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Apr 28, 2023

NetApp Q4 2023 Earnings Report

NetApp's Q4 2023 financial results were reported, showing a mix of revenue performance across different segments and a focus on innovation and shareholder returns.

Key Takeaways

NetApp reported Q4 2023 net revenues of $1.58 billion, a 6% year-over-year decrease. The company's focus on hybrid and multicloud solutions, along with new innovations, aims to drive long-term growth and value.

Net revenues were $1.58 billion, a decrease of 6% year-over-year.

Hybrid Cloud segment revenue was $1.43 billion, down from $1.56 billion in Q4 2022.

Public Cloud segment revenue increased to $151 million, compared to $120 million in Q4 2022.

GAAP net income was $245 million, and non-GAAP net income was $334 million.

Total Revenue
$1.58B
Previous year: $1.68B
-5.9%
EPS
$1.54
Previous year: $1.42
+8.5%
Operating Margin
26.2%
Gross Profit
$1.08B
Previous year: $1.09B
-1.3%
Cash and Equivalents
$3.07B
Previous year: $4.13B
-25.7%
Free Cash Flow
$196M
Previous year: $343M
-42.9%
Total Assets
$9.82B
Previous year: $10B
-2.1%

NetApp

NetApp

Forward Guidance

NetApp provided financial guidance for the first quarter and full fiscal year 2024, expecting net revenues to be in the range of $1.325 billion to $1.475 billion for Q1 and to decrease in the low-to-mid single digits for the full fiscal year.

Positive Outlook

  • EPS is expected to be in the range of $0.62 - $0.72
  • Non-GAAP EPS is expected to be in the range of $1.00 - $1.10
  • Consolidated gross margins are expected to be ~69%
  • Non-GAAP Consolidated gross margins are expected to be ~70%
  • Non-GAAP Operating margins are expected to be ~25%

Challenges Ahead

  • Net revenues are expected to be in the range of: $1.325 billion to $1.475 billion
  • Net revenues are expected to be down year-over-year in the low-to-mid single digits on a percentage basis
  • Operating margins are expected to be: ~18%
  • Earnings per share is expected to be: $3.98 - $4.18
  • Non-GAAP Earnings per share is expected to be: $5.65 - $5.85