SAN JOSE, Calif.--(BUSINESS WIRE)--After market close on Thursday, February 29, 2024, NetApp (NASDAQ: NTAP) will announce financial results for the third quarter of fiscal year 2024 which ended January 26, 2024. NetApp executive management will host a conference call at 2:00 p.m. Pacific Time to discuss these results and provide their perspective on market dynamics. How to Participate The live Webcast call can be accessed at investors.netapp.com. Please allow at least 15 minutes prior to the start of the ...

SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp (NASDAQ: NTAP), the intelligent data infrastructure company, today announced Riccardo Di Blasio as the company’s new Senior Vice President of North America Sales. Di Blasio brings over 25 years of experience building high-performance sales teams and leading business transformation for companies in the software, data protection and security industries. He most recently served as the Chief Revenue Officer at Commvault, a leading provider of cyber resilience and data p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 27, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-27130 NetApp, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer inc ...

Financial Data and Key Metrics Changes - Q2 consolidated gross margins reached an all-time high of 72%, with product gross margin also at a record high of 61% [21] - Operating margin increased to 27%, and EPS grew 7% year-over-year to $1.58 [20][21] - Q2 billings were $1.5 billion, a decrease of 9% year-over-year, while revenue was $1.6 billion, down 6% year-over-year [22] Business Line Data and Key Metrics Changes - Hybrid Cloud revenue was $1.4 billion, a decrease of 7% year-over-year, while product revenue decreased 16% year-over-year to $706 million [22] - Support revenue grew 3% year-over-year to $623 million, indicating strong product value [23] - Public Cloud revenue increased 8% year-over-year to $154 million, remaining flat from Q1 [15][22] Market Data and Key Metrics Changes - The hybrid cloud segment saw a 10% quarter-over-quarter growth in revenue [9] - The all-flash array business, particularly the AFF C-Series, increased 14% from Q1 to an annualized revenue run rate of $3.2 billion [9][10] - Public Cloud subscription services declined to 23% of Public Cloud ARR, down from 35% a year ago [13][54] Company Strategy and Development Direction - The company is focused on managing operational elements and enhancing performance in its storage business while refining its Public Cloud strategy [6][14] - Plans include prioritizing first-party cloud storage services and integrating standalone services into core offerings [54] - The company aims to exit certain SaaS services, anticipating a $55 million ARR headwind in the second half of fiscal year '24 [14][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum from new products and operational improvements, expecting continued growth despite a challenging macroeconomic environment [18][20] - The company anticipates a modest decline in cloud revenue but expects growth in first-party and marketplace services to partially offset this [54] - Management noted that the demand environment remains soft, with improvements seen in North America but deceleration in parts of Europe [39] Other Important Information - The company returned approximately $403 million to stockholders through dividends and share repurchases, reducing share count by 4% [21] - Operating cash flow for the year is expected to normalize and align with net income, with a year-to-date operating cash flow of $588 million, up 19% year-over-year [26] Q&A Session Summary Question: Should we assume that the July product revenue of $590 million was the bottom? - Management indicated that guidance implies continued growth in the second half for the product line, feeling good about the product portfolio and operational improvements [32][33] Question: How do you see NAND prices increasing and gross margins developing? - Management expects product gross margins to range between 58% to 60% in the second half of '24, with flexibility in pricing due to lower component costs [36][37] Question: What is the visibility for storage products and AI demand? - Lead times for storage products are normal, and early signs of demand for AI are being observed, particularly with generative AI use cases [42][43] Question: What is the trajectory of public cloud revenue in fiscal '24? - Management anticipates a modest decline in cloud revenue but expects growth in first-party cloud storage services to offset this [54][55] Question: Are there any cost implications from the public cloud strategic review? - Management plans to repurpose resources to drive growth in first-party cloud storage, with cost opportunities factored into guidance [79] Question: What are the predominant competitors in the all-flash storage market? - Major competitors include Dell and HPE, with the company feeling confident in its offerings due to unique capabilities in automation and lifecycle management [75]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 28, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-27130 NetApp, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorp ...

