It’s earnings season, and that means some opportunities to try to comb through the releases that the market is negatively reacting to. Tonight, I’m going to take a good look at Netgear (NASDAQ:I’m Jason Ditz and I have 20 years of experience in foreign policy research. My work has appeared in Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times and the Detroit Free Press, as well as American Conservative Magazine and the Quincy Institute for Responsible Statecraft. I have bee ...

NETGEAR, Inc. (NTGR) reported fourth-quarter 2024 non-GAAP loss per share of 6 cents, which was significantly narrower than the Zacks Consensus Estimate of a loss of 25 cents. The company had reported non-GAAP earnings of 9 cents in the year-ago quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.NETGEAR generated net revenues of $182.4 million, beating the consensus estimate by 8.9%. The figure also beat the guidance of $160-$175 million. Revenues were down 3.3% on a year-over ...

Financial Data and Key Metrics Changes - For Q4 2024, revenue was $182.4 million, down 3.3% year-over-year and down 0.2% sequentially [36] - Non-GAAP operating loss for the full year was $49.6 million, resulting in a non-GAAP operating margin of negative 7.4% [45] - Cash and short-term investments at the end of Q4 were $408.7 million, up $13 million from the prior quarter [51] Business Line Data and Key Metrics Changes - The NETGEAR for Business (NFB) segment generated $80.8 million in revenue for Q4, up 14.9% year-over-year [38] - The Consumer Home Products (CHP) segment delivered net revenue of $101.6 million, down 14.2% year-over-year [41] - Recurring revenue grew 25% year-over-year, reaching almost $35 million in annual recurring revenue [18] Market Data and Key Metrics Changes - The U.S. consumer networking market experienced a low single-digit contraction year-over-year, outperforming expectations [41] - Service provider revenue was $19.8 million, in line with expectations [41] Company Strategy and Development Direction - The company is focusing on building a world-class B2B go-to-market capability and investing in software development [80][82] - A significant restructuring was implemented to reduce annual operating expenses by over $20 million [25][59] - The company plans to report results for three business units: NETGEAR for Business, Mobile, and Home Networking [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth, expanded gross margins, and reduced loss position in 2025 [33] - There are expected short-term supply constraints impacting the NFB segment, but double-digit growth is anticipated for the year [30] - The company is monitoring regulatory scrutiny of competitors and is prepared for potential impacts [32][76] Other Important Information - The company repurchased approximately $33 million in stock during 2024, with plans to continue share repurchases [53][88] - A patent dispute settlement with TP-Link added over $100 million in cash to the balance sheet [14] Q&A Session Summary Question: Can you touch on the supply constraints in the NFB side of the business? - Management indicated that supply constraints are primarily in the managed switches category, which has seen increased demand [62][64] Question: How do you see revenue seasonality playing out throughout 2025? - Management expects normal seasonality in the CHP retail market and some relief from supply constraints in Q2 [68][70] Question: How is the company preparing for potential operational impacts from TP-Link scrutiny? - Management is considering small investments in supply to be better positioned should any regulatory decisions occur [73][76] Question: What are the investment priorities for 2025? - The focus is on building B2B capabilities, enhancing software development, and filling product gaps [80][84] Question: Any updates on capital allocation priorities? - The company plans to continue organic investments, share repurchases, and explore acquisition opportunities [85][88]

NETGEAR, Inc. (NTGR) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.25. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 76%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced earnings of $0.17, delivering a surprise of 525%.Over the last four quarters, the company has surpassed ...

