Slide 1: NetApp usage of non-GAAP financial information
NetApp usage of non-GAAP financial information To supplement NetApp’s condensed consolidated financial statement information presented in accordance with generally accepted accounting principles in the United States (GAAP), NetApp provides investors with certain non-GAAP measures, including, but not
Slide 2: Litigation settlements and other adjustments
C. Litigation settlements. NetApp may periodically incur charges or benefits related to litigation settlements. NetApp excludes these charges and benefits, when significant, because it does not believe they are reflective of ongoing business and operating results. D. Acquisition-related expenses. Ne
Slide 3: Reconciliation of non-GAAP to GAAP income statement information
NETAPP, INC. RECONCILIATION OF NON-GAAP TO GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) FY 2021 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 FY 2022 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'23 FY 2023 NET INCOME $ 730 $ 202 $ 224 $ 252 $ 259 $ 937 $ 214 $ 750 $ 65 $ 245 $ 1,27
Slide 4: Sales and marketing expenses
SALES AND MARKETING EXPENSES $ 1,744 $ 451 $ 465 $ 461 $ 480 $ 1,857 $ 458 $ 479 $ 450 $ 442 $ 1,829 Adjustments: Amortization of intangible assets (8) (2) (3) (4) (4) (13) (6) (7) (6) (7) (26) Stock-based compensation (92) (26) (29) (30) (30) (115) (28) (35) (40) (32) (135) NON-GAAP SALES AND MARKE
Slide 5: Income from operations
INCOME FROM OPERATIONS $ 1,031 $ 249 $ 294 $ 321 $ 293 $ 1,157 $ 255 $ 282 $ 172 $ 309 $ 1,018 Adjustments: Amortization of intangible assets 49 9 10 13 14 46 17 17 17 17 68 Stock-based compensation 197 53 62 64 66 245 67 78 93 74 312 Litigation settlements 5 2 - - - 2 - - - - - Restructuring charge
Slide 6: Reconciliation of non-GAAP to GAAP gross margin
RECONCILIATION OF NON-GAAP TO GAAP GROSS MARGIN ($ in millions) FY 2021 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 FY 2022 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'23 FY 2023 Gross margin-GAAP 66.4% 68.5% 67.6% 66.5% 64.8% 66.8% 65.7% 65.4% 65.6% 68.0% 66.2% Cost of revenues adjustments 1.0% 0.8% 0.7% 0.9% 0.8% 0.
Slide 7: Reconciliation of non-GAAP to GAAP effective tax rate
RECONCILIATION OF NON-GAAP TO GAAP EFFECTIVE TAX RATE FY 2021 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 FY 2022 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'23 FY 2023 GAAP effective tax rate 24.1% 14.8% 20.0% 17.6% 4.8% 14.4% 20.7% (145.9%) 63.3% 22.0% (19.5%) Adjustments: Income tax effects (1.0%) 4.1% (0.8%) (2.5%
Slide 8: NetApp supplemental data
NETAPP, INC. SUPPLEMENTAL DATA (In millions except net income per share, percentages, DSO, DPO and Inventory Turns) RECONCILIATION OF SEGMENTS GROSS PROFIT TO TOTAL GROSS PROFIT* FY 2021 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 FY 2022 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'23 FY 2023 Revenues by Segment Produ
Slide 9: Geographic mix
Geographic Mix % of FY 2021 % of Q1 FY 2022 % of Q2 FY 2022 % of Q3 FY 2022 % of Q4 FY 2022 % FY 2022 % of Q1 FY 2023 % of Q2 FY 2023 % of Q3 FY 2023 % of Q4 FY 2023 % of FY 2023 Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Americas 54% 54% 55% 56% 54% 55%
Slide 10: Reconciliation of non-GAAP guidance to GAAP first quarter fiscal 2024
NETAPP, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP FIRST QUARTER FISCAL 2024 (Unaudited) First Quarter Fiscal 2024 Gross Margin - Non-GAAP Guidance ~70% Adjustment: Cost of revenues adjustments (1)% Gross Margin - GAAP Guidance ~69% First Quarter Fiscal 2024 Operating Margin - Non-GAAP Guidanc
Slide 11: Reconciliation of non-GAAP guidance to GAAP fiscal 2024
NETAPP, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP FISCAL 2024 (Unaudited) Fiscal 2024 Gross Margin - Non-GAAP Guidance ~70% Adjustment: Cost of revenues adjustments (1)% Gross Margin - GAAP Guidance ~69% Fiscal 2024 Product Margin - Non-GAAP Guidance ~55% Adjustments: - Product Margin - GAAP