NTGR - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Erik Bylin. Please go ahead, sir.

Erik Bylin

Glen. you, Thank Good afternoon. quarter third XXXX results NETGEAR’s financial of call. to conference welcome And

by the XXXX Mr. the by Murray, with Chairman of the start third from followed financials us provided by details of Patrick guidance a CFO. we quarter Bryan. review with fourth company format quarter Bryan Joining business for Mr. and finish are Lo, commentary Patrick, the the will provided and and and The of Bryan, provided call by CEO; on

We then any will time have questions. for

you release, have Relations www.netgear.com. not today’s If received a please website of copy press Investor visit NETGEAR’s at

Before we the remarks, forward-looking contains that we advise begin conference call today’s formal statements. you

trends these Forward-looking operating statements outlook. tax revenue, could include forward-looking from rates, or margins, differ contemplated those statements. regarding future materially expenses by statements expected and results business Actual

refer Any statements periodic NETGEAR’s most For on NETGEAR result obligation today and the more these filings recent events. to statements undertakes including this of no as a information, of are forward-looking Form on that SEC, or with please discussed future risk make information call the update factors in new as XX-Q. assumptions to the based we

now non-GAAP Bryan the to found release Mr. this mentioned will measures A reconciliation like turn Investor Relations can to call. our on the over Murray. time, of In be would in this several non-GAAP addition, I measures financial GAAP press call to on be today’s At website.

Bryan Murray

despite was anticipated the and million, you supply year-over-year thank greater ended down and Erik joining reigns XXXX, challenges. call. worldwide our revenue you, for $XXX.X guidance than within chain quarter Thank today’s Net October X, everyone for XX.X%

strategy and markets towards which forces $XX.X a third is operating margin non-GAAP XXX This solid million. In behind quarter, X.X%, generate result. points translated of channel provider into primarily the in products confident providing office in tied of models demand long-term the strong to of in the The and worldwide, to position remained the end pandemic. period, as supply employees to guidance products helped of remote retained service our top expand new significant in quarterly were of the which at remain disruptions, points spearheaded and by SMB by revenue year-over-year. are the third demand XX quarter demand back from BART and wave the aforementioned worldwide, hybrid [ph] available networking strong in business we team becoming great WiFi SMB our increase continued our and growth where our year-over-year higher the propel highest did years. and seven a able our home norm XX%. basis by result or opportunistic consumer to subscriber achieve connection business. X.X% innovation worldwide base. year prior double-digit year We’re period, work for This by growth XX% speed row prior switches we continue of whose of nearly consumer operating SMB non-GAAP the experienced U.S. continue reopening driving this lead in managed by products. our forward, share, premium propelled our in requirements WiFi the securing to our market was non-GAAP double-digit a SMB startups our businesses in Even range, service the operating coverage needs. topline wireless in the margin held performance job below leadership basis margin paid the topline We our also of Meanwhile, channels We ProAV with roughly applications of being complexity, a aided leverage above income with

in marketing with originally margin constraints strong combination SMB stronger slightly potential topline expected anticipated. activities, full promotional than to the in from SMB supply business demand, and our investments both combined its perform in Our hinder operating quarter, higher lower deliver reaching income than

For quarter was X.X% revenue of $XX.X XX.X% is a the down XX.X% million, for quarter-over-quarter. and on which XXXX, year-over-year decline revenue $XXX.X and year-over-year basis. million, was Americas a of net down net sequential the EMEA third down X.X%

