NETSCOUT Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results and Announces Executive Transitions
Remarks by Anil Singhal, NETSCOUT’s President & Chief Executive Officer:
Fourth Quarter and Fiscal Year 2025 Financial Performance and Outlook for Fiscal Year 2026
"We closed fiscal year 2025 revenue on a strong note, with fourth-quarter revenue exceeding our expectations, driven by solid performance in our Cybersecurity product line. We are also pleased with our full-year revenue performance. These results were in line with our prior year revenue results after adjusting for the divestiture of the Test Optimization business. These results reflect the resilience of our business and the strong focus of our teams and were achieved against a challenging comparison since the prior year’s revenue benefited from significant backlog-driven gains.”
“As we look ahead to fiscal year 2026, we remain encouraged by the momentum in our Cybersecurity solutions and are focused on returning to revenue growth. While we remain cautious given the broader economic uncertainty, we’re committed to disciplined cost management to preserve flexibility. Our long-term strategy is unchanged—we will continue to invest in innovation, deepen relationships with our customers, and leverage our mission-critical solutions to support the evolving performance, availability, and security needs of today’s complex digital environments. With a strong financial foundation and a clear strategic direction, we believe NETSCOUT is well positioned for sustainable, long-term success."
Leadership Transition
“On behalf of our board and executive team, I want to thank Jean and Michael for their many contributions in support of NETSCOUT over the years,” said Singhal. “We wish them every success in retirement and are pleased they will continue to support the company in an advisory capacity over the next year.”
“We are fortunate to have capable and experienced leaders like Sanjay and Tony ready to take on the roles of COO and CFO. Sanjay has more than 30 years of experience in the networking and cybersecurity industry and has led strategic innovations for NETSCOUT’s network and application performance, security analytics, and DDoS prevention solutions. With 30 years of experience, Tony has been instrumental in shaping our financial strategy, bringing deep expertise across financial planning and analysis, treasury, risk management, taxation, real estate, and investor relations. I look forward to partnering with Sanjay and Tony as we continue to deliver value for our stakeholders.”
Q4 FY25 Financial Results
Total revenue for the fourth quarter of fiscal year 2025 was
Product revenue for the fourth quarter of fiscal year 2025 was
Service revenue for the fourth quarter of fiscal year 2025 was
NETSCOUT’s income from operations (GAAP) was
Net income (GAAP) for the fourth quarter of fiscal year 2025 was
As of March 31, 2025, cash, cash equivalents, short and long-term marketable securities and investments were
Full Year FY25 Financial Results
-
Total revenue for the full fiscal year 2025 was
$822.7 million $829.5 million -
Product revenue for fiscal year 2025 was
$359.9 million $360.4 million -
Service revenue for the fiscal year 2025 was
$462.8 million $469.0 million -
NETSCOUT’s loss from operations (GAAP) for fiscal year 2025 was
$367.6 million $427.0 million $149.8 million $217.3 million 44.7% , versus negative18.1% in fiscal year 2024. The Company’s non-GAAP income from operations for the fiscal year 2025 was$195.1 million 23.7% , compared with non-GAAP income from operations of$187.1 million 22.6% for fiscal year 2024. The Company’s non-GAAP EBITDA from operations for fiscal year 2025 was$208.4 million 25.3% of total revenue, compared with non-GAAP EBITDA from operations of$205.0 million 24.7% of total revenue for fiscal year 2024. A reconciliation of all GAAP and non-GAAP results are included in the financial tables below. -
For fiscal year 2025, NETSCOUT’s net loss (GAAP) was
$366.9 million $(5.12) $147.7 million $(2.07) $160.4 million $2.22 $159.1 million $2.20 -
During fiscal year 2025, NETSCOUT repurchased approximately 1.4 million shares of its common stock for an aggregate of approximately
$25.3 million
Financial Outlook
The Company’s financial outlook for fiscal year 2026 is anticipated to be as follows:
-
Revenue in the range of
$825 million $865 million -
GAAP net income per share (diluted) in the range of
$1.07 $1.22 $2.25 $2.40 - A reconciliation between GAAP and non-GAAP numbers for NETSCOUT’s fiscal year 2026 outlook is included in the financial tables below.
