NetScout(NTCT)2025-01-30 21:44Financial Data and Key Metrics Changes - For Q3 fiscal year 2025, revenue was approximately 0.94, an increase of approximately 29% from the previous year [12][32] - For the first nine months of fiscal year 2025, revenue was approximately 1.70, an increase of approximately 3% year-over-year [13] Business Line Data and Key Metrics Changes - Service Assurance revenue in Q3 increased approximately 9%, while for the first nine months, it was down approximately 5% [15][33] - Cybersecurity revenue in Q3 increased approximately 29% and approximately 7% for the first nine months [17][33] - Product revenue for Q3 was 123.8 million, an increase of 1.3% [31] Market Data and Key Metrics Changes - For the first nine months of fiscal year 2025, enterprise customer vertical revenue grew 3.7%, while service provider customer vertical revenue decreased 7.2% [34] - 59% of revenue was derived from the United States, with the remaining 41% from international markets [36] Company Strategy and Development Direction - The company is focused on executing effectively and positioning itself for fiscal year 2026 and beyond, leveraging its Visibility Without Borders platform [20] - The company is enhancing its cybersecurity offerings with solutions like Adaptive DDoS to address the expanding cyber threat landscape [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the overall business has stabilized, with increased confidence in achieving full fiscal year 2025 goals due to accelerated orders [11][19] - There is optimism regarding spending in the 5G cloud area and other new monetization opportunities [47][56] Other Important Information - The company ended Q3 with 3.8 million since the end of fiscal year 2024 [37] - Free cash flow for the quarter was $39.6 million, and the company intends to be active in share repurchases during fiscal year 2025 [37] Q&A Session Summary Question: Insights on service provider spending trends - Management indicated that service provider customers had more confidence and budget available this year, leading to earlier order placements [47] Question: Update on fixed wireless opportunities - Management stated that evaluations are ongoing with several customers, and while the solution is ready, significant spending is expected due to high traffic demands [49] Question: Outlook on service provider budgets and new investments - Management noted that while traditional mobile service assurance may not grow significantly, there are opportunities in cybersecurity and new areas like fixed wireless and private 5G [56] Question: Cybersecurity product growth split between enterprise and service provider - Service Provider cybersecurity grew in the mid-20s percentage-wise, while Enterprise grew in the mid-30s for Q3 [59] Question: Future growth sustainability in cybersecurity - Management expressed hope for better growth in cybersecurity, particularly in the DDoS area, with new products generating interest [62]