NetApp Reports Strong First Quarter Fiscal Year 2025 Results
Intellectia.AI Updated: 2024-08-28
NetApp Reports Strong First Quarter Fiscal Year 2025 Results
NetApp (NASDAQ: NTAP), the intelligent data infrastructure company, has announced its financial results for the first quarter of fiscal year 2025, which ended on July 26, 2024.
Key Financial Metrics
| Metrics | Q1 FY2025 | Q1 FY2024 | YoY Growth | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $1.54 billion | $1.43 billion | 8% | $1.53 billion |
| GAAP Earnings Per Share (EPS) | $1.17 | $0.69 | 69.6% | - |
| Non-GAAP Earnings Per Share (EPS) | $1.56 | $1.15 | 35.7% | $1.45 |
| Net Income (GAAP) | $248 million | $149 million | 66.4% | - |
| Net Income (Non-GAAP) | $330 million | $249 million | 32.5% | - |
| Operating Margin (GAAP) | 18% | - | - | - |
| Operating Margin (Non-GAAP) | 26% | - | - | - |
NetApp's financial performance for the first quarter of fiscal year 2025 was robust, with both revenue and earnings per share surpassing consensus estimates. Year-over-year growth showed solid gains in total revenue and significant increases in both GAAP and non-GAAP EPS. This performance is indicative of strong operational execution and favorable market conditions.
Segment Performance
| Segment | Q1 FY2025 | Q1 FY2024 | YoY Growth |
|---|---|---|---|
| Hybrid Cloud | $1.38 billion | $1.28 billion | 7.8% |
| Public Cloud | $159 million | $154 million | 3.2% |
NetApp's revenue growth was driven primarily by its Hybrid Cloud segment, which saw a substantial 7.8% year-over-year increase. The Public Cloud segment also performed well, albeit with a more modest growth of 3.2%. These results highlight NetApp's expanding footprint in both categories.
Key Developments and Operational Highlights
- NetApp introduced several new products, including the NetApp™ AFF A-Series all-flash arrays and six new NetApp StorageGRID™ models.
- Record first quarter GAAP and non-GAAP operating margins of 18% and 26%, respectively.
- Continued significant development in cloud services, with first-party and marketplace cloud storage services revenue growing by approximately 40% year-over-year.
- Recurring all-flash array annualized net revenue run rate reached $3.4 billion, reflecting a 21% year-over-year increase.
Executive Commentary and Business Outlook
"We started fiscal year 2025 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 of NetApp.
Share Repurchase and Dividend
NetApp returned $507 million to stockholders through share repurchases and cash dividends in the first quarter. The company's 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.
Forward Guidance
NetApp issued financial guidance for the second quarter of fiscal year 2025 but did not provide any specific metrics in this report. The company continues to focus on capitalizing on its current momentum to address new market opportunities and extend its leadership position.
Stock Price Movement
Following the earnings release, NetApp's stock experienced a decrease of -0.92%.
In summary, NetApp's first quarter of fiscal year 2025 showcased strong financial performance and strategic advancements, with significant gains in revenue and profitability, backed by robust execution and innovative product offerings.
