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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

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.