Netskope (NTSK) investor relations material

Executive summary

• Q1 revenue grew 28% year-over-year to $202 million, exceeding guidance, with ARR reaching $845 million, up 29% year-over-year.

• Net retention rate remained strong at 113%, reflecting robust customer expansion.

• Gross margin improved to 77% non-GAAP and 74% GAAP, with operating margin improving to -14% non-GAAP.

• Platform adoption increased, with 57% of customers using four or more products, and five new AI security products launched.

• Announced CFO succession plan, with Drew Del Matto set to retire after transition.

Financial highlights

• Q1 revenue: $201.6–$202 million, up 28% year-over-year, with growth across all regions (Americas +27%, EMEA +31%, APJ +25%).

• ARR: $845 million, up 29% year-over-year; net new ARR: $34 million.

• Gross margin: 77% non-GAAP, 74% GAAP; operating margin: -14% non-GAAP; net loss per share: $(0.06) non-GAAP, $(0.29) GAAP.

• Free cash flow: -$57 million, expected to improve in Q2 and turn positive in the second half.

• Ended Q1 with $1.1 billion in cash, equivalents, and marketable securities.

Outlook and guidance

• Q2 revenue guidance: $213–$215 million, ~25% growth at midpoint; operating margin: -14% to -15%; net loss per share: $(0.06)–$(0.07).

• Full-year FY27 revenue guidance raised to $879–$883 million (~24–25% growth); operating margin: -9.5% to -10%; free cash flow margin: 2%–4%.

• Expect ARR growth to align closely with revenue growth; net new ARR acceleration anticipated in the second half as sales reps ramp.

• FY27 capex expected at 3–5% of revenue.

• Liquidity position sufficient for at least the next 12 months.