Core Insights - NetApp reported revenue of $1.71 billion for the quarter ended October 2025, reflecting a year-over-year increase of 2.8% and exceeding the Zacks Consensus Estimate of $1.69 billion by 1.09% [1] - Earnings per share (EPS) for the quarter was $2.05, up from $1.87 in the same quarter last year, representing an EPS surprise of 8.47% compared to the consensus estimate of $1.89 [1] Financial Performance Metrics - Gross margin for products was reported at 59.5%, surpassing the average estimate of 56.5% from eight analysts [4] - Gross margin for services was 83.8%, slightly above the estimated 83.3% from seven analysts [4] - Year-over-year revenue change for products was 3%, compared to the estimated 0.6% [4] - Total revenue change was 3%, exceeding the six-analyst average estimate of 2% [4] Geographic Revenue Breakdown - Revenue from the United States, Canada, and Latin America was $863 million, closely aligning with the average estimate of $862.89 million, showing a year-over-year change of 0.1% [4] - Revenue from Asia Pacific reached $270 million, slightly below the average estimate of $274.62 million, with a year-over-year increase of 6.7% [4] - Revenue from Europe, the Middle East, and Africa was $572 million, exceeding the average estimate of $551.06 million, reflecting a year-over-year change of 5.3% [4] Segment Revenue Performance - Net revenues from services amounted to $917 million, compared to the average estimate of $916.66 million, marking a 3% year-over-year increase [4] - Net revenues from products were $788 million, surpassing the average estimate of $769.67 million, with a year-over-year change of 2.6% [4] - Public Cloud revenues were $171 million, slightly below the estimated $174.8 million, representing a year-over-year increase of 1.8% [4] - Hybrid Cloud revenues reached $1.53 billion, exceeding the average estimate of $1.52 billion, with a year-over-year change of 3% [4] - Support revenues were $647 million, slightly above the average estimate of $645.23 million, reflecting a year-over-year change of 1.9% [4] Stock Performance - NetApp's shares have returned -7% over the past month, compared to a -1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

November 6, 2025 Disclaimer Forward-Looking Statements Rackspace Technology has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this presentation are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the ...

Core Insights - OVHcloud achieved a significant milestone by surpassing the €1 billion revenue mark in FY2025, with total revenue reaching €1,084.6 million, reflecting a year-on-year growth of 9.3% [2][5][3] - The company appointed Octave Klaba as Chairman and CEO to align its vision and strategy, with plans to present a new strategic plan for 2026-2030 [4][28] - The adjusted EBITDA margin improved to 40.4%, up 2.0 percentage points from the previous year, indicating strong operational efficiency [17][2] Financial Performance - Revenue for FY2025 was €1,084.6 million, up from €993.1 million in FY2024, marking a 9.2% increase [2][16] - Adjusted EBITDA rose to €437.8 million, with a margin of 40.4%, compared to €381.5 million and a margin of 38.4% in FY2024 [17][16] - Net income improved to €0.4 million in FY2025 from a net loss of €10.3 million in FY2024 [19][16] Revenue Breakdown - The Corporate segment generated over €200 million in revenue, while Public Cloud revenue exceeded €100 million [3][5] - Private Cloud accounted for 62% of total revenue, reaching €671.6 million, up 8.5% year-on-year [8][10] - Public Cloud revenue was €219.2 million, reflecting a 19.9% increase, and Web Cloud revenue was €193.8 million, up 3.8% [9][10] Customer Metrics - OVHcloud has nearly 1,200 customers, each generating more than €100,000 in Annual Recurring Revenue (ARR) [6] - The company leads the SecNumCloud market with an ARR of €24 million, a 63% increase year-on-year [6] - The net revenue retention rate was 105%, indicating growth among existing customers [6] Regional Performance - France accounted for 48% of total revenue, growing by 7.3% year-on-year, while the Rest of the World saw an increase of 14.3% [13][14] - Revenue from Europe (excluding France) grew by 9.7%, driven by strong performance in Central and Northern Europe [14][13] Capital Expenditure and Cash Flow - Total capex for FY2025 was €361.4 million, representing 33.3% of revenue, with unlevered free cash flow increasing to €57.6 million [23][24] - Gross cash flows from operating activities improved to €421.9 million, up from €377.6 million in FY2024 [20][22] Strategic Initiatives - The company plans to enhance its product offerings, including the launch of Managed Kubernetes Service and Public VCF as-a-Service [32][33] - OVHcloud aims to improve its support and performance/price positioning for Digital Starters and strengthen its Corporate segment in Italy and Germany [11][12]