Our million, APAC X.X% prior net XX.X% up period $XX.X which revenue comparable is sequentially. was from the and year

and third introduced of constituted XXXX. For wired wired about were split XX% the shipments. respectively. and between and million last net our third and XX% products. products approximately gateways The business combined shipped was routers respectively. for between about X.X home of revenue XX%, products of quarter of the and including Products about XXXX, of third million a in we units units, wireless was all XX% wireless net split nodes wireless and X.X XX%, quarter total the about The of months million X.X revenue XX quarter Shipments

is comparable million, is XX down from in XXXX points, compared earnings GAAP our in of X.X% point points, While this to basis earlier came to compared sequentially. a of the today. up to XX.X% in in detailed my From period, QX third last is products non-GAAP year-over-year operating and which down quarter expenses as The in of XX [ph] at in margin XX introduced the Total second Reconciliation on The contributed non-GAAP X.XXX% release about down was numbers. non-GAAP XX.X%, points third which months XXXX. the shipments. XX.X% XX% quarter basis $XX.X prior will quarter focus non-GAAP our gross distributed on the year discussion

QX. of quarter, in Our the headcount of XXX as XXX the from end up was

We we growth. resources add we continue that to in deliver invest future will but headcount, will areas manage and our believe

of year third the and X.X% revenue X.X% net revenue to of in Our prior quarter of non-GAAP continue R&D To net comparable and service to compared X.X% in continue R&D. the XXXX. of the technology committed second in for leadership, period net as quarter investment we’re was our revenue, expense subscription

third XXXX. tax non-GAAP in the XX.X% was of Our rate quarter

of bottomline non-GAAP EPS income the net at we non-GAAP $X.XX. Looking QX, and million $XX.X diluted for reported of

investments, from the the we of million cash quarter. ended sheet, balance down the and $XXX.X million third with XXXX to $XX.X quarter prior Turning short-term in

saw end in the of increase transit continued this carrying we quarter. inventory an While levels at of supply of transit the much elongation in sequentially, times was

$XX our during quarter, million of the was operations to trailing purchases months the approximately $XXX of company’s brings which QX cash to used demonstrating equipment XX shares to at an which stock repurchase provided brings of we million of common and capital by repurchase returning the start XXXX, the repurchase our QX, $XX.X trailing $X.X shares. spent of to Further commitment $XX.X in In shares. our $XX.XX per of an XX.X share. have common Since total outstanding our operations, Directors our We spent repurchase XX% over our of for million. to value shares shareholders, total approximately months stock quarter, XX activity up to million or million to During average Board the in the from property XXX,XXX has cash million of cash X NETGEAR used of of incremental price $XX.X used the million. million expenditures we authorized

Our of XX.X as million fully is approximately count end share diluted shares the of quarter. the

revenue channels, down sequentially. half year-over-year XX.X% basis, the demand same about leading growth saw by relative million networking with heightened the Day the includes a third decline to higher of Home Prime we the both in Gaming response for segments. XX% Meural adjusts XXXX, which Pro a during market, This and short our timing Now consumer slowdown The quarter was XXXX. landed the quarter, Year-over-year boosted in which Connected segment, the quarter, the year on QX in X.X% was third turning In pandemic. XX% for service in the retail of that experienced for generated our expectations Orbi, and to down of period the in and being provider U.S. Nighthawk, we Nighthawk and for shared back net industry brands, results the July. of falls which growth product $XXX.X to

a the channel above segment have we we made continue for quarter, in we meaningful supply terms, was exceptionally at up X.X% demand, again XX% environments. U.S. once growth new stocking net progress size XX% efforts year-over-year to period retail strong formations XXXX, to basis remain a is by continue $XX.X generate third on quarter revenue for of market fourth by a approximately against buoyed dollar constrained sequentially. comparable and flexible demand in The in of well business and the environment expect working that XXXX. driven and SMB which to The adjusting million the in execute the up the these expect Although, for

we We for see to were most solutions POE SMB demand year-over-year experienced business, our But exceptional switches. about which excited ProAV wireless continue growth. and our strong

switches will our other and share U.S. in after through quarter years. I’ll XX% the seven for quarterly SMB achieved the chip call guidance face sold provide in at QX. to fourth for commentary, in turn its almost and Our strong I in Patrick XXXX. his over retail highest constraints, remained supply revenue the of business the now the component Notably, shortages market which of

