Netgear’s Asia Pacific operation has finally started to deliver growth with the business reporting a climb in revenues in both the last quarter and year on year, what’s not known is how much of the growth is contributed to price rises in Australia Vs actual growth.

Overall, the US networking Companies revenues was down 9.1% in 2024 over 2023 revenues with their consumer business struggling to deliver growth.

For the full year, the Company deliver global revenues of US$673.8 million, of this US$90.45M came from the Asia Pacific market which was up 12% on the prior year.

GAAP gross margin was 32.6%, which was down from 34.8% in Q4 prior year.

The business is still making losses with GAAP operating income of US$(15.1) million compared to US$(2.9) million from Q4 in the prior year.

Similar to the last quarter when revenues also fell management blamed restructuring efforts, including the impact of the launch of Wi-Fi 7 products.

In Q4 2024, the business reported revenues of $182.4 million, a slight decrease of 0.2% sequentially and 3.3% year-over-year.

It appears that investors are concerned over the continuous fall in revenues and ongoing operating losses.

CJ Prober, CEO of Netgear claimed “Our transformation is working,” said.

He emphasized the company’s strategic focus on revenue growth and margin expansion.

As for the future he said, “We expect to grow net revenue, expand gross margins and significantly reduce our loss position.”

During a conference call he said “In the first quarter, we began taking immediate action to remedy near term challenges facing Netgear Our first order of business was to eliminate a year’s long overhang of excess channel inventory that remained from COVID driven supply shortages. We were able to accomplish this within one quarter and that has resulted in cleaner, more efficient operations.”

The Company also bought back US$33,000,000 in stock at an average price of just under $16 per share, representing over a 40% discount he said.

In their mobile business, the M7 Pro that was launched at the end of Q3 has been selling through including in Australia he said.

“In Q4, a similar product was launched in Australia in partnership with Telstra. These products set the bar for performance as the first mobile hotspots that combine five GS and Wi Fi 7. While we drove considerable change in the organization in 2024, shedding old habits and building new muscles, we felt there was a novel opportunity to implement a significant restructuring to further propel our success. This was very much implemented from a position of strength” he said.

The business also announced that they had promoted Graeme McLindon to lead a newly created business unit focused on mobility products and that the Company is recruiting for a new leader for their struggling home networking business.

They are also after a new Chief Technology Officer.

As far as growth goes the business is punting on ProAV managed switch products to drive momentum on the NFV side and further penetration of our broader Wi Fi seven portfolio picking up momentum for their CHP business.

In several markets Netgear’s consumer networking business is struggling with the business experiencing a low single digit contraction year over year.

In Q4, the CHP business delivered net revenue of $101,600,000 down 14.2% on a year over year basis and down 2.6% sequentially.

“With our additional new product introductions planned for release throughout 2025, we expect the full benefits of this new strategy to build over time” management claimed.

A big plus is that the Company has 556,000 recurring subscribers that delivered $8,700,000 in recurring service revenue, this was an increase of 24.5%.

“We continue to see increased emphasis placed by consumers on cybersecurity protection, privacy, and premium support, further substantiating our belief that focusing on increasing our recurring subscriber base is the optimal strategy to add high margin revenue to the CHP business”.