NTGR - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to NETGEAR's Fourth Quarter 2021 Conference Call. [Operator Instructions]. I would now like to turn the conference over to Erik Bylin. Please go ahead, sir.

Erik Bylin

Thank you, operator. to Conference Quarter Call. welcome XXXX Full and Results Financial afternoon, NETGEAR's and Fourth Year Good

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

for We have questions. then will time any

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

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

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

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

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

Bryan Murray

within despite range. X.X%, midpoint today's were ended Net global XX, million, the that non-GAAP our December above achieve down persisted year-over-year chain conditions you, $XXX.X difficult thank Thank of in for our quarter. guidance We of margin for revenue XXXX, Erik, and guidance quarter range supply the the to everyone, and the call. able operating you, was joining XX.X%

closure temporary for challenges our products Omicron variant. to by supply a caused to we our in chain broad higher-margin remain exacerbated demand ability limited demand the by SMB factory the strong, were quite meet due Although

were the in our to fourth I'm efforts quarter. share completed materially CHP optimization inventory side, the that On pleased planned channel

full year year XXXX. ended were net revenues billion, compared the XX, For NETGEAR down of to X.X% XXXX, the December $X.XX

Our in of and above both momentum helped SMB XX% ASP wireless market the to higher ProAV the refocus efforts past deliver segments revenue our the and towards in premium pre-pandemic products our year offerings levels. at

In addition, above at have XXXX to WiFi consumer seems market XX% the CHP levels. stabilized

for into at we operating remain opportunity XXX basis market our end, non-GAAP fourth quarter, available million. WiFi the expand points we prior NETGEAR. shift strategy As execute on a This will premium $X.X recent to our of accelerate year translated X.X%, of continue and which non-GAAP margin In consumer discussed the the Day operating portion the to towards period. is confident of we below U.S. the our income Analyst generated that we the trends market

As provider tied including a due considerable pass our able to from leverage reminder, service in demand, demand to line opportunistic in along the prior to bottom the surge partners year period, to pandemic. we the directly the were

QX XXXX closure the and in reaching line in added mentioned, potential bottom increased Omicron hindered from and material a business to and due line our temporary freight challenge previously to quarter higher-margin full constraints as its of However, costs component SMB variant. the factory scarcity, supply top the due

partners' on on line. executed leverage the our On inventory optimize pressure further to which plan we ability our channel side, CHP the to added positions, our retail top

promoted of core of away part as market, lower the we our less. the Additionally, from to shift strategy end

of quickly as we our our top larger about market business, levels. pre-pandemic XX% as line our although leverage CHP year the full at end environment SMB the possible, of by costs, low where Although saw year, Day. year guidance and freight the X.X%, below of revenue at expectations our enough our beginning to operating the annual offset and with And margin our at challenging costs the income it settle provided not Analyst our non-GAAP of compounded supply than full from the million the bottom outperformed XXXX non-GAAP was in team adjusted throughout line, component chain lost impacted $XX.X elevated higher a year, operating

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

regions X.X% APAC which net X.X% SMB growth million, from prior quarter All year-over-year revenue X saw in is up our Our sequentially. up was the business. comparable and $XX.X year

enough and channels, efforts in in inventory our provider retail Americas in part, However, the service declines the for to the to EMEA, to partner not positions. channel and optimize it CHP due offset both was

The XX quarter is down which our points operating release earlier was detailed today. compared and million, respectively. contributed business products the wireless XX%, prior quarter introduced Total The earnings XXXX. the combined fourth was quarter fourth points GAAP sequentially. products fourth to in XX.X% the Products of of million comparable of and wired XX.X% to discussion focus nodes is split net basis routers our between quarter expenses gross shipments. products. revenue numbers. year QX in and the while the XXXX. non-GAAP up products about basis compared a The home XX non-GAAP were units Non-GAAP the XXX,XXX at introduced will shipped From in we of about million net this XXXX, in between XX margin last X For year-over-year months fourth XX the point last non-GAAP third wireless and approximately of shipments, of of down in distributed X.X quarter gateways units, is in XXXX revenue of $XX.X points XX% reconciliation X% XX%, was about total about XX% X.X% my respectively. all down on XX% came to for quarter wired as from in about fourth constituted and wireless quarter including and which split of XX% and Shipments months our and XX%, on,

