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Jul 02, 2023
NETGEAR Q2 2023 Earnings Report
NETGEAR reported second quarter 2023 results, with revenue above the high end of guidance.
Key Takeaways
NETGEAR reported Q2 2023 net revenue of $173.4 million, exceeding the high end of guidance. The company's premium CHP products outperformed the broader market, and demand for SMB products remained strong. Total paid subscribers reached 804,000.
Q2 net revenue was $173.4 million, a decrease of 22.3% year-over-year.
GAAP operating loss was $17.8 million, or (10.3)% of net revenue.
GAAP net loss per diluted share was $0.29, compared to $0.30 in the prior year quarter.
The company reached 804,000 total paid subscribers.
Revenue by Geographic Location
Forward Guidance
NETGEAR expects Q3 net revenue to be in the range of $175 million to $190 million. GAAP operating margin is expected to be in the range of (7.0)% to (4.0)%, and non-GAAP operating margin to be in the range of (4.0)% to (1.0)%.
Positive Outlook
- Strong underlying demand in the SMB business.
- Strong underlying demand in the premium portion of CHP product portfolio.
- Broader consumer retail networking market is beginning to stabilize.
- GAAP tax rate is expected to be approximately 15.0%.
- Non-GAAP tax rate is expected to be 25.0%.
Challenges Ahead
- Ongoing broad-based inflationary pressures.
- Uncertain macroeconomic environment.
- High interest rates.
- Continue to work with channel partners across both businesses to optimize their inventory carrying levels
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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