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Mar 31, 2022
NetScout Q4 2022 Earnings Report
NetScout's Q4 2022 financial results were announced, showcasing the company's successful performance and strategic advancements.
Key Takeaways
NETSCOUT reported Q4 FY22 revenue of $191.2 million compared to $213.4 million in the same quarter last year. The company's GAAP net loss was $7.3 million, or $0.10 per share, while non-GAAP net income was $21.6 million, or $0.29 per share.
NETSCOUT exceeded top and bottom-line objectives for the fourth quarter of fiscal year 2022.
The 'NETSCOUT without Borders' strategy helped increase customer business and advance the cybersecurity agenda.
The company grew product and total revenues, enhanced margins, increased EPS, and generated strong free cash flow in fiscal year 2022.
The Board of Directors authorized the use of an accelerated share repurchase vehicle to repurchase up to $150 million of common stock.
NetScout
NetScout
NetScout Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
NETSCOUT provided financial outlook for fiscal year 2023, projecting revenue between $895 million and $925 million and non-GAAP net income per share between $1.97 and $2.03.
Positive Outlook
- Revenue (GAAP and non-GAAP) is expected to be in the range of $895 million to $925 million, implying mid-to-high single-digit revenue growth year over year.
- GAAP net income per share (diluted) is expected to be in the range of $0.63 to $0.69.
- Non-GAAP net income per share (diluted) is expected to be in the range of $1.97 to $2.03.
- The Company plans to repay up to $150 million of its outstanding debt balance under its revolving credit facility during its first quarter of fiscal year 2023.
- The Board of Directors authorized a new share repurchase program allowing for the repurchase of 25 million shares of the Company’s common stock.
Challenges Ahead
- The financial outlook takes into consideration the estimated net impact of the Company’s anticipated $150 million accelerated share repurchase program, which will be partially offset by the impact of normal stock compensation dilution.
- The Company’s plan to repay up to $150 million of outstanding debt under its revolving credit facility during its first fiscal quarter of fiscal year 2023 will impact the outlook.
- Slowdowns or downturns in economic conditions generally and in the market for advanced network, service assurance and cybersecurity solutions specifically could impact results.
- Volatile foreign exchange environment could impact results.
- Lower than expected demand for the Company’s products and services could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income