NASDAQ$NTCT

NetScout Systems Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

NetScout's first-quarter performance provided a solid start to fiscal year 2022, driven by strong product revenue growth in both Service Assurance and Cybersecurity product lines, which contributed to improved diluted earnings per share compared to the same quarter in the prior fiscal year.

NETSCOUT's first quarter fiscal year 2022 showed a year-over-year revenue increase driven by strong product revenue growth in both the Service Assurance and Cybersecurity product lines. The company's GAAP net loss was $11.3 million, or $0.15 per share (diluted), while non-GAAP net income was $15.0 million, or $0.20 per share (diluted).

  • Total revenue was $190.3 million, compared to $183.8 million in the same quarter one year ago.
  • Product revenue was $82.0 million, compared to $71.7 million in the same quarter last year.
  • Service revenue was $108.3 million, compared to $112.1 million for the same period one year ago.
  • Cash, cash equivalents, and short and long-term marketable securities were $493.9 million as of June 30, 2021.

Headline financials

Total Revenue

$190M

Previous: $184M+3.5%
EPS (adj)

$0.20

Previous: $0.17+17.6%
Capital Expenditures

-$2.58M

Previous: -$2.61M+1.0%
Free Cash Flow

-$13.9M

Previous: -$20M+30.5%
Net Income

-$11.3M

Previous: -$17.4M+34.9%
Operating Income

-$10.7M

Previous: -$14.5M+26.4%
Gross Profit

$136M

Previous: $131M+3.8%
Cash & Equivalents

$487M

Previous: $403M+20.8%
Total Assets

$3.03B

Previous: $3.07B-1.1%
Stock-Based Comp

$14M

Previous: $12.1M+15.5%

Revenue & EPS history

NetScout · Revenue · Quarterly

$190M

Q1 2022+3.5%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

NetScout · $190M total across 2 segments · Q1 2022

  • Service
    $108M-3.4%
  • Product
    $82M+14.3%

Forward guidance

NETSCOUT is reiterating its (GAAP and non-GAAP) revenue outlook as well as its non-GAAP diluted net income per share outlook issued on May 6, 2021. The Company is updating its GAAP diluted net income per share range to take into account accelerated charges associated with the early amendment of its revolving credit facility, higher stock-based compensation cost including the new performance-based restricted stock units discussed in its recently issued 2021 Proxy Statement, and amortization of an acquired trade name intangible asset.

Tailwinds

  • GAAP and non-GAAP revenue expectations remain in the range of $835 million to $865 million.
  • GAAP net income per share (diluted) is now expected to be in the range of $0.36 to $0.42 vs. the prior outlook range of $0.44 to $0.50.
  • Non-GAAP net income per share (diluted) expectations remain in the range of $1.71 to $1.77.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.9%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+2.2%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+18.0%

Q1 2013

Best reaction

-23.0%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+7.7%+7.5%+14.3%
Q3 2026-4.8%-0.1%+4.9%
Q2 2026+7.1%+3.6%-1.5%
Q4 2025+1.7%+8.5%+9.9%
Q3 2025+12.1%+8.0%+0.6%
Q2 2025-1.2%+1.5%+4.4%
Q1 2025+9.8%+10.0%+15.5%
Q4 2024+1.0%+1.4%-6.8%
Q3 2024+3.7%-0.4%+0.0%
Q2 2024-0.5%-3.0%-5.7%
Q1 2024-6.0%-3.8%-4.0%
Q4 2023+13.7%+11.4%+20.2%
Q3 2023+0.7%+1.4%-9.5%
Q2 2023+0.6%+1.4%+6.2%
Q1 2023-4.2%-4.6%-12.8%
Q4 2022+3.8%+6.9%+13.7%
Q3 2022+6.0%+7.7%+6.9%
Q2 2022+2.7%-1.8%-10.3%
Q1 2022-0.8%-2.6%-3.2%
Q4 2021+2.9%+3.1%+15.6%
Q3 2021-3.4%-2.3%-6.7%
Q2 2021-2.8%-2.4%+13.7%
Q1 2021-5.7%-7.7%-13.4%
Q4 2020+0.3%-10.3%+5.9%
Q3 2020+4.7%+9.0%+4.6%
Q2 2020+11.2%+12.0%+13.6%
Q1 2020-11.4%-13.0%-14.9%
Q4 2019-1.1%-5.1%-15.9%
Q3 2019+0.0%+1.0%+5.0%
Q2 2019+14.8%+10.9%+6.0%
Q1 2019-10.6%-12.4%-15.8%
Q4 2018-1.3%+4.1%-0.4%
Q3 2018+9.2%+7.1%+0.6%
Q2 2018-7.1%-6.0%+1.8%
Q1 2018+3.3%+3.3%-3.0%
Q4 2017-6.6%-5.8%+2.2%
Q3 2017+4.0%+9.2%+17.2%
Q2 2017-5.7%-6.2%+11.0%
Q1 2017+9.6%+6.8%+16.7%
Q4 2016+2.8%
Q3 2016-23.0%
Q2 2016-8.7%
Q1 2016+6.7%
Q4 2015+0.2%
Q3 2015+4.1%
Q2 2015-0.4%
Q1 2015-0.2%
Q4 2014-0.3%
Q3 2014+11.8%
Q2 2014+14.8%
Q1 2014+0.2%
Q4 2013+3.1%
Q3 2013-7.0%
Q2 2013+6.6%
Q1 2013+18.0%
Q4 2010+3.2%
Q4 2012+3.2%
Q3 2011+3.1%
Q3 2012+3.1%
Q2 2012-3.9%
Q2 2011-3.9%
Q4 2011-10.9%
Q1 2011-10.9%
Q1 2012-10.9%

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