Q4 2024 NetApp Inc Earnings Call Transcript
Key Points
- NetApp Inc (NTAP) exceeded the midpoint of its revenue guidance for both Q4 and FY24, driven by strong growth in its All Flash portfolio.
- The company achieved record highs in annual gross margin, operating margin, earnings per share, operating cash flow, and free cash flow.
- Keystone, NetApp Inc (NTAP)'s storage-as-a-service offering, saw total contract value sales more than double from the prior year, reaching nearly $150 million.
- NetApp Inc (NTAP) introduced new All Flash A-Series Unified Data Storage products, enhancing performance and density at a lower cost.
- The company reported a robust year-over-year performance in its hybrid cloud segment, with revenue growth of 6% and product revenue growth of 8%.
- Despite the positive results, NetApp Inc (NTAP) remains cautiously optimistic about the macro environment, indicating ongoing uncertainty and caution in customer spending.
- Public cloud segment revenue grew only 1% year over year, reflecting slower growth compared to other segments.
- The company anticipates higher NAND component costs in fiscal '25, which could pressure gross margins in the second half of the year.
- Deferred revenue decreased by 2% year over year, consistent with the year-over-year decrease in Q3.
- NetApp Inc (NTAP) expects operating margins to be lower in Q1 of fiscal '25 due to seasonality and annual incentive compensation payments.
Good day and welcome to the NetApp fourth quarter fiscal year 2024 earnings call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Kris Newton, Vice President, Investor Relations. Please go ahead.
Hi, everyone. Thanks for joining us. With me today are our CEO, George Kurian, and CFO, Mike Berry. This call is being webcast live and will be available for replay on our website at netapp.com.
During today's call, we will make forward-looking statements and projections with respect to our financial outlook and future prospects, including, without limitation, our guidance for the first quarter and fiscal year 2025, our expectations regarding future revenue, profitability, and shareholder returns, and other growth initiatives and strategies. These statements are subject to various risks and uncertainties, which may cause our actual results to differ materially. For more information, please refer to the documents we file from time to time with the SEC and on our
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