- Earnings call transcript Q3 2022

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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'd now like to turn the conference over to Erik Bylin. Please go ahead, sir.

Erik Bylin

Josh. you, Thank welcome Results and Third of Quarter Good Call. to Financial Conference XXXX afternoon NETGEAR's

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

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

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

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

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

gig clock our growth higher midpoint in guidance remained key our demand today's and the In innovative, delivering up ended differentiated the to long-term. XG margin Tri the hotspots, ProAV third XX our Despite still Quad-band in Net and possible as resulted highly sequential quarter, less we X, unit short million, end and despite down October entire and service which products including above much for mix of segment profitability supply mobile expanding lower you, which for for challenges, $XXX.X strong products strong. thank to the growth mesh our quarterly key customers. Thank WiFi tremendous Across are for partners products of switches, XG mobile This as range, than of year-over-year. for for favorable products hotspots managed efforts, revenue our partners. XXXX supplying Erik record and the high these and These our premium these our margin expected. provider SMB channel non-GAAP our and of quarter our the business, of sequentially operating end were overall and revenue worked our total everyone the call. XX.X% XX% to deliver a around you in was resulted revenue joining was team products

pressures top based quarter, uncertain are environment mind to inflationary and channel macroeconomic we for broad the of As fourth many retail look the partners.

while in progress made the As destocking in a result, we quarter. third

of Stronger partners operating CHP a returned and non-GAAP managed switches the the $X.X right-size the mobile and helped that MX MX third of ProAV ended income on million non-GAAP and delivering in profitability retail us in operating side hotspot. on expect to Pro continue With SMB said, quarter, We XXX particularly our compared significant basis side we quarter in quarter. as to non-GAAP XG with SMB margin prior the that Our by XXXX. margin into still the with to and quarter we to points performance improve continue operating and operating fourth X.X%. non-GAAP inventory the backlog

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

all from have period On CHP had despite the constraints. by the the on over partly and retail market X.X% Our the APAC three APAC of and Year-over-year and declines basis is U.S. across year-over-year principally X.X% the business, sequentially. revenue X% general, constant our international negative strengthening up net declined the year-over-year revenue strong growth and of we meaningful past year a prior respectively. portion In dollar was revenue our in supply business regions revenue EMEA currency driven impact which by X% comparable softness offset down has $XX.X a profitability. our saw were would only but SMB million our

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

in were which non- up X.X% the came X.X% and to year, in higher of $XX.X GAAP strength U.S transportation QX the experience for down the prior million compared cost components operating As drivers dollar year-over-year reduction. Total is the in sequentially. primary and

from and structural regular accordingly adjustments down of Our XXX that areas quarter strategic focus. aligned in as of our with in We priorities are a business XXX the our QX. headcount make basis was not evaluate end on the

will we super XG believe future services. in subscription hotspots We our will premium profitability, in mobile and and systems, ProAV, and areas deliver continue invest WiFi business Orbi as to growth key such hirer

already third revenue. for quarter X.X GAAP net the non Our expense was of

comparable committed and our the As net in of subscription X.X% year of investment service continue continued compared the and period in To are technology revenue prior R&D. second in leadership, quarter we XXXX. to

XXXX. of year-to-date to estimates. tax came one-time a previous Our non to $X.X benefit revision estimates the quarter as The benefit a GAAP third result a as of of tax year current revisions in well million as was

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

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

to the the $XX.X by months During trailing total used which capital twelve equipment cash used in operations the was for million. cash million $X.X to trailing and X.X of million. months used quarter used the expenditures during operations, cash over property our purchase million brings total We our by brings $XX.X quarter twelve which of over

plan million to third periods. shares. repurchase start common spent any of shares to did we have shareholders, future quarter, in our to the repurchase not the continue value are in the in $XXX.X stock returning million repurchase XX.X NETGEAR to QX repurchase Since to we activity we committed our shares of XXXX, Although

