Financial Data and Key Metrics Changes - Revenue for Q1 FY2024 was $211.1 million, representing a year-over-year growth of over 1% [4] - Gross profit margin increased to 78.3%, up 3.8 percentage points from the same quarter last year [13] - Operating profit margin improved to 14.0%, compared to 11.7% in the same quarter last year [13] - Diluted EPS grew nearly 30% year-over-year to $0.31 per share [4][13] Business Line Data and Key Metrics Changes - Cybersecurity revenue increased by 9.9% year-over-year, while service assurance revenue declined by 2.4% [35] - The service assurance product line represented approximately 69% of total revenue, while cybersecurity accounted for 31% [35] - Enterprise customer vertical revenue grew nearly 13% year-over-year, while service provider customer vertical revenue declined approximately 9% [27][48] Market Data and Key Metrics Changes - Revenue was less concentrated in the U.S. compared to the previous year due to lower radio frequency propagation modeling project revenue [14] - The company ended the quarter with a backlog of approximately $16 million, consisting of $12 million of fulfillable orders and $4 million of radio frequency propagation modeling projects [34] Company Strategy and Development Direction - The company is focused on supporting both domestic and international carriers' 5G network evolutions and enhancing cybersecurity solutions [11][28] - New product offerings, including the next-generation Omnis Cyber Intelligence solution and adaptive DDoS solutions, are expected to drive customer interest [5][6][25] - The company aims to balance revenue growth and profitability while navigating a dynamic macro environment [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity for both existing and new solutions, reiterating the fiscal year 2024 outlook [8] - The company anticipates that fulfillable backlog will return to more normalized levels as supply chain challenges resolve [8] - Management highlighted the importance of early detection in cybersecurity as a key differentiator in the market [39] Other Important Information - The company ended the quarter with $390.5 million in cash and cash equivalents, a decrease of $37.4 million since the end of FY2023 [49] - Free cash flow for the quarter was a use of $24.3 million [49] - The company plans to be active in share repurchase authorizations, subject to market conditions [49] Q&A Session Summary Question: Overall demand trends and stabilization - Management noted that while service assurance business faced challenges, the enterprise side showed growth, and new product integrations are expected to drive demand [38] Question: Impact of OCI relaunch on pipeline generation - The relaunch of OCI is anticipated to improve sales quickly, focusing on early detection of cyber threats as a key differentiator [39] Question: Pipeline outlook for Tier 1 North America carrier customers - Management expressed confidence in the pipeline, noting that business with Tier 2 providers and cable companies is also significant [41] Question: Backlog normalization and revenue guidance - Management indicated that backlog levels are normalizing and expressed confidence in revenue guidance due to established 5G infrastructure [42][43] Question: Government business pipeline and revenue expectations - Management reported a good Q1 for government business and expects consistency year-over-year in Q2 [58] Question: Contribution of new security announcements to second quarter results - Management expects growth in the security area to be higher than overall business growth, driven by new product initiatives [59]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-26251 NETSCOUT SYSTEMS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - For Q4 2023, the company reported revenue of approximately $208 million, an increase of nearly 9% year-over-year, and diluted earnings per share of $0.38, up more than 30% year-over-year [18][24] - For the full fiscal year 2023, total revenue was approximately $915 million, representing growth of nearly 7% year-over-year, with product revenue growth of nearly 10% and service revenue growth of more than 4% [18][24] - Gross profit margin was 77.6% in Q4 2023, with an operating profit margin of 15.7%, compared to 12.4% in the same quarter last year [24] Business Line Data and Key Metrics Changes - In the service provider vertical, revenue grew nearly 14% year-over-year for the full fiscal year 2023, driven by higher revenue related to audio or radio frequency propagation modeling projects from Tier 1 carriers in North America [14] - Revenue in the enterprise customer vertical was relatively flat year-over-year for the full fiscal year 2023, indicating challenges in this segment due to macroeconomic pressures [14][46] - Service assurance revenue increased by 8.9%, while cybersecurity revenue increased by 1.4% for the fiscal year 2023 [46] Market Data and Key Metrics Changes - The company noted that revenue was more