NETGEAR(US:NTGR)2025-02-05 21:19Financial 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]