NetApp reported financial results for the fourth
quarter and fiscal year 2023, which ended on April 28, 2023.
"Our sharpened focus and disciplined execution yielded solid Q4 results
in a dynamic environment. Digital transformation projects involving
business analytics, AI, data security, and application modernization,
both on premises and in the cloud, remain top IT priorities," said
George Kurian, chief executive officer. "We deliver significant value to
customers on their transformation journeys with a modern approach to
hybrid, multicloud infrastructure and data management. We are entering
FY24 with substantial new innovations and a more focused operating model
to better address the areas of priority spending. I am confident in our
ability to drive long-term growth, extend our leadership position, and
deliver increasing value for customers, partners, and shareholders."
Fourth quarter of fiscal year 2023 financial results
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Net revenues: $1.58 billion, compared to $1.68 billion in the
fourth quarter of fiscal year 2022; a year-over-year decrease of 6%, or
4% in constant currency.
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Hybrid Cloud segment revenue: $1.43 billion, compared to $1.56 billion in the fourth quarter of fiscal year 2022
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Public Cloud segment revenue: $151 million, compared to $120 million in the fourth quarter of fiscal year 2022
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Billings: $1.67 billion, compared to $2.02 billion in
the fourth quarter of fiscal year 2022; a year-over-year decrease of
17%, or 15% in constant currency.
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NetApp Public Cloud annualized revenue run rate (ARR) $620 million, compared to $505 million in the fourth quarter of fiscal year 2022; a year-over-year increase of 23%.
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All-flash array ARR $3.1 billion, compared to $3.2 billion in the fourth quarter of fiscal year 2022; a year-over-year decrease of 4%.
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Net income: GAAP net income of $245 million, compared to $259 million in the fourth quarter of fiscal year 2022; non-GAAP net income of
$334 million, compared to $324 million in the fourth quarter of fiscal
year 2022. The year-over-year fluctuations in GAAP and Non-GAAP net
income each include an unfavorable impact of approximately $18 million
from foreign currency exchange rate changes.
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Earnings per share: GAAP net income per share of
$1.13 compared to $1.14 in the fourth quarter of fiscal year 2022;
non-GAAP net income per share of $1.54 compared to $1.42 in the fourth
quarter of fiscal year 2022. The year-over-year fluctuations in GAAP and
Non-GAAP net income per share each include an unfavorable impact of
approximately $0.08 from foreign currency exchange rate changes.
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Cash, cash equivalents and investments: $3.07 billion at the end of the fourth quarter of fiscal year 2023.
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Cash provided by operations: $235 million, compared to $411 million in the fourth quarter of fiscal year 2022.
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Share repurchase and dividends: Returned $256 million to shareholders through share repurchases and cash dividends.
Fiscal year 2023 financial results
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Net revenues: $6.36 billion, compared to $6.32 billion in fiscal year 2022; a year-over-year increase of 1%, or 4% in constant currency.
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Hybrid Cloud segment revenue: $5.79 billion, compared to $5.92 billion in fiscal year 2022
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Public Cloud segment revenue: $575 million, compared to $396 million in fiscal year 2022
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Billings: $6.41 billion, compared to $6.70 billion in fiscal year 2022, a year-over-year decrease of 4%, or 1% in constant currency.
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Net income: GAAP net income of $1.27 billion, compared to $937
million in fiscal year 2022; non-GAAP net income of $1.23 billion,
compared to $1.21 billion in fiscal year 2022. The year-over-year
fluctuations in GAAP and Non-GAAP net income each include an unfavorable
impact of approximately $126 million from foreign currency exchange
rate changes.
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Earnings per share: GAAP net income per share of $5.79 compared
to $4.09 in fiscal year 2022; non-GAAP net income per share of $5.59
compared to $5.28 in fiscal year 2022. The year-over-year fluctuations
in GAAP and Non-GAAP net income per share each include an unfavorable
impact of approximately $0.57 from foreign currency exchange rate
changes.
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Cash provided by operations: $1.11 billion compared to $1.21 billion in fiscal year 2022.
