NASDAQ$NTCT
NetScout Systems Inc. · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
NetScout's revenue was ahead of expectations, benefiting from customer budget spending, while navigating a challenging market environment.
NETSCOUT reported third-quarter fiscal year 2024 revenue ahead of expectations, driven by calendar year-end customer budget spending. The cybersecurity business grew year-over-year, while the market environment remained challenging, impacting the service assurance business. The company expects to deliver full fiscal year 2024 revenue at the low-end of its previously disclosed target range.
- Total revenue for Q3 FY24 was $218.1 million, compared to $269.5 million in Q3 FY23.
- Product revenue for Q3 FY24 was $95.8 million, compared to $149.5 million in Q3 FY23.
- Service revenue for Q3 FY24 was $122.2 million, compared to $120.1 million in Q3 FY23.
- GAAP net loss for Q3 FY24 was $132.6 million, or ($1.87) per share (diluted), which includes a non-cash goodwill impairment charge. Non-GAAP net income was $52.0 million, or $0.73 per share (diluted).
Headline financials
Revenue & EPS history
NetScout · Revenue · Quarterly
$218M
Revenue by segment
NetScout · $197M total across 2 segments · Q2 2024
- Service$116M-0.0%59.1%
- Product$80.5M-28.0%40.9%
Forward guidance
NETSCOUT has updated its financial outlook for fiscal year 2024. Revenue is expected to be approximately $840 million. GAAP loss per share is expected to be in the range of ($1.29) to ($1.24). Non-GAAP net income per share (diluted) is expected to be in the range of $2.15 to $2.20.
Tailwinds
- 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.
- 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%.
- NETSCOUT 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.
- Cybersecurity business grew year-over-year as enterprise and service provider customers continue to prioritize spending in this area.
Headwinds
- 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.
- Market environment remains challenging with constrained customer spending and elongated sales cycles, primarily impacting our service assurance business.
- Goodwill impairment charge of $167.1 million.
- Total revenue for Q3 FY24 was $218.1 million, compared to $269.5 million in Q3 FY23.
- Product revenue for Q3 FY24 was $95.8 million, compared to $149.5 million in Q3 FY23.
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 2024
+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
| Quarter | Report date | Reaction (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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