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

continue manage but will invest services. development headcount, resources future such and believe deliver in areas and and We growth, apps add to software we'll we that as our in

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

revisions rate negative tax fourth the the was certain in rate of current benefited XXXX. that impact year to estimates tax from non-GAAP quarter The expense. full XX.X% quarter Our tax

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

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

the our QX, million quarter, million average in of spent used brings share. total which by of during provided shares million of quarter, operations $X.X at to months to repurchase our million. the trailing to price million. and property million common an XX In the $X.X purchases total repurchase months Since repurchase cash by NETGEAR XXXX, of million our which was XX $XXX.X stock activity During shares. over over QX operations, start cash XXX,XXX we capital for the XX.X $XX.X expenditures used trailing in $XX.XX we We approximately spent equipment of $X.X the $X.X per used to cash have brings

returning We value quarters. in shares shareholders to are to committed to plan continue to and future our repurchase opportunistically

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

$XXX.X down The comparative segments. year-over-year heightened Now channels, heightened in to during includes a sequentially. meet down with quarter, to which the our experienced which and demand depleted of our Gaming on provider demand. stocking and Home to brands, turning pandemic, period fourth net by results response the is boosted service prior and product generated year-over-year XX.X% Nighthawk, with Nighthawk Connected consumer a retail and revenue Orbi, XX.X% being for industry-leading quarter year the along channel the We both Meural decline a basis Pro million segment,

optimize took the year demand actions channel current our levels retail we inventory to period partners' to to our expectations. Additionally, align them current in

NETGEAR with for positions premium shift growth, lower-priced Our products with seeing demand our our planned these product our higher-margin the declined attach are mix in X towards to the than premium service segment, our quarter. strategy for profitable exceptional we to fewer and share goal percentage products sequentially pushed XX%. Consequently, concert consumer we focus fourth In on rates the promotions products. WiFi higher points long-term for to premium U.S. in

quarter expectations. Our generated largely net in of performed which million challenges shipping service for in from SMB of the of Driven business. $XX revenue sequentially. in continued The X.X% provider is offsetting line fourth and X.X% freight supply execute business increased with a face production XXXX, to and air year-over-year chain compensate to down this and basis challenges, up supply higher the for we margin contribution spend on delays, by segment

We to see driven market. switch develop our inroads further by momentum managed exceptional continue products for the ProAV to

and which, U.S. call the in our quarter XX% cloud market to I Patrick work for demand for remained points, over new I'll led sold our thanks offerings the in XXXX. being the wireless SMB first share mesh guidance to retail provide in for environment to businesses We now continue WiFi see our remote the wireless Encouragingly, channel strong After turn increases managed also commentary. through by of X switches at of QX. hybrid strong increased access will his established. adoption

Patrick Lo

you, Bryan. Thank

of this to third making businesses a from adapt to high-speed virtual the a indispensable ability continuation to challenging to transition pandemic, quickly order it the XXXX in-person unprecedented an year and new rather environment, a enter versa, WiFi utility that have. nice undeniable vice interaction of times. In homeowners and we and was than to reliable, year need this As is

to X.X% year-over-year. team full challenge $X.XX overcome the supply year, deliver for of has a worked billion Our hard revenue to significant decrease