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Share repurchase and dividends: Returned $1.28 billion to shareholders through share repurchases and cash dividends.
Fourth quarter of fiscal year 2023 business highlights
Leading product innovation
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NetApp strengthens its industry-leading flash portfolio with the announcement of the availability of the NetApp AFF C-Series, a new family of capacity flash storage options that delivers lower-cost all-flash storage, and the NetApp AFF A150, a new entry-level storage system in the AFF A-Series family of all-flash systems.
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NetApp launched ONTAPTM One, the industry's most
comprehensive data management suite, giving customers access to
comprehensive NetApp ONTAP software for NetApp AFF C-series, including
anti-ransomware, data protection, and security/compliance functionality.
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NetApp launched NetApp Advance, a new portfolio of storage
programs and guarantees to help customers cost-effectively future proof
on-premises environments, including the NetApp Storage Lifecycle Program,
which offers customers enterprise storage that includes non-disruptive
controller refresh, at no additional cost, with the option to flexibly
scale to Keystone Storage-as-a-Service and/or public cloud.
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NetApp announced the preview of a new sustainability SLA for NetApp Keystone,
which will provide a standard watts/TB for each SLA-based performance
level, with service credits available if those targets aren't met.
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NetApp announced that it is now previewing the BlueXP Sustainability Dashboard, which will help customers understand their data center's carbon footprint across environments.
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Spot by NetApp announced that Ocean for Apache Spark is now available to all customers within the Spot console.
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To address new cloud product silos, ad hoc scripting for optimization
and scale, and manual maintenance of cloud operations, Fylamynt
(acquired by NetApp in 2022) has been revamped to become Spot Connect, available for private preview.
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Spot by NetApp announced its latest innovation for Spot Security, a machine learning model that detects anomalous events.
Customer and partner momentum
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NetApp announced the general availability of NetApp Cloud Volumes Service as datastores for Google Cloud VMware Engine, giving
customers the ability to easily scale and protect virtual machine (VM)
data by using NetApp ONTAP data management software with a fully managed
service in Google Cloud.
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Spot by NetApp announced the general availability of Azure Stateful Node.
With Azure Stateful Node, Spot by NetApp customers can now run their
stateful compute workloads on Azure with up to 90% immediate cost
reduction and maximum availability.
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SAS, a global analytics leader, chose NetApp Astra to
provide a disaster recovery solution for its SAS Viya offerings deployed
as a hosted managed service in the SAS Cloud on Microsoft Azure.
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NetApp CloudCheckr has achieved the AWS Cloud Operations Competency in the categories of Cloud Financial Management and Compliance and Auditing.
Corporate news and events
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NetApp released the 2023 Cloud Complexity Report, a global survey
exploring how technology decision makers are navigating cloud
requirements coming from digital transformation and AI initiatives and
the complexity of multicloud environments.
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Spot by NetApp published the report DevOps Revealed: Insights and trends driving DevOps productivity and job satisfaction.
NetApp awards and recognition
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NetApp was recognized by GigaOm for three Outperformer placements in their annual GigaOm Radar reports for storage.
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NetApp was listed as one of CRN's 50 Coolest Data Center Companies of 2023.
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NetApp was listed as one of CRN's Coolest Software-Defined Storage Vendors of the 2023 Storage 100.
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NetApp was listed as one of CRN's Coolest Big Data System and Cloud Platform Companies of the 2023 Big Data 100.
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NetApp's Jenni Flinders, SVP of NetApp Partner Programs, was listed as one of 50 of CRN's 2023 Most Influential Channel Chiefs.
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NetApp's Maya Zakhour, Director of Channel Sales Eastern Europe, META, Iberia, & Latin America, won the Woman Executive of the Year Award at CPI and Tahawultech's Women in Technology Forum and Awards.
Executive leadership announcements
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NetApp hired Haiyan Song as Executive Vice President and General Manager of CloudOps Business.
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NetApp hired Jim Lambe as Vice President and General Manager of NetApp Canada.
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