NetApp, Inc. (NASDAQ:NTAP) Q1 2024 Earnings Conference Call August 13, 2023 5:00 PM ET Company Participants Kris Newton - Vice President, Investor Relations George Kurian - Chief Executive Officer Mike Berry - Chief Financial Officer Conference Call Participants Sidney Ho - Deutsche Bank Mehdi Hosseini - SIG Joe Cardoso - JPMorgan Michael Tsvetanov - Wells Fargo Victor Chiu - Raymond James Asiya Merchant - Citigroup Krish Sankar - TD Cowen David Vogt - UBS Steven Fox - Fox Advisors Wamsi Mohan - Bank of Ame ...

Q1 FY24 Earnings Results August 23, 2023 © 2023 NetApp, Inc. All rights reserved. ■ NetApp Safe harbor This presentation contains forward-looking statements and projections about our strategy, products and services, shareholder returns, and our future results, performance or achievements, financial and otherwise. These statements and projections reflect management's current expectations, estimates and assumptions based on the information currently available to us and are not guarantees of future performance ...

Cloud Solutions and Services - NetApp's portfolio includes Hybrid Cloud and Public Cloud segments, focusing on intelligent data management software and cloud services[24]. - The Hybrid Cloud segment offers storage management solutions that transform traditional data centers into modern data centers, enhancing operational efficiency[26]. - NetApp Cloud Volumes Platform integrates cloud storage infrastructure and data services, enabling customers to manage their cloud storage effectively[37]. - BlueXP serves as a unified control plane for managing hybrid and multicloud environments, optimizing resource usage and reducing complexity[38]. - NetApp's Spot by NetApp suite utilizes machine learning and predictive analytics to optimize cloud infrastructure and operations, enhancing reliability and security[41]. - NetApp Astra provides a managed data management service for Kubernetes workloads, simplifying application protection and recovery[30]. - The company aims to simplify hybrid multicloud operations, enhancing consistency and observability across environments[25]. - The Cloud Volumes Platform integrates cloud storage infrastructure and data services, enabling customers to manage their own cloud storage based on ONTAP data management software[37]. - NetApp's BlueXP unified control plane allows customers to manage their entire data landscape through a single SaaS-delivered point of control, enhancing operational simplicity[38]. Storage Solutions - The AFF A-Series and C-Series storage solutions deliver low-latency performance and scalability for diverse market needs, catering to both small and large enterprises[31][32]. - NetApp's AFF A-Series and C-Series storage solutions are designed for various market segments, providing low-latency performance and scalability for both Tier 1 and Tier 2 applications[31][32]. - NetApp's ONTAP software provides automatic ransomware protection and supports various architectures, ensuring flexibility in storage environments[27]. - NetApp ONTAP software provides automatic ransomware protection, built-in data transport features, and storage efficiency capabilities, supporting various architectures[27]. Financial Performance and Strategy - NetApp's total research and development expenses were $956 million in fiscal 2023, up from $881 million in both fiscal 2022 and fiscal 2021[55]. - Sales through indirect channels represented 78% of NetApp's net revenues in fiscal 2023[47]. - Major customers Arrow Electronics, Inc. and Tech Data Corporation accounted for 24% and 21% of net revenues, respectively, in fiscal 2023[48]. - The company has established partnerships with leading cloud and infrastructure providers to maximize business value for customers[46]. - The company has experienced a sequential decline in revenues in the first quarter historically, influenced by seasonal patterns and customer order timing[49]. Employee Engagement and Culture - The company emphasizes a culture of employee engagement, with managers conducting quarterly two-way conversations to support career development[77]. - The Board of Directors actively oversees human capital management strategies, including workforce diversity and talent acquisition[79]. - The company is committed to maintaining good relations with employees, focusing on talent retention and engagement initiatives[80]. - As of April 28, 2023, NetApp had approximately 12,000 employees worldwide, with no employees represented by a labor union[80]. - The company offers a competitive 401(k) retirement plan with a company match, allowing employees to maximize retirement savings through various contribution options[74]. - In 2022, over 3,160 employees donated more than 42,600 hours to community service through the NetApp Serves Program[78]. - The company emphasizes diversity, inclusion, and belonging as key components of its workforce strategy to drive innovation and improve business outcomes[71]. Sustainability and Environmental Initiatives - The company emphasizes sustainability through tools that audit consumption and prevent overprovisioning, aligning with industry standards[28]. - The company is committed to reducing greenhouse gas emissions and has increased the use of renewable energy at facilities in Bangalore, India, and Wichita, Kansas, which are powered almost exclusively by renewable energy[66]. - The company has implemented an environmental management system since December 2004, aligning local environmental performance goals with its overall corporate strategy[69]. - The company continuously seeks to optimize energy efficiency in its operations, including buildings, labs, and data centers[66]. - The company has a product take-back program and an e-waste scheme to comply with EU directives on waste management[68]. Research and Development - Total research and development expenses were $956 million in fiscal 2023, compared to $881 million in each of fiscal 2022 and fiscal 2021, indicating a significant investment in innovation[55]. - The company has been granted over 2,000 U.S. patents and has hundreds of pending U.S. patent applications, indicating a strong intellectual property portfolio[61].

