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: Non-GAAP adjustment definitions (Litigation settlements onward)
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) FY2022 Q1'FY23 Q2 FY'23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 NET INCOME $ 937 $ 214 $ 750 $ 65 $ 245 $ 1,274 $ 149 $ 233 $ 313 $ 291 $ 986 Adjustme
Slide 4: 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) FY2022 Q1'FY23 Q2 FY'23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 RESTRUCTURING CHARGES $ 33 $ 11 $ 11 $ 87 $ 11 $ 120 $ 26 $ 5 $ 13 $ - $ 44 Adjustment
Slide 5: Net Income Per Share
NET INCOME PER SHARE $ 4.09 $ 0.96 $ 3.41 $ 0.30 $ 1.13 $ 5.79 $ 0.69 $ 1.10 $ 1.48 $ 1.37 $ 4.63 Adjustments: Amortization of intangible assets 0.20 0.08 0.08 0.08 0.08 0.31 0.07 0.07 0.07 0.07 0.27 Stock-based compensation 1.07 0.30 0.35 0.42 0.34 1.42 0.40 0.44 0.42 0.42 1.68 Litigation settlemen
Slide 6: Reconciliation of Non-GAAP to GAAP Services Gross Margin
RECONCILIATION OF NON-GAAP TO GAAP SERVICES GROSS MARGIN ($ in millions) FY2022 Q1'FY23 Q2 FY'23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 Services gross margin-GAAP 82.1% 81.5% 80.9% 81.3% 79.6% 80.8% 79.7% 79.4% 79.9% 79.4% 79.6% Cost of services revenues adjustments 1.2% 1.7%
Slide 7: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW (NON-GAAP) (In millions) FY2022 Q1'FY23 Q2 FY'23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 Net cash provided by operating activities $ 1,211 $ 281 $ 214 $ 377 $ 235 $ 1,107 $ 453 $ 135 $ 484 $
Slide 8: 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* FY2022 Q1'FY23 Q2'FY23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 Revenues by Segment Product $ 3,284
Slide 9: Software and recurring Support and public cloud revenue
FY2022 Q1'FY23 Q2'FY23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3 FY'24 Q4 FY'24 FY2024 Software and recurring Support and public cloud revenue Product - Software $1,926 $476 $495 $390 $437 $1,798 $342 $398 $412 $446 $1,598 Support $2,344 $598 $607 $616 $598 $2,419 $611 $623 $631 $623 $2,488 Public C
Slide 10: Select Balance Sheet Items
Select Balance Sheet Items Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4'FY23 Q1'FY24 Q2'FY24 Q3 FY'24 Q4 FY'24 Deferred Revenue and Financed Unearned Services Revenue $4,170 $4,051 $4,216 $4,313 $4,182 $4,002 $4,127 $4,234 DSO (days) 49 50 49 57 41 46 45 55 DPO (days) 86 92 75 70 72 83 79 96 Inventory Turns 9 9 12
Slide 11: Guidance to GAAP First Quarter Fiscal 2025
NETAPP, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP FIRST QUARTER FISCAL 2025 (Unaudited) First Quarter Fiscal 2025 Gross Margin - Non-GAAP Guidance ~72% Adjustment: Cost of revenues adjustments (1)% Gross Margin - GAAP Guidance ~71% First Quarter Fiscal 2025 Operating Margin - Non-GAAP Guidanc
Slide 12: Guidance to GAAP Fiscal 2025
NETAPP, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP FISCAL 2025 (Unaudited) Fiscal 2025 Gross Margin - Non-GAAP Guidance 71% - 72% Adjustment: Cost of revenues adjustments (1)% Gross Margin - GAAP Guidance 70% - 71% Fiscal 2025 Operating Margin - Non-GAAP Guidance 27% - 28% Adjustments: Amortiz