Recent Developments and Highlights
- In early April 2025, NETSCOUT announced the findings from its 2nd-half 2024 DDoS Threat Intelligence Report revealing how Distributed Denial of Service (DDoS) attacks have emerged as the go-to tool for cyber warfare, becoming a dominant means of attacks linked to sociopolitical events such as elections, civil protests, and policy disputes. With the increase in enterprise servers and routers being exploited, DDoS attacks are evolving and adapting faster than ever, creating a challenge for defenders and those entrusted with protecting critical infrastructure networks and service availability.
-
In late February 2025, NETSCOUT announced it enhanced its Arbor Threat Mitigation System (TMS) Adaptive DDoS Protection solution with additional AI/ML functionality to better detect and block malicious traffic. Distributed Denial of Service (DDoS) attacks targeting critical IT infrastructure and services have increased by
55% over the past four years. To combat these attacks, organizations, enterprises and service providers require AI/ML-enabled solutions that can continually adapt to threats, using proactive, intelligence-driven security strategies to protect their networks.
About Sanjay Munshi and Anthony Piazza
Mr. Munshi joined NETSCOUT in 2017 as Vice President, Product Management, rising to the position of Senior Vice President of Products in 2022, before being named Deputy COO in April of 2024. Prior to joining NETSCOUT, Mr. Munshi served as Senior Director, Product Management and Marketing at Brocade Communications Systems from 2010 to 2017 and was responsible for product management, product marketing and technical marketing functions for analytics software solutions for mobile and cloud operators. He previously held senior management positions at Extreme Networks, Nortel, and Bay Networks. Mr. Munshi has a MS in computer engineering from San Jose State University.
Mr. Piazza joined NETSCOUT in 2015 as its Vice President of Corporate Finance and was named SVP of Corporate Finance in 2022 and Deputy Chief Financial officer in May of 2024. Prior to joining NETSCOUT, Mr. Piazza worked at Iron Mountain from 1997 to 2014, rising to the level of SVP of Enterprise Finance. His previous roles at Iron Mountain included SVP of Global Real Estate, VP of Real Estate Finance & Operations, Assistant Treasurer, and Acquisition & SEC Reporting Accountant. In all, his responsibilities included management of critical finance, accounting, and control functions; the financial integration of multiple mergers and acquisitions; and long-term strategic planning for the company’s real estate portfolio; and investor relations. From 1993 to 1997, Mr. Piazza was a senior auditor at Grant Thornton. He has a B.S. in accountancy and an M.B.A. from Bentley University, and is a certified public accountant.
Conference Call Instructions:
NETSCOUT will host a conference call to discuss its fourth-quarter and full fiscal year 2025 financial results and financial outlook today at 8:30 a.m. ET. This call will be webcast live through NETSCOUT’s website at https://ir.netscout.com/investors/overview/default.aspx. Alternatively, investors can listen to the call by dialing (203) 518-9708. The conference call ID is NTCTQ425. A replay of the call will be available after 12:00 p.m. ET today, for approximately one week. The number for the replay is (800) 727-6189 for
Use of Non-GAAP Financial Information:
To supplement the financial measures presented in NETSCOUT's press release in accordance with accounting principles generally accepted in
These non-GAAP measures are not in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (gross profit, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all NETSCOUT’s results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate NETSCOUT’s results of operations in conjunction with the corresponding GAAP measures. The presentation of non-GAAP information is not meant to be considered superior to, in isolation from, or as a substitute for results prepared in accordance with GAAP. NETSCOUT believes these non-GAAP financial measures will enhance the reader’s overall understanding of NETSCOUT’s current financial performance and NETSCOUT's prospects for the future by providing a higher degree of transparency for certain financial measures and providing a level of disclosure that helps investors understand how the Company plans and measures its own business. NETSCOUT believes that providing these non-GAAP measures affords investors a view of NETSCOUT’s operating results that may be more easily compared to peer companies and also enables investors to consider NETSCOUT’s operating results on both a GAAP and non-GAAP basis during and following the integration period of NETSCOUT’s acquisitions. Presenting the GAAP measures on their own, without the supplemental non-GAAP disclosures, might not be indicative of NETSCOUT’s core operating results. Furthermore, NETSCOUT believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to management and investors regarding present and future business trends relating to its financial condition and results of operations.