concentrated in the U.S. for fiscal year 2023, primarily due to increased revenue from radio frequency propagation modeling projects [46] - The service provider vertical accounted for approximately 52% of total revenue, while the enterprise vertical accounted for the remaining 48% [46] Company Strategy and Development Direction - The company is focusing on expanding its business with carriers in areas beyond mobile networks, including internal IT operations and new mobile DDoS security solutions [14] - The strategy includes moving down market with new pricing models to capture a broader customer base as carriers transition to 5G [31][35] - The company plans to enhance its Omnis cybersecurity solution and launch new DDoS solutions, expecting these to drive revenue growth in fiscal year 2024 [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow revenue and improve margins despite macroeconomic challenges, citing strong demand for visibility solutions during digital transformation [28][42] - The outlook for fiscal year 2024 anticipates revenue in the range of $915 million to $945 million, implying low single-digit growth at the midpoint [26] - Management highlighted the importance of addressing cybersecurity challenges and leveraging existing infrastructure to enhance customer return on investment [41] Other Important Information - The company ended Q4 2023 with $427.9 million in cash and cash equivalents, and free cash flow for the quarter was $110.6 million [25] - The company repurchased approximately 4.6 million shares for about $150 million during the full fiscal year 2023 [25] Q&A Session Summary Question: Insights on macroeconomic environment and customer budgeting - Management noted positive trends in spending on NetScout solutions, indicating that the guidance reflects potential challenges but remains optimistic about growth [28] Question: Key growth areas for fiscal year 2024 - Management highlighted the strong outlook for radio frequency propagation projects and the potential for growth in the enterprise sector, particularly with the Omnis security solution [29] Question: Changes made to product or organization for growth - Management discussed improvements in the Omnis security solution and the integration of the Arbor business, which are expected to drive growth in cybersecurity and enterprise revenue [56]

Revenue and Income - Total revenue increased by $42.1 million for the nine months ended December 31, 2022, compared to the same period in 2021, primarily driven by revenue growth from radio frequency propagation modeling projects [129]. - Net income for the nine months ended December 31, 2022, was $62.9 million, an increase of $18.6 million from $44.3 million in the same period of 2021 [130]. - Total revenue for the three months ended December 31, 2022, was $269.5 million, a 3% increase from $262.2 million in the same period of 2021 [140]. - Total revenue for the nine months ended December 31, 2022, was $706.4 million, a 6% increase from $664.4 million in the same period last year [160]. - Product revenue increased by 10%, or $31.5 million, to $359.5 million, driven by growth in radio frequency propagation modeling projects [160]. - Service revenue rose by 3%, or $10.5 million, to $346.9 million, primarily due to increased revenue from maintenance contracts [161]. Profitability Metrics - Gross profit percentage increased by 1 percentage point to 76% for the nine months ended December 31, 2022, compared to the same period in 2021 [129]. - Gross profit for the three months ended December 31, 2022, was $212.7 million, a 5% increase from $201.7 million in the same period of 2021, with a gross profit margin of 79% [147]. - Gross profit for the nine months ended December 31, 2022, increased by 7%, or $36.4 million, to $534.3 million, with a gross profit margin of 76% [166]. - Non-GAAP net income for the nine months ended December 31, 2022, was $132.4 million, compared to $116.8 million for the same period in 2021 [136]. - Non-GAAP diluted net income per share was $1.81 for the nine months ended December 31, 2022, compared to $1.56 for the same period in 2021 [136]. Cash and Liquidity - Cash, cash equivalents, and marketable securities totaled $416.2 million as of December 31, 2022, a decrease of $287.0 million from $703.2 million at March 31, 2022 [131]. - The company had an incremental $600 million available under its revolving credit facility as of December 31, 2022 [128]. - Net cash provided by operating activities was $43.9 million for the nine months ended December 31, 2022, down from $140.4 million for the same period in 2021, representing a decrease of $96.5 million [180]. - Cash used in investing activities was $5.6 million for the nine months ended December 31, 2022, compared to $3.1 million for the same period in 2021, an increase of $2.5 million [182]. - Cash used in financing activities increased by $265.5 million to $319.2 million during the nine months ended December 31, 2022, compared to $53.7 