Financial Data and Key Metrics Changes - For FY 2023, the company reported revenue of $6.36 billion, up 1% year-over-year, while billings were $6.41 billion, down 4% from FY 2022 [19][20] - Q4 revenue was $1.58 billion, down 6% year-over-year, with billings of $1.67 billion, down 17% year-over-year [20][22] - Operating margin for FY 2023 was 24.2%, with EPS at $5.59, reflecting all-time highs despite macroeconomic challenges [19][22] Business Line Data and Key Metrics Changes - Hybrid Cloud segment revenue in Q4 was $1.43 billion, down 8% year-over-year, while product revenue was $744 million, down 17% [20][22] - Public Cloud ARR reached $620 million, up 23% year-over-year, with Q4 revenue of $151 million, growing 26% year-over-year [20][24] - The all-flash array business had an annualized revenue run rate of $3.1 billion, down 4% from the previous year [9] Market Data and Key Metrics Changes - The company experienced a 2% year-over-year increase in deferred revenue, totaling $4.31 billion, marking the 21st consecutive quarter of growth in this metric [21] - Public Cloud revenue composed 10% of total revenue in Q4, indicating a growing contribution from this segment [20] Company Strategy and Development Direction - The company is focusing on digital transformation projects, including AI and data security, to drive future growth despite current macroeconomic headwinds [7][14] - A strategic emphasis on hybrid, multi-cloud infrastructure and data management is being pursued to enhance customer value [7][14] - The introduction of new products, such as the AFF C-series and ASA A-series, aims to capture market share in the all-flash array segment [11][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term health of the market and the company's strategy, despite acknowledging ongoing macroeconomic challenges [6][16] - The outlook for FY 2024 anticipates total revenue to decline in the low to mid-single digits, with expectations for growth in the second half driven by new product sales [24][25] - Management highlighted the importance of maintaining operational discipline and adapting to market conditions to drive margin expansion and earnings growth [16][24] Other Important Information - The company returned 148% of free cash flow to shareholders in FY 2023, with plans to continue this strong return policy in FY 2024 [19][23] - The company has a healthy balance sheet, closing FY 2023 with $3.07 billion in cash and short-term investments [23] Q&A Session Summary Question: Can you provide insights on customer demand changes? - Management noted that the demand environment in Q4 was similar to Q3, with some larger customers beginning new projects after a period of optimization, but overall caution in spending remains [31][32] Question: What drives confidence in revenue growth in the second half of FY 2024? - Management highlighted recent portfolio introductions and improved focus in the field organization as key factors for expected sequential revenue growth [34][36] Question: How is the company addressing AI opportunities? - The company is seeing strong performance in AI and analytics, with a focus on new customer acquisition and expanding workloads, particularly in cloud environments [39][58] Question: What is the outlook for public cloud revenue? - Management indicated that while cloud optimization efforts are ongoing, they expect to see growth driven by projects that enhance business performance, particularly in core areas like analytics and AI [73][74]

Q4 FY23 Earnings Results May 31, 2023 © 2023 NetApp, Inc. All rights reserved. Safe harbor This presentation contains forward-looking statements and projections about our strategy, products and services, shareholder returns, and our future results, performance or achievements, financial and otherwise. These statements and projections reflect management's current expectations, estimates and assumptions based on the information currently available to us and are not guarantees of future performance. Actual res ...