2 0 2 1 A N N U A L R E P O R T
B O R D E R L E S S
V I S I B I L I T Y A N D S E C U R I T Y
W E A S S U R E A N D S E C U R E T H E
C O N N E C T E D W O R L D T H R O U G H
B O R D E R L E S S V I S I B I L I T Y A N D
S E C U R I T Y S O L U T I O N S
In today’s connected world, the stakes have never been higher and the imperative to see it all and to protect it all is
critical. Network and application downtime, degradations in digital service quality, and security breaches can instantly
disrupt operations, impact revenue, erode profitability and harm reputations. That is why the world’s largest and most
innovative service providers, enterprises and government agencies trust NETSCOUT SYSTEMS, INC (NASDAQ: NTCT)
and its “Visibility Without Borders” solutions to address these challenges. NETSCOUT helps assure and secure the
performance of networks and the user experience while driving ROI on infrastructure investments, maximizing digital
performance, and protecting against attacks that threaten availability or compromise critical business assets.
NETSCOUT assures digital business services against disruptions in availability, performance, and security. From on-
premises to private and public cloud environments — NETSCOUT’s solutions provide the real-time visibility required to
manage performance and protect against an ever-expanding array of cybersecurity threats. With deployment flexibility
spanning appliances, commercial off-the-shelf (COTS), virtual, or SaaS, NETSCOUT’s solutions convert wire data into
contextual, high value “smart data” in real-time, enabling customers’ operations and security teams to identify and analyze
issues impacting their digital transformation initiatives, earlier and with more precision, to resolve problems faster.
F I N A N C I A L P E R F O R M A N C E
Revenue
(Non-GAAP, $ in millions)
Income From Operations
(Non-GAAP, $ in millions)
Diluted Net Income Per Share
(Non-GAAP)
Free Cash Flow1
($ in millions)
$200
18.3%
20.8%
$892.0
$831.3
$163.3
$172.8
$100
$0
20%
15%
10%
5%
0%
$1.57
$1.70
$205.1
$197.4
FY’20
FY’21
FY’20
FY’21
FY’20
FY’21
FY’20
FY’21
Op. Income
Op. Margin
1 Free cash flow is defined as cash flow provided by operating activities less purchases of fixed and intangible assets.
$ in millions except % and EPS
Revenue
Income from Operations
Income from Operations %
Net Income
Diluted Net Income per Share
Free Cash Flow
FY’20
FY’21
GAAP
Non-GAAP
GAAP
Non-GAAP
$ 891.8
$ 17.6
2.0%
$ (2.8)
$ (0.04)
$ 205.1
$
$
892.0
163.3
18.3%
$
$
119.1
1.57
–
$ 831.3
$ 37.1
4.5%
$ 19.4
$ 0.26
$ 197.4
$ 831.3
$ 172.8
20.8%
$ 125.8
$ 1.70
–
A reconciliation of each non-GAAP metric with the applicable GAAP metric is available on page R-1.
C O N N E C T E D F O R G O O D
We have a long tradition of supporting our communities through various charitable activities
and contributions. Our employee Guardians, through their passion and desire to help those
in need, are at the center of this effort through their participation in our “Heart of Giving”
program. We allocate a significant portion of our philanthropy resources to this program to
support their kind efforts.
To learn more about our philanthropic activities, please visit www.netscout.com
and go to the Company section of the site.
01
T O M Y F E L L O W S H A R E H O L D E R S :
When I wrote the shareholder letter last year, we were at the beginning of the COVID-19 global
pandemic. As I write this year’s letter, we are hopefully putting the pandemic behind us. It was
certainly an unprecedented and challenging year from a people, business, and macro-economic
perspective. However, as I said last year, “NETSCOUT is a strong Company, and it will emerge
from this crisis even stronger.” I am proud to report that we accomplished this objective.
