NetApp: Fiscal 2FQ25 Financial Results

• Record AFA annualized net revenue run rate of $3.8 billion, a Y/Y increase of 19% Y/Y
• First party and marketplace cloud storage services revenue grew approximately 43% Y/Y
• Second quarter GAAP operating margin of 21%; record 2nd quarter non-GAAP operating margin of 29%
• Second quarter GAAP net income per share of $1.42; record 2nd quarter non-GAAP net income per share of $1.87
• Returned $406 million to stockholders through share repurchases and cash dividends

NetApp, Inc. reported financial results for the second quarter of fiscal year 2025, which ended on October 25, 2024.

“Our strong Q2 performance was driven by another record-breaking quarter in all-flash storage and strong performance in first party and marketplace cloud storage services,” said George Kurian, CEO. “Broad-based customer preference for our intelligent data infrastructure platform and visionary approach for a data-driven future has enabled us to outgrow the market and take share from competitors. Our focus and momentum fuel my confidence in our ability to deliver outstanding results for customers and shareholders.”

2FQ25 Results

• Net revenue: $1.66 billion, compared to $1.56 billion in 2FQ24; a Y/Y increase of 6%.
• Hybrid Cloud segment revenue: $1.49 billion, compared to $1.41 billion in 2FQ24.
• Public Cloud segment revenue: $168 million, compared to $154 million in 2FQ24.
• Billings: $1.59 billion, compared to $1.45 billion in 2FQ24; a Y/Y increase of 9%.
• All-flash array ARR: $3.8 billion, compared to $3.2 billion in 2FQ24; a Y/Y increase of 19%.
• Net income: GAAP net income of $299 million, compared to $233 million in 2FQ24; non-GAAP net income of $392 million, compared to $334 million in 2FQ24.
• Earnings per share: GAAP net income per share of $1.42, compared to $1.10 in 2FQ24; non-GAAP net income per share of $1.87, compared to $1.58 in 2FQ24.
• Cash, cash equivalents and investments: $2.22 billion at the end of 2FQ25.
• Cash provided by operations: $105 million, compared to $135 million in 2FQ24.
• Share repurchases and dividends: Returned $406 million to stockholders through share repurchases and cash dividends.

Dividend
The next cash dividend of $0.52 per share is to be paid on January 22, 2025, to stockholders of record as of the close of business on January 3, 2025.