NetScout(NTCT) - 2025 Q3 - Quarterly Results

Revenue Performance - Total revenue for Q3 FY25 was $252.0 million, a 15.5% increase from $218.1 million in Q3 FY24[4] - Product revenue accounted for approximately 51% of total revenue at $128.2 million, up from 44% in Q3 FY24[5] - Service revenue was $123.8 million, representing approximately 49% of total revenue, compared to 56% in Q3 FY24[6] - Total revenue for the three months ended December 31, 2024, was $252.0 million, a 15.6% increase from $218.1 million in the same period of 2023[30] - Product revenue increased to $128.2 million, up 33.6% from $95.8 million year-over-year[30] - FY'24 revenue is projected at $829.5 million, while FY'25 revenue is estimated to be between $810 million and $820 million[40] Income and Profitability - GAAP income from operations was $61.7 million, a significant recovery from a GAAP loss of $134.4 million in Q3 FY24[7] - Non-GAAP net income for Q3 FY25 was $68.3 million, or $0.94 per share, compared to $52.0 million, or $0.73 per share in Q3 FY24[8] - Net income for the three months ended December 31, 2024, was $48.8 million, compared to a net loss of $132.6 million in the same period of 2023[30] - Basic net income per share for the three months ended December 31, 2024, was $0.68, compared to a loss of $1.87 per share in the same period of 2023[30] - Non-GAAP Gross Profit for the three months ended December 31, 2024, was $208,598,000, up from $178,461,000, reflecting a 16.9% increase year-over-year[33] - Non-GAAP Income from Operations for the three months ended December 31, 2024, was $89,746,000, compared to $63,249,000 in the prior year, indicating a 41.9% increase[33] - The company reported a GAAP Net Income of $48,810,000 for the three months ended December 31, 2024, compared to a loss of $(132,577,000) in the same quarter of 2023[33] Balance Sheet and Liabilities - Total current assets increased to $692.2 million as of December 31, 2024, from $672.5 million as of March 31, 2024[32] - Total liabilities decreased to $654.2 million as of December 31, 2024, from $703.2 million as of March 31, 2024[32] - The company reported a goodwill impairment of $427.0 million for the nine months ended December 31, 2024[30] - Goodwill impairment for FY'24 is projected at $217.3 million, with FY'25 expected to be around $427 million[40] Future Guidance and Projections - The company expects FY25 revenue to be in the range of $810 million to $820 million, maintaining the midpoint from previous guidance[13] - GAAP net loss per share for FY25 is projected to be between ($5.21) and ($5.10), primarily due to restructuring charges[13] - GAAP net loss for FY'24 is expected to be $(147.7) million, with FY'25 projected net loss ranging from $(373) million to $(366) million[40] - Non-GAAP net income for FY'24 is anticipated to be $159.1 million, with FY'25 expected to be between $156 million and $163 million[40] - Non-GAAP net income per share (diluted) for FY'24 is expected to be $2.20, with FY'25 projected between $2.15 and $2.25[40] Operational Changes and Strategy - NETSCOUT initiated a Voluntary Separation Program expected to reduce approximately 142 employees, representing about 6.2% of its workforce[14] - NETSCOUT continues to focus on executing its business strategy effectively as it positions for fiscal year 2026 and beyond[26] - The company emphasizes the importance of non-GAAP measures for understanding its operating results and future business trends[24] Product Developments - Recent product updates include enhancements to Arbor Edge Defense and Arbor Enterprise Manager to combat AI-enabled DDoS threats[18]