M E E T I N G F I S C A L Y E A R 2 0 2 1 O B J E C T I V E S
Our priority in fiscal year 2021 was the health, safety and security of our people, customers, partners, and other
stakeholders, while also focusing on improving our operations and maintaining our disciplined approach to managing cost
and capital. Our financial goals were to deliver operating leverage, grow earnings per share, and generate strong free
cash flow. From a strategic perspective, our goal was to focus on innovating, advancing, and investing in our technology
and solutions to ensure our industry leadership throughout the crisis and well into the future. I am proud to report that
we achieved all our objectives in fiscal year 2021.
During this past year, we supported our customers as an essential solution, kept our dedicated team safe and productive,
collaborated with the communities around us, invested in our solutions for the future, and delivered on our financial goals.
We accomplished all this while demonstrating the importance of our smart visibility and cybersecurity solutions and the
flexibility, agility, and resiliency of our business.
From a financial perspective, we drove non-GAAP operating margins up by two and a half percentage points to nearly
21%, increased our non-GAAP diluted earnings per share by more than 8%, and generated nearly $200 million of free
cash flow through our disciplined cost and capital management focus. From a strategic perspective, we solidified the
next evolution of our strategy, which we call “NETSCOUT without Borders,” and enhanced our existing product offerings
while also launching our new Omnis brand of integrated solutions that combines the pervasive visibility of NETSCOUT
with the cybersecurity power of Arbor.
L O O K I N G A H E A D T O F I S C A L Y E A R 2 0 2 2
As the global pandemic moves into the rearview mirror, we are excited about the future. Long-term technology trends,
such as the advancement of 5G networks, the evolving cybersecurity threat landscape, and the ongoing importance of
the user experience amid accelerated digital transformation and cloud migration investments by customers, position
NETSCOUT well to remain a leader in our core markets as well as to expand within them.
For fiscal year 2022, we are focused on growth. By capitalizing on these fundamental tailwinds and effectively executing
our strategy, we plan to drive revenue growth while continuing our commitment to increasing diluted earnings per share
and generating strong free cash flow.
Our NETSCOUT without Borders strategy focuses on three main tenets. One, further expanding within our existing
customer base by leveraging our incumbency to access both existing and incremental budget dollars for 5G, cloud, and
smart DDoS use cases. Two, acquiring new customers through targeting new logos with existing and new products with
our flexible offering formats, such as COTS, virtual, and SaaS solutions. And three, continuing our expansion into high-value
adjacencies, such as extended cybersecurity, beyond DDoS, and enhanced big data analytics, that enables customers to
gain deeper insight and improve decision outcomes by using our smart data. We believe we have the building blocks
necessary to address this next phase of growth for NETSCOUT and have launched some exciting new solutions with
02
T O M Y F E L L O W S H A R E H O L D E R S :
our Omnis brand, including Omnis Security. Omnis Security is one of the most advanced threat response platforms in
the market, providing unmatched visibility, analytics, and continuous protection across all computing platforms, including
hybrid cloud environments.
In addition to these goals, we continue to focus on our environmental, social, and corporate governance (ESG)
responsibilities. While ESG is a growing area of interest for a diverse set of stakeholders, these principles have always
been a part of who we are at NETSCOUT. To provide greater insight into how we think about ESG related issues and
our efforts in this area, we have taken our first foray into publicly reporting on ESG by creating an Environmental, Social
and Governance Report as a supplement to our Annual Report. Our ESG report can be accessed on our website at
www.netscout.com. I invite you to explore this new report and join us as we strive to increase our positive impact on
the world.
In closing, I would like to thank my fellow NETSCOUT Guardians around the world for their efforts, dedication, and
flexibility, as well as our customers, partners, and stakeholders for their continued support as we navigated the global
pandemic this past fiscal year. Our resolve has been tested, and our “Lean But Not Mean” philosophy and culture has
served us well during this time, as it has over our 35+ years in business. I look forward to sharing our progress and
achievements with you over the course of fiscal year 2022 and beyond.
