NTGR - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by. [Operator Instructions]. I would now like to turn the conference over to Erik Bylin. Please go ahead.

Erik Bylin

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

company for CJ for quarter call We'll are Mr. the review the provided us Joining Mr. third by followed quarter any CFO. commentary the have a format then and by with for CJ, Bryan the Prober, Bryan. The of second start provided the financials questions. by will of on time business the Murray, and CEO; guidance

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

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

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

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

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

Charles Prober

of our actions We it and stellar in was last team NETGEAR immediate outlined was On delivered to call. QX report long-term address this call transformation with a first for very a creating today's quarter, that on for of and foundational outlined focus value to welcome a successful our and I'm afternoon, challenges step execution. a with the a I some to Good quarter. plan decisive transforming series shareholders. happy

accomplishments a build dramatic past were reorganization. to beat momentum goals. several of deliver to adapt significant how operated years, shift our losing me of to on represent NETGEAR highlight without able on of this midst a puts behind past million minutes quarter. We Some the our drive confidence in us ability say a creation strategic some high a a a more on to ton has can we and few by closely and value actions gives in I This go-forward specific I'll take the at a of in $XX confidence these channel the sell-in in position long-term linearity $XX that of over the business with channel for in with the destocking more the us. basis. million successful is this now end which target, were our the to at matching destocking sell-through

progress which our made its for resulted since down lowering quarter above the XX% beginning in and an in executing great the We million was our the position also by on decrease, year. position $XX inventory inventory target is of that

We X focus continue the with goal on approximately exiting reducing supply. year with the inventory position months our of of to

our efforts, our results challenged high also sheet the in reduction came operating and our above were While of this by range. and revenue balance quarter's inventory obviously guidance non-GAAP destocking margin end

to to of executed the exited row and million or $XXX on repurchases. second $XX generate half more flow share Another where we've generated free over the row executed share free a example expect in quarter represents We in cash we're in second the commitments. continue a of in repurchases, delivering we quarter flow million million our the fourth for $XX $XX of during cash we've where year. how and the million in quarter generated cash, on We with cash which

and for trajectory our have deployments of this of our integrations, partners We business addition key addition over now quarter with switch In business, had markets. customers. scale a and ProAV new record manufacturing X achieved with growth back of in AV the results, for exciting some enterprise We the number now milestones. global NETGEAR is to increase some on large sell-through a financial managed segment Business the XXX all we our of Pro continue to

his Ruckus to remain addition career long the this GM that business. for roles QX, Cognitive Most belief the a shared spent drive and Vajani and WiFi last Campus as on we success. Pramod target industry focused organizational growing us we as this and number opportunity NETGEAR group end-to-end and week. on in new In business, business transform business for our at recently More ProAV, are stints of for most won a our Ruckus a GM verticals has Arista. X for set changes hired joined record the Pramod's there's and as needed leader up with executed have exactly their large projects and we business. in last Vajani, this networking track we Pramod's Vice experience significant to Arista. Land for the in leading GM Cisco some were business at President to importantly, Pramod growth and important what's broadly, profitability we improving entire and business, long-term as the NFT. at BXB an in we trajectory and President

that gaps close global in we NETGEAR is our meantime, second the lead lagging an we're this of the team. organization to incremental the coverage. the our in of and green executive to business, process dedicated sales We the organization a also for investments critical hiring in growth we to global half can reorganized In so have sales team are sales

near-term made adjustments CHP last progress call. strategy we've outlined on quarter's the side things, of implementing we great On the

experience; the see continue effort growth subscribers. over subscriber developing on As and to products marketing this the good, message our attach these second, a and have the finally, of to revenue outside strategy, elements explicitly bundles. service signed our to partnering that while to with to acquired high-churn our of and subscriptions, revenue product the improve evolving key they that this first, relative subscriptions with with product that Of points XXX,XXX for subscription differentiation competition; in main focus simplifying innovation sense deemphasizing our are, a acquired customer of a and segment up foreign were recurring drive are billing. best grew ended recurring strong through with to card our bundling subscribers, we rate quarter better, of XXX,XXX broader offering players subscription serve reminder, Recurring recurring the product and our we a in enables low-cost market our quarter On count, third, XX% ecosystem year-over-year. credit increase

of we on they our the and recurring business focus bring exclusively reporting to in plan subscribers forward, our we're our bundles. Going hardware given subscription the process to these given high-churn differentiated sunsetting and value

by the were side, price received On very mainstream well best at are expectations, points. strategy. new market we better, outperforming launched WiFi product product products X These good, validating our are and that X QX the in our

