NETGEAR reported Q1 2021 net revenue of $317.9 million, an increase of 38.3% from the comparable prior year quarter. First quarter 2021 GAAP net income per diluted share of $0.72, as compared to net loss per diluted share of $0.14 in the comparable prior year quarter. First quarter 2021 non-GAAP net income per diluted share of $0.99, as compared to $0.21 in the comparable prior year quarter.
Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “With both businesses performing well, Q1 marks a strong beginning to the year for us. The NETGEAR team again navigated the ongoing challenges in the supply chain to deliver strong revenue growth. Our revenue came in at $317.9 million for year over year growth of 38.3%, and we delivered record non-GAAP operating profit of $42.3 million, a non-GAAP operating margin of 13.3%. The higher than anticipated demand for SMB products propelled us over the high end of our topline guidance range. Non-GAAP operating margin significantly exceeded expectations, buoyed by a higher mix of SMB and higher margin e-commerce revenue as well as lower air freight expense.”
Mr. Lo continued, “Our outstanding first quarter was powered by strong demand across both of our businesses. Our SMB business benefited from the reopening of economies worldwide, notching strong sequential growth of 8.5% and year over year growth of 17.9%. Our CHP business again saw strong growth year on year, led by the premium segment, and we continue to hold a leading market share position in this fast growing, highly lucrative segment. This allowed us to gain share globally, and most notably we saw our US market share in consumer WiFi climb two points in the first quarter. All of this has translated into continued success in our efforts to grow our recurring subscription services business, as we added 44,000 subscribers, exiting the quarter with 481,000, and keeping us on track to reach our goal of 650,000 subscribers by the end of the year.”
