Logan Katzmar's questions to NETGEAR (NTGR) leadership • Q4 2024
Question
Logan Katzmar of Raymond James inquired about the specifics of the NFB segment's supply constraints, the expected revenue seasonality for 2025, operational readiness for a potential TP-Link ban, key investment priorities following the recent restructuring, and any updates to the company's capital allocation strategy.
Answer
Executive Charles Prober explained that the supply issue, primarily affecting Pro AV managed switches, stemmed from mismatched forecasts and accelerated demand, with recovery expected by Q2 2025. He also noted that NETGEAR is making small supply investments in preparation for a potential TP-Link exclusion and is focusing 2025 investments on B2B go-to-market capabilities, software insourcing, and filling product gaps. Executive Bryan Murray detailed that 2025 revenue would see a seasonal Q1 dip due to the supply constraints and normal retail trends but expects sequential growth throughout the year. Prober confirmed capital allocation priorities remain organic investment, share repurchases, and disciplined M&A, and also announced a new three-segment reporting structure for 2025.