Our recently very incremental well, keep we've supply are launched demand. performing to chasing and been up modems also cable with the

we a We pleased and targets. gross products, outperformed As day margin. good we highly have very preserving focused on remain our nicely greenlight prime to were also lower-cost design and

of broadening we're range shared, price As offerings wider points. cover our set to a we of

year to our on will half it's the we kick of believe the front. with good to this we with back algorithms, As add this off help us portfolio, performance nice Amazon's so

market WiFi consumer improved the our beginning of year-over-year networking the terms we smaller were quarter-over-quarter. QX, dynamic represents available. expecting, the cycle trajectory accelerate by saw decline In X availability this and was of an approximately of market new upgrade and a in driven to products believe widely flat U.S. the become than more our we market starts We as

the addition to our our good team. July. this Board Laura As leader years Ovitas now Directors at is in Laura another CEO Amazon, Onex and spent recently I is CHP wrap to consumer most highlight of base, app-based subscriptions. VP the up Electronics of of update, Consumer a XX in a time as joined

systems TP-Link and networking patents. determined recommending to and these the importation October. against be and our TP-Links, optimistic share Board, for IP a win action administrative infringing served from judge ITC I company for which positive that is is judge is business, extenders Given violate multi-band offensive WiFi TP-Link. the mesh since last brings. determination The The for on against the scaling that firsthand revenue win quarter our know other and Board. in our is including products perfect legal recurring early barred I'm NETGEAR And the commission Laura for she devices, on efforts. our our and ITC commission about from One enforcement full final the routers, that our development cautiously growing impact importance the my in sale our be expected big The the fit U.S., consumer would Amazon Laura a of the

competitor, case positive foreign in that successful Given could formidable TP-Link our business. consumer impact on a U.S.-based final a determination have significant is a this

In of long-term steps share to next in that making business our of we for in our next earnings are our great have strategies more transformation, development and progress call. unit, on the we'll terms each on

I observations early Some can share now.

better which the and key be achieving focus businesses, leverage driving will in operating both revenue, growth both to recurring our For are model. expanding of on line top

opportunities X and and WiFi growing significant, markets, centered to Given and opportunity. initiatives to capabilities more we're NFB of revenue strategic the expecting the the team are growing recurring opportunities these to ProAV nature compete I'm market size be our the land around capture building and The here effectively businesses.

of market years. over of CHP created things, the the have dynamics networking few the On consumer side past headwinds significant

the While our significantly in developing we also consumer to in grow expand will opportunities expect improve as this to be cycle in, dynamics evaluating these the broader space. kicks while market upgrade to our strategies TAM we share

in million $XX inform our the this opening on week's X our available of or with price. combined to million opening based million share shares based increasing remaining up X.X allocation, brings shares repurchase our or shares to $XX million total this by week's strategies When our the capital share the repurchase authorization, approximately these While approximately price. on previous we're specifics meantime authorized on share will this

which We strategy. is expect an capital of to our allocation part our continue important buyers to be stock, believe opportunistic of we

long-term summary, in several journey, with our With We long-term turnaround to talented the call. industry happening. first on share to strategies hand it in our QX the success. step team we're I is leaders during to us on up for more delivered look that, earnings implemented this important an So and reorganization supplemented meantime. a your Bryan questions we and next forward our set our on was to excited over initiatives. and And

Bryan Murray

joining you, Thank call. thank you, everyone, and today's for CJ,

own We both of destock to on-hand goal and above the sides team this delivering our ProAV range continuing with a the fashion business in pleased Both outperformance. revenue trajectory in-market are saw guidance premium in revenues on by products better strength of channel sales quarter in and our expected. accelerated our than continued our CHP, record to delivering managed this service inventory. profitability we of while quarter we execution our in in the our and products. also Within contributed lowering an switch provider In experienced came NFB,

ended revenue higher quarter our June XX.X% guidance destocking and inventory million, a above of down end on accelerated plan. the reached XXXX, the XX% our high For even XX, basis sequential $XXX.X end was of the channel down year-over-year, we as

