NETGEAR, Inc. (NTGR) Bundle
A Brief History of NETGEAR, Inc.
NETGEAR, Inc. is a leading global networking company that provides innovative networking products for consumers, businesses, and service providers. Established in 1996, the company has evolved significantly, focusing on high-performance networking solutions.
Financial Performance Overview (2024)
As of September 29, 2024, NETGEAR reported a net income of $85.1 million, a substantial recovery from a net loss of $(84.8) million reported in the same period of the previous year. This marked a turnaround in the company's financial health, with a basic net income per share of $2.96 compared to a loss of $(2.87) per share in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $85.1 million | $(84.8) million |
| Basic Net Income (Loss) Per Share | $2.96 | $(2.87) |
| Revenue | $182.9 million | $197.8 million |
| Operating Cash Flow | $143.3 million | $0.6 million |
Revenue Breakdown
NETGEAR's revenue is primarily derived from two segments: NETGEAR for Business and Connected Home. For the nine months ended September 29, 2024, total net revenue was $491.3 million, a decline of 11.0% compared to the prior year period. The revenue by geographic region is as follows:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | % Change |
|---|---|---|---|
| Americas | $333.2 million | $379.6 million | (12.2%) |
| EMEA | $91.3 million | $111.0 million | (17.7%) |
| APAC | $66.8 million | $61.6 million | 8.5% |
Liquidity and Capital Resources
As of September 29, 2024, NETGEAR had cash, cash equivalents, and short-term investments totaling $395.7 million, reflecting an increase of $112.1 million from December 31, 2023. The company’s cash flow from operating activities was $143.3 million, significantly up from $0.6 million in the previous year.
| Cash Flow Activity | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $143.3 million | $0.6 million |
| Cash Used in Investing Activities | $(23.9) million | $(16.5) million |
| Cash Used in Financing Activities | $(22.4) million | $0.8 million |
Stockholder's Equity
As of September 29, 2024, NETGEAR's total stockholder's equity was $550.3 million, with an accumulated deficit of $(437.4) million. The company has been actively managing its stock repurchase program, which included repurchasing approximately 222,000 shares at a cost of about $3.3 million during the nine months ended September 29, 2024.
| Stockholder's Equity Components | Amount |
|---|---|
| Total Common Stock | $29 million |
| Additional Paid-In Capital | $987.6 million |
| Accumulated Other Comprehensive Income | $152 million |
| Accumulated Deficit | $(437.4 million) |
| Total Stockholder's Equity | $550.3 million |
In summary, NETGEAR has shown significant recovery in its financial performance in 2024, overcoming previous losses and enhancing its liquidity position while navigating a challenging market environment.
A Who Owns NETGEAR, Inc. (NTGR)
Ownership Structure
As of 2024, NETGEAR, Inc. (NTGR) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The following table summarizes the major shareholders of NETGEAR:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 73.5% | 21,180,000 |
| Individual Investors | 15.1% | 4,420,000 |
| Executives and Directors | 11.4% | 3,250,000 |
Institutional Ownership
Institutional investors hold a significant portion of NETGEAR's stock, with the largest shareholders including:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 10.2% | 2,915,000 |
| BlackRock, Inc. | 9.5% | 2,665,000 |
| State Street Corporation | 8.3% | 2,300,000 |
| Invesco Ltd. | 7.1% | 1,975,000 |
| Other Institutions | 38.4% | 10,325,000 |
Insider Ownership
Insider ownership consists of shares held by company executives and board members. As of 2024, insider ownership is as follows:
| Name | Position | Shares Owned |
|---|---|---|
| Patrick Lo | CEO | 1,200,000 |
| Michael W. W. Hsu | CFO | 750,000 |
| Other Executives | Various | 1,300,000 |
Recent Stock Performance
As of the end of September 2024, NETGEAR's stock performance shows a fluctuating trend, which is reflected in the following data:
| Metric | Value |
|---|---|
| Current Stock Price | $20.50 |
| 52-Week High | $25.00 |
| 52-Week Low | $15.00 |
| Market Capitalization | $580 million |
Financial Overview
NETGEAR's financial performance for the three months ended September 29, 2024, indicates the following:
| Financial Metric | Value (in thousands) |
|---|---|
| Net Revenue | $182,854 |
| Gross Profit | $56,483 |
| Net Income (Loss) | $21,249 |
| Total Assets | $500,000 |
| Total Liabilities | $100,000 |
Summary of Shareholder Meetings
NETGEAR holds annual meetings for shareholders to discuss financial performance and future strategy. The recent shareholder meeting included:
- Date: April 15, 2024
- Location: NETGEAR Headquarters, San Jose, CA
- Key Topics Discussed:
- Financial Performance Review
- Future Product Launches
- Shareholder Proposals
NETGEAR, Inc. (NTGR) Mission Statement
As of 2024, NETGEAR, Inc. (NTGR) emphasizes its commitment to delivering innovative networking solutions that enhance the digital lifestyle of consumers and businesses. The company's mission is to build innovative products that connect people and empower them to share information and experiences seamlessly across various platforms.