Our million as quarter. third June fully count approximately shares XX is of diluted the share

the We up Now fee quarter year overall during decline decline WiFi Brands, our industry home period. free elevated revenue XX.X% retail Pro market segments, $XXX.X relatively for experienced segment, turning down ago quarter, year-over-year, category in on of net results a was super our in Gaming the sequentially. Nighthawk the premium basis a which demand. retail Meural side to and our Orbi, the is XX.X% still as year-over-year period mesh third generated product grew in includes experiencing year-over-year the a Nighthawk, disconnected leading and double-digit which same Despite the

market, market We generated We to million to switch quarter into rapidly I'm and the way of pioneered and led up demand hotspots third basis a the that of and we quarter facing sequentially. the prior revenue with growth the led X.X% our our for AV XX.X% deliver net up the of and provider importance that made hotspots mobile the our again in super-premium WiFi quarter. channels progress XXXX. the compared of SMB year-over-year XG as supply This strategic again NETGEAR saw $XX year. on market. XXXX confident remain service growth and navigating growing limited in SMB incremental which chain demonstrates mobile We share managed XG our continued Pro a third will is both challenges business to investments by also record supply the XX% these products continue in once by excited retail higher strong were for But margin products. the in leading the

geographies a impressive year-over-year. FX significant Importantly, to we his even I Patrick continue headwinds. have our I'll provide basis, fourth to more see after quarter of strong for across the guidance commentary, all despite turn constant which an now On will business call XX% over grown SMB would the XXXX. currency growth for

Patrick Lo

ongoing growth product I'm chain third team's of challenges Bryan. in a proud strategic navigating the the in categories. you, quarter execution supply of across Thank our number

record performance On line continued the result of SMB switch to drive strong helped SMB products side, managed QX. our and AV this our Pro line top in

hotspots, continued us Orbi Quad-band side, returned and a X growth to revenue quarter-on-quarter turn, growth. and profitability CHP non-GAAP mobile our our the of half XG NETGEAR the strong strategic the to guidance. On deliver these in wave unique top of millimeter our product categories new In enabled

continue to to and of improve. business lines our As both a grow bottom our top beyond, more significant these become and expect and we categories product in new overall XXXX see portion

the level. kept the was revenue our this to accelerating. And family industry It of capitalize The specifically NETGEAR drove force, unique momentum digital on poised Our the record from is is business another products our an clear driving Pro to products with to analog trajectory. of of Pro AV expansion AV-over-IP is to industry AV AV managed upward Ethernet which tailored transition. the transition switch needs that our on line SMB

major benefit to and efficient expand software the we're to applications. among from trouble-free plethora that enables and management all We a Mac configuration AV installer across of community. system introducing software ProAV here, advantage Windows equipment To management AV manufacturers based our to reception installation great and perform integrators new OS our continue and network differentiated and

moving to broad our products on configuration small signage from with networks flexibility we ProAV global design category continues business SMB produce thousands that expand to are our team, allows already size, capitalize to operations to which digital stronger rooms help. conference team depending Ranging an its performance video in ready application. of even to portfolio to of this span backlog in our secure working all Meanwhile, enable on supply forward. maximum consulting continue and locations, the in double to we Additionally, considerable additional that

broader Orbi demonstrated On the mesh super Orbi and growth even premium the market WiFi end our CHP at sales has in products large as WiFi consumer declined. market X side, X

product our security. We premium of inflections. continue needs the connected sparing deliver We the pioneered from on competition on on analog a best-in-class and shift with wireless execute we We footprints an this residential customers and performance, with radio and vast have in over our strategy design reception technology in devices segment. are more this intend demand capitalize sales properties to the uncompromising experience the to expenses array large to towards meeting no of frequency, a live pleased huge of future use Internet our believe consumer to to CHP who lead system enthusiastic antenna we and best customer

mobile XX-gig our update doubling high-end the we investments To lead our With Series, grow mesh the continue XXX This with port a system. and Series, new an deployment market from the our support one-year X, best-selling Orbi all of and we design new Orbi and extensive this WiFi exciting and millimeter leadership, our performance multi-gig X connected Orbi believe on deeper tri-band XG, wave WiFi of while of upgraded segment. continue we're impending step devices can product and WiFi Armor, best which in we this anomalies. XXX down with recently remain Orbi mesh, mesh user unique to interim ASPs products. To icons latest the is introduced WiFi ideally higher skip suited outgoing Internet protects product connections, network our expand of for of arrival mesh greater features penetration on for hotspot need NETGEAR support. for product X and which attacks a Ethernet This and bundle incoming XXX performance, the tangy WiFi antenna the home new they the X