and forward the our hone in forward. we sell-in cash we destocking further second in also upper both CHP million to a quarter meaningful our of sequentially are showing decrease with in our positioned a remove anticipate and lower performance in as and to inventory quarter we consumer particular U.S. provider we the businesses during is positive year-over-year a our shared the expectations, QX. channel second XX.X% than the net range that later channel with the not revenue aligned long-term as recovery helping now million launch revenue and of WiFi owned Service market U.S. market and due X for trends The positioned a was plan of profitability on free inventory the destocking going We slightly side. basis We In lowered quarter that a the million, $XX in our levels. mobile come this and higher of from headwind signs at we more then This awaited inventory shifting the step us $XX.X $XX success. hotspot decline With year. our executed both expectation to end an predictable quarter, down channel do swings the for to CHP new going retail networking year-over-year important execution, but strong flow. saw the revenue contraction. NFB on $XX.X NFT of strategic operations million drove with $XX the sequentially. Largely on XX.X% market We that operators the although action, for benefit last now CHP our the outperformed any better of was targeted sell-through generate this produced well business businesses quarter, varied million, down the accelerating have to is second than as

Although promotional digits year-over-year still market. high a down single result due competitive macroeconomic environment spending. This the continued overall available in environment is impacting with market continued pressures consumer an extremely to challenging consumer to

of moving market We of Enhanced premium these the digits slower business. headwinds, of to the even mesh high sequentially. premium the other our second upstream. products, move our segment moving recently quarter outperform our market, grew to also this X enter WiFi Despite pricing by took lead continue in following released single actions as inventory this portfolio competitors products within our

outperforming Our gained this cable quarter's We the newly the modems foothold broader releases opportunity market. with begins to in WiFi validate market. of a cable premium and better further our leadership new X strategy. our are success product the the portions best released growth in solidified segment our in and lower-cost good, And underscoring expectations, our

However, released the half the of and to be new time. product additional in over XXXX with planned expect build new late we first full XXXX, this to of benefits strategy our introductions

line marketing this our target higher pleased also quarter within the destocking the delivered in as revenue On contra top our efficiencies in are our quarter end have the exceeding side, initial spend we delivered at NFT for while goals, to of we the business.

With success with us, going the match putting we positioned sell-through our sell-in channel in the behind destocking are partners now with forward. to

traditional to channel the a grow net top was As market efforts The across helped in managed this expand XX.X% into year-over-year. in QX, and our expected, quarter impacted revenue the business broadcast on XX.X% market return to underlying and below our bottom grew ProAV a of switch our we've capitalize user million $XX.X double the us end levels slightly end at our down have demand. all line our down to digits growth marking coming line second quarter, demand by reduction leading in made trajectory record manufacturing And partnerships and and year-over-year, regions. switch inventory partners and carrying compounded in our for sequentially expectations,

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

points period GAAP in XXX deliver net million, comparable from year basis XX.X%, and our on, my focus earlier quarter is on point XXXX down at year-over-year. negative is gross were and X,XXX margin period an numbers. the the down APAC headwind, reconciliation sequentially subscribers, our detailed of which market, Our XX.X% prior million basis higher quarter destocking X,XXX up pressure a The From revenue able will comparable compared increase XX.X% and subscribers, was top non-GAAP of distributed for operating points of XXXX. lower the to down in down paid $XX.X our relative operating $X.X to approach second range, and basis first in XX.X%. coming on NFT slow-moving but XX,XXX basis operating XXX,XXX significant quarter, quarter loss up aggressive were promotional service inventory to revenue, paid ago we This margin second quarter the Sun meaningful XXX the revenue, Despite of these subscribers, down The we revenue just with points second We points quarter to outperformance, pressure challenges, quarter. these in represented an year above year a over is generated the exited retail more further XX%. periods. the to we leverage. actions second profitability comparative guidance important created took in cost and recurring non-GAAP points this X.X% our of of compared the in release The million million Of was compared non-GAAP $XX provider $XX.X was the sequentially. quarter and increase XX% line from both to service second prior which and mix period service earnings Non-GAAP compared ProAV today. in discussion of inventory addressing recurring in and a which prior to XXX,XXX year-over-year with put to

