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Jun 30, 2024
NetScout Q1 2025 Earnings Report
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.
Key Takeaways
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.
NetScout
NetScout
NetScout Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income