NetApp(NTAP) - 2024 Q3 - Quarterly Results

Financial Performance - Net revenues for Q3 FY2024 were $1.61 billion, representing a 5% increase year-over-year from$ 1.53 billion in Q3 FY2023[3] - GAAP net income for Q3 FY2024 was $313 million, significantly up from$ 65 million in Q3 FY2023, with non-GAAP net income at $410 million compared to$ 301 million[5] - Earnings per share for Q3 FY2024 were $1.48 (GAAP) and$ 1.94 (non-GAAP), compared to $0.30 and$ 1.37 respectively in Q3 FY2023[5] - Net income for Q3 FY24 was $313 million, a significant increase from$ 65 million in Q3 FY23, representing a growth of 381%[49] - Total net revenues for Q3 FY24 reached $1,606 million, up 5% from$ 1,526 million in Q3 FY23[50] - Non-GAAP net income for Q3 FY24 was $410 million, compared to$ 301 million in Q3 FY23, reflecting a year-over-year increase of 36%[55] - Free cash flow for Q3 FY24 was $448 million, which is 27.9% of net revenues, a substantial increase from 20.9% in Q3 FY23[58] - Operating income for Q3'FY24 was$ 366 million, up 20% from $304 million in Q2'FY24 and 113% from$ 172 million in Q3'FY23[64] Revenue Segments - Hybrid Cloud segment revenue reached $1.46 billion, up from$ 1.38 billion in Q3 FY2023, while Public Cloud segment revenue was $151 million, slightly up from$ 150 million[3] - Product revenues for Q3 FY24 were $747 million, an increase of 9.5% from$ 682 million in Q3 FY23[50] - Billings for Q3 FY24 were $1.687 billion, up 16.0% from Q2 FY24 ($ 1.454 billion) and up 7.3% from Q3 FY23 ( $1.572 billion)[77] Guidance and Projections - The company expects Q4 FY2024 net revenues to be in the range of$ 1.585 billion to $1.735 billion, with earnings per share projected between$ 1.25 and $1.35 (GAAP) and$ 1.73 to $1.83 (non-GAAP)[6] - Full fiscal year 2024 net revenues are expected to range from$ 6.185 billion to $6.335 billion, with consolidated gross margins projected at 70% to 71% (GAAP) and 71% to 72% (non-GAAP)[7] - Non-GAAP guidance for net income per share for Q4 FY24 is projected to be between$ 1.73 and $1.83, while GAAP guidance is between$ 1.25 and $1.35[79] - Non-GAAP gross margin guidance for FY24 is estimated at 71% to 72%, with GAAP gross margin guidance at 70% to 71%[81] - Non-GAAP net income per share guidance for FY24 is projected to be between$ 6.40 and $6.50, while GAAP guidance is between$ 4.52 and $4.62[83] Cash Flow and Operations - Cash provided by operations was$ 484 million in Q3 FY2024, up from $377 million in Q3 FY2023[10] - The company returned$ 203 million to stockholders through share repurchases and dividends in Q3 FY2024[10] - Free cash flow for Q3'FY24 was $448 million, significantly higher than$ 97 million in Q2'FY24 and $319 million in Q3'FY23[75] Expenses and Margins - Research and development expenses increased to$ 249 million for the three months ended January 26, 2024, compared to $230 million in the prior year[47] - The gross margin for the product segment improved to 62.5% in Q3 FY24, up from 46.5% in Q3 FY23[50] - The company reported a GAAP gross margin of 71.7% in Q3'FY24, compared to 71.1% in Q2'FY24 and 65.6% in Q3'FY23[66] - The effective tax rate for non-GAAP income before income taxes was 18.2% in Q3 FY24, down from 20.2% in Q3 FY23[54] Strategic Initiatives - New product innovations include features for NetApp™Astra™ Control and a collaboration with AWS for enhanced storage performance[11] - The company is focusing on market expansion and new product development as part of its strategic initiatives[78] - The company has incurred acquisition-related expenses of$ 0.04 per share as part of its ongoing growth strategy[83]