NETSCOUT management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and to make operating decisions. These non-GAAP measures are among the primary factors that management uses in planning and forecasting.
About NETSCOUT SYSTEMS, INC.
NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected world from cyberattacks and performance and availability disruptions through the company’s unique visibility platform and solutions powered by its pioneering deep packet inspection at scale technology. NETSCOUT serves the world’s largest enterprises, service providers, and public sector organizations. Learn more at www.netscout.com or follow @NETSCOUT on LinkedIn, Twitter, or Facebook.
Safe Harbor
Certain information provided in this press release and on the accompanying conference call and webcast includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Examples of forward-looking statements include statements regarding our future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical fact. You can identify forward-looking statements by their use of forward-looking words such as “may,” “will,” “anticipate,” “expect,” “believe,” “estimate,” “intend,” “plan,” “should,” “seek,” or other comparable terms. Investors are cautioned that such forward-looking statements including, without limitation, statements regarding NETSCOUT’s financial results, its financial outlook and expectations, that NETSCOUT remains encouraged by the momentum in its Cybersecurity offering and is focused on returning to revenue growth, that it remains cautious given the broader economic uncertainty and is committed to disciplined cost management to preserve flexibility, that its long-term strategy is unchanged as it plans to continue to invest in innovation, deepen relationships with its customers, and leverage its mission-critical solutions to support the evolving performance, availability, and security needs of today’s complex digital environments, that it has a strong financial foundation and a clear strategic direction and believes NETSCOUT is well positioned for sustainable, long-term success, statements relating to the potential benefit of a market for the Company’s products and regarding product releases, updates, and functionality, as well as statements regarding the executive transitions, all constitute forward looking statements that involve risks and uncertainties. Actual results could differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the market for advanced networks, service assurance and cybersecurity solutions specifically; international trade policies, including trade protection measures such as tariffs, sanctions and trade barriers; the volatile foreign exchange environment; liquidity concerns at, and failures of, banks and other financial institutions; the Company’s relationships with strategic partners and resellers; dependence upon broad-based acceptance of the Company’s network performance management solutions; the presence of competitors with greater financial resources than the Company has, and their strategic response to the Company’s products; the Company’s ability to retain key executives and employees; the Company’s ability to realize the anticipated savings from recent restructuring actions and other expense management programs; lower than expected demand for the Company’s products and services; and the timing and magnitude of stock buyback activity based on market conditions, corporate considerations, debt agreements, and regulatory requirements. The risks included above are not exhaustive. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. We undertake no responsibility to update or revise any forward-looking statements, except as required by law. For a more detailed description of the risk factors associated with the Company, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed with the Securities and Exchange Commission on May 16, 2024, and subsequently filed reports. NETSCOUT assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
©2025 NETSCOUT SYSTEMS, INC. All rights reserved. NETSCOUT and the NETSCOUT logo are registered trademarks or trademarks of NETSCOUT SYSTEMS, INC. and/or its subsidiaries and/or affiliates in the
NETSCOUT SYSTEMS, INC. |
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(In thousands, except per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|||||||||||||
|
Three Months Ended |
Twelve Months Ended |
|||||||||||||
|
March 31, |
March 31, |
|||||||||||||
|
2025 |
2024 |
2025 |
2024 |
|||||||||||
Revenue: |
|
|
|
|
|||||||||||
Product |
$ |
89,517 |
|
$ |
89,406 |
|
$ |
359,894 |
|
$ |
360,444 |
|
|||
Service |
|
115,470 |
|
|
114,037 |
|
|
462,785 |
|
|
469,011 |
|
|||
Total revenue |
|
204,987 |
|
|
203,443 |
|
$ |
822,679 |
|
|
829,455 |
|
|||
Cost of revenue: |
|
|
|
|
|||||||||||
Product |
|
15,657 |
|
|
16,051 |
|
|
57,463 |
|
|
64,057 |
|
|||
Service |
|
30,040 |
|
|
34,289 |
|
|
121,272 |
|
|
123,355 |
|
|||
Total cost of revenue |
|
45,697 |
|
|
50,340 |
|
|
178,735 |
|
|
187,412 |
|
|||
Gross profit |
|
159,290 |
|
|
153,103 |
|
|
643,944 |
|
|
642,043 |
|
|||
Operating expenses: |
|
|
|
|
|||||||||||
Research and development |
|
36,737 |
|
|
43,558 |
|
|
152,864 |
|
|
161,213 |
|
|||
Sales and marketing |
|
66,562 |
|
|
61,909 |
|
|
268,051 |
|
|
270,979 |
|
|||
General and administrative |
|
23,917 |
|
|
21,911 |
|
|
96,724 |
|
|
95,886 |
|
|||
Amortization of acquired intangible assets |
|
11,583 |
|
|
12,547 |
|
|
46,440 |
|
|
50,337 |
|
|||
Restructuring charges |
|
605 |
|
|
— |
|
|
20,500 |
|
|
— |
|
|||
Goodwill impairment |
|
— |
|
|
50,154 |
|
|
426,967 |
|
|
217,260 |
|
|||
Gain on divestiture of a business |
|
— |
|
|
— |
|
|
— |
|
|
(3,806 |
) |
|||
Total operating expenses |
|
139,404 |
|
|
190,079 |
|
|
1,011,546 |
|
|
791,869 |
|
|||
Income (loss) from operations |
|
19,886 |
|
|
(36,976 |
) |
|
(367,602 |
) |
|
(149,826 |
) |
|||
Interest and other income (expense), net |
|
(1,685 |
) |
|
4,044 |
|
|
1,808 |
|
|
5,316 |
|
|||
Income (loss) before income tax expense (benefit) |
|
18,201 |
|
|
(32,932 |
) |
|
(365,794 |
) |
|
(144,510 |
) |
|||
Income tax expense (benefit) |
|
(416 |
) |
|
(513 |
) |
|
1,128 |
|
|
3,224 |
|
|||
Net income (loss) |
$ |
18,617 |
|
$ |
(32,419 |
) |
$ |
(366,922 |
) |
$ |
(147,734 |
) |
|||
|
|
|
|
|
|||||||||||
Basic net income (loss) per share |
$ |
0.26 |
|
$ |
(0.46 |
) |
$ |
(5.12 |
) |
$ |
(2.07 |
) |
|||
Diluted net income (loss) per share |
$ |
0.25 |
|
$ |
(0.46 |
) |
$ |
(5.12 |
) |
$ |
(2.07 |
) |
|||