million for the same period in 2021 [184]. - The company believes it has adequate liquidity to meet anticipated funding requirements for fiscal year 2023 [200]. - The company expects net cash provided by operating activities, cash equivalents, and marketable securities to fund current obligations and capital spending for at least the next twelve months [201]. Operating Expenses - Operating expenses totaled $149.0 million, a 2% increase from $146.3 million in the same period of 2021, with research and development expenses rising by 2% to $42.6 million [148]. - Total operating expenses rose by 4%, or $17.3 million, to $458.3 million, with research and development expenses at $129.9 million, a 1% increase [167]. - The company recorded $1.9 million in restructuring charges related to employee termination benefits during the nine months ended December 31, 2022 [172]. Taxation - The effective tax rate for the three months ended December 31, 2022, was 13.1%, down from 14.2% in the same period of 2021, influenced by various tax credits [157]. - The effective tax rate decreased to 9.5% for the nine months ended December 31, 2022, down from 15.5% in the prior year [174]. - The company reported a total income tax expense of $8.0 million for the three months ended December 31, 2022, compared to $7.9 million in the same period of 2021 [158]. Market and Operational Conditions - The company ceased operations in Russia due to geopolitical tensions, which did not materially impact financial statements for the nine months ended December 31, 2022 [126]. - The company continues to monitor global macroeconomic conditions, including inflation and interest rates, which could impact future operations [127]. - The company is focused on advancing products, growing revenue, enhancing earnings per share, and generating free cash flow amid recovering technology and project spending [127]. Revenue Breakdown - The service assurance product line accounted for approximately 79% of total revenue in Q4 2022, compared to 73% in Q4 2021, while the cybersecurity product line accounted for 21% in Q4 2022, down from 27% in Q4 2021 [139]. - For the nine months ended December 31, 2022, the service assurance product line accounted for approximately 75% of total revenue, while the cybersecurity product line accounted for approximately 25% [159]. - Revenue from the United States increased by 11%, or $18.4 million, to $181.2 million, while international revenue decreased by 11%, or $11.1 million, to $88.3 million [142]. - Revenue from the United States increased by 16%, or $62.3 million, to $461.7 million, while international revenue decreased by 8%, or $20.3 million, to $244.8 million [162]. Backlog and Deferred Revenue - Total backlog as of December 31, 2022, was $30.9 million, with fulfillable backlog at $30.4 million, indicating a decrease from previous quarters [176]. - Deferred revenue related to radio frequency propagation modeling projects increased to $22.9 million as of December 31, 2022, compared to $18.4 million in the prior quarter [176]. Financial Instruments and Risk Management - The company engages in foreign currency hedging activities to limit exposure to fluctuations in exchange rates, primarily the Euro, British Pound, Canadian Dollar, and Indian Rupee [207]. - The company does not use derivative financial instruments for speculative trading purposes, focusing instead on managing exchange risk [207]. - The effect of a hypothetical 10% change in foreign currency exchange rates would not have a material impact on the company's historical consolidated financial statements [208]. - The company maintains a diversified portfolio of cash, cash equivalents, and investments to minimize interest rate risk, with no material exposure to changes in fair value due to interest rate fluctuations [205].

NetScout Systems, Inc. (NASDAQ:NTCT) Q3 2023 Earnings Conference Call January 26, 2023 8:30 AM ET Company Participants Tony Piazza - Senior Vice President, Corporate Finance Anil Singhal - President & Chief Executive Officer Michael Szabados - Chief Operating Officer Jean Bua - Executive Vice President & Chief Financial Officer Conference Call Participants Matt Hedberg - RBC Capital James Fish - Piper Sandler Kevin Liu - K. Liu & Company Operator Ladies and gentlemen, thank you for standing by, and welcome ...

NETSCOUT SYSTEMS, INC. January 26, 2023 Q3 FY 2023 Conference Call ©2023 NETSCOUT January 26, 2023 Agenda January 26, 2023 • Introduction & Safe Harbor – Tony Piazza, SVP, Corporate Finance • CEO Perspective – Anil Singhal, President and CEO • COO Update – Michael Szabados, Chief Operating Officer • CFO Financial Review – Jean Bua, EVP and CFO ©2023 NETSCOUT 2 Safe Harbor Forward Looking Statements: Certain information provided in this presentation includes forward-looking statements within the meaning of t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-26251 NETSCOUT SYSTEMS, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 04-2837575 (Sta ...