the best are is performance connected experience. coverage designs be and NETGEAR secure and choice with the the quad-band tri-band most will providing always patented Our best homeowners want only home up-level to absolute for antenna their committed to homeowners WiFi who ecosystem. WiFi and

supply mobile improved XG our Pro. and latest We MX are seeing of hotspots, Nighthawk MX

result, million provider service $XX a forecasting QX. are revenue As in we in

unlocked We introducing exciting new are in products versions. these channel also the retail into

For customer MX our be the MX Nighthawk plugged many Pro taken hotspot in-home industry's is mobile connectivity, in-home the mode is and the battery MX experience, customers Nighthawk Internet the source. the into rural the with MX high-speed and first Internet hotspots. the for power AC Pro only no WiFi the an mobile In signal out wired can enhance mode, while are options. introduced To high-speed we and boosted,

productivity these continue focus in connection our grow. the remain leadership businesses reliable segments to offerings ever is at Nighthawk Nighthawk on business clearer many private offering $X.XX, while the to that is growth retailed the most consumers always higher-margin download The Orbi hotspots. mesh NETGEAR's expansion. professionals, MX will of Orbi in retailed premium our is providing their continue connectivity on challenging macroeconomic been amidst our best high-end Pro margin X It MX by fastest to success to and MX solutions. market with Even than our on key keeping and while traveling innovative are WiFi mobile the MX at Pro technology getting we gigabit times to be has XG these priceless. $X.XX. categories: For build X conditions, and most speeds key road, confident the long-term three boost can and ProAV, We and the

from third To our XX.X% a revenue, value-added Last services the for means and market, sequentially services. customers shift mobile X.X% and up side and adopt support opportunity. to ASPs revenue and but of the focus a on result better the Orbi able quarter, are revenue smart up pro margin the least, likely that As was end $X.X are X Orbi best. we NETGEAR, on million parental WiFi very of the more away that hotspots. and the our demand lower residential customers of not for Affluent improved higher service and X the Orbi to subscription controls Nighthawk year-over-year. Armor, the

even management integrators, adopting our seeing are our more LAN mobile wires, also large-scale deployment We including commercial system of wireless SMB services. hotspot partners, subscription channel enterprises, and remote and ProAV insight

over in core our I'll service business, continue a the the service opportunities quarter beyond. and paid ending SMB back fourth medium obstacles line coming We expect expect and we to progress margin in long driver CHP and proposition turn it our quarter will the And in and top of our in subscription with be on expansion to with to The is XXX,XXX with revenue growing that, effort to year. And term. comment Bryan and quarter key and make of subscribers the meaningfully customers. value services our expand and both this resonating

Bryan Murray

Thank Patrick. you,

SMB we facing portfolio, demands continue our and strong the to to near-term we portion the in business CHP product are expect headwinds. of premium While underlying experience

to the will business and expect cost We to as higher will constrained SMB mitigate. we use the supply remain means airfreight partially continue

are into XX% seeing are also Furthermore, the exchange roughly significant important QX. reduce with from work to levels. their as to revenue currency, headwinds partners retail We quarters SMB continuing is going our we our in of channel coming foreign QX inventory

our to fourth the On to net the revenue $XXX channel of $XXX fourth approximately increase to million. from us Together, positive million. be the factors provider in side, lead $XX range million quarter to these quarter service we to do expect revenue expect

is to X.X% the negative to fourth in the be quarter of our a factors, X% result X.X% operating in X%. margin GAAP of to expected non-GAAP of the be range range negative operating and margin As expected in these is negative to negative

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

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

Operator

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

Hamed Khorsand

Hi.

your you're about could is help chain but And able there. about seeing off, still talking constraints, areas this source first if talk - problems demand? that you're some the to other to constraints suggesting just - you everyone you're are that because alleviation are headlines some you're - So supply meet of your seeing you from

