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Mar 31, 2024
NetScout Q4 2024 Earnings Report
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.
Key Takeaways
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.
NetScout
NetScout
NetScout Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income