Skip to content
AnalystLens

NetApp 8-K Report, Financial Results (Feb 29, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 29, 2024
Period End
February 29, 2024
Security
NTAP
In the record · 2016–202610-K1110-Q328-K97

NTAP filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 97 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Feb ’16Feb ’16
  2. Material agreement8-K · Sep ’17Sep ’17
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 8-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.

NetApp, Inc. furnished a press release (Exhibit 99.1) dated February 29, 2024, reporting financial results for its third quarter of fiscal year 2024, which ended January 26, 2024.

Net revenues were $1.61 billion, compared to $1.53 billiona in the third quarter of fiscal year 2023, a year-over-year increase of 5%. GAAP net income was $313 million ($1.48 per diluted share) versus $65 million ($0.30 per share) a year earlier, while non-GAAP net income was $410 million, or $1.94 per diluted share. Cash provided by operations was $484 million, and the company returned $203 million to stockholders through share repurchases and cash dividends.

Cash, cash equivalents and investments totaled $2.92 billionb at quarter end. The company reported All-flash array annualized revenue run rate of $3.4 billion, up 21% year-over-year. Public Cloud annualized revenue run rate was $608 million, roughly flat year-over-year.

Billings were $1.69 billionc, up 7% year-over-year. GAAP gross margin was 72% and non-GAAP gross margin was 73%, with GAAP operating margin of 23% and non-GAAP operating margin of 30%. For guidance, NetApp expects fourth-quarter fiscal 2024 net revenues of $1.585 billion to $1.735 billion, with GAAP EPS of $1.25 to $1.35 and non-GAAP EPS of $1.73 to $1.83.

For full fiscal 2024, the company updated its outlook to net revenues of $6.185 billion to $6.335 billiond, GAAP EPS of $4.52 to $4.62, and non-GAAP EPS of $6.40 to $6.50. A next quarterly cash dividend of $0.50 per share is payable April 24, 2024.

02—Key points

Key Highlights

  1. Third-quarter net revenues of $1.61 billion, up 5% year-over-year from $1.53 billion, with Hybrid Cloud segment revenue of $1.46 billion and Public Cloud segment revenue of $151 million.
  2. Record All-flash array annualized revenue run rate of $3.4 billion, up 21% year-over-year.
  3. GAAP net income of $313 million ($1.48 per diluted share) versus $65 million ($0.30) in the prior-year quarter; non-GAAP net income of $410 million ($1.94 per diluted share) versus $301 million ($1.37).
  4. Record Q3 non-GAAP gross margin of 73% and non-GAAP operating margin of 30%; GAAP gross margin of 72% and GAAP operating margin of 23%.
  5. Cash provided by operations of $484 million, up from $377 million, and $2.92 billion in cash, cash equivalents and investments at quarter end.
  6. Fiscal 2024 outlook updated to net revenues of $6.185 billion to $6.335 billion and non-GAAP EPS of $6.40 to $6.50 (GAAP EPS of $4.52 to $4.62).
  7. Returned $203 million to stockholders through share repurchases and cash dividends; next dividend of $0.50 per share payable April 24, 2024.

03—Questions

Frequently Asked Questions

  1. How did NetApp perform in the third quarter of fiscal 2024?

    Net revenues were $1.61 billion, up 5% from $1.53 billion a year earlier. GAAP net income was $313 million, or $1.48 per diluted share, compared with $65 million, or $0.30 per share, in the prior-year quarter. Non-GAAP net income was $410 million, or $1.94 per share.

  2. What is the company's outlook for the fourth quarter of fiscal 2024?

    NetApp expects fourth-quarter net revenues of $1.585 billion to $1.735 billion, GAAP earnings per share of $1.25 to $1.35, and non-GAAP earnings per share of $1.73 to $1.83.

  3. How did the company change its full fiscal 2024 guidance?

    The filing states that NetApp provided an update to its full fiscal 2024 guidance: net revenues of $6.185 billion to $6.335 billion, GAAP consolidated gross margins of 70% to 71% (non-GAAP 71% to 72%), GAAP operating margin of about 19% (non-GAAP about 27%), and GAAP EPS of $4.52 to $4.62 (non-GAAP $6.40 to $6.50). The filing does not state the prior guidance figures.

  4. What drove growth in the All-flash array business?

    The All-flash array annualized revenue run rate reached $3.4 billion, up 21% from $2.8 billion in the third quarter of fiscal 2023, which the company described as a record.

  5. What is the status of shareholder returns?

    NetApp returned $203 million to stockholders through share repurchases and cash dividends in the quarter. Its next cash dividend of $0.50 per share is payable April 24, 2024, to stockholders of record as of April 5, 2024.

04—Continue

← View all 8-K filings