Sincerely,
Anil Singhal
Co-Founder, President, Chief Executive Officer, and Chairman of the Board
NETSCOUT continued its commitment to our corporate
social responsibility agenda during the global pandemic as it
universally accentuated stress points. With passion, flexibility,
and creativity, NETSCOUT Guardians around the world
continued to volunteer and participate in virtual and in-person
events, such as the one pictured here. NETSCOUT corporate
in support of various organizations and
sponsorships
initiatives continued as well. A few examples of organizations
NETSCOUT supported include Tech Goes Home, which
addresses the digital divide by providing computers, internet
access and digital skills training in underserved communities;
NPower’s Command Shift, a coalition of nonprofit and
corporate partners committed to accelerating more women of
color in technology; an Annual Civic Hackathon with Shooting
Stars Foundation, which helps foster students’ interest in
STEM topics and community issues. Additionally, NETSCOUT
offered leadership and encouragement to foster COVID
vaccinations and continued to provide aid to underserved
communities. We are proud of our Guardians and pleased to
support these efforts through our “Heart of Giving” program.
03
School children in need received weekend meals packaged by
Guardians from our Allen, TX office in November 2020.
K E Y T E C H N O L O G Y T R E N D S :
C L O U D M I G R A T I O N , 5 G ,
A N D C Y B E R S E C U R I T Y
NETSCOUT’s service assurance and cybersecurity solutions are enabling the world’s largest and most innovative organizations
to optimize network performance, ensure delivery of mission-critical services and applications, gain insight into the end-user
experience, and protect the network from attack as they navigate the latest technology trends.
E N T E R P R I S E
Enterprises worldwide are accelerating major digital transformation initiatives, such as cloud migration, for business continuity
and contingency planning, to improve the delivery of new products and services, to enhance mission-critical operational
workflows, and to drive operational and capital efficiency — all while taking overall quality, performance, and security to new
levels. To keep pace with this innovation, CIOs, IT operations, and security teams are turning to NETSCOUT for a holistic
approach to real-time network, application and infrastructure performance management based on end-to-end visibility into all
service delivery interdependencies. This holistic approach includes assurance across physical and virtual, on-premises and off-
premises, and in private and public clouds. We refer to this as “Visibility Without Borders” and believe it enables organizations
to innovate while maintaining control in the ever-changing world.
NETSCOUT’s ability to capture and analyze wire data in real-time is helping drive increased collaboration between network
and security operations teams as well. NETSCOUT’s new Omnis Security solution integrates the Company’s historical strength
in packet forensics with Arbor’s robust cybersecurity intelligence to create the most advanced threat response platform in
the industry to provide unmatched visibility, analytics and protection required to secure any infrastructure, anywhere, anytime.
This enables network and security teams to work faster and more efficiently to identify and investigate potential network-
based cybersecurity threats and breaches. Finally, as enterprises start to take advantage of 5G networks and technologies,
NETSCOUT is uniquely positioned to facilitate and secure the burgeoning Internet-of-Things (IOT) applications, ranging from
autonomous vehicles and industrial control systems to supply chain automation, telemedicine, virtual reality, and gaming.
NETSCOUT’s extensive expertise and deep relationships with both enterprises and service providers can help bridge the 5G
gap for our customers.
S E R V I C E P R O V I D E R
Across fixed line, 3G, 4G and 5G network architectures, NETSCOUT’s service assurance solutions are helping digital service
providers gain end-to-end, real-time, reliable visibility into their network and the services they deliver over them. As a result,
service providers gain timely insight into network problems, quickly pinpoint issues, automate key processes, and better
understand the subscriber experience. As Tier-one operators across North America and other major geographic regions invest
in 5G, NETSCOUT is 5G ready. We are well-positioned to leverage our incumbency to help carriers in each phase of the
network lifecycle from planning and launch to monetization and optimization.