Weighted average common shares outstanding used in computing: |
|
|
|
|
|||||||||||
Net income (loss) per share - basic |
|
71,862 |
|
|
71,164 |
|
|
71,627 |
|
|
71,474 |
|
|||
Net income (loss) per share - diluted |
|
73,410 |
|
|
71,164 |
|
|
71,627 |
|
|
71,474 |
|
|||
NETSCOUT SYSTEMS, INC. |
|||||||
Consolidated Balance Sheets |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
March 31, |
March 31, |
|||||
|
2025 |
2024 |
|||||
Assets |
|
|
|||||
Current assets: |
|
|
|||||
Cash, cash equivalents, marketable securities and investments |
$ |
491,473 |
|
$ |
423,133 |
|
|
Accounts receivable and unbilled costs, net |
|
163,654 |
|
|
192,096 |
|
|
Inventories and deferred costs |
|
12,891 |
|
|
14,095 |
|
|
Prepaid expenses and other current assets |
|
45,166 |
|
|
43,170 |
|
|
Total current assets |
|
713,184 |
|
|
672,494 |
|
|
|
|
|
|||||
Fixed assets, net |
|
21,529 |
|
|
26,487 |
|
|
Operating lease right-of-use assets |
|
37,717 |
|
|
42,486 |
|
|
Goodwill and intangible assets, net |
|
1,335,073 |
|
|
1,811,479 |
|
|
Long-term marketable securities |
|
1,004 |
|
|
994 |
|
|
Other assets |
|
78,071 |
|
|
41,362 |
|
|
Total assets |
$ |
2,186,578 |
|
$ |
2,595,302 |
|
|
|
|
|
|||||
Liabilities and Stockholders' Equity |
|
|
|||||
Current liabilities: |
|
|
|||||
Accounts payable |
$ |
18,208 |
|
$ |
14,506 |
|
|
Accrued compensation |
|
56,696 |
|
|
51,362 |
|
|
Accrued other |
|
20,280 |
|
|
15,429 |
|
|
Deferred revenue and customer deposits |
|
301,753 |
|
|
301,806 |
|
|
Current portion of operating lease liabilities |
|
10,995 |
|
|
11,979 |
|
|
Total current liabilities |
|
407,932 |
|
|
395,082 |
|
|
|
|
|
|||||
Other long-term liabilities |
|
8,210 |
|
|
7,055 |
|
|
Deferred tax liability |
|
2,643 |
|
|
4,374 |
|
|
Accrued long-term retirement benefits |
|
27,379 |
|
|
28,413 |
|
|
Long-term deferred revenue and customer deposits |
|
147,510 |
|
|
130,212 |
|
|
Operating lease liabilities, net of current portion |
|
32,509 |
|
|
38,101 |
|
|
Long-term debt |
|
— |
|
|
100,000 |
|
|
Total liabilities |
|
626,183 |
|
|
703,237 |
|
|
|
|
|
|||||
Stockholders' equity: |
|
|
|||||
Common stock |
|
134 |
|
|
131 |
|
|
Additional paid-in capital |
|
3,255,333 |
|
|
3,181,366 |
|
|
Accumulated other comprehensive income |
|
4,073 |
|
|
3,572 |
|
|
Treasury stock, at cost |
|
(1,654,702 |
) |
|
(1,615,483 |
) |
|
(Accumulated deficit) Retained earnings |
|
(44,443 |
) |
|
322,479 |
|
|
Total stockholders' equity |
|
1,560,395 |
|
|
1,892,065 |
|
|
Total liabilities and stockholders' equity |
$ |
2,186,578 |
|
$ |
2,595,302 |
|
|
NETSCOUT SYSTEMS, INC. |
|||||||||||||||||||
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures |
|||||||||||||||||||
(In thousands, except per share data) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended |
Three Months Ended |
Twelve Months Ended |
||||||||||||||||
|
March 31, |
December 31, |
March 31, |
||||||||||||||||
|
2025 |
2024 |
2024 |
2025 |
2024 |
||||||||||||||
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
204,987 |
|
$ |
203,443 |
|
$ |
252,019 |
|
$ |
822,679 |
|
$ |
829,455 |
|
||||
|
|
|
|
|
|
||||||||||||||
Gross Profit (GAAP) |
$ |
159,290 |
|
$ |
153,103 |
|
$ |
205,407 |
|
$ |
643,944 |
|
$ |
642,043 |
|
||||
Share-based compensation expense (1) |
|
2,090 |
|
|