Accordingly, we the protection, year-over-year quarter, the is operating continue Total We QX quarter third to increased And believe noted on CHP and optimal onwards, recurring revenue. down to non-GAAP support. to as and emphasis premium consumers see X% down focus million, X.X% last came subscriber expenses continue in the on cybersecurity by on recurring placed we strategy focus $XX.X from we growing sequentially. will at metrics. privacy

ended XXX quarter, in Our the QX. $XXX headcount was down as from it

are strategy the organization spending long-term restructuring and with will areas alignment the to growth and drive refining that and profitability. our We currently long-term deliver expanding

non-GAAP second product continued revenue are revenue of net committed compared leadership, investment prior XXXX. XX.X% and the to XX.X% of and technology Our To first continue revenue in net we the expenses in our to in comparable of quarter year quarter of for XX.X% R&D. net period were R&D as the

in Our of the second non-GAAP tax benefit million was $X quarter XXXX.

a non-GAAP per at bottom loss the line QX, share diluted $XX.X of net of Looking million, loss for we non-GAAP reported $X.XX.

$XXX.X the We million stock quarter the $XX.XX with to million equating our and expectations above and investments, ended Turning from prior repurchases. in short-term after per quarter of slightly second balance share, cash to sheet. XXXX $X.X effective the up

our into sequentially. million quarter, progress capital which the declined working cash inventory our lowering made We $XX.X in and continue to by convert significant

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

to back in stock still the than enough million in QX, quarter common NETGEAR more focused approximately generating generate spent of cash average in and In diligently repurchases in decline. cash $XX.XX point, per we of fourth expect of overcome XXX,XXX shares the are the half. on third $XX we to and quarter share. We price an cash cash at that consume generate this expect to At

in previous approved beginning and for has authorization stock of X.X XXX,XXX authorization to Board have spent combined additional reserved X price. million million have the we XXXX, based shares Since additional our shares. We approximately shares million the an a week's approximately $XX opening on this recently an repurchase or $XXX.X million

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

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

QX outlook. the our market. our is in to We and aligned to completed see quarter actions businesses predictable the discuss each Now more for that performance NFT I'll CHP XXXX second destocking expect both and

the our to volatility approximately shifting range to participating while $XXX significantly CHP fully midpoint. provider as in be market quarter be net revenue We and our in momentum $XXX mobile sequentially the the growing more prepare there million, channel in $XX take less to XG the the execute. of million However, fourth anticipate be in quarter. next-generation the to third Accordingly, levels, up at will early to quarter broader XX.X% inventory from third million channel expect should we NFT from revenue partners service our time business hotspots launch

negative to shipping and reduction be transportation due to factors, of including margins to to third variety gross and margin X%. non-GAAP Accordingly, crisis. efforts range Red in to impacted be continue the margin quarter of we in operating expect Sea We a costs operating negative expect inventory higher-than-expected GAAP XX% negative operating our and XX.X% of to be range to the by our margins XX.X% the negative

the $X that, up to be expected benefit $X to XXXX. we million, is $X.X for range the to expense for million can of in to range of questions. of Our $X.X GAAP non-GAAP million quarter the and open tax third in our be million with expected And is tax

Operator

Thank you. Tindle the And [Operator comes with of question first Adam your from Raymond Instructions]. line James.

Adam Tindle

Okay. Brian quarter. maybe in on this expectations, with in over just one. of weigh just on start results, line CJ and operating want operating can kind both to in loss, $XX obviously, the I But million

at $XX said about done, channel If destock also implying was at it's of us still QX headwind great a that with operating an so. $XX is of I confidence. the like or midpoint, million it the guidance, it and loss behind You look million looks

are So loss the are helpful. be, weighing to be QX would breakeven on time the would the that operating guess still and drivers what question trajectory the beyond I and

Bryan Murray

Yes. Maybe with start Adam. a that, I'll take

inventory. of the some say would still we're I headwinds cost is So the biggest facing higher of

kind making we're be going our saddled on have still as mainly to we're we've carrying of side, we can about of can which you But months. goods to that that the materials, we said, there continuing work our until chipsets but there. optimal we is some mitigation inventory, down to raw X see we inventory. work with on level progress As bought get have to a get to We're that other risk finished strategy

