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Jun 28, 2020
NETGEAR Q2 2020 Earnings Report
Delivered double digit revenue growth.
Key Takeaways
NETGEAR reported strong Q2 2020 results, with a 21.3% increase in net revenue to $280.1 million compared to the prior year quarter. The company's operating income also saw a significant increase, driven by the CHP side of the business and the growing demand for high-performance WiFi solutions.
Second quarter net revenue increased by 21.3% year-over-year, reaching $280.1 million.
GAAP operating income significantly increased compared to the prior year quarter.
GAAP net income per diluted share rose to $0.20, compared to $0.03 in the prior year quarter.
The company saw a 28% sequential growth in paid service subscribers, particularly in cybersecurity protection and parental control services.
Revenue by Geographic Location
Forward Guidance
NETGEAR is suspending its practice of giving guidance for Q3 and full year 2020 due to uncertainty around the slowing or reversals of re-openings, new waves of Covid-19 and by extension the speed of the economic recovery worldwide in the second half of 2020.
Challenges Ahead
- Considerable uncertainty around the slowing or reversals of re-openings.
- New waves of Covid-19.
- The speed of the economic recovery worldwide in the second half of 2020.
- SMB business is difficult to forecast.
- Heightens the risk of supply chain disruption.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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