01—Abstract
Summary
Summary of the 8-K filed November 21, 2024. Cited figures are marked; the original filing is the authoritative source.
NetApp, Inc. (NASDAQ: NTAP) furnished a press release under Item 2.02 reporting results for its second quarter of fiscal year 2025, which ended October 25, 2024.
Net revenues were $1.66 billion, compared to $1.56 billiona a year earlier, a year-over-year increase of 6%. GAAP net income was $299 million and GAAP diluted net income per share was $1.42, versus $1.10 in the prior-year quarter. Non-GAAP net income per share was $1.87, compared to $1.58.
Billings were $1.59 billionb, up 9% year over year, and all-flash array annualized net revenue run rate reached a record $3.8 billion, an increase of 19%. Cash, cash equivalents and investments were $2.22 billion at quarter end, down from $3.25 billion at April 26, 2024, and total debt-related balances fell as current portion of long-term debt rose to $749 million. Cash provided by operations was $105 million, compared to $135 million a year earlier.
The company returned $406 millionc to stockholders through share repurchases and cash dividends during the quarter. NetApp updated its fiscal 2025 outlook, guiding full-year net revenues to $6.540 billion to $6.740 billion and GAAP earnings per share to $5.48 to $5.68 (non-GAAP $7.20 to $7.40).
For the third quarter, it expects net revenues of $1.610 billion to $1.760 billiond and GAAP EPS of $1.41 to $1.51 (non-GAAP $1.85 to $1.95). The next quarterly cash dividend is $0.52 per share, payable January 22, 2025.
02—Key points
Key Highlights
- Net revenues of $1.66 billion, up 6% year over year; Hybrid Cloud segment revenue was $1.49 billion and Public Cloud segment revenue was $168 million.
- GAAP net income per diluted share of $1.42 versus $1.10 a year earlier; non-GAAP net income per share of $1.87 versus $1.58.
- Billings of $1.59 billion, up 9% year over year; all-flash array annualized net revenue run rate of $3.8 billion, up 19%.
- GAAP operating margin of 20.8% and non-GAAP operating margin of 28.6%, per the reconciliation tables.
- Cash, cash equivalents and investments declined to $2.22 billion from $3.25 billion at April 26, 2024, and cash from operations was $105 million versus $135 million a year earlier.
- Returned $406 million to stockholders through share repurchases and dividends during the quarter.
- Fiscal 2025 guidance updated: net revenues of $6.540 billion to $6.740 billion and GAAP EPS of $5.48 to $5.68; third-quarter revenue guidance of $1.610 billion to $1.760 billion.
03—Questions
Frequently Asked Questions
How did NetApp perform in the second quarter of fiscal 2025?
Net revenues were $1.66 billion, up 6% from $1.56 billion a year earlier. GAAP net income was $299 million, or $1.42 per diluted share, compared with $233 million, or $1.10 per diluted share, in the prior-year quarter.
What is the updated full-year fiscal 2025 outlook?
NetApp expects fiscal 2025 net revenues of $6.540 billion to $6.740 billion, GAAP consolidated gross margins of 70% to 71%, GAAP operating margins of 21% to 21.5%, and GAAP earnings per share of $5.48 to $5.68. Non-GAAP EPS is expected to be $7.20 to $7.40.
What does the third-quarter guidance look like?
The company expects third-quarter net revenues of $1.610 billion to $1.760 billion, with GAAP EPS of $1.41 to $1.51 and non-GAAP EPS of $1.85 to $1.95.
How much cash did NetApp return to shareholders and what is the next dividend?
NetApp returned $406 million to stockholders through share repurchases and cash dividends in the quarter. The next cash dividend of $0.52 per share is payable January 22, 2025, to holders of record as of January 3, 2025.
What were the key product and cloud trends?
All-flash array annualized net revenue run rate reached a record $3.8 billion, up 19% year over year. The press release states that first party and marketplace cloud storage services revenue grew approximately 43% year over year.
04—Continue