from operations. Non-GAAP gross
profit removes expenses related to the amortization of acquired
intangible assets, share based compensation, and
acquisition-related depreciation. Non-GAAP income from operations
includes the aforementioned adjustments and also removes gain on
the divestiture of a business, legal expenses related to civil
judgments, restructuring charges, and goodwill impairment charges.
Non-GAAP operating margin includes the foregoing adjustments
related to non-GAAP income from operations. Non-GAAP net income
includes the foregoing adjustments related to non-GAAP income from
operations, and also removes change in fair value of derivative
instruments, net of related income tax effects. Non-GAAP diluted
net income per share includes the foregoing adjustments related to
non-GAAP net income. Non-GAAP EBITDA from operations includes the
aforementioned items related to non-GAAP income from operations and
also removes non-acquisition related depreciation expense.
Investors are encouraged to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measures
included in the attached tables within this press release.
These non-GAAP measures are not in accordance with GAAP, should
not be considered an alternative for measures prepared in
accordance with GAAP (gross profit, income from operations,
operating margin, net income, and diluted net income per share),
and may have limitations because they do not reflect all of
NETSCOUT’s results of operations as determined in accordance with
GAAP. These non-GAAP measures should only be used to evaluate
NETSCOUT’s results of operations in conjunction with the
corresponding GAAP measures. The presentation of non-GAAP
information is not meant to be considered superior to, in isolation
from, or as a substitute for results prepared in accordance with
GAAP. NETSCOUT believes these non-GAAP financial measures will
enhance the reader’s overall understanding of NETSCOUT’s current
financial performance and NETSCOUT's prospects for the future by
providing a higher degree of transparency for certain financial
measures and providing a level of disclosure that helps investors
understand how the Company plans and measures its own business.
NETSCOUT believes that providing these non-GAAP measures affords
investors a view of NETSCOUT’s operating results that may be more
easily compared to peer companies and also enables investors to
consider NETSCOUT’s operating results on both a GAAP and non-GAAP
basis during and following the integration period of NETSCOUT’s
acquisitions. Presenting the GAAP measures on their own, without
the supplemental non-GAAP disclosures, might not be indicative of
NETSCOUT’s core operating results. Furthermore, NETSCOUT believes
that the presentation of non-GAAP measures when shown in
conjunction with the corresponding GAAP measures provides useful
information to management and investors regarding present and
future business trends relating to its financial condition and
results of operations.
NETSCOUT management regularly uses supplemental non-GAAP
financial measures internally to understand, manage and evaluate
its business and to make operating decisions. These non-GAAP
measures are among the primary factors that management uses in
planning and forecasting.
About NETSCOUT SYSTEMS,
INC.
NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected
world from cyberattacks and performance disruptions through
advanced network detection and response and pervasive network
visibility. Powered by our pioneering deep packet inspection at
scale, we serve the world’s largest enterprises, service providers,
and public sector organizations. Learn more at www.netscout.com or
follow @NETSCOUT on LinkedIn, Twitter, or Facebook.
Safe Harbor
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
Litigation Reform Act of 1995 and other federal securities laws.
Examples of forward-looking statements include statements regarding
our future financial performance or position, results of
operations, business strategy, plans and objectives of management
for future operations, and other statements that are not historical
fact. You can identify forward-looking statements by their use of
forward-looking words such as “may,” “will,” “anticipate,”
“expect,” “believe,” “estimate,” “intend,” “plan,” “should,”
“seek,” or other comparable terms. Investors are cautioned that
such forward-looking statements in this press release including,
without limitation, statements regarding NETSCOUT’s financial
results, its financial outlook for the full fiscal year 2024, its
focus on leveraging its industry leading ‘Visibility Without
Borders’ platform to help customers tackle the performance,
availability, and security challenges of the increasingly complex
connected digital world while delivering shareholder value, and
statements relating to the potential benefit of a market for the
Company’s products and regarding product releases, updates, and
functionality all constitute forward looking statements that
involve risks and uncertainties. Actual results could differ
materially from the forward-looking statements due to known and
unknown risks, uncertainties, assumptions, and other factors. Such
factors include, but are not limited to, macroeconomic factors and
slowdowns or downturns in economic conditions generally and in the
market for advanced network, service assurance and cybersecurity
solutions specifically; the volatile foreign exchange environment;
liquidity concerns at, and failures of, banks and other financial
institutions; the Company’s relationships with strategic partners
and resellers; dependence upon broad-based acceptance of the
Company’s network performance management solutions; the presence of
competitors with greater financial resources than the Company has,
and their strategic response to the Company’s products; the
Company’s ability to retain key executives and employees; the
Company’s ability to realize the anticipated savings from recent
restructuring actions and other expense management programs; lower
than expected demand for the Company’s products and services; and
the timing and magnitude of stock buyback activity based on market
conditions, corporate considerations, debt agreements, and
regulatory requirements. The risks included above are not
exhaustive. We caution readers not to place undue reliance on any
forward-looking statements included in this press release which
speak only as to the date of this press release. We undertake no
responsibility to update or revise any forward-looking statements,
except as required by law. For a more detailed description of the
risk factors associated with the Company, please refer to the
Company’s Annual Report on Form 10-K for the fiscal year ended
March 31, 2023, filed with the Securities and Exchange Commission.