Financial Performance - Q4 2024 net revenue was $182.4 million, a decrease of 3.3% year over year[5] - Full year 2024 net revenue totaled $673.8 million, down 9.1% from the prior year[5] - Total net revenue for the three months ended December 31, 2024, was $182.4 million, a slight decrease of 0.2% compared to $182.8 million for the previous quarter[35] - For the twelve months ended December 31, 2024, total net revenue was $673.8 million, down 9.0% from $740.8 million in the previous year[35] - The company expects Q1 2025 net revenue to be in the range of $145 million to $160 million[8] Revenue Segmentation - Revenue from the Americas accounted for 67% of total revenue in Q4 2024, totaling $122,857,000[33] - NETGEAR for Business segment generated $80.8 million in revenue for the three months ended December 31, 2024, compared to $78.5 million in the previous quarter, reflecting a growth of 2.0%[35] - Connected Home segment revenue for the three months ended December 31, 2024, was $101.6 million, a decrease of 2.0% from $104.3 million in the previous quarter[35] - Service provider net revenue for the three months ended December 31, 2024, was $20.1 million, down 13.0% from $23.2 million in the previous quarter[36] - The twelve-month service provider net revenue totaled $91.0 million, a decrease of 8.3% from $99.2 million in the previous year[36] Profitability Metrics - Q4 2024 GAAP gross margin was 32.6%, down from 34.8% in Q4 2023[5] - Gross profit for the twelve months ended December 31, 2024, was $195,927 thousand, down 21.4% from $249,252 thousand in 2023, resulting in a gross margin of 29.1%[25] - GAAP gross profit for Q4 2024 was $59,384,000, a decrease of 9.5% compared to $65,636,000 in Q4 2023[28] - Non-GAAP gross profit for Q4 2024 was $59,775,000, down from $65,994,000 in Q4 2023, reflecting a non-GAAP gross margin of 32.8%[28] - Gross profit margin for the three months ended December 31, 2024, was 43.9%, compared to 46.6% in the previous quarter[38] Cash Flow and Liquidity - Q4 2024 free cash flow was $19.0 million, marking the sixth consecutive quarter of cash generation[6] - Cash and equivalents increased by $125 million year over year, ending at $408.7 million[5] - Cash, cash equivalents, and short-term investments increased to $408,690,000 in Q4 2024, up from $395,732,000 in Q3 2024[32] - Cash and cash equivalents increased to $286,444 thousand as of December 31, 2024, from $176,717 thousand at the end of 2023[23] - The company reported a net cash provided by operating activities of $164,797 thousand for the twelve months ended December 31, 2024, compared to $56,853 thousand in 2023[27] Operating Expenses and Restructuring - Operating expenses for the twelve months ended December 31, 2024, totaled $183,711 thousand, a decrease from $282,527 thousand in 2023[25] - A restructuring initiative is projected to save over $20 million in annual operating expenses, which will be reinvested into the business[6] - Corporate and unallocated costs for the three months ended December 31, 2024, were $(18.7) million, compared to $(9.7) million in the previous quarter[38] Net Income and Loss - The net income for the twelve months ended December 31, 2024, was $12,363 thousand, a significant improvement compared to a net loss of $104,767 thousand in 2023[27] - GAAP net loss for Q4 2024 was $8,886,000, compared to a net income of $85,074,000 in Q3 2024[29] - Non-GAAP net loss for Q4 2024 was $1,611,000, a significant decrease from a net income of $5,065,000 in Q3 2024[29] - Loss before income taxes for the three months ended December 31, 2024, was $(11.4) million, compared to a profit of $99.3 million in the previous quarter[38] Balance Sheet Highlights - Total assets as of December 31, 2024, were $850,230 thousand, slightly up from $847,142 thousand in 2023[23] - The company’s total liabilities decreased to $309,164 thousand as of December 31, 2024, from $311,647 thousand in 2023[23]

NETGEAR, Inc. (NTGR) introduced the next generation of NETGEAR Armor solution, powered by Bitdefender to further bolster cybersecurity for consumers. NETGEAR Armor is available on Orbi mesh systems and Nighthawk routers. This is capable of safeguarding IoT and mobile devices on both home networks and “on the go.”In a rapidly evolving threat landscape, cybersecurity has become a top-notch priority for every household. With the increasing number of smart devices, IoT gadgets and mobile phones connected to hom ...

NETGEAR, Inc. (NTGR) has introduced the Orbi 870 Series Mesh System. The product is the latest in its range of mesh networking systems, offering the advanced capabilities of WiFi 7 to accommodate homes of all sizes.NTGR developed the Orbi 870 Series to deliver exceptional performance. It can support up to 150 connected devices simultaneously, making it ideal for activities such as ultra-high-definition streaming, remote work and online gaming. Additionally, NETGEAR's Advanced Router Protection, included wit ...

It’s been over a year since I last covered Netgear, Inc. ( NASDAQ: NTGR ), so I thought it would be a good time to see how its operations have developed since then. While performance continued to decline, the company’sMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.A ...

NETGEAR, Inc. (NTGR) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 525%. A quarter ago, it was expected that this company would post a loss of $0.82 per share when it actually produced a loss of $0.74, delivering a surprise of 9.76%. Over the last four quarters, the compa ...

Exhibit 99.1 NEWS RELEASE NETGEAR® REPORTS THIRD QUARTER 2024 RESULTS Q3 net revenue of $182.9 million, above the high end of guidance Achieved GAAP and non-GAAP profitability, above the high end of guidance Fifth consecutive quarter of free cash flow generation Added more than $100 million to cash and cash equivalents to end Q3 with $395.7 million SAN JOSE, California – October 30, 2024 - NETGEAR, Inc. (NASDAQ: NTGR), a global leader in intelligent networking solutions for businesses, homes, and service pr ...