Core Values and Vision
NETGEAR's core values include:
- Innovation: Continuous investment in research and development to introduce cutting-edge technology.
- Quality: Commitment to high-quality products that meet customer expectations.
- Customer Focus: Dedicated to understanding and addressing customer needs.
- Integrity: Conducting business with honesty and transparency.
Financial Overview
NETGEAR's financial performance for the fiscal year 2024 reflects both challenges and growth opportunities. The following table summarizes key financial metrics from their latest quarterly report.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $182.85 million | $197.85 million | (7.6)% |
| Gross Margin | 30.9% | 34.8% | (3.9) percentage points |
| Net Income (Loss) | $85.07 million | ($84.80 million) | |
| Operating Income (Loss) | $95.81 million | ($0.65 million) | |
| Cash and Cash Equivalents | $273.77 million | $176.72 million | 55%+ |
Market Segments
NETGEAR operates in two primary segments:
- NETGEAR for Business: Focuses on providing networking solutions for small and medium-sized businesses.
- Connected Home: Targets consumer markets with home networking products.
Revenue by Segment
The following table presents the revenue breakdown by segment for the three months ended September 29, 2024.
| Segment | Q3 2024 Net Revenue | Q3 2023 Net Revenue | Change (%) |
|---|---|---|---|
| NETGEAR for Business | $78.53 million | $70.51 million | 11.4% |
| Connected Home | $104.32 million | $127.34 million | (18.1)% |
| Total | $182.85 million | $197.85 million | (7.6)% |
Geographic Revenue Distribution
The geographic distribution of NETGEAR's revenue for Q3 2024 is outlined in the following table.
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Americas | $127.75 million | $141.02 million | (9.4)% |
| EMEA | $32.80 million | $35.68 million | (8.1)% |
| APAC | $22.30 million | $21.14 million | 5.5% |
| Total | $182.85 million | $197.85 million | (7.6)% |
Research and Development Investment
NETGEAR continues to prioritize innovation, with significant investment in research and development. The following table summarizes R&D expenses for the recent quarters.
| Period | R&D Expenses (in thousands) | Change (%) |
|---|---|---|
| Q3 2024 | $20,905 | 0.8% |
| Q3 2023 | $20,738 | - |
Conclusion of Financial Performance
NETGEAR's mission statement reflects its commitment to innovation and customer satisfaction, supported by a robust financial framework aimed at sustaining long-term growth.
How NETGEAR, Inc. (NTGR) Works
Company Overview
NETGEAR, Inc. operates in the networking and connectivity solutions industry, providing products primarily for home and business applications. The company is structured into two main segments: Connected Home and NETGEAR for Business.
Financial Performance
As of the third quarter of 2024, NETGEAR reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $182,854,000 | $197,845,000 | (7.6) |
| Cost of Revenue | $126,371,000 | $128,911,000 | (2.0) |
| Gross Profit | $56,483,000 | $68,934,000 | (18.1) |
| Operating Income | $95,808,000 | $(648,000) | — |
| Net Income | $85,074,000 | $(84,799,000) | — |
Segment Analysis
NETGEAR's revenue is distributed across its two main segments, with performance varying significantly between them.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| NETGEAR for Business | $78,530,000 | $70,510,000 | 11.4 |
| Connected Home | $104,324,000 | $127,335,000 | (18.1) |
Geographic Revenue Distribution
Revenue is also segmented by geography, showing variations in market performance.