NETSCOUT assumes no obligation to update any forward-looking
information contained in this press release or with respect to the
announcements described herein.
©2024 NETSCOUT SYSTEMS, INC. All rights reserved. NETSCOUT and
the NETSCOUT logo are registered trademarks or trademarks of
NETSCOUT SYSTEMS, INC. and/or its subsidiaries and/or affiliates in
the USA and/or other countries.
NETSCOUT SYSTEMS, INC. Condensed Consolidated
Statements of Operations (In thousands, except per share
data) (Unaudited)
Three Months Ended
Nine Months Ended
December 31,
December 31,
2023
2022
2023
2022
Revenue: Product
$
95,832
$
149,452
$
271,038
$
359,519
Service
122,240
120,092
354,974
346,918
Total revenue
218,072
269,544
626,012
706,437
Cost of revenue: Product
15,251
25,281
48,006
77,967
Service
28,373
31,521
89,066
94,190
Total cost of revenue
43,624
56,802
137,072
172,157
Gross profit
174,448
212,742
488,940
534,280
Operating expenses: Research and development
37,023
42,558
117,655
129,932
Sales and marketing
69,124
66,994
209,070
209,435
General and administrative
23,109
25,533
73,975
75,584
Amortization of acquired intangible assets
12,533
13,818
37,790
41,500
Goodwill impairment
167,106
-
167,106
-
Gain on divestiture of a business
-
-
(3,806
)
-
Restructuring charges
-
89
-
1,803
Total operating expenses
308,895
148,992
601,790
458,254
Income (loss) from operations
(134,447
)
63,750
(112,850
)
76,026
Interest and other income (expense), net
729
(3,172
)
1,272
(6,554
)
Income (loss) before income tax expense (benefit)
(133,718
)
60,578
(111,578
)
69,472
Income tax expense (benefit)
(1,141
)
7,960
3,737
6,603
Net income (loss)
$
(132,577
)
$
52,618
$
(115,315
)
$
62,869
Basic net income (loss) per share
$
(1.87
)
$
0.73
$
(1.61
)
$
0.87
Diluted net income (loss) per share
$
(1.87
)
$
0.72
$
(1.61
)
$
0.86
Weighted average common shares outstanding used in computing: Net
income (loss) per share - basic
71,077
71,744
71,577
72,015
Net income (loss) per share - diluted
71,077
73,049
71,577
73,271
NETSCOUT SYSTEMS, INC. Consolidated Balance
Sheets (In thousands)
December 31,
March 31,
2023
2023
(unaudited)
Assets Current assets: Cash, cash equivalents, marketable
securities and investments
$
329,112
$
418,998
Accounts receivable and unbilled costs, net
221,574
143,855
Inventories and deferred costs
15,342
17,956
Prepaid expenses and other current assets
43,290
36,551
Total current assets
609,318
617,360
Fixed assets, net
27,955
34,735
Operating lease right-of-use assets
44,977
51,456
Goodwill and intangible assets, net
1,875,440
2,090,995
Long-term marketable securities
1,010
8,940
Other assets
31,099
17,074
Total assets
$
2,589,799
$
2,820,560
Liabilities and Stockholders' Equity Current
liabilities: Accounts payable
$
15,132
$
16,473
Accrued compensation
42,283
83,279
Accrued other
19,448
30,674
Deferred revenue and customer deposits
293,410
311,531
Current portion of operating lease liabilities
11,979
11,650
Total current liabilities
382,252
453,607
Other long-term liabilities
7,312
7,683
Deferred tax liability
4,505
24,939
Accrued long-term retirement benefits
26,310
26,049
Long-term deferred revenue and customer deposits
124,619
129,814
Operating lease liabilities, net of current portion
40,898
48,819
Long-term debt
100,000
100,000
Total liabilities
685,896
790,911
Stockholders' equity: Common stock
131
128
Additional paid-in capital
3,158,283
3,099,698
Accumulated other comprehensive income
5,870
5,738
