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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

NetApp Revenue by Segment

NetApp Revenue by Geographic Location

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

Revenue & Expenses

Visualization of income flow from segment revenue to net income