| --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CEO | | | | | | Q4 FY'23 Q4 FY'24 FY'23 FY'24 77.6% 77.2% 77.5% 79.4% 0.38 Cybersecurity offering revenue grew in Q4 and for the full fiscal year 2024 but was more than offset by the constrained spending environment in the Service Assurance area, primarily related to the domestic service provider customer vertical. 1 Q4 FY 2024 Conference Call NETSCO ...

NetScout Systems (NTCT) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.77%. A quarter ago, it was expected that this provider of products that gauge network performance would post earnings of $0.38 per share when it actually produced earnings of $0.73, delivering a surprise of 92.1 ...

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 December 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) Delaware 04-2837575 (Stat ...

©2024 NETSCOUT January 25, 2024 • Introduction & Safe Harbor – Anil Singhal, President and CEO – Michael Szabados, Chief Operating Officer – Jean Bua, EVP and CFO Safe Harbor January 25, 2024 Regulation G Disclosure. To supplement the financial measures presented in NETSCOUT's press release in accordance with accounting principles generally accepted in the Unit NETSCOUT also reports the following non-GAP measures: non-GA4P gross profit, non-GA4P income from operations, non-GA4P net income, non-G4P diluted n ...

Financial Data and Key Metrics Changes - For the first nine months of fiscal year 2024, revenue was $626 million, down approximately 11% year-over-year [6] - Non-GAAP diluted earnings per share for the quarter was $0.73, a decrease of 27% year-over-year [42] - Gross profit margin was 81.8% in the third quarter, up 1.3 percentage points year-over-year [35] - Operating profit margin was 29% compared to 35.5% in the same quarter last year [51] - Free cash flow for the quarter was $12.7 million [78] Business Line Data and Key Metrics Changes - Cybersecurity revenue grew more than 13% year-over-year, while service assurance revenue declined approximately 20% [6][44] - For the first nine months, enterprise customer vertical revenue was effectively flat, while service provider customer vertical revenue decreased 22.1% [14] - Product revenue was $95.8 million, a decrease of 35.9%, while service revenue was $122.2 million, up 1.8% year-over-year [76] Market Data and Key Metrics Changes - 59% of revenue was derived from the United States, with the remaining 41% from international markets [52] - The service provider market remains challenging, especially for U.S. Tier-1 service providers due to capital spending constraints [69] Company Strategy and Development Direction - The company is focused on leveraging its Visibility Without Borders platform to tackle performance, availability, and cybersecurity challenges [9] - There is an emphasis on enhancing cybersecurity solutions and extending visibility to the edge to support digital transformation [7] - The company aims to reduce dependency on the service assurance service provider business and is optimistic about potential growth from 5G adoption [25] Management's Comments on Operating Environment and Future Outlook - Management anticipates delivering full fiscal year 2024 revenue at the low end of the previously disclosed outlook range, approximately $840 million [70] - Despite near-term headwinds, management believes fundamental longer-term demand trends remain intact for cybersecurity and service assurance solutions [46] - The macro environment remains challenging with constrained customer spending and elongated sales cycles [41] Other Important Information - The company ended the third quarter with $100 million outstanding on its $800 million revolving credit facility [53] - The effective tax rate is expected to be at the lower end of the range of 20% to 22% [54] Q&A Session Summary Question: Can you talk about the relationship between the pace of DDoS attacks and your cyber performance? - Management noted that there is increasing interest in their Adaptive DDoS solutions due to the rise in new types of attacks [22] Question: Which verticals benefited from the year-end budget flush? - Management indicated that the flush was more pronounced on the cybersecurity side, with specific verticals seeing benefits [60] Question: What are the early expectations for next fiscal year regarding cybersecurity? - Management expects cybersecurity growth to continue, driven by new products and a strong pipeline [61] Question: What opportunities exist outside of Tier-1 service providers? - Management acknowledged challenges but sees potential in other segments as 5G adoption accelerates [62] Question: How is the integration of Arbor business affecting growth? - Management highlighted that the integration is leading to higher growth in the enterprise portion of DDoS solutions [86]

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, 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) Delaware 04-2837575 (Sta ...

Table of Contents Delaware 04-2837575 (State or Other Jurisdiction of Incorporation or Organization) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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) UNITED STATES SECURITIES A ...

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]