Treasury stock, at cost
(1,615,279
)
(1,546,128
)
Retained earnings
354,898
470,213
Total stockholders' equity
1,903,903
2,029,649
Total liabilities and stockholders' equity
$
2,589,799
$
2,820,560
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
Nine Months Ended
December 31,
September 30,
December 31,
2023
2022
2023
2023
2022
GAAP and Non-GAAP Revenue
$
218,072
$
269,544
$
196,802
$
626,012
$
706,437
Gross Profit (GAAP)
$
174,448
$
212,742
$
153,750
$
488,940
$
534,280
Share-based compensation expense (1)
2,375
2,043
2,638
7,924
6,475
Amortization of acquired intangible assets (2)
1,636
2,315
1,638
4,912
6,955
Acquisition related depreciation expense (3)
2
5
4
11
16
Non-GAAP Gross Profit
$
178,461
$
217,105
$
158,030
$
501,787
$
547,726
Income (Loss) from Operations (GAAP)
$
(134,447
)
$
63,750
$
26,292
$
(112,850
)
$
76,026
GAAP Operating Margin
-61.7
%
23.7
%
13.4
%
-18.0
%
10.8
%
Share-based compensation expense (1)
16,364
15,143
18,445
54,653
47,225
Amortization of acquired intangible assets (2)
14,169
16,133
14,188
42,702
48,455
Restructuring charges
-
89
-
-
1,803
Goodwill impairment
167,106
-
-
167,106
-
Acquisition related depreciation expense (3)
12
59
37
108
183
Gain on divestiture of a business
-
-
(3,806
)
(3,806
)
-
Legal expenses related to civil judgments (4)
45
426
44
130
426
Non-GAAP Income from Operations
$
63,249
$
95,600
$
55,200
$
148,043
$
174,118
Non-GAAP Operating Margin
29.0
%
35.5
%
28.0
%
23.6
%
24.6
%
Net Income (Loss) (GAAP)
$
(132,577
)
$
52,618
$
21,462
$
(115,315
)
$
62,869
Share-based compensation expense (1)
16,364
15,143
18,445
54,653
47,225
Amortization of acquired intangible assets (2)
14,169
16,133
14,188
42,702
48,455
Restructuring charges
-
89
-
-
1,803
Gain on divestiture of a business
-
-
(3,806
)
(3,806
)
-
Goodwill impairment
167,106
-
-
167,106
-
Acquisition related depreciation expense (3)
12
59
37
108
183
Legal expenses related to civil judgments (4)
45
426
44
130
426
Change in fair value of derivative instrument (5)
-
-
-
(206
)
-
Income tax adjustments (6)
(13,085
)
(11,449
)
(5,829
)
(26,085
)
(28,585
)
Non-GAAP Net Income
$
52,034
$
73,019
$
44,541
$
119,287
$
132,376
Diluted Net Income (Loss) Per Share (GAAP)
$
(1.87
)
$
0.72
$
0.29
$
(1.61
)
$
0.86
Share impact of non-GAAP adjustments identified above
2.60
0.28
0.32
3.26
0.95
Non-GAAP Diluted Net Income Per Share
$
0.73
$
1.00
$
0.61
$
1.65
$
1.81
Shares used in computing non-GAAP diluted net income per
share
71,638
73,049
72,797
72,355
73,271
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
December 31,
September 30,
December 31,
2023
2022
2023
2023
2022
(1)
Share-based compensation expense included in these amounts is as
follows: Cost of product revenue
$
306
$
262
$
349
$
1,027
$
869
Cost of service revenue
2,069
1,781
2,289
6,897
5,606
Research and development
4,498
4,174
4,988
14,872
13,185
Sales and marketing
5,680
5,445
6,675
19,639
17,238
General and administrative
3,811
3,481
4,144
12,218
10,327
Total share-based compensation expense
$
16,364
$
15,143
$
18,445
$
54,653
$
47,225
(2)
Amortization expense related to acquired software and product
technology, tradenames, customer relationships included in these
amounts is as follows: Cost of product revenue
$
1,636
$
2,315
$
1,638
$
4,912
$
6,955
Operating expenses
12,533
13,818
12,550
37,790
41,500
Total amortization expense
$
14,169
$
16,133
$
14,188
$
42,702
$
48,455
(3)
Acquisition related depreciation expense included in these amounts
