NASDAQ$NTCT

NetScout Systems Inc. · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

NETSCOUT's Q1 2025 financial results were announced, with revenue at the high end of expectations and a multi-year enterprise license agreement extended. The company is prioritizing cybersecurity and cost management.

NETSCOUT reported Q1 fiscal year 2025 revenue of $174.6 million, with a GAAP net loss of $443.4 million, or $6.20 per share, including a goodwill impairment charge of $427.0 million and a restructuring charge of $16.6 million. Non-GAAP net income was $20.6 million, or $0.28 per share.

  • Q1 revenue was $174.6 million, at the high end of the outlook.
  • GAAP net loss was $443.4 million, or $6.20 per share, including significant impairment and restructuring charges.
  • Non-GAAP net income was $20.6 million, or $0.28 per share.
  • A multi-year enterprise license agreement was extended with a leading North American Tier-1 service provider.

Headline financials

Total Revenue

$175M

Previous: $211M-17.3%
EPS

-$6.20

Previous: $0.31-2100.0%
GAAP Operating Margin

-265.4%

No prior period
Non-GAAP Operating Margin

8.0%

No prior period
Capital Expenditures

-$1.27M

Previous: -$1.96M+35.2%
Free Cash Flow

-$445M

Previous: -$6.16M-7122.9%
Net Income

-$443M

Previous: -$4.2M-10456.6%
Operating Income

-$463M

Previous: -$4.7M-9768.5%
Gross Profit

$130M

Previous: $161M-19.0%
Cash & Equivalents

$362M

Previous: $333M+8.9%
Total Assets

$2.09B

Previous: $2.73B-23.6%
R&D Expense

$42.5M

No prior period
Stock-Based Comp

$21.2M

Previous: $19.8M+6.8%

Revenue & EPS history

NetScout · Revenue · Quarterly

$175M

Q1 2025-17.3%vs Q1 2024
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

NetScout · $197M total across 2 segments · Q2 2024

  • Service
    $116M-0.0%
  • Product
    $80.5M-28.0%

Forward guidance

NETSCOUT's fiscal year 2025 outlook for revenue and non-GAAP net income per share remains unchanged from previous guidance. GAAP net loss per share has been updated to reflect non-cash goodwill impairment and restructuring charges.

Tailwinds

  • Revenue expectations remain in the range of $800 million to $830 million.
  • Non-GAAP net income per share expectations remain in the range of $2.10 to $2.30.
  • Expects approximately $25 million to $27 million net annual run-rate savings.
  • Expects $18 million to $19 million savings will be realized in the remainder of fiscal year 2025.
  • Partial-year net benefits for fiscal year 2025 are included in both GAAP and non-GAAP expectations.

Headwinds

  • GAAP net loss per share is expected to be in the range of ($5.28) to ($5.03).
  • The VSP is expected to result in a net reduction of approximately 150 employees.
  • Expects to record an additional restructuring charge in the range of $3 million to $5 million in the second quarter of fiscal year 2025.
  • Macroeconomic factors and slowdowns or downturns in economic conditions.
  • Volatile foreign exchange environment.

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 2025

Historical avgQ1 2025

+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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