Patrick Lo

the the one - they're the We're primarily are chips nanometers above. the data and industries constrain still technologies next for Actually, XX on capacity side, the because switches. single over XX older SMB In of providing main ProAV the against on and primarily into the year. roll are meantime, to technologies are from example, nanometers center of those those older chips on of chips going of those and No. supplying other chips still switches, newer the competing end coming of under severe supplier, by

to on So, as display LCD end expect antenna screens, high well PCBs. side, that supplier choking Interesting technology these of chip is be we the our premium LCD the the hotspots. all and on to X are some Unfortunately, the newer really X, don't are main components the it mobile year. alleviated the And as components, of X, hotspot example, batteries. still mobile the the enough, that the in Orbi is CHP X It's China. ancillary we the manufactured like end for the over little exclusively then Orbi and by the And more until the roll components Orbi not there display, the supply. is next

desperately China, but the and the biggest know, iPhone's locked [indiscernible] are they're are of it's lockdowns down. there We alternatives in trying situation, probably we still outside cities in where districts with and right you in made here China, city under-lockdown to all under Covid doing as speak, very as are difficult. find And it now various the

well the supply as high-end have shut disruptions X. little So which out and we all component of hotspots Orbi these of mobile X supplies, our as

China we can and Covid-Zero continue long outside alternatives will to as find strategy China, this as As face continue go follow as long to forward. the as of we we headwind

Hamed Khorsand

And broadening then considering retail was just the the maybe Okay. other and what question my inventory your channel out availability hotspot, the to routers. channel is level some of your product target unlocked super-premium wireless retail you the including are beyond in

Patrick Lo

Well, And know, you recession as first talking foremost, inventory and lower all all the recession. and to ever lower they want prepared getting people channel probably about for level. the channel to retail are

the So market all weeks. to say XX go X-weeks. then way up, I to retail take is down weeks. And like between traditionally, to market down, our the of say channel when is it mean, they XX want is would they neutral, inventory when kind going somewhere they And now, the

The primarily go buy magazine are of time goalpost them, the moved into products shops by That's The cannot And mid products buy so our to mostly online. affluent partners. end. all the being sold retail online. they customers to low the related to our premium

presence, through a set stores intend places. and terms retail of in of that to a hotspots more into major products three Amazon. physical web broaden space the sold the Those don't We a bestbuy.com. it's are and the these clientele. of our mostly is are because just different own stores, shelf X mobile X So more into and our availability Orbi channel difference

Hamed Khorsand

you. me. for it That’s Great. Thank

Patrick Lo

Thanks.

Operator

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

Your line is open.

Adam Tindle

green much of well just forward. to talked Okay. just but on us wanted time return you XXXX into what you XXXX I hear still destocking Thanks. returning some giving where comments about being to retail talk you gives is the talk in you in destocking talk going and to mentioned, you time, continuing Good about shoots about afternoon. Thanks. destocking. retail happening weeks the that can have given At that maybe think the 'XX. same you helpful It to talked growth to about about was kind to year? left in confidence you that positioned how growth And

Patrick Lo

to the this to is going working our is year the thing year. first that's revenue favor one shape lower of XXXX probably up Well, as

And right? with. businesses. So the be a expect bar our amount to amount superseded destocking the is The crossover going by of lowest is secondly, growth other to begin we point,

be premium mobile at our growth look base is you is Orbi percentage of same is as revenue the if well same growth actually the the thing significant. So the will hotspot. staying the bigger, for pretty SMB And gets as And the bigger. as

be portion keep As it offset legacy the continues revenue growth inventory then a bigger channel products our becomes to rate destocking. up, its and to able the will of they in decline

that confident point be. running going year, what we in million happen. you SMB believe very used the an business it a idea, I'll the is is which the crossover And quarter, $XX QX for are give going to bigger million than is to next it's at So we rise to that $XXX whole year.

is is $XXX growth a on there. not And that's you million assume destocking it constant, $XXX There a kind right, out zero, any go want that's down you going that which could to all the year. of if have. in to stays So they If inventory happen. million just than to not bigger

Adam Tindle

That sense. Right. makes

clarify. to Just

saying So does mean returning a you that a year? full point, are quarter is return some at year single you growth to when the in will to you talk about for growth, growth? Or XXXX

