NetApp: Fiscal 2FQ23 Financial Results

Delivers all time 2FQ company highs for revenue, billings, gross profit dollars, operating income and EPS
• Net revenues for 2FQ23 grew 6% Y/Y to $1.66 billion, 12% in constant currency
• 2FQ23 product revenue grew 3% Y/Y to $837 million, the 7th consecutive quarter of Y/Y growth
• 3FQ23 billings were $1.60 billion, an increase of 3% Y/Y, 9% in constant currency
• Public Cloud annualized revenue run rate (ARR) increased 55% Y/Y to $603 million
• AFA ARR increased 2% Y/Y to $3.1 billion
• $258 million returned to shareholders in share repurchases and cash dividends in the second quarter

NetApp, Inc. reported financial results for the second quarter of fiscal year 2023, which ended on October 28, 2022.

“We delivered a solid quarter in a dynamic environment, with all-time highs for 2Q revenue, billings, gross profit dollars, operating income, and EPS,” said George Kurian. “Our modern approach to the hybrid multicloud delivers significant value to our customers and creates sizeable opportunity for us. In a challenging macro environment, we remain focused on innovation, execution, and operational discipline.“

2FQ23 financial results

• •Net revenues: $1.66 billion, compared to $1.57 billion in 2FQ22
  • Hybrid Cloud segment revenue: $1.52 billion, compared to $1.48 billion in 2FQ22.
  • Public Cloud segment revenue: $142 million, compared to $87 million in 2FQ22.
• Net income: GAAP net income of $750 million, compared to $224 million in 2FQ22; non-GAAP net income5 of $326 million, compared to $292 million in 2FQ22. The Y/Y fluctuations in GAAP and non-GAAP net income each include an unfavorable impact of approximately $47 million from foreign currency exchange rate changes.
• Earnings per share: GAAP net income per share6 of $3.41, compared to $0.98 in 2FQ22; non-GAAP net income per share of $1.48, compared to $1.28 in 2FQ22. The Y/Y fluctuations in GAAP and non-GAAP net income per share each include an unfavorable impact of approximately $0.21 from foreign currency exchange rate changes.
• Cash, cash equivalents and investments: $3.03 billion at the end of 2FQ3.
• Cash provided by operations: $214 million, compared to $298 million in the second quarter of fiscal year 2022.
• Share repurchase and dividends: Returned $258 million to shareholders through share repurchases and cash dividends.

The next cash dividend of $0.50 per share is to be paid on January 25, 2023, to shareholders of record as of the close of business on January 6, 2023.

3FQ22 outlook

FY23 outloook