2,305 |
|
|
2,196 |
|
|
9,806 |
|
|
10,229 |
|
||||
Amortization of acquired intangible assets (2) |
|
993 |
|
|
1,637 |
|
|
994 |
|
|
3,978 |
|
|
6,549 |
|
||||
Acquisition related depreciation expense (3) |
|
1 |
|
|
1 |
|
|
1 |
|
|
6 |
|
|
12 |
|
||||
Non-GAAP Gross Profit |
$ |
162,374 |
|
$ |
157,046 |
|
$ |
208,598 |
|
$ |
657,734 |
|
$ |
658,833 |
|
||||
|
|
|
|
|
|
||||||||||||||
Income (Loss) from Operations (GAAP) |
$ |
19,886 |
|
$ |
(36,976 |
) |
$ |
61,713 |
|
$ |
(367,602 |
) |
$ |
(149,826 |
) |
||||
GAAP Operating Margin |
|
9.7 |
% |
|
(18.2 |
)% |
|
24.5 |
% |
|
(44.7 |
)% |
|
(18.1 |
)% |
||||
Share-based compensation expense (1) |
|
14,199 |
|
|
16,146 |
|
|
14,502 |
|
|
64,785 |
|
|
70,799 |
|
||||
Amortization of acquired intangible assets (2) |
|
12,576 |
|
|
14,184 |
|
|
12,595 |
|
|
50,418 |
|
|
56,886 |
|
||||
Restructuring charges |
|
605 |
|
|
— |
|
|
923 |
|
|
20,500 |
|
|
— |
|
||||
Goodwill impairment |
|
— |
|
|
50,154 |
|
|
— |
|
|
426,967 |
|
|
217,260 |
|
||||
Acquisition related depreciation expense (3) |
|
11 |
|
|
11 |
|
|
13 |
|
|
47 |
|
|
119 |
|
||||
Gain on divestiture of a business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,806 |
) |
||||
Legal (benefit) expense related to civil judgments (4) |
|
— |
|
|
(4,510 |
) |
|
— |
|
|
— |
|
|
(4,380 |
) |
||||
Non-GAAP Income from Operations |
$ |
47,277 |
|
$ |
39,009 |
|
$ |
89,746 |
|
$ |
195,115 |
|
$ |
187,052 |
|
||||
Non-GAAP Operating Margin |
|
23.1 |
% |
|
19.2 |
% |
|
35.6 |
% |
|
23.7 |
% |
|
22.6 |
% |
||||
|
|
|
|
|
|
||||||||||||||
Net Income (Loss) (GAAP) |
$ |
18,617 |
|
$ |
(32,419 |
) |
$ |
48,810 |
|
$ |
(366,922 |
) |
$ |
(147,734 |
) |
||||
Share-based compensation expense (1) |
|
14,199 |
|
|
16,146 |
|
|
14,502 |
|
|
64,785 |
|
|
70,799 |
|
||||
Amortization of acquired intangible assets (2) |
|
12,576 |
|
|
14,184 |
|
|
12,595 |
|
|
50,418 |
|
|
56,886 |
|
||||
Restructuring charges |
|
605 |
|
|
— |
|
|
923 |
|
|
20,500 |
|
|
— |
|
||||
Goodwill impairment |
|
— |
|
|
50,154 |
|
|
— |
|
|
426,967 |
|
|
217,260 |
|
||||
Acquisition related depreciation expense (3) |
|
11 |
|
|
11 |
|
|
13 |
|
|
47 |
|
|
119 |
|
||||
Gain on divestiture of a business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,806 |
) |
||||
Legal (benefit) expense related to civil judgments (4) |
|
— |
|
|
(4,510 |
) |
|
— |
|
|
— |
|
|
(4,380 |
) |
||||
Loss on extinguishment of debt (5) |
|
— |
|
|
— |
|
|
1,134 |
|
|
1,134 |
|
|
— |
|
||||
Change in fair value of derivative instrument (6) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(206 |
) |
||||
Income tax adjustments (7) |
|
(8,004 |
) |
|
(3,743 |
) |
|
(9,695 |
) |
|
(36,503 |
) |
|
(29,828 |
) |
||||
Non-GAAP Net Income |
$ |
38,004 |
|
$ |
39,823 |
|
$ |
68,282 |
|
$ |
160,426 |
|
$ |
159,110 |
|
||||
|
|
|
|
|
|
||||||||||||||
Diluted Net Income (Loss) Per Share (GAAP) |
$ |
0.25 |
|
$ |
(0.46 |
) |
$ |
0.67 |
|
$ |
(5.12 |
) |
$ |
(2.07 |
) |
||||
Share impact of non-GAAP adjustments identified above |
|
0.27 |
|
|
1.01 |
|
|
0.27 |
|
|
7.34 |
|
|
4.27 |
|
||||
Non-GAAP Diluted Net Income Per Share |
$ |
0.52 |
|
$ |
0.55 |
|
$ |
0.94 |
|
$ |
2.22 |
|
$ |
2.20 |
|
||||
|
|
|
|
|
|
||||||||||||||
Shares used in computing non-GAAP diluted net income per share |
