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Jul 31, 2020

NetApp Q1 2021 Earnings Report

Net revenues increased and EPS exceeded guidance despite a challenging environment.

Key Takeaways

NetApp reported a 5% year-over-year increase in net revenues, reaching $1.30 billion, and EPS exceeded guidance. The company's public cloud services annualized recurring revenue saw substantial growth, and strategic acquisitions were completed to enhance customer value in the cloud.

Net revenues reached $1.30 billion, a 5% increase year-over-year.

Public cloud services annualized recurring revenue grew by 192% year-over-year, reaching $178 million.

GAAP net income was $77 million, or $0.35 per share.

Non-GAAP net income was $163 million, or $0.73 per share.

Total Revenue
$1.3B
Previous year: $1.24B
+5.4%
EPS
$0.73
Previous year: $0.65
+12.3%
Gross Profit
$872M
Previous year: $816M
+6.9%
Cash and Equivalents
$3.77B
Previous year: $2.97B
+27.2%
Free Cash Flow
$188M
Previous year: $278M
-32.4%
Total Assets
$8.42B
Previous year: $7.81B
+7.7%

NetApp

NetApp

Forward Guidance

NetApp expects net revenues to be in the range of $1.225 billion to $1.375 billion and earnings per share to be in the range of $0.28 to $0.36 (GAAP) and $0.66 to $0.74 (Non-GAAP) for the second quarter of fiscal year 2021.

Positive Outlook

  • Net revenues are expected to be in the range of $1.225 billion to $1.375 billion.
  • Earnings per share is expected to be in the range of $0.28 - $0.36 (GAAP).
  • Earnings per share is expected to be in the range of $0.66 - $0.74 (Non-GAAP).
  • Next cash dividend of $0.48 per share to be paid on October 28, 2020.
  • Dividend will be paid to shareholders of record as of the close of business on October 9, 2020.