CHP component including of and closure offset leverage decrease profit Although business revenue headwinds, a SMB helped a the year XX.X% number and factory $XX.X side, costs non-GAAP were lower operating to we cost year-over-year. of freight typically million, higher-margin a our from typical of with on to by elevated partially the the impacted end --

our with Day, an better and WiFi to As our and WiFi connection is recent each mix Analyst a unparalleled ordinary for equipped and clear of WiFi This best-in-class and device, experience home we grow the connected segment, and mesh requirements to someone work in capture to performance virtual accordingly applications With who focused expand saw are market, device and like speed improve premium a this becomes we upgrade that stay WiFi system, streaming, the video and of it reality growing added household services we homeowners' and simple sequentially handle premium to the capability. to router less coverage, bandwidth-intensive than to share fourth shared have growing older it, in in remote total a appealing bandwidth Customers looking products of router XX% are of is portfolio along each here quarter less WiFi mesh their our the segment experience. and connected for gaming. much retooled hybrid more which the of connected rapidly on market. conferencing

leader to and services unceasingly the As WiFi of market, cutting-edge has on retail focused NETGEAR products premium market. bringing the high-performance

To and with live online concierge our uncompromised improved part seller a online store stores. well this check homeowners. Our of shopping have rich curated start WiFi the growth quad-band X our from the spend channel where display service purchasing ASPs, strategy Mesh per world's key $X,XXX market. the makes an to stores rest We impressive Quad-band service, XE Especially experience system, an market X Orbi systems XE released are from plan at segment profitability value-added is services of experience portfolio Orbi are is X, Quad-band the by first believe we Mesh our to premium installation and features and netgear.com, loyalty, premium WiFi mesh XXXX unique attach top buyers to increasing likely exceed our The a with paying market, product service. when focusing in selectors, and expand the of units WiFi profitability. we such much our an more our mark, strategy sales premium uptick and that portion our as off, the the the newly the gigahertz strong of experience content, as super already direct of in X directly strong the made The our on deliver to the accessible through brand available Orbi as our sold, continued seeing products one on System, subscribe market recently and System. more offering of expanding order, through offers We WiFi of rates netgear.com finish, premium to the segment of beyond. of Orbi

I'm We continue in further share that deliver offerings named CES to to year's our Award the and market. to value best products awards honorees, of innovate customers. segment at of add the the analysts excited to premium to as Innovation cementing experts this industry our leadership XXXX X

Our the Insight WiFi of of went Mesh our Business first remaining recently excellence XE the The demonstrates WiFi XE Orbi X Nighthawk released newly Mesh Quad-band clearly our awards System service, which Mesh WiFi X Pro VPN System, and Router XG portfolio Orbi to products. Orbi System, was WiFi released honorees. Tri-Band across

these share me let Now more on new product directions. exciting

though quad-band tri-band the saw WiFi lower end, sequentially. the Even X reach our were XX% the market On market our up the offerings. reduced side, sales premium category on share and premium by to systems mesh we mesh in continued anchored strengthen, WiFi in CHP

period downtime. continue combines the fast cybersecurity product our on base. a latency retail differentiated line Orbi out with I Available to Orbi meet will mobile grow unsurpassed by high-performance X trial multilayer available homes. award-winning X no these segment Mesh addition introducing we product netgear.com meet widely with Mesh our This about quarter proud NETGEAR now free $X,XXX, this and throughout XG of system our of with premium as key comes advanced at our this rounded the superfast This price am team paid not System. a their XXXX expand in products ultra-connected demands ultra-low this needs our with to XX-day connectivity enable the of of of WiFi and part success performance System is blazing the We speeds for Orbi and this Armor, subscriber strategy a premium of to by of Tri-Band market-leading solution to accident. our pivoting WiFi new performance XG market, to

key focus relentless continues our for provide paid and on been offerings in acquisition innovation the driver Our a customers be best-in-class to has our valued of subscribers. to

services these proliferation NETGEAR for the XX.X%. XXX,XXX of year-over-year transformation paramount the indispensable. branch our homes of growth offices, with With Armor year devices to like networks out home is XXX,XXX closed essentially new office into of subscribers and end-of-year NETGEAR subscribers, securing surpassing the of becoming projections

the rate, of With of our its XXX,XXX the and ultra-premium remain to on long-term our and end we year. impact the profitability growth reach ability business segment subscribers attach higher the positive about by the current

