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Jan 28, 2022

NetApp Q3 2022 Earnings Report

NetApp's Q3 2022 financial results were reported, showcasing revenue growth and increased public cloud adoption.

Key Takeaways

NetApp reported a 10% year-over-year increase in net revenues for the third quarter of fiscal year 2022, reaching $1.61 billion. The company's Public Cloud annualized revenue run rate (ARR) increased by 98% year-over-year to $469 million. GAAP net income was $252 million, or $1.10 per share, while non-GAAP net income was $330 million, or $1.44 per share.

Net revenues grew 10% year-over-year to $1.61 billion.

Public Cloud ARR increased 98% year-over-year to $469 million.

Product revenue grew 9% year-over-year to $846 million.

GAAP net income per share was $1.10, and non-GAAP net income per share was $1.44.

Total Revenue
$1.61B
Previous year: $1.47B
+9.8%
EPS
$1.44
Previous year: $1.1
+30.9%
Gross Profit
$1.07B
Previous year: $975M
+10.1%
Cash and Equivalents
$4.2B
Previous year: $3.89B
+7.9%
Free Cash Flow
$199M
Previous year: $341M
-41.6%
Total Assets
$9.5B
Previous year: $8.69B
+9.4%

NetApp

NetApp

NetApp Revenue by Segment

NetApp Revenue by Geographic Location

Forward Guidance

The Company provided financial guidance for the fourth quarter and full fiscal year 2022. Net revenues for Q4 are expected to be in the range of $1.635 billion to $1.735 billion, with GAAP EPS between $0.90 and $1.00 and Non-GAAP EPS between $1.21 and $1.31. For the full fiscal year 2022, net revenues are expected to grow by approximately 10%, and Public Cloud ARR is expected to exit the year in the range of $525 million to $545 million.

Positive Outlook

  • Net revenues are expected to be in the range of $1.635 billion to $1.735 billion for Q4 2022.
  • GAAP EPS is expected to be in the range of $0.90 to $1.00 for Q4 2022.
  • Non-GAAP EPS is expected to be in the range of $1.21 to $1.31 for Q4 2022.
  • Net revenues are expected to grow by approximately 10% for the full fiscal year 2022.
  • Public Cloud ARR is expected to exit the fiscal year in the range of $525 million to $545 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income