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Apr 24, 2020

NetApp Q4 2020 Earnings Report

NetApp reported solid margins, cash flow, and operating leverage.

Key Takeaways

NetApp reported Q4 2020 results with net revenues of $1.40 billion. The company's cloud business grew substantially, and new customer acquisition districts performed well.

Net revenues were $1.40 billion.

GAAP net income was $196 million.

GAAP net income per share was $0.88.

Cash, cash equivalents and investments were $2.88 billion.

Total Revenue
$1.4B
Previous year: $1.59B
-12.0%
EPS
$1.19
Previous year: $1.22
-2.5%
Gross Margin
67.2%
Operating Margin
19.77%
Gross Profit
$941M
Previous year: $1.03B
-8.3%
Cash and Equivalents
$2.88B
Previous year: $2.33B
+24.0%
Free Cash Flow
$359M
Previous year: $364M
-1.4%
Total Assets
$7.52B
Previous year: $8.74B
-13.9%

NetApp

NetApp

Forward Guidance

The Company provided the following financial guidance for the first quarter of fiscal year 2021:

Positive Outlook

  • Net revenues are expected to be in the range of $1.090 billion to $1.240 billion
  • Earnings per share is expected to be in the range of $0.18 - $0.26
  • Non-GAAP earnings per share is expected to be in the range of $0.36 - $0.44
  • Next cash dividend of $0.48 per share to be paid on July 29, 2020, to shareholders of record as of the close of business on July 10, 2020.
  • NetApp is architecting application-integrated data management for Kubernetes with Project Astra.

Challenges Ahead

  • General global political, macroeconomic and market conditions (including the impact of the COVID-19 pandemic thereon)
  • Changes in U.S. government spending
  • Revenue seasonality and matters specific to our business, such as the impact of the COVID-19 pandemic on the company’s business operations, financial performance and results of operations
  • Our ability to expand our total available market and grow our portfolio of products
  • Customer demand for and acceptance of our products and services