Turning XX% X.X% to year XXXX of The team levels reference SMB constraint. pre-pandemic business. full a our supply and continuous despite XXXX over growth point over using delivered as

New the the since States. businesses in are at XXXX ever United than faster level highest forming

managed ProAV our of our points. drove upgrade New to performance. continued managed of technology, and reopening for sales switches. the security their businesses enhance momentum cloud This to productivity, wireless momentum in and strong demand with the access investment mesh paying WiFi dividends business want X is Also,

a signage, a Although video marquee home the of and automation development our and places worldwide. added integrators of for list to specifically e-gaming and sporting robot-assisted the visualization AV we industry. procedures, wins of abound the quarter, partnerships years made products managed digital audio-rich IP data studios, ProAV of transition have entertainment, largest classrooms is, and a thanks digital OEM number few from the lounges, the surgical over In cases video to other fourth we more. The Ethernet recording AV needs to digital for of significant events AV use without entered ago, garnered switch accelerating, ultra-high-definition analog strategic the of doubt, substantial market endless applications for walls, an whether and AV with progress, industry next-generation unique family tailored and just we worship,

in corporate with last Finally, persistent work-from-home CES. to the our Business Business expanded The VPN Business as business of comment received $X.XX network opportunities point I'll on points obstacles an through in Insight and price access offices attractive to and And the managed back year. with seamless. over network VPN Bryan that, WiFi quarter, offerings quarter turn and employees VPN, connection. and recognition coming connects switches, service our and at and which mentioned cloud-enabled the routers, effortless All it encrypted, we per an makes Insight NETGEAR trusted Insight control device also VPN for to year. per of wireless SMB branch

Bryan Murray

completed, Thank the consumer partners' CHP expect channel first WiFi have quarter the levels the U.S. of of you, optimize be retail quarter XXXX to the be our to in is material fourth from seems to normal expected year Patrick. QX stabilized efforts the the $XX quarter revenue retail the first quarter of of decline retail market of channel to and provider we the channels onwards. with we Normal versus inventory business second this prior business, our to expect muted. will the lumpy million. from of nature revenue CHP resume service seasonality from portion Due the approximately

ability addition, continue our supply $XXX to first to net SMB to constraints, face our full revenue million expect limiting Together, range $XXX revenue to to our its potential. us business lead will of factors line quarter million. in top be these achieve In the for

transit logistics near-term face front. number to numerous with headwinds, on the to continue We starting elongated times of disruptions due a

our and to maximize also the transportation elevated continue that will spend we first costs will significantly remain sea air We of supply on expecting are products. through to XXXX, SMB half of transportation

of Additionally, effect. costs the will higher impact component take full

cost increases the the higher the of as time increasing to year and price selectively benefit but in first offset progresses. these prices sea increase over We component will margin starting are transportation quarter,

is operating negative GAAP X.X% a X.X%. the margin margin factors, in to expected of these from be to negative top the result the our operating X% non-GAAP to in our range is leverage in of of quarter to X%. And first be line, As expected reduced range plus

will us Our ease the XXXX. thus our be tax supply year, creating quarter approximately remain and favorable our for in top is costs the of more and tax bottom environment a that be to will for non-GAAP second rate in the of sea first transportation SMB rate and lines. half expected improve We much GAAP expected our XX%, to negative XX% is hopeful

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

Operator

Instructions]. [Operator

comes of Adam first line Raymond James. with from Your question Tindle the

Adam Tindle

-- and I just we positive. market making where just to to end to on channel optimizing up on is CHP. Today, decline ask and to to wanted wanted to need we pricing in of same make now Day, situation, a in light to stabilizing the inventory, attempt the you're increases. or Nice to raise inventory about due question so prices end definitely guess, see announcing start sure how year of there, again a Groundhog a don't think I optimize channel from demand

any to be hike. price the So you and model, Bryan, on went on could the impact trigger magnitude process to get maybe that on would color the confident I question through would pulling And Patrick, be you guess the add helpful. that the the for if

Patrick Lo

the technology more believe power, mean, the able see in to market I products we at much competition. with and demand the be we that own less certainly, would we what we look that unique price primarily are products Yes.