Core Insights - The rise of On-Demand technologies is reshaping business operations, but increasing costs, complexity, and governance gaps are jeopardizing returns [2][4][5] - Organizations are transitioning from capital-intensive IT investments to flexible, consumption-based models, with On-Demand tech expected to grow from 29% to 41% of IT budgets in the next year [3][4] - Despite the benefits of On-Demand technologies, many organizations struggle with cost management and achieving expected returns on investment [5][6] Cost and Complexity Challenges - 82% of executives report significant increases in costs associated with cloud, SaaS, and Gen AI, driven by inflation and digital infrastructure demands [6] - 76% of organizations exceeded their public cloud budgets by an average of 10%, with 68% overspending on Gen AI and 52% on SaaS [6] - Underutilized resources and decentralized procurement are major contributors to budget overruns [6] Governance and Management Issues - 60% of organizations utilize cloud cost management tools, but only 37% assess their effectiveness [7] - 76% of organizations have or plan to establish FinOps teams, yet most remain narrowly focused and operational [7] - Only 2% of organizations with a dedicated FinOps function cover cloud, SaaS, and Gen AI holistically [7] Sustainability Considerations - 53% of organizations acknowledge that suboptimal usage of On-Demand tech leads to excessive energy consumption and increased carbon emissions [8] - Only 36% have a strategy for integrating sustainability into FinOps, despite the potential for cost reduction and carbon footprint minimization [8] Research Methodology - The Capgemini Research Institute conducted a survey of 1,000 executives from global organizations with annual revenues of at least $1 billion, focusing on On-Demand technologies across 12 sectors and 14 countries [9]

Core Viewpoint - Analysts forecast that NetApp (NTAP) will report quarterly earnings of $1.54 per share, reflecting a year-over-year decline of 1.3%, with anticipated revenues of $1.54 billion, a decrease of 0.1% compared to the previous year [1]. Earnings Projections - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating stability in analysts' projections [2]. - Revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Estimates - Analysts predict 'Net revenues- Services' at $884.44 million, a year-over-year increase of 1.4% [5]. - 'Net revenues- Product' is expected to be $654.94 million, indicating a decline of 2.1% year over year [5]. - 'Net revenues- Public Cloud' is projected to reach $170.45 million, reflecting a growth of 7.2% year over year [5]. - 'Net revenues- Hybrid Cloud' is forecasted at $1.37 billion, a decrease of 0.5% from the previous year [6]. Geographic Revenue Insights - The consensus for 'Geographic Revenue- United States, Canada and Latin America' is $782.49 million, suggesting a year-over-year increase of 2.6% [6]. - 'Geographic Revenue- Asia Pacific' is expected to be $235.61 million, indicating a significant decline of 11.1% year over year [6]. - 'Geographic Revenue- Europe, Middle East and Africa' is projected at $517.03 million, reflecting a modest increase of 0.8% year over year [7]. Margin and Change Estimates - Analysts estimate 'Gross margin - Product - Non-GAAP' to be 56.0%, down from 59.9% year over year [7]. - 'Gross margin - Services - Non-GAAP' is expected to reach 82.8%, slightly up from 81.7% year over year [7]. - The estimated 'Product - % Change' is -1.8%, contrasting with the previous year's figure of 13.0% [8]. - 'Total Revenue - % Change' is projected at 0.3%, compared to 8.0% year over year [8]. Stock Performance - NetApp shares have increased by 3% in the past month, outperforming the Zacks S&P 500 composite, which moved up by 1.1% [8].