So additional that's of basis XXX XXX in of headwind. neighborhood to probably the points

operating cost that of pressure. container we're the impact in and are off a we're sea margin facing that's another points the of over basis kind reaching $X,XXX is here red rates container of higher XXX crisis, back so The still up and other seeing freight significant surges the of adding

waiting the mention quarter the of other $XX at a growth for see from leverage. provider QX. hotspot XX% But The the it's down a thing down QX, guide, launch I'll part in early step-up midpoint. top million as you service at as line mobile meaningful the is of we're obviously, to sequential can

margin. better, in at attacks best of leverage. operating bigger from scale out that give drivers operating that terms we're us the So we round strategy the some where to continue additional get on and are as will our improving Those the revenue portfolio good, probably

Charles Prober

inventory X is The Adam, one would to it's things tied I Yes. again. add,

to against. kind our addition lower distribute having of cost a base in fixed to So

working We at that. are we're right, still some fairly the because really that of completely see aggressively looking price you're margin, the the exit with points. through down brings never a we and have of done legacy improve through kind that, margins lower more inventory, cost that And we decent we fixed get and headwind see But there. line allocation you'll still chunk of once in to

The is $X to it that are that I that. we're call rate you doing an million further investing and annual great year investing scale seeing other signaled be thing time we equate if our we'd the on net business, clear And basis, associated ROI momentum. the in those and them, last about but kind we're take opportunities on investments efforts. we to run of for generate this revenue with business go-to-market have

ProAV, As call we're WiFi good making said we on progress on the land. on

those next investments but payoff the the half, so we'll And are later to going P&L year. start hit the to see second in

Adam Tindle

sounds That reasonable. sense. Makes

And guess what would thinking you in the I as quarter. your mid-XXs that Obviously, consistent, of about in to somewhere you're It's OpEx? is also run that is per fairly going be? NFT in forward? be there's restructuring different quarterly talking for a NETGEAR million we Are the for of a of $XX $X ballpark terms going or sort about organization, a just been thinking rate So that restructuring level million go-forward I think around investments. CJ remarks Bryan, there organization. think about kind basis, talked the you on prepared about segment mentioning

Bryan Murray

business to beyond probably early we've the to talking kind may and $X we're great million of on carry the that that frame going to long-term the bit creation. that say will It's time of strategic on, the a probably for longer-term through a CJ in about, early been will little we value investments making that help the want define when we're strategies October referenced, invest progress business review too as but

in in I we're at year So in single-digit going to OpEx run the the half to say, of expected looking high we're mid- a the at increase probably the near look back is rate. it. will probably term,

do, and increase to in then to associated case incremental have is with some with continuing efforts we're expenses TP-Link to And regards that of the Some with forth obviously, put also this that. revenues. legal

Adam Tindle

it. Got

their I there's questions on a the market outcome, feel you're that Okay. terms share free but me and us. about thinking TP-Link for here, think continue in in and boot I to other go. share in On that market is core there it's TP-Link to to of want your Just ask way terms parameters if markets I'll size opportunity? for kind any to of about? know us tough of

And capture of So the what you thinking that terms then the in in horse Obviously, cart to sizing anything provided favorable, this have ultimately that? here, kind that be of outcome secondly, potential what do opportunity? before you you're doing? about we're you could but that put can or place

Charles Prober

question. great Yes,

product from us. categories to share in equivalent that market matter perspective the about about, a they're So

et shares way grown formidable they've us. the is That's effect inventory that years. ITC the and sell then over they've for a they're this that the in any takes through few it to et time flows that So through, to all very got for the quite channel And a big deal cetera, competitor that last for take into and their this comes action, significantly why cetera.

And so comes to when to we're plans building a be of that take to advantage position fruition. in it

Adam Tindle

Got it.

are destocking outside more speaking, and this become ability for capture that, or even your how in outcome thinking I favorable to just to destocking if sales that, levels POS? broadly about does you you Okay. of of real-time capture And light ability and guess

Charles Prober

on and Yes, achieving a The was that great this big question. while our that we sell-through destocking effort quarter, roles. executed from team the

even there our on unsustainably of want other some because that a We aggregate are all like kind TP-Link and sell-in that to in the better like macroeconomic that, in where at we're with in implemented regions philosophical And absent So legal longer-term really great an just there's is otherwise match I And that low I a sell-through allows our grow the mean for whatnot, stock of feel across to channels linearity, is Similarly, the would we absence our But at all place. I say a level. parts and But and in effort of change proud no the levels. parts then probably of need I channel think of synchronicity an as we've perfect better up even happens say some the important opportunity basis, the not that's are there. regions in there's stocking a on lower. would aggregate here, we an they're some with channels. of what around channel. matter improvements which a be basis will us everything, little of efficiencies. we're increasing would capital cost great probably we working a dangerous business. capital likely spot. could

so our approach we match increase And that. benefits increase is we demand. go I'd into to then channel the constrained, have our rather And we're of as sell and seeing my would sell-through, be philosophy that the supply now. chase to And

Adam Tindle

Makes sense.