to cable That's technology. with example. in the products, For have very so which cable gateways, WiFi in few example, DOCSIS technology latest the cable competition the like combine you X one

lot other there, the the of The XG where a premium especially for over example, the not hotspots, on end. competition

anticipation with will as offset well to price market be. help that we the as increases, are we in cost. the in component will us select the costs confident prices what those And that of some So transportation the rate increase take-up of pretty

be inventory when where slightly inventory we're introducing products So in the things introduced is sensitive. And already channel carry will to newer less newer I price a And replace newer older going higher actually the of situation products the market secondly, think have products actually old in other in products. at position don't products the was because pick both excess high that the we're and the to products, we we the we margin. are out prices. the It are doing

So that's what are doing. we

lines expect the a our year. us bit refresh quite So of to throughout product you

that's inventory the requirement sure make going So optimization. to to that channel we have strategy forward do don't another

channel read, last hard is inventories the how Now us even behavior time, COVID affect to through to to optimization purchase for the be the was because we going of go the exact, have for the consumers. channel to partners, it for

a XX% or level, of and So in that that event, it's will at its don't XX%? XX% repeat we in. pre-pandemic it's about and lifetime" height, kind settle how easily. it's about swan it So Is it it's predict very "once to believe XX% black going to difficult or

Bryan? So

Bryan Murray

Yes.

I if low of covered you're the increases, in we our point of most and see will it. a say share, in in certainly probably impact segments market, comparing some to price the we're some are digit with a think, XXXX. okay There terms lot obviously but Patrick, mid-single projecting, the loss focal of percentage terms to not I magnitude that it's we're of of that. that would that of you

we've moving the we're lot towards price should a be less focused been which As saying consistently, end, on sensitive. premium

Adam Tindle

think to XXXX maybe just a you quick year as And from margins. a revenue both the and That's good about follow-up, detail helpful. quarterly perspective, of full gave Day on lot a the Okay. really at Analyst from Bryan, how

quarterly the more that even is models and Just think update our about little you anything out as visibility, there XXXX we year a for wondering full throughout would a now with for on the basis? QX bit or guidance cadence

Bryan Murray

Yes.

put thinking we We're the there the path here. that year. think the full forward guidance out that's still I maintain we for

certainly think that line service expect second improve we facing QX we're to that provider double would in of top little guidance, the the see quarter. which with bit expect a will roughly service I a I provider we impact, regards dramatically. lumpy in to QX

alone, we return the as I XXXX as top normal period. Seasonality, our to X% for see said, the just retail up for we So can anywhere expect portion to flat line second of there Seasonality to from we in that. XXXX, you saw seasonality can impact leverage the quarter range to X%, from CHP.

I think we'll probably second see we optimistic limit take believe again, it up environment towards the price full top guidance end impact. more margin. of a start the increases that to But will our that achieve bigger us year for range as much to our paint and half higher a a

Operator

Your comes the Jeffrey of line Bank. from with Deutsche Rand next question

Jeffrey Rand

right think is demand And that dynamics market now? growth in of the pandemic? going been should On forward? pent-up you side, drive delayed the this the this seeing do what there ProAV stronger you're are has during And some

Patrick Lo

market actually Yes. ProAV moved has the The COVID forward.

and of the the and classroom opened business places as example, amount studios. ProAV up that significant of For digital the digitization a of as events really well recording the worship,

as as well replaced also with ProAV that's walls panel As streaming cheaply, up, being do traditional digital video the of can studio, of IP signages you've camera, know, ultra-high-definition can't display expensive up. ProAV coming platforms, they afford newer on probably is too ProAV. equipment, the lot to LED driven. with popularity But which And the a you of seen with the the and it content they a set with various lot propelling