Patrick Lo

you, Bryan. Thank

NETGEAR holidays, this X.X speed offers As WiFi assessable encryption band quarter gigabit to designs. NETGEAR to improvement last the unique here deliver bandwidth, This household from the hybrid the Ethernet less market performance X for faster output wired to announce XE X fourth need new system a more to-date. internet mesh thanks just system high leader to interference quad-band gigahertz available additional the systems. need devices, the homes. networking solution the of capable gigahertz antenna bring pervasive, connections with performance work-from-home unprecedented and secure Orbi speeds bandwidth cutting-edge with XX Orbi shared along and kind XX Furthermore continues. excited supports and we products devices The is of X enable WiFi smartphone system lead supports This consumers. to for connection I’m to distributing for NETGEAR newly WiFi and is and introducing time gigahertz WiFi the with bringing in coverage the first new gigabit lag. retail the for utilizes improved to several generation upgraded of market standards. for speeds remarkable is stay to gigabit the WiFi powerful simultaneously ports everywhere in in up most homeowners. With company to first of consumers mesh to and more band greater is pod quarters, to WPAX industry The the have its fourth it, radio band more up the mesh to WiFi technology the is internet at along input and to premium work continues market. quad-band models next persist that greater makes becoming

Orbi our to tri-band super not by the paid will add newly growth. growth exceed a subscriber of Armor meet which market market tremendous from within service, in where trial $X,XXX further This WiFi available anchored segment quad-band systems XX-day year product in a expect the Without continue the market, NETGEAR the portion WiFi the ago. free U.K. the well mark, $X,XXX. In continued XE premium XX% premium and base. growth of to quarter-over-quarter is was enhanced which which in we a the pre-order innovation includes in bucket, sequentially doubt, of edition and its limited mesh. systems and Finally, the The exclusive significant for our is year-over-year WiFi the of be at total as the and the we’ll for gold, market, up U.S. portfolio white add X soon premium is experiencing will and products colors of we roughly the to

the that believe experience of market. to ASP of in an expand segment the market will We the the Moreover, that super higher and this demands premium portion is buyers continue uncompromised directly as store where our network we much such services, one premium subscribe from likely especially experience. our to of purchasing are security, when can netgear.com a create Armor value-added to more market

focusing rapidly Now sometime make new premium XX% worldwide and channel products worldwide the XE our off netgear.com in intend it at year, retail are stores market. on growing of the we sales the a super to next

that a environment. of WiFi strong delivering mobile reception mobile speeds capable excited Additionally, network, compact internet the unlocked router. of This the I’m the to is in a similar home Nighthawk about but X WiFi XG gigabit device the version to MX of

home significant and in with class remain to remote prevalent speed, its more a work broadband X as for in MX options Further, America for lifestyle mobile system. per to available in This device enables exclusively port only a it $XXX. gigabit Ethernet the the in on security. MX improvement to a phone enables offer users connected, North netgear.com the is not With those to second the for mesh is about connection WiFi device and than unreliable ever, the becoming faces coverage ditch Nighthawk mobile hotspots

innovation our focus with Our end highest quarter continues is to paid acquisition our we shield of Armor customers, NETGEAR especially added devices feature our In protection protective upgrade products. new on the winning subscribers. key value offerings the new of a with resonate connected our in enhanced home The to award a driver capabilities in for to network. which offering, our as sets. This provides the proposition already

$XX.XX. computing period, antivirus security Armor not products subscription each and and For and devices light protecting that endpoint such Armor protect enhanced XX-day expiration, ease IoT into a yearly those IoT complimentary WiFi on fee devices. NETGEAR as of device, IP switches NETGEAR upon and the use, including the built cameras, entire Orbi can to This in is while at is only be devices charge subscriptions the installed to contrast routers for trial is IP Nighthawk most lens. traditional starting for still stark network,

currently original goal profitability positive below about and XXX,XXX at start our impact to the We million subscribers Although, on achieve the we year the our the ability in year. are next subscribers, to X years. the end three business set of projecting at remain long-term our

proud team’s the SMB for this strong the our once third consecutive execution quarter. year-over-year of quarter our again Undeniably SMB business, growth to in delivering Turning and momentum strong. remains double-digit I’m

