Netscout Systems (NTCT) FY2023 results: revenue $915 million, up 6.9% on the year

Netscout Systems Inc. (NTCT) reported revenue of $915 million for fiscal 2023, the year ended 31 March 2023, up 6.9% on the year before. Net income was $60 million, up 66.3%, and diluted earnings per share $0.82. The figures are the company's own, from the 10-K it filed with the SEC on 16 May 2023.

Revenue

$915 million

+6.9% on the year

FY2016FY2023

Operating margin

8.5%

5.7% a year earlier

FY2016FY2023

Net income

$60 million

+66.3% on the year

FY2016FY2023

Diluted EPS

$0.82

+70.8% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	915	856	831	+6.9%
Cost of revenue	223	214	222	+4.2%
Gross profit	691	641	609	+7.8%
Gross margin	75.6%	75.0%	73.3%
Research and development	176	171	179	+2.9%
Operating income	77.7	48.6	37.1	+59.7%
Operating margin	8.5%	5.7%	4.5%
Interest expense	10.2	8.0	10.9	+27.3%
Pre-tax income	68.4	42.9	22.3	+59.5%
Income tax	8.8	7.0	3.0	+24.9%
Effective tax rate	12.8%	16.4%	13.2%
Net income	59.6	35.9	19.4	+66.3%
Net margin	6.5%	4.2%	2.3%
Diluted EPS	$0.82	$0.48	$0.26	+70.8%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	157	296	214	-47.1%
Capital expenditure	10.5	10.3	12.0	+1.3%
Free cash flow	146	286	202	-48.8%
Free cash flow margin	16.0%	33.4%	24.3%
Cash from investing	15.3	-68.4	24.7
Cash from financing	-419	-54.2	-118
Depreciation and amortisation	85.9	95.8	106	-10.3%
Share-based compensation	62.0	56.1	51.9	+10.5%
Buybacks	150	35.7	3.3	+320.8%
Diluted shares, weighted	73m	75m	74m	-2.7%
Shares outstanding at period end	71m	74m	74m	-3.9%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	2,030	2,060	2,006	-1.5%
Debt	100	350	350	-71.4%
Operating lease liabilities	48.8	53.9	61.3	-9.5%
Other liabilities	642	730	668	-12.1%
Total liabilities and equity	2,821	3,195	3,085	-11.7%
Fixed assets	34.7	41.3	48.5	-16.0%
Goodwill	1,724	1,723	1,718	+0.1%
Intangible assets	367	433	512	-15.4%
Investments	41.1	67.0	9.3	-38.6%
Cash and equivalents	387	636	467	-39.2%
Receivables	144	148	198	-3.0%
Inventory	18.0	28.2	22.8	-36.4%
Other assets	105	117	110	-10.3%
Total assets	2,821	3,195	3,085	-11.7%

10-K for the year ended 31 March 2023, filed 16 May 2023: the filing.