|
73,410 |
|
|
72,345 |
|
|
72,569 |
|
|
72,235 |
|
|
72,294 |
|
||||
NETSCOUT SYSTEMS, INC. |
|||||||||||||||||||||
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures - Continued |
|||||||||||||||||||||
(In thousands) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
Three Months Ended |
Three Months Ended |
Twelve Months Ended |
|||||||||||||||||
|
|
March 31, |
December 31, |
March 31, |
|||||||||||||||||
|
|
2025 |
2024 |
2024 |
2025 |
2024 |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
(1 |
) |
Share-based compensation expense included in these amounts is as follows: |
|
|
|
|
|
||||||||||||||
|
Cost of product revenue |
$ |
283 |
|
$ |
303 |
|
$ |
287 |
|
$ |
1,296 |
|
$ |
1,330 |
|
|||||
|
Cost of service revenue |
|
1,807 |
|
|
2,002 |
|
|
1,909 |
|
|
8,510 |
|
|
8,899 |
|
|||||
|
Research and development |
|
4,062 |
|
|
4,409 |
|
|
4,074 |
|
|
17,956 |
|
|
19,281 |
|
|||||
|
Sales and marketing |
|
4,915 |
|
|
5,736 |
|
|
5,071 |
|
|
22,765 |
|
|
25,375 |
|
|||||
|
General and administrative |
|
3,132 |
|
|
3,696 |
|
|
3,161 |
|
|
14,258 |
|
|
15,914 |
|
|||||
|
Total share-based compensation expense |
$ |
14,199 |
|
$ |
16,146 |
|
$ |
14,502 |
|
$ |
64,785 |
|
$ |
70,799 |
|
|||||
(2 |
) |
Amortization expense related to acquired software and product technology, tradenames, customer relationships included in these amounts is as follows: |
|
|
|
|
|
||||||||||||||
|
Cost of product revenue |
$ |
993 |
|
$ |
1,637 |
|
$ |
994 |
|
$ |
3,978 |
|
$ |
6,549 |
|
|||||
|
Operating expenses |
|
11,583 |
|
|
12,547 |
|
|
11,601 |
|
|
46,440 |
|
|
50,337 |
|
|||||
|
Total amortization expense |
$ |
12,576 |
|
$ |
14,184 |
|
$ |
12,595 |
|
$ |
50,418 |
|
$ |
56,886 |
|
|||||
(3 |
) |
Acquisition related depreciation expense included in these amounts is as follows: |
|
|
|
|
|
||||||||||||||
|
Cost of product revenue |
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
6 |
|
$ |
8 |
|
|||||
|
Cost of service revenue |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|||||
|
Research and development |
|
8 |
|
|
8 |
|
|
8 |
|
|
31 |
|
|
82 |
|
|||||
|
Sales and marketing |
|
2 |
|
|
2 |
|
|
3 |
|
|
9 |
|
|
18 |
|
|||||
|
General and administrative |
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
|
7 |
|
|||||
|
Total acquisition related depreciation expense |
$ |
11 |
|
$ |
11 |
|
$ |
13 |
|
$ |
47 |
|
$ |
119 |
|
|||||
(4 |
) |
Legal (benefit) expense related to civil judgments included in this amount is as follows: |
|
|
|
|
|
||||||||||||||
|
General and administrative |
$ |
— |
|
$ |
(4,510 |
) |
$ |
— |
|
$ |
— |
|
$ |
(4,380 |
) |
|||||
|
Total legal judgments expense |
$ |
— |
|
$ |
(4,510 |
) |
$ |
— |
|
$ |
— |
|
$ |
(4,380 |
) |
|||||
(5 |
) |
Change in fair value of derivative instrument included in this amount is as follows: |
|
|
|
|
|
||||||||||||||
|
Interest and other (income) expense, net |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(206 |
) |
|||||
|
Total change in fair value of derivative instrument |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(206 |
) |
|||||
(6 |
) |
Loss on extinguishment of debt included in this amount is as follows: |
|
|
|
|
|
||||||||||||||
|
Interest and other (income) expense, net |
$ |
— |
|
$ |
— |
|
$ |
1,134 |
|
$ |
1,134 |