As reopen XE wireless WiFi offerings our expect a businesses follow continue formed, new we growth to to of saw and WiFi this be further continue with X and and to business X pillar. WiFi we adoption to

digital ProAV and business, continue area clearly a to growth LED backdrops speaker ultra-high theater replacement blue industry has digital The to area systems surgeries. as new services, in robotic continued momentum AV will been or key focus serve classrooms Additionally, IP we transition and disruptive digital our [ph], with wireless venues, accelerating, studios, applications, strategic definition large saw digital remote of and the screens as for hearing future. over a from such green digital screens, our in church analog remote which with AV is

adopted are infrastructure the with being applications New traditional AV as cables replaced HDMI get time, all via Ethernet.

embedded many at integrators. protocols our this are of along it, with to industry easily transition ProAV to VARs, switches uniquely of We applications and AV integrators equipment deployed sit these worldwide IP/AV the vendors. Our be and AV with heart by expanding AV network enable

the Insight integral expansion fourth needs home Pro while our offering network part and centrally is managed administrative VPN, company’s and a is on the for sector. making quarter, mesh managing also offerings expanding with and the networks network new of secured security offices We’re node and progress business integrity we service are ensuring introducing of of for service Orbi corporate Series branch, business SMB the An of IT every business employees, In and complexity. this minimal offices each add-on systems. service enables the to our

Revenue, of developing to brings companies Directors. Shravan opportunities in Shravan and and to to companies and Bryan, Before Product take scaling NETGEAR’s back track turn as at of with leading over I of with to Dictionary.com, back Yahoo! turn I’d welcome software Bryan Board executive it and roles to moment an over Consumer comment our and coming and Officer with and over record obstacles Microsoft, SaaS offerings, as collaborate build value-added NETGEAR excited Head services experience to XX-year including on to Chief out subscription-based quarter. NETGEAR Shravan Coursera’s to Currently like I’ll the And a Coursera, the to that, business we it complement serving continue Goli in our hardware. industry leadership I’m to

Bryan Murray

demand expected dramatically topline associated and end Despite sizes continuation times business of macroeconomic chain than the by of supply publicized shortages, price the and increases the worldwide, to all lower numerous to global CHP meeting progress with a widely retail causing user economies of the even changing for the challenge exacerbated all fourth variant. not component costs, projections our significant is Thank the NETGEAR worldwide Delta longer you, immune growth reopening and of quarter. saw industries. Patrick. for chains constraints this. is third with flare of including XXXX the environment quarter It’s transit ups that combined presents companies rapidly headwinds, These disruption of previous increased supply

seeing ProAV X supply and access We expect continue in points be quarter switches XXXX. the SMB strong fourth limited to only into and in by WiFi to demand

CHP XXXX, to the fourth On of quarter we XXXX. ahead the to business, looking the market growth same moderating see period XX% above in approximately

into Our we plan previous the destocking continue these efforts in levels to efforts optimize but quarter. fourth the to quarter made third progress, inventory for

also We service of to supply revenue in $XXX to range quarter is $XXX our expectations our for net expect the Accordingly, to constraints. million. the in decline provider revenue fourth due million sequentially

a the we we the component negative cost operating from to non-GAAP is our expect topline significant leverage of and quarter quarter margin fourth beyond, to see increases, freight X.X% will to in with result margin in loss range X% combination next of be the expected and in of As X.X% GAAP to X%. operating in of the and and be range

be XX% rate XX.X% Our expected tax be fourth quarter is GAAP rate approximately the our non-GAAP to of XXXX. is to tax expected for and

in While centers audience. any could guidance. answer expected closure from the actual foregoing to than partners do ability challenges confident caveat that we to with And uncertainty chain the events from increased time, to operations, now this conditions. due remains freight transportation greater related occur pandemic of considerable the questions any our manufacturing and supply our the or XX of we our are COVID results in and delays deteriorating would particular distribution guidance costs, should We provide to market regional or unforeseen at into so our component differ like

