NetApp(NTAP)2025-02-27 21:05Revenue Performance - Net revenues for Q3 FY2025 were $1.64 billion, a 2% increase from $1.61 billion in Q3 FY2024[3] - Hybrid Cloud segment revenue reached $1.47 billion, slightly up from $1.46 billion in the same quarter last year[3] - All-flash array annualized net revenue run rate was $3.8 billion, reflecting a 10% year-over-year increase[4] - First-party and marketplace cloud storage services revenue grew over 40% year-over-year[4] - Total net revenues for Q3 FY25 were $1,641 million, slightly down from $1,658 million in Q2 FY25 and up from $1,606 million in Q3 FY24[52] - The public cloud segment net revenues increased to $174 million in Q3 FY25, up from $168 million in Q2 FY25 and $151 million in Q3 FY24[52] Income and Profitability - GAAP net income for Q3 FY2025 was $299 million, down from $313 million in Q3 FY2024[10] - Non-GAAP net income for Q3 FY2025 was $397 million, compared to $410 million in Q3 FY2024[10] - Net income for Q3 FY25 was $299 million, a decrease of 4.5% compared to $313 million in Q3 FY24[59] - Non-GAAP income from operations increased to $492 million in Q3 FY25, representing 30.0% of net revenues, compared to 28.6% in Q2 FY25[53] - Non-GAAP income from operations for Q3'FY25 was $492 million, compared to $485 million in Q3'FY24, reflecting a 1.4% increase[63] - The company reported a non-GAAP operating margin of 30.0% for Q3'FY25, compared to 30.2% in Q3'FY24[71] Cash Flow and Shareholder Returns - The company returned $306 million to stockholders through share repurchases and cash dividends[4] - Free cash flow for Q3 FY25 was $338 million, which is 20.6% of net revenues, significantly higher than 3.6% in Q2 FY25[57] - Free cash flow for Q3'FY25 was $338 million, significantly lower than $448 million in Q3'FY24[74] - The company repurchased $200 million of common stock in Q3 FY25, compared to $100 million in Q2 FY25[57] Guidance and Projections - For Q4 FY2025, net revenues are expected to be in the range of $1.65 billion to $1.80 billion[6] - Full FY2025 net revenues are projected to be between $6.49 billion and $6.64 billion[7] - The company expects Q4'FY25 GAAP net income per share guidance to be between $1.45 and $1.55, with non-GAAP guidance between $1.84 and $1.94[78] - Fiscal 2025 GAAP guidance for net income per share is projected to be between $5.49 and $5.59[82] - Non-GAAP guidance for net income per share is estimated to be between $7.17 and $7.27[82] Assets and Liabilities - Total assets decreased from $9,887 million as of April 26, 2024, to $8,989 million as of January 24, 2025, a reduction of approximately 9.1%[46] - The total liabilities decreased from $8,741 million as of April 26, 2024, to $7,994 million as of January 24, 2025, a decline of approximately 8.5%[46] - NetApp's cash, cash equivalents, and investments decreased from $3,252 million as of April 26, 2024, to $2,261 million as of January 24, 2025, a decline of approximately 30.5%[46] - The company’s accounts receivable decreased from $1,007 million as of April 26, 2024, to $898 million as of January 24, 2025, a reduction of approximately 10.9%[46] Operating Expenses and Margins - The company’s total operating expenses for the three months ended January 24, 2025, were $783 million, compared to $785 million for the same period in 2024, a marginal decrease of 0.3%[49] - Operating expenses for Q3'FY25 totaled $783 million, a decrease from $785 million in Q3'FY24[61] - The gross margin for the product segment decreased to 56.7% in Q3 FY25 from 60.3% in Q2 FY25[52] - GAAP gross margin for Q3'FY25 was 69.8%, down from 71.7% in Q3'FY24, while non-GAAP gross margin was 70.7%[65] Tax and Other Metrics - The effective tax rate for Q3'FY25 was 19.2%, compared to 18.1% in Q3'FY24[73] - Days sales outstanding (DSO) increased to 50 days in Q3 FY25 from 48 days in Q2 FY25[55] - Deferred revenue and financed unearned services revenue stood at $4,122 million, slightly up from $4,100 million in Q2 FY25[55]