|
$ |
— |
|
|||||
|
Total loss on extinguishment of debt |
$ |
— |
|
$ |
— |
|
$ |
1,134 |
|
$ |
1,134 |
|
$ |
— |
|
|||||
(7 |
) |
Total income tax adjustment included in this amount is as follows: |
|
|
|
|
|
||||||||||||||
|
Tax effect of non-GAAP adjustments above |
$ |
(8,004 |
) |
$ |
(3,743 |
) |
$ |
(9,695 |
) |
$ |
(36,503 |
) |
$ |
(29,828 |
) |
|||||
|
Total income tax adjustments |
$ |
(8,004 |
) |
$ |
(3,743 |
) |
$ |
(9,695 |
) |
$ |
(36,503 |
) |
$ |
(29,828 |
) |
|||||
NETSCOUT SYSTEMS, INC. |
|||||||||||||||||||
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures - |
|||||||||||||||||||
Non-GAAP EBITDA from Operations |
|||||||||||||||||||
(In thousands) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended |
Three Months Ended |
Twelve Months Ended |
||||||||||||||||
|
March 31, |
December 31, |
March 31, |
||||||||||||||||
|
2025 |
2024 |
2023 |
2025 |
2024 |
||||||||||||||
|
|
|
|
|
|
||||||||||||||
Income (loss) from operations (GAAP) |
$ |
19,886 |
|
$ |
(36,976 |
) |
$ |
61,713 |
|
$ |
(367,602 |
) |
$ |
(149,826 |
) |
||||
Income (loss) from operations (GAAP) as a % of revenue |
|
9.7 |
% |
|
(18.2 |
)% |
|
24.5 |
% |
|
(44.7 |
)% |
|
(18.1 |
)% |
||||
Previous adjustments to determine non-GAAP income from operations |
|
27,391 |
|
|
75,985 |
|
|
28,033 |
|
|
562,717 |
|
|
336,878 |
|
||||
Non-GAAP Income from operations |
$ |
47,277 |
|
$ |
39,009 |
|
$ |
89,746 |
|
$ |
195,115 |
|
$ |
187,052 |
|
||||
Depreciation excluding acquisition related-depreciation expense |
|
3,009 |
|
|
3,863 |
|
|
3,077 |
|
|
13,321 |
|
|
17,981 |
|
||||
Non-GAAP EBITDA from operations |
$ |
50,286 |
|
$ |
42,872 |
|
$ |
92,823 |
|
$ |
208,436 |
|
$ |
205,033 |
|
||||
Non-GAAP EBITDA from operations as a % of revenue |
|
24.5 |
% |
|
21.1 |
% |
|
36.8 |
% |
|
25.3 |
% |
|
24.7 |
% |
||||
|
|
|
|
|
|
||||||||||||||
NETSCOUT SYSTEMS, INC. |
|||||
Reconciliation of GAAP Financial Outlook to Non-GAAP Financial Outlook |
|||||
(Unaudited) |
|||||
(In millions, except net income per share - diluted) |
|||||
|
|
|
|||
|
FY'25 |
FY'26 |
|||
Revenue |
$ |
822.7 |
|
~ |
|
|
|
|
|||
|
FY'25 |
FY'26 |
|||
GAAP net income (loss) |
$ |
(366.9 |
) |
|
|
Amortization of intangible assets |
$ |
50.4 |
|
|
|
Share-based compensation expenses |
$ |
64.8 |
|
|
|
Acquisition related depreciation expense |
$ |
— |
|
0 |
|
Loss on debt extinguishment |
$ |
1.1 |
|
— |
|
Restructuring charges |
$ |
20.5 |
|
|
|
Goodwill impairment |
$ |
427.0 |
|
— |
|
Total adjustments |
$ |
563.8 |
|
|
|
Related impact of adjustments on income tax |
$ |
(36.5 |
) |
( |
|
Non-GAAP net income |
$ |
160.4 |
|
|
|
|
|
|
|||
GAAP net income (loss) per share (diluted) |
$ |
(5.12 |
) |
|
|
Non-GAAP net income per share (diluted) |
$ |
2.22 |
|
|
|
|
|
|
|||
Average weighted shares outstanding (diluted GAAP) |
|
71.6 |
|
~74 million to ~75 million |
|
Average weighted shares outstanding (diluted Non-GAAP) |
|
72.2 |
|
~74 million to ~75 million |
|
**Figures in table may not total due to rounding |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508402476/en/
Investors
Tony Piazza
Deputy CFO
978-614-4000
IR@netscout.com
Media
Chris Lucas
AVP, Marketing & Corporate Communications
978-614-4124
Chris.Lucas@netscout.com
Source: NETSCOUT SYSTEMS, INC
