NetApp: Fiscal 1Q25 Financial Results

• Net revenues of $1.54 billion for the 1st quarter; 8% Y/Y increase
• AFA annualized net revenue run rate1 of $3.4 billion, an increase of 21% Y/Y
• First party and marketplace cloud storage services revenue grew approximately 40% Y/Y
• Record 1st quarter GAAP operating margin of 18%; record 1st quarter non-GAAP operating margin of 26%
• Record 1st quarter GAAP net income per share of $1.17; record 1st quarter non-GAAP net income per share of $1.56
• Returned $507 million to stockholders through share repurchases and cash dividends

NetApp, Inc. reported financial results for the first quarter of fiscal year 2025, which ended on July 26, 2024.

“We started FY25 on a high note, delivering strong revenue growth and setting records for first quarter operating margin and EPS. These results are a testament to our strong execution in a continued uncertain macroeconomic environment, our unwavering confidence in the customer benefits of the highly differentiated NetApp intelligent data infrastructure platform, and our disciplined management of the business,” said George Kurian, CEO. “I am confident in our ability to capitalize on this momentum, as we address new market opportunities, extend our leadership position in existing markets, and deliver increasing value for all our stakeholders.”

1FQ25 Financial Results

• Net revenue: $1.54 billion, compared to $1.43 billion in 1FQ24; a Y/Y increase of 8%.
• Hybrid Cloud segment revenue: $1.38 billion, compared to $1.28 billion in 1FQ24.
• Public Cloud segment revenue: $159 million, compared to $154 million in 1FQ24.
• Billings: $1.45 billion, compared to $1.30 billion in 1FQ24; a Y/Y increase of 12%.
• AFA ARR: $3.4 billion, compared to $2.8 billion in 1FQ24; a Y/Y increase of 21%.
• Net income: GAAP net income of $248 million, compared to $149 million in 1FQ24; non-GAAP net income of $330 million, compared to $249 million in 1FQ24.
• Earnings per share: GAAP net income per share of $1.17 compared to $0.69 in 1FQ24; non-GAAP net income per share of $1.56 compared to $1.15 in 1FQ24.
• Cash, cash equivalents and investments: $3.02 billion at the end of 1FQ25.
• Cash provided by operations: $341 million, compared to $453 million in 1FQ24.
• Share repurchases and dividends: Returned $507 million to stockholders through share repurchases and cash dividends.

2FQ25 Financial Outlook
Net revenues are expected to be in the range of $1.565 billion – $1.715 billion

FY25 Financial Outlook
Net revenues are expected to be in the range of $6.480 billion – $6.680 billion

Dividend
The next cash dividend of $0.52 per share is to be paid on October 23, 2024, to stockholders of record as of the close of business on October 4, 2024.

CFO Retirement
NetApp also announces that Mike Berry, EVP and CFO, has given notice of his intent to retire from the company as of May 23, 2025. The company will engage in a comprehensive search for his successor. He will remain in his role until his successor is named and the company has completed the successful transition.

“On behalf of the board and everyone at NetApp, I would like to thank Mike for his deeply valued partnership and significant contributions to the company over the last 4+ years,” said “Kurian. “Mike has been a great asset to NetApp, having brought with him a wealth of knowledge and insight that helped us to enhance our strategic focus, strengthen our financial foundation, and drive shareholder value. I would like to thank Mike for his service and dedication and wish him all the best in his well-deserved retirement. We are committed to identifying a successor of equal caliber and to ensuring a seamless transition with Mike’s assistance.”