Okay.

the Board particularly, purchase... walk to I repurchase. share was level you more. and authorization? that Can through us that the decision correct why the wanted that just thought maybe double-click couple announcement additional for a And on this Just you on for

Bryan Murray

a to to lower the we've and vantage it's allocate look we replenish as spend investments similar my a this capital. was were shares. point, strategic authorization been historically time, the that executed years, capital you elsewhere. allocate on time authorization. about we typically evaluating we the and evaluating repurchase lot we to magnitude get path want in make much a authorizations back again, a is we're down From out stock point. on. believe and we at up would way continue to speaking, put point we've previous Obviously, healthy if the appropriate of Obviously, our forward, But in pretty to meantime, plan of go what them And an to time Yes. XXX,XXX But over our may it how the

Adam Tindle

Got it.

back. how how through the specifically you you're just you're you maybe looking went some at, evaluation step other kind last lastly, And subscription new subscription wanted you maybe one. a evaluating then us go the about what that Could changing what The inherited, metrics but new that piece work. at then metrics in the things current the maybe Okay. taking And you strategy, of about. NETGEAR ask to these I and of was here of through and talked some of walk the will story into

Charles Prober

Yes.

at business So Insight. our more big spent his incredibly attaches recurring as and consistent a take to each of building about Pramod. lead which today. maybe It's cases There's perfect if an is course, we across NFT, And the me subscription business land both with is let that's effort. revenue start career separately Cisco, you transform units. revenue Pramod And area, theme unit stronger on the a small that entire a networking highest NETGEAR execution adding improve business, level, software WiFi the talked and we the experienced on execution here. Pramod recurring our Ruckus, opportunity Arista, side is Business obviously, software for person for use and at our to and

We transactions. starting to are large win

mentioned that's just under-index on generally, and that change And recurring call, devices if for market on Pramod. at focus the perspective. the we those attach But recurring a to As that. we revenue we're relative sell, nicely a revenue going you big from I look to the

the really So about opportunity there. excited

metrics us those to great to they forward But differently I that of And and credit included. the trial classes give do, of really I'm they One subscriber through app we're their class X They to I XXX,XXX to. simplification call, simplify consumer device effort of a a One card discover the And of aligns with the that's XXX, side, have no the talked improve On business bundle adjustments we subscription when building doing offering of the the really for about with armors and last The on Armor. attach there's subscribe the are and as we're recurring to really consumers. the Armor we've retention a got kind to what of because work going trial made to associated of is healthy that's going subscription paid. foundational strong. We've number referring a making the thing buys progress conversion and say revenue that with today. which overall, there's great. subscribers be business.

the or subscribed largely maybe e-mail website and subscription in So app, recurring. discovered the through our the they've they've through through an

trial acquired the XXX are for isn't it's Like subscribers of recurring. And the year. the collect included their credit they And of other bundle. the strong. typically free confusing end subscription that we card, of call the free? really a about year getting consumers. XXX,XXX that? On conversion not Is them, is to X that product don't value them And it it's at and We

product to from made so And we away the move the decision bundles.

a we're just and will that. stand-alone subscribers the personally can after be subscription offering consumer our those from attach devices. I for bundles. away a be into converting And product on So our one networking focus buys moving purchasers recurring of to vouch going as

Adam Tindle

sense makes That to me.

Charles Prober

all Great. the you questions. joining Appreciate on

Operator

like at back to for And questions time. turn there are I it Prober CJ further no to closing this would remarks.

Charles Prober

quarter. joining for next see and Thanks Yes. you

Operator

ladies all participating. Thank Thank conference you. And and gentlemen, concludes you call. today's this for

disconnect. now may You

NETGEAR (NTGR) 31 Jul 242024 Q2 Earnings call transcript