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Sep 30, 2024
NetScout Q2 2025 Earnings Report
Delivered Q2 fiscal year 2025 revenue and earnings results in line with expectations and continued to position NETSCOUT to win in the market.
Key Takeaways
NETSCOUT reported Q2 fiscal year 2025 revenue of $191.1 million and GAAP net income of $9.0 million, or $0.13 per share (diluted). Non-GAAP net income was $33.6 million, or $0.47 per share (diluted). The company is focused on enhancing its cybersecurity offerings and managing costs.
Q2 fiscal year 2025 revenue was $191.1 million.
GAAP net income for the second quarter of fiscal year 2025 was $9.0 million, or $0.13 per share (diluted).
Non-GAAP net income for the second quarter of fiscal year 2025 was $33.6 million, or $0.47 per share (diluted).
As of September 30, 2024, cash, cash equivalents, short and long-term marketable securities and investments were $401.9 million.
NetScout
NetScout
NetScout Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
The Company’s GAAP net loss per share outlook for fiscal year 2025 has been updated to reflect the latest restructuring charge related to the Company’s Voluntary Separation Program (VSP).
Positive Outlook
- Revenue (GAAP and non-GAAP) expectations remain in the range of $800 million to $830 million.
- Non-GAAP net income per share (diluted) expectations remain in the range of $2.10 to $2.30.
- The VSP is expected to result in a net reduction of approximately 145 employees.
- The Company expects that these actions will generate net annual run-rate savings of approximately $25 million, of which $19 million will be realized in 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 (diluted) is now expected to be in the range of ($5.22) to ($5.01).
- Restructuring charges anticipated for the third quarter of fiscal year 2025.
- The Company recorded a restructuring charge of $19.0 million in the first half of fiscal year 2025.
- The Company expects to record an additional restructuring charge of approximately $0.6 million in the third quarter of fiscal year 2025 primarily for severance costs associated with the remaining implementation of the VSP.
- The charges are factored into NETSCOUT's GAAP guidance provided above.
Revenue & Expenses
Visualization of income flow from segment revenue to net income