Patrick Lo

Yes. will it the be year. for Yes, full

Adam Tindle

and quarter? the on can going be cost when there you've Are Thank this margins, this on those. you ultimately I'm you. On OpEx, about there's I moving of forward. Wondering margin. got here. to best would a moving parts those did well maybe then one got feel where because kind you reflected some air many a talking et just some the tailwinds Bryan, hand, margin tough that particularly Is And some then, question gross size so of like forward if And is that to cetera, number bucket Great. be you've I Okay. as of could So and guess headwinds freight, benefits temporary might drivers CHP fully any focused incremental? gross reverse you the as really in done the anything unpacking savings, moving business. OpEx of one

Bryan Murray

that Yes, taken said that in I I'll start the the areas OpEx we're are we the mesh, with in the going going look fund some that rightsizing earlier super-premium be, actions, business we not hotspots XG with other we're so it at Yes, expect services. at the whether continue in the growth. those to be but do the side. aligned strategic to comments probably have areas, can that I look mobile going to to investments continue, We're and this the to continue as my

done we stop. and that continue, exercise won't and that I always we've expect to So

side a margin that, the impact of basis XXX a the the say business, and year-on-year gross headwind we're said, I FX margin points. facing. material us that takes. gross line are the is puts about to On you would lot there is of in primarily as Obviously,

margins as the will becomes Obviously, carry the business, there. bigger headwind help it a it margin. we significant gross overall a gross higher grow and a does portion meaningfully SMB the So of that because mix,

is we're to doing of a bit. the continue and in supply on. challenges to going terms and we're that seen the we want going those was ProAV expecting news fuel as stop we that's as on that good chain And elevated So bigger those growth. The airfreight of subside still rates not to have and are usage volume probably touching is some Patrick the factors,

are months to rate about those Fee promising The enable burn But the freight, close we from is two - realize would improvement, of we six say, benefits. pre-pandemic, dramatic in but those that I pre-pandemic it levels times takes which while think to us. were. start because a our third it's I terms short-term challenge freight, probably that levels to airfreight is in great. above is through have for an of three us air quarter, still inventory, the what getting standpoint, and rates for cost very to

So the from probably most think, levers those significant, gross here. kind will margin the was that where shape of are I

Adam Tindle

you. Thank

Operator

[Operator Instructions] Silverstein with Cowen. comes Your next question Paul from

line open. is Your

Paul Silverstein

calls Patrick, Yes questions. appreciate I apologize I'll multiple they And take tonight. the Bryan, are because you all

to you've my other your answered I'm off-line happy already don't any call. them folks' take and on I questions, If of time the waste

So all that I high historically, terms you the haven't contribution between revenue done mass said, know days it us of have you contribution first in give market? off you're breakout these whatever premium, you end and did bookings or - super a around but or monitor using

Patrick Lo

revenue categories the other No, product traditionally, of we than by out have line two not broken segments. product

So we haven't.

Paul Silverstein

Bryan. broke what No correct? that. the Patrick, et still not you're I'm aware historically, quad haven't you it about talking breaking answer obviously talking of from is know But cetera mesh, I'm I not probably the about out, product and line. down I'm

Bryan Murray

and effort. segment quite to because it of thing you're a out, do the you sensitive is it bit reporting forced it No, break if would on be

last and best time to way see is actually the - big said it that's of how incremental the And as growth measure calls, in our SMB the business previous so I business I think all ProAV ProAV.

So is, business $XXX to grew our pretty just million quarter. you a it can much mentioned quarter just right? I a $XX million big from how SMB

So it - you means could deduce and. what

Paul Silverstein

Patrick. ahead, Go

Patrick Lo

a to will reflected margin for that in a becomes the the of the very that starting down. increase then that But you of see to we once products. broken significantly, contribution it be think then could CHP And really effect our premium, products, business. that I meaningful of And haven't contribution margin our portion deduce right, material the you see

Paul Silverstein

cetera. let perspective, if prices, contribution appreciate the dollar the broadly, we competitor, you're to exact margin. try me where growth, business ultra-high Patrick, you're way. broke to the I the from other the the having just your revenue about differentiation, so - in ask comments question a et get margins, the your inside But contribution Well only where but segment, not ProAV,

- seeing? beyond back ultra-high-end to expectation for selectively growth will or products? what Looking QX Is that are in continue you rate those the your grow was and the

Patrick Lo

Oh yes, yes, yes.

