NetApp Q4 2021 Earnings Report
Key Takeaways
NetApp reported Q4 2021 results with net revenues of $1.56 billion, an 11% year-over-year increase. GAAP net income was $334 million, or $1.46 per share, while non-GAAP net income was $268 million, or $1.17 per share. The company's public cloud services ARR increased 171% year-over-year to $301 million, and free cash flow reached an all-time high of $521 million.
Net revenues increased by 11% year-over-year to $1.56 billion.
Public cloud services ARR grew by 171% year-over-year to $301 million.
GAAP net income was $334 million, or $1.46 per share.
Free cash flow reached an all-time high of $521 million.
NetApp
NetApp
NetApp Revenue by Geographic Location
Forward Guidance
The Company provided financial guidance for the first quarter and full fiscal year 2022.
Positive Outlook
- Net revenues are expected to be in the range of $1.37 billion to $1.47 billion for Q1 2022.
- GAAP earnings per share is expected to be in the range of $0.69 to $0.77 for Q1 2022.
- Non-GAAP earnings per share is expected to be in the range of $0.89 to $0.97 for Q1 2022.
- Net revenues are expected to grow in the range of 6% to 7% for FY 2022.
- Public cloud ARR is expected to exit the fiscal year in the range of $425 million to $500 million.
Challenges Ahead
- Consolidated GAAP gross margins are expected to be 66% - 67% for FY 2022.
- Consolidated Non-GAAP gross margins are expected to be 67% - 68% for FY 2022.
- Operating GAAP margins are expected to be 16% - 17% for FY 2022.
- Operating Non-GAAP margins are expected to be 21% - 22% for FY 2022.
- Effective tax rate is expected to be ~20% (GAAP) and ~19% (Non-GAAP) for FY 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income