COVID with pushed of camera, we've even the the actually using market. switches sporting of making of umpiring think new. to cameras know completely seen do it the take actually use our And I the digitization lot recording along So it. these events ProAV a would don't where to We drive us. definitely it Together is ProAV

are even the we we the ability limit supply. So by is know where to only limited don't because

hand supply is get the can order as we as Our output just and on. factory the a books much chips we long, we from can and that from

manufacturers of still and And there's popping lot runway a be I up into AV So of there a moving digital, will every think applications we're IP. lot into equipment new seeing day.

high-end wireless example, vendors over connections. into we're HiFi some switching for So audio audio seeing cables really from

we end every don't invented keep see the So and will day. it it getting of still yet,

Jeffrey Rand

guys And business through have less thinking you trending travel, safety hopefully, returns, Great. but the costs? expenses are year operating how COVID you more about as traditional potentially

Patrick Lo

we Omicron. peak It just have about think Delta, that Omicron Omicron then just when And we the think done is with is completely subvariant. when we're the we reached, unpredictable we because talking were

think the the resume will in year, in will variant. any probably we all if I have at now, first customers and restart the of going our face-to-face this don't and and we crystal side, we to when For know all erring are second half don't that's Omicron-like another But half I we gradually meetings. safety travel on our avoiding of And suppliers end. don't business don't see big a wave ball. clearly,

Operator

And Khorsand BWS Financial. Hamed your line next the question [Operator Instructions]. from of with comes

Hamed Khorsand

I inventory is channel inventory. why was balances question goods still is If first the all And finished to product? just had your going is The down, up? in regards going this

Bryan Murray

right. you're Yes,

some inventory All few very is exceptions. very, with of our finished

to is components in. I year, in a would saying past some a quarter. of least procured goods. The really pretty say given the but for environment the bit But this that degraded actually We've majority have transit consistently that it's been we're reason the finished the even buffer elongated. fourth at is We probably bit times kind going vast have up they've

West to is days. distribution have the of our goods saw going the about Southeast which center, we for average think U.S., the U.S. Asia XX transit from where we I Coast time is averaging

know transit were elevated. that don't return that compress We own X when really those in we're mind water. than closer same transit when will see we something bear sitting but it's more that times to I days bat, of right do so by the the times out pre-pandemic on to the inventory So norm. go significantly months driven on be, a having the but be can that off route, bit, want to XX to going about that's to to

Hamed Khorsand

the to Or retail be this of method and the going to is through? through Is going it what's selling it to some going closing just be it of And channel? down netgear.com? just inventory be

Bryan Murray

matched I of today. down, coming to arrive and all go right, of XX consumer. retail compressing Our factory through But inventory and that and from terms direct inventory? of our times in transit in kind we'll channels, ability that the just compress down to see the production the on will time days -- hopefully of with to is mean service, CHP going side we be getting goes it when the timing for demand

Hamed Khorsand

the hardware on subscribers Or predominantly going XX,XXX the channel? And about traction off from last sold being that was the up retail netgear.com? gaining paid you Was of September quarter. question the from are the by from

Patrick Lo

having channels, both. good mean, rate is of uptick that attach attach But a on sold adds stronger on an means on units rate of XXX the net subscribers. netgear.com. paid we're seeing clearly, other basis, I per We're quite also

Operator

this There to I'll closing Lo turn are questions CEO, at remarks. no the time. for further call back Patrick

Patrick Lo

today. for you. you us Thank Thank joining

we from headwinds relentless first-to-market strategy year, clearly competition. our past us the in our number Although and of encountered innovation a differentiate

the base consumer strategy networking clearly premium and IP movement are making We the over to of helping the paid navigate market, analog inroads in digital expanding our in businesses AV service transition. long-term subscriber leading our WiFi

in looking us talking work to well I'll more and the on to capitalize positions April profitable on rapidly Our progress year. next And hybrid very you Thank and the you. fronts portfolio be ongoing report segment our to a premium forward robust expanding these our growth in all the to environments. market earnings continue productive WiFi call on transformation to in

Operator

participation, conference and may call. Thank disconnect. today's concludes This you now your for you

NETGEAR (NTGR) 3 Feb 222021 Q4 Earnings call transcript