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Jan 24, 2020

NetApp Q3 2020 Earnings Report

Reported solid margins, cash flow, and operating leverage.

Key Takeaways

NetApp reported third quarter fiscal year 2020 results with strong gross margins, cash flow, and operating leverage. Net revenues were $1.40 billion, and GAAP net income was $277 million.

All-flash array annualized net revenue run rate of $2.3 billion increased 7% quarter-over-quarter

NetAppâ„¢ cloud data services annualized recurring revenue of approximately $83 million, an increase of 146% year-over-year

Consolidated GAAP gross margin of 67.0%, non-GAAP gross margin of 67.8%

$420 million in cash from operations; $388 million in free cash flow

Total Revenue
$1.4B
Previous year: $1.56B
-10.2%
EPS
$1.16
Previous year: $1.2
-3.3%
Gross Margin
67%
Operating Margin
18%
Gross Profit
$941M
Previous year: $982M
-4.2%
Cash and Equivalents
$3B
Previous year: $2.27B
+32.1%
Free Cash Flow
$388M
Previous year: $420M
-7.6%
Total Assets
$7.48B
Previous year: $8.42B
-11.1%

NetApp

NetApp

Forward Guidance

The Company provided the following financial guidance for the fourth quarter of fiscal year 2020: •Net revenues are expected to be in the range of: $1.455 billion to $1.605 billion GAAP Non-GAAP •Earnings per share is expected to be in the range of: $1.11 -$1.19 $1.28 - $1.36