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Dec 31, 2021
NETGEAR Q4 2021 Earnings Report
NETGEAR's fourth quarter results were reported, showing a decrease in revenue compared to the previous year, but growth in the SMB sector and paid subscribers.
Key Takeaways
NETGEAR reported Q4 2021 net revenue of $251.2 million, a 31.6% decrease year-over-year. GAAP operating income was $0.9 million, and non-GAAP operating income was $6.9 million. GAAP net loss per diluted share was $0.03, while non-GAAP net income per diluted share was $0.27. The company reached 584,000 paid subscribers and saw SMB growth of 8.6% year-over-year.
Net revenue for Q4 2021 was $251.2 million, a decrease of 31.6% compared to the previous year.
GAAP operating income for Q4 2021 was $0.9 million, or 0.3% of net revenue.
Non-GAAP operating income for Q4 2021 was $6.9 million, or 2.7% of net revenue.
GAAP net loss per diluted share for Q4 2021 was $0.03, while non-GAAP net income per diluted share was $0.27.
Revenue by Geographic Location
Forward Guidance
NETGEAR anticipates Q1 2022 net revenue to be between $225 million and $240 million. GAAP operating margin is expected to be in the range of (1.5)% to (0.5)%, and non-GAAP operating margin is expected to be in the range of 1.0% to 2.0%.
Positive Outlook
- The U.S. consumer WiFi market seems to have stabilized.
- Efforts to optimize retail channel partners’ inventory levels in Q4 2021 have been completed.
- Normal seasonality of the retail portion of the CHP business is expected to resume from the second quarter onwards.
- Selective price increases are being implemented to offset higher sea transportation and component costs.
- SMB supply is expected to improve in the second half of the year.
Challenges Ahead
- Elongated transit times due to disruptions on the logistics front.
- Sea transportation costs will remain significantly elevated through the first half of 2022.
- Continued spending on air transportation to maximize supply for SMB products.
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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