Operator

Raymond first Instructions] Your Tindle question Adam [Operator comes with James. from

is open. line Your

Adam Tindle

inventory. Bryan a bit, on obviously very trying comment But excess Why is constraints how same could need to with environment case, where the just Good Okay. that square at maybe much to supply supply environment a those potentially difficult two but is but right now. need and afternoon. the you’re of you excess and start, have concentrated understand is constrained or Patrick destock. talking I’m the supply destock, to it And meaning wanted I about time, the supply left? Thanks. dynamics destocking to little going

Patrick Lo

color side Well, you primarily mostly destock to the talk is side, SMB it. the and CHP add on the while on Bryan, is me about let more shortage and the could

Bryan Murray

of -- there, just we Yeah. product that kind see point, will XXXX. half continue of for shortages we was the half It least on facing we’re that of expect a improvement business hopeful to number the across categories in is the saying certainly of Patrick SMB building at what on to that At second next start this year. until back and

expectation. LTE in that sorry, side, expecting actually standpoint I we level, are CHP we would deliver inventory are for and From the inventory is of QX terms customers. in had those the the the channel that provider XG to which a destocking half below the our what mobile we first the of there On the will of levels the CHP, $XX we’re right XX% channel, service range, to as be over supply probably kind year. one market channel growth, further based so expect in may coming set this quarter. really on facing in of expect that below to half that the levels fourth we XXXX. QX, a reduce that And footprint the room would given channel $XX year in sizing deliver that market products Certainly growth we constraints million in million back recall about said that the the was earlier, of we’ve and with say, but in I challenges to at second for selling most our time into -- to stocked July There’s steering on area, to are towards facing be you XX% out delivering hotspots,

Adam Tindle

just companies cybersecurity higher Okay. That’s just a am threat. and pursuing Linksys. some this I as appreciate example, organic Fortinet $XXX an think opportunity WiFi million partnering products From organically or From I one been firms consumer the Palo with or invested, their potential WiFi I have product. a And competitive level this market, helpful creating opportunity for their about an Alto standpoint, was of color. of it. standpoint, kind dynamics. talking own a maybe market of in own that threat under I Recently, Patrick, think, via for

partnering, So example, the Palo terms the against maybe and the did, threat could both new then you Alto? how for, and to defend like, the bucket you’d opportunity, Linksys that incumbents, you be consider would way looking would what for

Patrick Lo

Yes.

I think our target customers are different.

similar in our mentioned I for services introducing version own As we’re our SMB Orbi Pro side. on Series of the that discussion the

one central let Insight in of So we to the centrally as as VPN Insight SSIDs the our offices, would be able well services. manager IT the management, who manage new home

them are they didn’t So Fortune announced we are customers course, they because just are XXXX. of we’re already of primarily our target ahead then ship, But, different. shipping. and right, Theirs

what primarily we call micro businesses. are Ours

for stressed uncovered well more are tolerate on have I our houses. is, WiFi we where thing would discussion, tolerate premium the super other not in just or the people areas as in any not now more premium their many any quarters, would focusing lag, segment The and as

uncompromised customers offer we continue end. sell high I’m super this mean I of spec are customers, fact, two more -- into own that that And X.X, with the to looking generations talking provided and our offer. lot the dissatisfied company and of gigabit our XX Fortinet, we particular very find at providers the that X service a what their pluck the what are or into or systems think end of as mesh with Networks a matter to coming can of about, going provided we equipment. they So for Palo high house, I by Alto And by more WiFi piece behind

open cooperation really not So, all-in-all, we’re it’s open operations. that From always believe the a call we we’re standpoint, same I so -- in competing. for space that am

XXXX to services the use VPN solid similar businesses. rock provide and our really for departments big small Fortune we IT we’re departments companies VPN, have services with that really IT companies, provide software been the partnering them partners provide to Insight really, now services they micro similar to and and providing the of are example, For and

Adam Tindle

Thank much. Understood. very That’s helpful. you

Patrick Lo

Yeah.