Carriers worldwide also rely on NETSCOUT’s market-leading smart DDoS solutions to detect and mitigate an ever-expanding
range of distributed denial of service (DDoS) attacks and other cybersecurity threats that are aimed at disrupting network
or service availability. As cyberattacks increase in frequency, volume and complexity, NETSCOUT’s enhanced capabilities
are enabling service providers to realize significant benefits, including increased efficiency of their DDoS defenses and
broader network infrastructure; greater insight into their network topologies, customers and traffic patterns via powerful,
big data analytics and visualizations; and opportunities to monetize their investment in NETSCOUT technology through
managed services for their enterprise customers. We have also launched solutions to meet carriers’ most demanding mobile
security challenges.
04
C O R P O R A T E I N F O R M A T I O N
JOSEPH G. HADZIMA, JR.
Managing Director
Main Street Partners, LLC
CHRISTOPHER PERRETTA
Chief Information and
Operations Officer (Retired)
MUFG Americas Holding Corporation
SUSAN L. SPRADLEY
Chief Executive Officer
Motion Intelligence, Inc.
VIVIAN VITALE
Principal
Vivian Vitale Consulting, LLC
E X E C U T I V E O F F I C E R S
ANIL K. SINGHAL
Chairman of the Board, Co-Founder,
President and Chief Executive Officer
MICHAEL SZABADOS
Vice Chairman of the Board
and Chief Operating Officer
JEAN BUA
Executive Vice President,
Chief Financial Officer and Treasurer
JOHN W. DOWNING
Executive Vice President,
Worldwide Sales Operations
B O A R D O F D I R E C T O R S
ANIL K. SINGHAL
Chairman of the Board, Co-Founder,
President and Chief Executive Officer
NETSCOUT SYSTEMS, INC.
MICHAEL SZABADOS
Vice Chairman of the Board
and Chief Operating Officer
NETSCOUT SYSTEMS, INC.
ROBERT E. DONAHUE
President and
Chief Executive Officer (Retired)
Authorize.net Holdings, Inc.
JOHN R. EGAN
Managing Partner
Egan-Managed Capital, L.P.
ALFRED GRASSO
President and
Chief Executive Officer (Retired)
The Mitre Corporation
C O R P O R A T E H E A D Q U A R T E R S
L E G A L C O U N S E L
NETSCOUT SYSTEMS, INC.
310 Littleton Road
Westford, MA 01886
Telephone: (978) 614-4000
Fax: (978) 614-4004
Web: www.netscout.com
F O R M 1 0 - K
Stockholders may obtain copies of the exhibits to the Company’s
Annual Report on Form 10-K as filed with the Securities and
Exchange Commission at the SEC’s website, www.sec.gov, or by
contacting NETSCOUT Investor Relations or by visiting the investor
relations section of the Company’s website, www.netscout.com.
I N V E S T O R R E L A T I O N S
NETSCOUT SYSTEMS, INC.
310 Littleton Road
Westford, MA 01886
Telephone: (978) 614-4000
Email: ir@netscout.com
A N N U A L M E E T I N G
The Annual Meeting of Stockholders of the Company will be
held on Thursday, September 9, 2021 at 10:00 a.m. ET.
Cooley LLP
Boston, MA
I N D E P E N D E N T R E G I S T E R E D P U B L I C
A C C O U N T I N G F I R M
PricewaterhouseCoopers LLP
Boston, MA
T R A N S F E R A G E N T
Computershare
P.O. Box 505000
Louisville, KY 40233-5000
Stockholder Inquiries:
Telephone: (877) 239-1247
TDD for hearing impaired: (800) 490-1493
International Shareowners: (201) 680-6578
TDD International Shareowners: (781) 575-4592
www.computershare.com/investor
C O M M O N S T O C K
Common Stock of NETSCOUT SYSTEMS, INC. is traded on the
NASDAQ Global Select Market under the symbol “NTCT”
3 1 0 L I T T L E T O N R O A D
W E S T F O R D , M A 0 1 8 8 6
P : ( 9 7 8 ) 6 1 4 - 4 0 0 0
F : ( 9 7 8 ) 6 1 4 - 4 0 0 4
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