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Oct 27, 2023
NetApp Q2 2024 Earnings Report
NetApp's financial performance exceeded expectations with record gross margins, operating margins, and EPS.
Key Takeaways
NetApp reported a strong second quarter with revenue above the midpoint of guidance and record highs for gross margins, operating margins, and EPS. Net revenues were $1.56 billion, and GAAP net income per share was $1.10.
Net revenues reached $1.56 billion.
GAAP consolidated gross margins hit a record of 71%, with non-GAAP gross margins at 72%.
GAAP operating margins were 20%, while non-GAAP operating margins reached a record 27%.
GAAP net income per share was $1.10, with non-GAAP net income per share at a record $1.58.
NetApp
NetApp
NetApp Revenue by Segment
NetApp Revenue by Geographic Location
Revenue by Segment
Hybrid Cloud Revenue
CapyFin.comPublic Cloud Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
The Company provided the following financial guidance for the third quarter of fiscal year 2024: Net revenues are expected to be in the range of: $1.51 billion - $1.67 billion GAAP Earnings per share is expected to be in the range of: $1.17 - $1.27 Non-GAAP Earnings per share is expected to be in the range of: $1.64 - $1.74
Positive Outlook
- Net revenues are expected to be in the range of $1.51 billion - $1.67 billion.
- GAAP Earnings per share is expected to be in the range of: $1.17 - $1.27
- Non-GAAP Earnings per share is expected to be in the range of: $1.64 - $1.74
- Consolidated gross margins are expected to be approximately 70% (GAAP) and 71% (Non-GAAP) for the full fiscal year 2024.
- Operating margins are expected to be approximately 19% (GAAP) and 26% (Non-GAAP) for the full fiscal year 2024.
Challenges Ahead
- Net revenues are expected to be down approximately 2% year-over-year for the full fiscal year 2024.
- GAAP Earnings per share is expected to be in the range of: $4.15 - $4.35
- Non-GAAP Earnings per share is expected to be in the range of: $6.05 - $6.25
- Uncertainty in global political and macroeconomic conditions.
- Potential impact of supply chain disruptions on business operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income