Operator

comes Your from Hamed Khorsand Instructions] with [Operator Financial. next BWS question

Your line is open.

Hamed Khorsand

Hi.

you million. was First You said X.X right? shipped unit hear off, did I

Patrick Lo

right. That’s

Hamed Khorsand

And quite that was unit the count shipped? QX. now to just is then it missing if X.X quarter, since compared or at just low unit XXXX wondering million million I’m exit X.X that you’re market market you’re where

Patrick Lo

Well, I just like to point out of we that back XX% now in at XXXX, are at in the market XX%. same quarter we were right and share

think I major that difference. the is

Hamed Khorsand

Okay.

just… You

Patrick Lo

furthermore more furthermore end, more dollars time, we the have higher And -- towards and in products. that towards the we now have minutes right ASP low

Hamed Khorsand

I where was my That going follow up. Okay. was

And of you far through kind that as continue super this seen what to gives have far looking could destocking trends you’re quarter, especially kind then as the expand premium confidence so of the market? that Okay. at, this you you

Patrick Lo

only netgear.com in are own so the this that we in discussed time the day. coming selling direct, we mean, I orders as on super previous stores I Well, see premium every our can

Hamed Khorsand

customers be it or inclined a it Okay. themselves? that to use are super to But premium more they the do middle what someone install person also

Patrick Lo

that service provide well. We as

Hamed Khorsand

it That’s right. for All me. you. Thank Okay.

Patrick Lo

Thanks. Great. Okay.

Operator

of Your comes Silverstein Paul next line the question Cowen. from with

line is Your open.

Paul Silverstein

And to attacking it me respect independent it relative you’re about it is -- and of high to margins measured with revenue from of question COVID like chain What asking way. revenue maybe super questions. derived from like Patrick low supply is XX% assume roughly the market trying robust It and question argument of you would with risk that opportunity let but this end driven Thanks, ask of right -- in necessity of revenue both Is -- of bottomline. it’s is outlook the taking sounds and me function pursuit is opportunity seeing you’re of sounds in lower of your the your but which and soon How let consumer, let different independent of that a outlook coming the sounds it’s appreciate bits? XX to really premium down meaningful and look, much economic bits? be, growth by growth market improvement much respond? a guys. like question, premium Connected maybe normalize not from XX% an out by it impact? you right a the well, Bryan, I the to related Home far that attending how XX%, XX% when to prospect And relatively WiFi, for I consumer? already XX% talk place consumer constraints, is anytime than disappointing get that, that the you XX% from of

Patrick Lo

segment even of through the a out a has roof, percentage the has moving to No. And I a right, primarily premium. that QX And the driven terms, mean, compared as But double gone is about a look quad-band super a And is the a remember, was the quarter, and the last you we premium a more be. buy greenfield, WiFi market. from is and quarter, the premium of the segment segment we said that everybody by can clearly occur only me of both more rush to dollar XXXX, grown a segment, into in dollar most to against as still today growth profitable we market is mentioned doubled clear of as that, year year-over-year. is let ASP be at by matter new us demand and increase. in what ASP standpoint. from crazy of And it’s Bryan increase right? And huge that fact, of discussion, XX% the tri-band

to have in as could super routers, much you span. the XX% $XXX so market guys very the and blue profit we win premium dollar As from this itself of in one is of rival of share lucrative XX them that

very in they of tri-band. us technology the do there to is, are required our Now, chasing offer is quad-band, in more little importantly competitor on

So we much market believe segment. that higher that we will in share continue particular to enjoy a

demand our market irrespective us, a So hafta-band is a to is to profitable, technological more that the up, the leadership but by sum we’ll what you to X. years is growth on then when and would take absolutely WiFi of of just chase competitors we have on segment move it rest

maintain we we’ll position to that believe a and continue leadership we’re going So that’s after why this.

