NetApp(NTAP) - 2025 Q2 - Earnings Call Presentation

Q2 FY25 Financial Highlights - NetApp delivered Q2 year-over-year revenue growth of 6% and billings growth of 9%[68] - The company set Q2 records for operating margin at 29% and EPS at $1.87[68] - All-flash annualized revenue run rate grew by 19% year-over-year, reaching an all-time high of $3.8 billion[68] - First party and marketplace cloud storage services revenue grew approximately 43% year-over-year[68] Q2 FY25 Performance vs Guidance - Q2 revenue reached $1.66 billion, a 6.1% year-over-year increase, exceeding the initial guidance of $1.565 billion[70] - Billings amounted to $1.59 billion, reflecting a 9.1% year-over-year growth[70] - Non-GAAP gross margin was 72.0%, consistent with the guidance, while non-GAAP operating margin was 28.6%, a 180 bps year-over-year increase[70] - Non-GAAP EPS was $1.87, an 18.4% year-over-year increase, surpassing the guidance of $1.73 - $1.83[70] YTD FY25 Performance - Year-to-date revenue reached $3.20 billion, a 6.8% year-over-year increase[73] - Year-to-date billings amounted to $3.04 billion, reflecting a 10.2% year-over-year growth[73] - Year-to-date non-GAAP gross margin was 72.1%, a 70 bps year-over-year increase, and non-GAAP operating margin was 27.3%, a 300 bps year-over-year increase[73] - Year-to-date non-GAAP EPS was $3.42, a 25.7% year-over-year increase[73] FY25 Guidance - The company updated FY25 revenue guidance to $6.54 billion - $6.74 billion, with a non-GAAP operating margin between 28% - 28.5% and non-GAAP EPS between $7.20 - $7.40[115] Sustainability - NetApp responsibly managed and diverted 99% of e-waste from landfills[59] - The company achieved a 37% reduction in Scope 1 & 2 emissions and a 19% reduction in Scope 3 intensity as of FY23, compared to the FY20 baseline[64]