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 (D–J)
D. Acquisition-related expenses. NetApp excludes acquisition-related expenses, including (a) due diligence, legal and other one-time integration charges and (b) write down of assets acquired that NetApp does not intend to use in its ongoing business, from its non-GAAP measures, primarily because the
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 NET INCOME $ 937 $ 214 $ 750 $ 65 $ 245 $ 1,274 $ 149 $ 233 $ 313 Adjustments: Amortization of intang
Slide 4: Non-GAAP Research and Development Expenses
Adjustments: Stock-based compensation (75) (24) (26) (32) (29) (111) (32) (35) (32) NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES $ 806 $ 216 $ 217 $ 198 $ 214 $ 845 $ 215 $ 227 $ 217 GENERAL AND ADMINISTRATIVE EXPENSES $ 279 $ 72 $ 67 $ 59 $ 67 $ 265 $ 74 $ 75 $ 81 Adjustments: Stock-based compensatio
Slide 5: 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 RESTRUCTURING CHARGES $ 33 $ 11 $ 11 $ 87 $ 11 $ 120 $ 26 $ 5 $ 13 Adjustments: Restructuring charges
Slide 6: Provision (Benefit) for Income Taxes
PROVISION (BENEFIT) FOR INCOME TAXES $ 158 $ 56 $ (445) $ 112 $ 69 $ (208) $ 37 $ 82 $ 69 Adjustments: Income tax effects 68 18 11 33 (11) 51 31 9 22 Income tax benefits (expenses) from integration of acquired companies (1) - - - 27 27 - - - Resolution of income tax matters - - - (69) - (69) - - - I
Slide 7: Reconciliation of Non-GAAP to GAAP Gross Margin
RECONCILIATION OF NON-GAAP TO GAAP GROSS MARGIN ($ in millions) FY2022 Q1'FY23 Q2 FY'23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Gross margin-GAAP 66.8% 65.7% 65.4% 65.6% 68.0% 66.2% 69.6% 71.1% 71.7% Cost of revenues adjustments 0.8% 1.0% 0.9% 1.2% 1.0% 1.0% 1.1% 1.0% 1.0% Gross margin-Non-GA
Slide 8: Reconciliation of Non-GAAP to GAAP Operating Margin
RECONCILIATION OF NON-GAAP TO GAAP Operating Margin ($ in millions) FY2022 Q1'FY23 Q2 FY'23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Operating margin-GAAP 18.3% 16.0% 17.0% 11.3% 19.5% 16.0% 12.4% 19.5% 22.8% Adjustments: 5.4% 6.6% 6.7% 13.1% 6.6% 8.2% 9.1% 7.4% 7.4% Operating margin Non-GAAP
Slide 9: Reconciliation of Non-GAAP to GAAP Effective Tax Rate
RECONCILIATION OF NON-GAAP TO GAAP EFFECTIVE TAX RATE FY2022 Q1'FY23 Q2 FY'23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3'FY24 GAAP effective tax rate 14.4% 20.7% (145.9%) 63.3% 22.0% (19.5%) 19.9% 26.0% 18.1% Adjustments: Income tax effects 1.4% 0.8% 41.6% (4.1%) (10.3%) (4.8%) 1.6% (4.6%) 0.1% Incom
Slide 10: 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 Revenues by Segment Product $ 3,284 $ 786 $ 837 $ 6
Slide 11: 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 Software and recurring Support and public cloud revenue Product - Software $1,926 $476 $495 $390 $437 $1,798 $342 $398 $412 Support $2,344 $598 $607 $616 $598 $2,419 $611 $623 $631 Public Cloud $396 $132 $142 $150 $151 $575 $154
Slide 12: Non-GAAP Net Income
Non-GAAP Net Income FY2022 Q1'FY23 Q2'FY23 Q3'FY23 Q4'FY23 FY2023 Q1'FY24 Q2'FY24 Q3 FY'24 Non-GAAP Net Income $1,209 $269 $326 $301 $334 $1,230 $249 $334 $410 Non-GAAP Weighted Average Common Shares Outstanding, Diluted 229 224 220 219 217 220 216 211 211 Non-GAAP Net Income per Share, Diluted $5.2
Slide 13: Reconciliation of Non-GAAP Guidance to GAAP Fourth Quarter Fiscal 2024
NETAPP, INC. RECONCILIATION OF NON-GAAP GUIDANCE TO GAAP FOURTH QUARTER FISCAL 2024 (Unaudited) FOURTH Quarter Fiscal 2024 Gross Margin - Non-GAAP Guidance ~71% Adjustment: Cost of revenues adjustments (1)% Gross Margin - GAAP Guidance ~70% FOURTH Quarter Fiscal 2024 Product Margin - Non-GAAP Guidan
Slide 14: 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 71% - 72% Adjustment: Cost of revenues adjustments (1)% Gross Margin - GAAP Guidance 70% - 71% Fiscal 2024 Product Margin - Non-GAAP Guidance 60% Adjustments: - Product Margi