How did NetApp perform in its first quarter of fiscal 2025?

Net revenues rose 8% year over year to $1.54 billion. GAAP net income was $248 million, or $1.17 per diluted share, compared with $149 million, or $0.69 per diluted share, a year earlier. Billings grew 12% to $1.45 billion.

What guidance did NetApp provide for the second quarter and full fiscal 2025?

For the second quarter, NetApp expects net revenues of $1.565 billion to $1.715 billion and GAAP EPS of $1.27 to $1.37. For full fiscal 2025, it expects net revenues of $6.480 billion to $6.680 billion, GAAP EPS of $5.17 to $5.37, and non-GAAP EPS of $7.00 to $7.20.

Why is the CFO leaving, and when?

Michael J. Berry, Executive Vice President and Chief Financial Officer, informed the company on August 22, 2024, of his decision to transition from the role by May 23, 2025. He will remain until a successor is named and the transition is complete, and he will assist with the recruiting of a new CFO.

How much did NetApp return to shareholders in the quarter?

NetApp returned $507 million to stockholders through share repurchases and cash dividends. The company also declared a next cash dividend of $0.52 per share, payable October 23, 2024, to holders of record as of October 4, 2024.

What do the non-GAAP measures show compared with GAAP results?

Non-GAAP net income was $330 million, or $1.56 per share, versus GAAP net income of $248 million, or $1.17 per share. Non-GAAP operating margin was 25.9% versus a GAAP operating margin of 18.3%, with the difference mainly reflecting amortization of intangible assets, stock-based compensation, restructuring charges, and acquisition-related expense.

NTAP 8-K: Earnings & Results & Leadership Changes

01—Abstract

Summary

Summary of the 8-K filed August 28, 2024. Cited figures are marked; the original filing is the authoritative source.

NetApp, Inc. (NTAP) furnished a press release reporting results for its first quarter of fiscal year 2025, which ended July 26, 2024.

Net revenues were $1.54 billion, compared to $1.43 billion^a a year earlier, a year-over-year increase of 8%. GAAP net income was $248 million and GAAP diluted net income per share was $1.17, versus $0.69 in the prior-year quarter. Non-GAAP net income per share was $1.56, compared to $1.15.

Billings were $1.45 billion^b, up 12% year over year, and all-flash array annualized net revenue run rate reached $3.4 billion, an increase of 21%. Cash, cash equivalents and investments totaled $3.02 billion, and the company returned $507 million to stockholders through share repurchases and cash dividends. Cash provided by operations was $341 million, compared to $453 million a year earlier.

For the second quarter of fiscal 2025, NetApp guided to net revenues of $1.565 billion to $1.715 billion^c and GAAP earnings per share of $1.27 to $1.37 (non-GAAP $1.73 to $1.83). For full fiscal 2025, the company updated guidance to net revenues of $6.480 billion to $6.680 billion, GAAP EPS of $5.17 to $5.37, and non-GAAP EPS of $7.00 to $7.20. The company also declared a next cash dividend of $0.52 per share, payable October 23, 2024.

The filing also disclosed that Executive Vice President and Chief Financial Officer Michael J. Berry will retire by May 23, 2025. He will remain in the role until a successor is named and the transition is complete, and the company will conduct a comprehensive search for his replacement.

02—Key points

Key Highlights

Net revenues of $1.54 billion, up 8% year over year from $1.43 billion; Hybrid Cloud segment revenue was $1.38 billion and Public Cloud segment revenue was $159 million.
GAAP net income per diluted share of $1.17 versus $0.69 a year earlier; non-GAAP net income per share of $1.56 versus $1.15.
Billings of $1.45 billion, up 12% year over year, and all-flash array annualized net revenue run rate of $3.4 billion, up 21%.
GAAP operating margin of 18.3% and non-GAAP operating margin of 25.9%, both described as records for a first quarter.
Cash provided by operations of $341 million, down from $453 million; free cash flow of $300 million.
Full-year fiscal 2025 net revenue guidance updated to $6.480 billion to $6.680 billion, with GAAP EPS of $5.17 to $5.37 and non-GAAP EPS of $7.00 to $7.20.
CFO Michael J. Berry will retire by May 23, 2025, and the company will search for a successor.

03—Questions

Frequently Asked Questions

How did NetApp perform in its first quarter of fiscal 2025?
Net revenues rose 8% year over year to $1.54 billion. GAAP net income was $248 million, or $1.17 per diluted share, compared with $149 million, or $0.69 per diluted share, a year earlier. Billings grew 12% to $1.45 billion.
What guidance did NetApp provide for the second quarter and full fiscal 2025?
For the second quarter, NetApp expects net revenues of $1.565 billion to $1.715 billion and GAAP EPS of $1.27 to $1.37. For full fiscal 2025, it expects net revenues of $6.480 billion to $6.680 billion, GAAP EPS of $5.17 to $5.37, and non-GAAP EPS of $7.00 to $7.20.
Why is the CFO leaving, and when?
Michael J. Berry, Executive Vice President and Chief Financial Officer, informed the company on August 22, 2024, of his decision to transition from the role by May 23, 2025. He will remain until a successor is named and the transition is complete, and he will assist with the recruiting of a new CFO.
How much did NetApp return to shareholders in the quarter?
NetApp returned $507 million to stockholders through share repurchases and cash dividends. The company also declared a next cash dividend of $0.52 per share, payable October 23, 2024, to holders of record as of October 4, 2024.
What do the non-GAAP measures show compared with GAAP results?
Non-GAAP net income was $330 million, or $1.56 per share, versus GAAP net income of $248 million, or $1.17 per share. Non-GAAP operating margin was 25.9% versus a GAAP operating margin of 18.3%, with the difference mainly reflecting amortization of intangible assets, stock-based compensation, restructuring charges, and acquisition-related expense.

04—Continue

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