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Apr 29, 2022
NetApp Q4 2022 Earnings Report
NetApp's Q4 2022 financial results were reported, showing revenue growth and strategic progress.
Key Takeaways
NetApp reported an 8% year-over-year increase in net revenues for Q4 2022, reaching $1.68 billion. The company saw growth in its Hybrid Cloud and Public Cloud segments, with Public Cloud ARR increasing by 68% year-over-year. Net income was $259 million, and non-GAAP net income was $324 million.
Net revenues for the fourth quarter grew 8% year-over-year to $1.68 billion.
Q4 billings were $2.02 billion, an increase of 16% year-over-year.
Q4 product revenue grew 6% year-over-year to $894 million.
Public Cloud ARR increased 68% year-over-year to $505 million.
NetApp
NetApp
NetApp Revenue by Segment
NetApp Revenue by Geographic Location
Revenue by Segment
Hybrid Cloud Revenue
CapyFin.comPublic Cloud Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
NetApp provided financial guidance for Q1 2023 and full fiscal year 2023. Net revenues for Q1 2023 are expected to be in the range of $1.475 billion to $1.625 billion. For fiscal year 2023, net revenues are expected to grow in the range of 6% to 8%, and Public Cloud ARR is expected to exit the fiscal year in the range of $780 million to $820 million.
Positive Outlook
- Net revenues are expected to be in the range of $1.475 billion to $1.625 billion for Q1 2023.
- GAAP EPS is expected to be in the range of $0.72 to $0.82 for Q1 2023.
- Non-GAAP EPS is expected to be in the range of $1.05 to $1.15 for Q1 2023.
- Net revenues are expected to grow 6% to 8% for fiscal year 2023.
- Public Cloud ARR is expected to exit fiscal year 2023 in the range of $780 million to $820 million.
Challenges Ahead
- GAAP gross margins are expected to be in the range of 65% - 66% for fiscal year 2023.
- Non-GAAP gross margins are expected to be in the range of 66% - 67% for fiscal year 2023.
- GAAP operating margins are expected to be in the range of 18% - 19% for fiscal year 2023.
- Non-GAAP operating margins are expected to be in the range of 23% - 24% for fiscal year 2023.
- Effective tax rate is expected to be in the range of 24% - 25% for GAAP and 21% - 22% for Non-GAAP for fiscal year 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income