Financial Data and Key Metrics Changes - Total company GAAP revenue for Q2 2025 was $666 million, down 3% year over year but slightly up sequentially, exceeding guidance due to solid performance across both business units [18] - Non-GAAP operating profit was $27 million, up 34% year over year, driven by operational efficiencies [18] - Non-GAAP loss per share was $0.06, at the lower end of the guided range, primarily due to higher expenses related to data center leases [19] Business Line Data and Key Metrics Changes - Private Cloud bookings grew 24% sequentially and 42% year over year, with revenue at $250 million, down 4% year over year [6][20] - Public Cloud bookings grew 1% year over year, with revenue totaling $417 million, down 2% year over year [11][21] - Non-GAAP gross margin for Private Cloud was 36.8%, down 50 basis points year over year, while Public Cloud's was 9.6%, down 20 basis points year over year [20][21] Market Data and Key Metrics Changes - Private Cloud saw double-digit year-over-year bookings growth in The Americas and EMEA, indicating broad-based strength [6] - Public Cloud services revenue grew 3% sequentially, remaining flat year over year, with a focus on higher-margin services [12][21] Company Strategy and Development Direction - The company is focused on building a sustainable business model that consistently delivers revenue, profit, and cash flow growth [17] - Strategic expansion into mid-market and enterprise segments is underway, with a strong emphasis on private cloud solutions [7][10] - The company is also investing in AI capabilities, with initiatives aimed at becoming a private AI infrastructure provider [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the private cloud business and the positive trajectory of bookings performance [31] - The company anticipates a flat revenue outlook for private cloud in Q3, while expecting growth in public cloud services [28][34] - Management highlighted the importance of operational discipline and working capital performance in driving free cash flow improvements [29] Other Important Information - The company launched several new products and enhancements, including Rackspace OpenStack and Rackspace CloudOps, aimed at improving service offerings [10][12] - A strategic alliance with Semaphore.ai was announced to enhance AI capabilities across business functions [15][54] Q&A Session Summary Question: Discussion on guidance and free cash flow - Management indicated that Q3 guidance is expected to be flat sequentially for private cloud, with an uptick anticipated in public cloud services [28][29] Question: Insights on private cloud services and public cloud performance - Management noted a favorable mix in private cloud bookings, with a shift towards larger deals and longer contract lengths [32][33] - Public cloud services are expected to grow in the second half of 2025, with a projected year-over-year growth of 10% to 20% in Q4 [34][35] Question: Investments in market traction and AI partnerships - Management stated that investments in mid-market and enterprise segments have already been made, with a focus on success-based CapEx [49] - The company is seeing traction in AI across both private and public cloud, with successful implementations in healthcare and retail sectors [51][54]

Financial Performance - Q2 2025 - Total revenue was $666 million, flat quarter-over-quarter (Q/Q) and down 3% year-over-year (Y/Y) [7] - Non-GAAP gross profit was $132 million, essentially flat Q/Q and down 5% Y/Y [7] - Non-GAAP gross margin was 198%, down 01 percentage points Q/Q and 04 percentage points Y/Y [7] - Non-GAAP operating profit was $27 million, up 7% Q/Q and 34% Y/Y [7] - Non-GAAP operating margin was 41%, up 03 percentage points Q/Q and 11 percentage points Y/Y [7] - Non-GAAP loss per share was ($006), an increase of $003 Y/Y [7] Segment Performance - Q2 2025 - Total Rackspace revenue was $666 million, with Private Cloud at $250 million and Public Cloud at $417 million [8] - Private Cloud revenue decreased by 4% Y/Y, while Public Cloud revenue decreased by 2% Y/Y [8] - Segment operating profit was $78 million, with Private Cloud contributing $62 million and Public Cloud $16 million [8] - Corporate functions resulted in a loss of $50 million [8] Cash Flow and Capital Expenditures - Cash provided by operating activities was $8 million for Q2 2025 [9] - Free cash flow was ($12) million for Q2 2025 [9] - Total capital expenditures were $31 million, with cash capital expenditures at $21 million [9] - As of June 30, 2025, cash and cash equivalents were $104 million, with $310 million available under the revolving credit facility, resulting in total liquidity of $414 million [9] Q3 2025 Guidance - Total revenue is expected to be between $660 million and $674 million [12] - Private Cloud revenue is projected to be between $246 million and $254 million [12] - Public Cloud revenue is expected to be between $414 million and $420 million [12] - Non-GAAP operating profit is guided to be between $30 million and $32 million [12] - Non-GAAP loss per share is expected to be between ($004) and ($006) [12]