Paul Silverstein

You ultra-high that the seeing how prior many pack end? to

Patrick Lo

I that reported reported, WiFi right, by MDD public, pretty Yes is all because mean mesh. one they band price of

right, else So piece, growing right, all one those that's every which right? it. price pretty in - us band quarter, to XX% group much them is that XX% rate, dollarize And could actually all NPD. about you all for the is but see So and could rest is plus, growth And it is nobody that a shrinking. they of you that is about that $XXX market into so for for easily fast, very from how segment, growing get report big particular segment, the they the NPD's $XX the year, all which market it's in roughly that

only the right, next our mobile still right? EURXX end that's mean Orbi went Bryan. provider. in million, Again, million the only Orbi quarter, million. hotspots the right? hotspots So did mobile in have quarter did I of sales EURXX then we today and of And this the game $XX in bulk you is the Now town, the then we And right? retail, we service hotspots mobile then XX. the high course, - and in we're

much yes. all plus pretty So these that's mobile high-end

Paul Silverstein

didn't for matter, in directly your significant of saying a you driving there's probably you're macro so that And out indication you're market. I but XX% moderation directly growing factor in a to other roughly the related any ultra-high no XX%. is respond, Pat, of that's So been or trust

factors, You're demand? not FX adversely in macro seeing

Patrick Lo

consumers. people the about this of is Forza sales Rolex right? most macroeconomic and by that that is those of same pretty the kind of the situation. watches, the much $X,XXX, the affected netbacks It's category the as least that Because and And

Paul Silverstein

in No, some I'm in recognize I just a past the for some to prices tends even At going point, lot, we've in they wealth, But when thinking understand. I the upside Patrick. segment effect week. that stock down - a and even consumption. among a works But a had reversal there dramatically nice directions, at point, super-rich the effect are wealthy, be wealth and both and pullback down material go there's wealth

not you're what hear the immune. of only So not I the to impact? trying degree, but President, seeing impact it's to you totally see to just saying expect I'm you understand

Patrick Lo

Right.

last the so pandemic much current right? read a articles guess that few on last bit probably right, money the to is reporting wealth these Bloomberg, printed because in I the the just have you all the goes say, banks China, big. pretty three they - all are central Wall years environment. spend Street, they the around different, do, time All articles as world, this people, And what. and on everything, money including since in weeks the the in how So So little still

Paul Silverstein

if question, you at you market same wherever you're revenue deterioration a I market, it you're the decline if three-plus seeing? we stabilizing the last that the of mass progression the Has Is mass impact it's Along the is you think Well of look of as that macro weeks is think gets or at from is the now the market expecting? line, deteriorating that decline Or at perspective, stabilizes October. speak? before you may. What so on level? is there that worse mass a things it been look one past at including the linear

Patrick Lo

Well, market is the definitely mass deteriorating.

is seeing the Orbi in our three with no So first not decline X we the NPD read mass that market our from and quarter about weeks There's we of MX we're the it. QX. the first than of or Pro. X three and doubt see it MX the actually of worse weeks But

Paul Silverstein

responses. I Thank Okay. greatly the appreciate you.

Patrick Lo

Sure.

Operator

Patrick I'd no turn for Lo to Mr. further closing the are to There questions. remarks. like back call

Patrick Lo

you, market us everyone, expansion. We of at both future the give the differentiated continue bottom in the of presence joining line the for and Sure. about market. AV expanding make Thank advanced long-term strong top CHP our terms the and of the SMB forefront today. our in in Pro businesses we'll transition, products in demand The technologically to inroads confidence us and

our on our CFP Analyst for this our to continue channel more all of systems December. growth XG Talk reduction inventory will by trajectory Although demand. are highly which on upcoming mobile sharing and in X our to XXXX, forward you supported look hotspots, and all early long-term I at Orbi X high into WiFi is our track, Day mesh then. differentiated set

NETGEAR (NTGR) 26 Oct 222022 Q3 Earnings call transcript