NASDAQ$NTCT

NetScout Systems Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Achieved solid financial performance and updated the FY23 financial outlook.

NETSCOUT reported solid financial results for Q3 2023, with strong service assurance performance driving higher sales, margins, and profitability year-over-year. The company is narrowing its revenue range and increasing its EPS ranges for fiscal year 2023.

  • Total revenue for the third quarter of fiscal year 2023 was $269.5 million, compared to $262.2 million in the third quarter of fiscal year 2022.
  • Product revenue was $149.5 million, representing approximately 55% of total revenue.
  • Service revenue was $120.1 million, accounting for approximately 45% of total revenue.
  • Net income for the third quarter of fiscal year 2023 was $52.6 million, or $0.72 per share (diluted), compared to $47.7 million, or $0.64 per share (diluted), in the third quarter of fiscal year 2022.

Headline financials

Total Revenue

$270M

Previous: $262M+2.8%
EPS (adj)

$1.00

Previous: $0.89+12.4%
Non-GAAP Operating Margin

35.5%

No prior period
Capital Expenditures

-$8.38M

Previous: -$7M-19.7%
Free Cash Flow

$44.2M

Previous: $40.7M+8.6%
Net Income

$52.6M

Previous: $47.7M+10.3%
Operating Income

$63.8M

Previous: $55.5M+15.0%
Gross Profit

$213M

Previous: $202M+5.5%
Cash & Equivalents

$352M

Previous: $548M-35.8%
Total Assets

$2.9B

Previous: $3.13B-7.3%
Stock-Based Comp

$15.1M

Previous: $12.7M+19.4%

Revenue & EPS history

NetScout · Revenue · Quarterly

$270M

Q3 2023+2.8%vs Q3 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

NetScout · $270M total across 2 segments · Q3 2023

  • Product
    $150M+3.5%
  • Service
    $120M+2.0%

Forward guidance

NETSCOUT updated its outlook for fiscal year 2023, narrowing the revenue range and raising the ranges of its GAAP and non-GAAP net income per share (diluted) outlook.

Tailwinds

  • Revenue (GAAP and non-GAAP) is expected to be in the range of $905 million to $915 million.
  • GAAP net income per share (diluted) is expected to be in the range of $0.71 to $0.75.
  • Non-GAAP net income per share (diluted) is expected to be in the range of $2.06 to $2.10.

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 Q3 2023

Historical avgQ3 2023

+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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