NASDAQ$NTCT
NetScout Systems Inc. · Q4 2024 earnings
Q4 2024 earnings · · Investor relations
Briefing
NetScout's Q4 performance was impacted by cybersecurity revenue growth offset by constrained spending in service assurance, resulting in a net loss per share for the fiscal year due to non-cash goodwill impairment charges.
NETSCOUT's Q4 FY24 revenue was $203.4 million, compared to $208.1 million in Q4 FY23. The company reported a GAAP net loss of $32.4 million, or $0.46 per share, which included a non-cash goodwill impairment charge. Non-GAAP net income was $39.8 million, or $0.55 per share.
- Cybersecurity revenue growth was a highlight, driven by customer prioritization of cybersecurity spending.
- Constrained customer spending affected Service Assurance offerings, primarily related to domestic service provider customers.
- GAAP operating performance included non-cash goodwill impairment charges, leading to a net loss per share for the fiscal year.
- Cost containment actions and a flexible cost structure contributed to non-GAAP earnings per share growth year over year.
Headline financials
Revenue & EPS history
NetScout · Revenue · Quarterly
$203M
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
For fiscal year 2025, NETSCOUT anticipates revenue between $800 million and $830 million, GAAP net income per share between $0.58 and $0.82, and non-GAAP net income per share between $2.10 and $2.30.
Tailwinds
- Momentum in Cybersecurity offerings.
- Further actions to enhance focus on Cybersecurity.
- Aligning cost structure with the current demand environment.
- Seeking to execute on strategic priorities.
- Preserving earnings for shareholders.
Headwinds
- Lingering headwinds in the domestic service provider vertical of our Service Assurance offering.
- Likely top-line offset resulting in a flat to slightly down revenue scenario for fiscal year 2025.
- One-time separation charges estimated to be in the range of $18 million to $22 million.
- Voluntary Separation Program (VSP) initiated as part of restructuring efforts for fiscal year 2025.
- These charges are factored into NETSCOUT's GAAP guidance.
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 Q4 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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