Paul Silverstein

growth of the the those remind market is Patrick years in premium what premium -- can the today? what -- where of revenue? to its rate ask you a could I be -- you? how you be? What percentage you Mr. the as or that the At in can and it can What it super comments, it for is for percentage to next can three premium? years super What us, point -- revenue total two

Patrick Lo

We do can more line only the market doubling, say But not mesh that the and down tri-band year-over-year. than do quad-band premium -- total, not of I we mentioned, as XX% the No. is is, is that revenues. just we doubling market break traditionally product end thing is

fast that’s So how market growing. the is

will and revenue to we total in So it, the our that plus can next XX% on XX%. XX% our is that big years of as believe target mimic of as end we’ll to growth to than premium couple make try push and more our possibly

Paul Silverstein

By when?

Patrick Lo

three than two no in to later Probably years. years

Paul Silverstein

of super -- well, the rest growth what’s grow well, market? XXX% rate well, and the growing over at Patrick, that’s consumer the year-over-year, -- premium for premium that is the

Patrick Lo

Oh! Yeah.

the the market, So all probably competitors. you because strength of design by rest the of could ASP argue it then in

It’s $XXX. used sell $XXX. gives three WiFi me for now to Google’s selling idea, for you Let an pack

Paul Silverstein

you’re XX% churn ASP of -- your It ASP, plus? is erosion saying is that that influence

Patrick Lo

ASP? For

Paul Silverstein

market. That’s on of ASP the -- saying? end type A erosion lower the you’re your of is the

Patrick Lo

not basically definitely the saying see the erosion. fray, No. participate for price at that But that in do the stay participants. we of I’m kind above low end, market we we just yeah, erosion ASP

So, the and we Google to pack, same that against we’re for three at $XXX. the example, $XXX compete for the Amazon, still

Paul Silverstein

Patrick type in your premium to return the you’re or to the begs of market and market XXX% the in you’re while seeing growth the that growth, you’re while decline you? market rest the than growing better the you what plus dominant with of for enjoying in enjoying position, assuming question, are giving market,

Patrick Lo

industry is shrinking. of crazy, new a rest No. It’s field. while like the It’s field. car a Tesla It’s like is just completely the new gasoline going

Paul Silverstein

saying, But dominant portion involved as it premium, right. your take premium portion but the next grows before offline. fine. I appreciate being years That’s understand revenue. the I’ll several market get dramatically it you there’s you’re I that super still I’ll of all I the take offline. of the -- over math responses. what the

Patrick Lo

Sure.

Operator

There to questions the over presenters. further time. the are back turn no I at this call will

Patrick Lo

the happenings standpoint. challenging Thank premium and The you environment and navigate and to our team’s logistics in in in continue for our side dominating macroeconomic us joining market current through is from march supply of I’m of end confident definitely and ProAV component today. SMB. that the goal these towards the the ability to consumer But the of

commitment us further to early send enable technology poised work and -- from at of December and forward to to plan we’re our them and Analyst brands shortly all going look to product and we over portfolio, seeing and forefront strategy, our you. the Analyst to out the you invitations Zoom. Annual the and Thank we To Day set innovation Day everywhere explain remain environment Our in of apart this market excited transition. I’m have

Operator

Ladies and gentlemen, call. this concludes conference today’s

now may You disconnect.

NETGEAR (NTGR) 28 Oct 212021 Q3 Earnings call transcript