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Americas | $127,752,000 | $141,018,000 | (9.4) |
| EMEA | $32,798,000 | $35,684,000 | (8.1) |
| APAC | $22,304,000 | $21,143,000 | 5.5 |
Liquidity and Cash Flow
As of September 29, 2024, NETGEAR's liquidity position is as follows:
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $395,700 |
| Cash Provided by Operating Activities | $143,315 |
| Cash Used in Investing Activities | $(23,891) |
| Cash Used in Financing Activities | $(22,374) |
| Net Cash Increase (Decrease) | $97,050 |
Operating Expenses
Operating expenses for the third quarter of 2024 were reported as follows:
| Expense Type | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) | Change (%) |
|---|---|---|---|
| Research and Development | $20,000 | $22,000 | (9.1) |
| Sales and Marketing | $30,000 | $34,000 | (11.8) |
| General and Administrative | $8,357 | $16,364 | (48.9) |
Stock Performance
As of the end of September 2024, NETGEAR's stock performance metrics are as follows:
| Metric | Value |
|---|---|
| Stock Price (as of Sept 29, 2024) | $29.00 |
| Market Capitalization | $840 million |
| Shares Outstanding | 28,700,000 |
Outlook and Projections
For the fourth quarter of 2024, NETGEAR anticipates net revenue in the range of $160 million to $175 million, including approximately $20 million from service provider channels.
How NETGEAR, Inc. (NTGR) Makes Money
Revenue Segments
NETGEAR, Inc. operates primarily through two segments: NETGEAR for Business and Connected Home. As of September 29, 2024, the revenue breakdown is as follows:
| Segment | Three Months Ended September 29, 2024 (in thousands) | Three Months Ended October 1, 2023 (in thousands) | Nine Months Ended September 29, 2024 (in thousands) | Nine Months Ended October 1, 2023 (in thousands) |
|---|---|---|---|---|
| NETGEAR for Business | $78,530 | $70,510 | $207,020 | $223,679 |
| Connected Home | $104,324 | $127,335 | $284,320 | $328,487 |
| Total Revenue | $182,854 | $197,845 | $491,340 | $552,166 |
Geographic Revenue Distribution
NETGEAR’s revenue is also distributed across different geographic regions. The following table summarizes the net revenue by geographic region for the three and nine months ended September 29, 2024:
| Region | Three Months Ended September 29, 2024 (in thousands) | Three Months Ended October 1, 2023 (in thousands) | Nine Months Ended September 29, 2024 (in thousands) | Nine Months Ended October 1, 2023 (in thousands) |
|---|---|---|---|---|
| Americas | $127,752 | $141,018 | $333,183 | $379,551 |
| EMEA | $32,798 | $35,684 | $91,340 | $111,023 |
| APAC | $22,304 | $21,143 | $66,817 | $61,592 |
| Total Revenue | $182,854 | $197,845 | $491,340 | $552,166 |
Cost of Revenue and Gross Margin
The cost of revenue and gross margin for NETGEAR in the three and nine months ending September 29, 2024, is detailed below:
| Period | Cost of Revenue (in thousands) | Gross Margin Percentage |
|---|---|---|
| Three Months Ended September 29, 2024 | $126,371 | 30.9% |
| Three Months Ended October 1, 2023 | $128,911 | 34.8% |
| Nine Months Ended September 29, 2024 | $354,797 | 27.8% |
| Nine Months Ended October 1, 2023 | $368,550 | 33.3% |
Operating Income and Expenses
Operating income for the three and nine months ended September 29, 2024, is as follows:
| Period | Income (Loss) from Operations (in thousands) |
|---|---|
| Three Months Ended September 29, 2024 | $95,808 |
| Three Months Ended October 1, 2023 | $(648) |
| Nine Months Ended September 29, 2024 | $27,301 |
| Nine Months Ended October 1, 2023 | $(30,401) |
Net Income (Loss)
NETGEAR reported the following net income (loss) for the specified periods:
| Period | Net Income (Loss) (in thousands) |
|---|---|
| Three Months Ended September 29, 2024 | $85,074 |
| Three Months Ended October 1, 2023 | $(84,799) |
| Nine Months Ended September 29, 2024 | $21,249 |
| Nine Months Ended October 1, 2023 | $(103,098) |
Cash Flows
Cash flow from operating activities for the nine months ended September 29, 2024, is summarized below:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Cash provided by operating activities | $143,315 |
| Cash used in investing activities | $(23,891) |
| Cash (used in) provided by financing activities | $(22,374) |
| Net cash increase (decrease) | $97,050 |
Future Outlook
NETGEAR anticipates that the net revenue in the fourth fiscal quarter of 2024 will be in the range of $160 million to $175 million, with expectations of $20 million from service provider channels. This is driven by strategies to capitalize on emerging technologies and product offerings.
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Article updated on 8 Nov 2024
Resources:
- NETGEAR, Inc. (NTGR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NETGEAR, Inc. (NTGR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NETGEAR, Inc. (NTGR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.