is as follows: Cost of product revenue
$
2
$
3
$
2
$
7
$
9
Cost of service revenue
-
2
2
4
7
Research and development
8
42
25
74
129
Sales and marketing
2
8
6
16
25
General and administrative
-
4
2
7
13
Total acquisition related depreciation expense
$
12
$
59
$
37
$
108
$
183
(4)
Legal expenses related to civil judgments included in this amount
is as follows: General and administrative
$
45
$
426
$
44
$
130
$
426
Total legal judgments expense
$
45
$
426
$
44
$
130
$
426
(5)
Change in fair value of derivative instrument included in this
amount is as follows: Interest and other (income) expense, net
$
-
$
-
$
-
$
(206
)
$
-
Total change in fair value of derivative instrument
$
-
$
-
$
-
$
(206
)
$
-
(6)
Total income tax adjustment included in this amount is as follows:
Tax effect of non-GAAP adjustments above
$
(13,085
)
$
(11,449
)
$
(5,829
)
$
(26,085
)
$
(28,585
)
Total income tax adjustments
$
(13,085
)
$
(11,449
)
$
(5,829
)
$
(26,085
)
$
(28,585
)
NETSCOUT SYSTEMS, INC. Reconciliation of Current
GAAP to Current and Historical Non-GAAP Financial Measures -
Non-GAAP EBITDA from Operations (In thousands)
(Unaudited)
Three Months Ended
Three Months Ended
Nine Months Ended
December 31,
September 30,
December 31,
2023
2022
2023
2023
2022
Income (loss) from operations (GAAP)
$
(134,447
)
$
63,750
$
26,292
$
(112,850
)
$
76,026
Previous adjustments to determine non-GAAP income from operations
197,696
31,850
28,908
260,893
98,092
Non-GAAP Income from operations
63,249
95,600
55,200
148,043
174,118
Depreciation excluding acquisition related-depreciation
expense
4,337
5,263
4,749
14,118
15,664
Non-GAAP EBITDA from operations
$
67,586
$
100,863
$
59,949
$
162,161
$
189,782
Non-GAAP EBITDA from operations as a % of revenue
31.0
%
37.4
%
30.5
%
25.9
%
26.9
%
NETSCOUT SYSTEMS, INC. Reconciliation of GAAP
Financial Outlook to Non-GAAP Financial Outlook
(Unaudited) (In millions, except net income per share -
diluted) FY'23 FY'24 GAAP & Non-GAAP
revenue
$
914.5
~$840 million
FY'23 FY'24 GAAP net income
$
59.6
~($92) million to ~($89) million Amortization of intangible assets
$
64.7
~$57 million Share-based compensation expenses
$
62.0
~$70 million Business development & integration expenses*
$
0.2
~Less than $1 million Gain on divestiture of a business
$
-
~($3.8 million) Change in fair value of derivative instrument
$
1.4
~Less than $1 million Legal expenses related to civil judgments
$
0.5
-
New accounting standard implementation
$
0.0
-
Restructuring charges
$
1.8
-
Goodwill impairment
$
-
~$167 million Total adjustments
$
130.6
~$290 million Related impact of adjustments on income tax
$
(30.7
)
(~$42 million) Non-GAAP net income
$
159.6
~$156 million to ~$159 million GAAP net income per share
(diluted)
$
0.82
~($1.29) to ~($1.24) Non-GAAP net income per share (diluted)
$
2.18
~$2.15 to ~$2.20 Average weighted shares outstanding
(diluted GAAP)
73.0
~71 million to ~72 million Average weighted shares outstanding
(diluted Non-GAAP)
73.0
~ 72 million to ~73 million *Business development & integration
expenses include acquisition-related depreciation expense **Figures
in table may not total due to rounding
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240125507242/en/
Investors Sean K. F. Hannan Head of Investor Relations
978-614-4374 IR@netscout.com
Media Chris Lucas AVP, Marketing & Corporate Communications
978-614-4124 Chris.Lucas@netscout.com
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