Financial Data and Key Metrics Changes - Second quarter revenue was $228.1 million, representing year-over-year growth of nearly 8% driven by 10% product revenue growth and more than 5% service revenue growth [8][10] - Diluted earnings per share for the second quarter was $0.50, reflecting a growth of approximately 21% year-over-year [9][11] - For the first half of fiscal year 2023, revenue was $436.9 million, growing by nearly 9% year-over-year, with product revenue growth of more than 14% and service revenue growth of nearly 4% [10] Business Line Data and Key Metrics Changes - Cybersecurity revenue grew by 14% year-over-year in the first half of fiscal year 2023, while service assurance revenue grew by more than 6% [10][38] - Service provider revenue increased by 11% year-over-year in the first half of fiscal year 2023, primarily due to higher revenue from radio frequency propagation modeling projects [16] - Enterprise customer vertical revenue grew by approximately 6% year-over-year, driven by demand for cybersecurity and visibility solutions [17][38] Market Data and Key Metrics Changes - Revenue was more concentrated in the U.S. in the first half of fiscal year 2023, primarily due to higher revenue from Tier 1 domestic carriers [39] - One customer represented 10% or more of total revenue in the second quarter and the first half of fiscal year 2023 [40] Company Strategy and Development Direction - The company plans to continue managing operations prudently, balancing revenue growth and profitability while remaining confident about business prospects [19][20] - The focus remains on expanding the cybersecurity business and enhancing the Omnis suite of cyber intelligence products [14][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current uncertainty in the macroeconomic environment but expressed confidence in the business prospects and market opportunities [19][20] - The company reiterated its fiscal year 2023 outlook, targeting revenue in the range of $895 million to $925 million and non-GAAP EPS in the range of $1.91 to $2.03 [20][44] Other Important Information - Gross profit margin was 76.8% in the second quarter, down 1.5 percentage points year-over-year, impacted by radio frequency propagation modeling projects [35] - The company ended the second quarter with $367.1 million in cash, cash equivalents, and marketable securities [41] Q&A Session Summary Question: Confidence points for the second half - Management noted good activity across various trends, including 5G projects and digital transformation initiatives, supporting confidence in reaffirming revenue ranges [51] Question: Federal business performance - Federal service revenue remained consistent year-over-year, while product revenue was slightly flat compared to the previous year [54] Question: Macroeconomic impacts on business - Management has not seen significant delays or cancellations in projects, maintaining a positive outlook despite potential macroeconomic headwinds [67] Question: Backlog normalization expectations - Management anticipates backlog will return to a more traditional range over time, influenced by cybersecurity initiatives [63] Question: Expense normalization and future outlook - Travel expenses are expected to increase next year, but overall operating expenses should remain manageable with strong revenue flow-through [71]

NetScout Systems, Inc. (NASDAQ:NTCT) Q1 2023 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Tony Piazza - VP, Corporate Finance Anil Singhal - President and CEO Michael Szabados - COO Jean Bua - EVP and CFO Conference Call Participants Dan Bergstrom - RBC James Fish - Piper Sandler Kevin Liu - K. Liu & Co. Operator Ladies and gentlemen, thank you for standing by, and welcome to NetScout's First Quarter Fiscal Year 2023 Financial Results Conference Call. [Operator Instructions] As a ...

©2022 NETSCOUT August 4, 2022 Q1 FY 2023 Conference Call NETSCOUT SYSTEMS, INC. August 4, 2022 August 4, 2022 Agenda • Introduction & Safe Harbor – Tony Piazza, Senior Vice President, Corporate Finance • CEO Perspective – Anil Singhal, President and Chief Executive Officer • COO Update – Michael Szabados, Chief Operating Officer • CFO Financial Review – Jean Bua, Executive Vice President and Chief Financial Officer ©2022 NETSCOUT 2 Safe Harbor August 4, 2022 Forward Looking Statements: Certain information p ...