Core Insights - Rackspace Technology reported second quarter 2025 results with revenue of $666 million, a decrease of 3% year-over-year from $685 million in Q2 2024 [2][6] - Private Cloud revenue was $250 million, down 4% from $260 million in Q2 2024, while Public Cloud revenue was $417 million, down 2% from $425 million in Q2 2024 [2][3] - The company achieved a 34% increase in Non-GAAP Operating Profit, reaching $27 million compared to $20 million in Q2 2024 [4][41] - Net loss for Q2 2025 was $(55) million, a significant decline from net income of $25 million in Q2 2024, resulting in a net loss per diluted share of $(0.23) compared to earnings of $0.11 in the prior year [3][4] Financial Performance - Total revenue for the first half of 2025 was $1.3317 billion, down 3.2% from $1.3757 billion in the same period of 2024 [20][30] - Operating cash flow for Q2 2025 was $8 million, with a trailing twelve-month cash flow from operating activities of $127 million [6][5] - Capital expenditures were $31 million in Q2 2025, slightly down from $33 million in Q2 2024 [5] Segment Analysis - Public Cloud segment revenue decreased by 2% year-over-year, while Private Cloud segment revenue saw a 4% decline [2][30] - Non-GAAP Operating Profit for the Public Cloud segment increased by 51.4%, while the Private Cloud segment experienced a 10.6% decrease [32][41] Guidance and Outlook - The company provided guidance for total revenue in Q3 2025 to be between $660 million and $674 million, with Private Cloud revenue expected between $246 million and $254 million, and Public Cloud revenue between $414 million and $420 million [7][6] - Non-GAAP Loss Per Share is projected to be between $(0.04) and $(0.06) for the upcoming quarter [7]

Core Insights - NetApp Inc. operates in the hardware and data infrastructure market, focusing on two key segments: Hybrid Cloud and Public Cloud [1] - Approximately 51% of the company's revenues come from the U.S., with the remainder generated from international markets [1] Segment Analysis - The Hybrid Cloud segment provides data storage solutions, which are essential for businesses transitioning to cloud-based infrastructures [1] - The Public Cloud segment complements the Hybrid offerings, allowing for scalable and flexible data management solutions [1]

Core Insights - BofA Securities analyst Brad Sills reported a decline in software spending growth intentions for the second half of 2025 and 2026, with expected growth rates of +9.9% for 2025 and +10.8% for 2026, down from previous estimates [2] Software Spending Trends - The survey indicates a healthy pipeline for new software projects in 2026, with Data Analytics regaining the top spending priority, followed by Cloud Communications and Videoconferencing, and Security in third place [3] - Categories with higher spending expectations include observability and financials/ERP, while front-office applications like CRM Sales, Marketing, and Support scored lower due to firms reassessing AI priorities [4] AI Investment Insights - Infrastructure and Back Office are identified as the top software categories for AI investment, with Back Office seeing the largest increase since the last survey [5] - After LLMs, Workday Inc was the most selected for Back Office investments, while Salesforce Inc led in front-office AI offerings [5][6] Vendor Preferences - Amazon, Microsoft, and Alphabet's Google were the most frequently selected vendors for AI in infrastructure, while Adobe Inc remains the market leader in AI investments for desktop applications [6][7] - Hiring expectations for 2025 are down, with recession fears impacting spending plans more than tariffs [7]