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 Adjustments
B. Stock-based compensation expenses. NetApp excludes stock-based compensation expenses from its non-GAAP measures primarily because the amount can fluctuate based on variables unrelated to the performance of the underlying business. While management views stock-based compensation as a key element o
Slide 3: Reconciliation of GAAP to Non-GAAP Income Statement Information
NETAPP, INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 Q1'FY25 Q2'FY25 Q3'FY25 NET INCOME $ 1,274 $ 149 $ 233 $ 313 $ 291 $ 986 $ 248 $ 299 $ 299 Adjustments: Amortization of intang
Slide 4: Reconciliation of GAAP to Non-GAAP Income Statement Information
NETAPP, INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 Q1'FY25 Q2'FY25 Q3'FY25 RESTRUCTURING CHARGES $ 120 $ 26 $ 5 $ 13 $ - $ 44 $ 17 $ 12 $ 9 Adjustments: Restructuring charges (1
Slide 5: Reconciliation of GAAP to Non-GAAP Gross Margin
RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN ($ in millions) FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 Q1'FY25 Q2'FY25 Q3'FY25 Gross margin-GAAP 66.2% 69.6% 71.1% 71.7% 70.5% 70.7% 71.3% 71.0% 69.8% Cost of revenues adjustments 1.0% 1.1% 1.0% 1.0% 1.0% 1.0% 0.9% 1.0% 0.9% Gross margin-Non-GAA
Slide 6: Effective Tax Rate and Free Cash Flow Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE TAX RATE FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 Q1'FY25 Q2'FY25 Q3'FY25 GAAP effective tax rate (19.5%) 19.9% 26.0% 18.1% 23.4% 21.9% 17.1% 16.9% 19.2% Adjustments: Income tax effects (4.8%) 1.6% (4.6%) 0.1% (2.5%) (1.6%) 3.6% 3.6% 1.4% Income tax
Slide 7: 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* FY2023 Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 FY2024 Q1'FY25 Q2'FY25 Q3'FY25 Revenues by Segment Product $ 3,049 $ 590 $ 706 $ 7
Slide 8: Reconciliation of GAAP Guidance to Non-GAAP Fourth Quarter Fiscal 2025
NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP FOURTH QUARTER FISCAL 2025 (Unaudited) Fourth Quarter Fiscal 2025 Gross Margin - GAAP Guidance 68% - 69% Adjustment: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guidance 69% - 70% Fourth Quarter Fiscal 2025 Operating Margin - GAAP
Slide 9: Reconciliation of GAAP Guidance to Non-GAAP Fiscal 2025
NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP FISCAL 2025 (Unaudited) Fiscal 2025 Gross Margin - GAAP Guidance ~70% Adjustment: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guidance ~71% Fiscal 2025 Operating Margin - GAAP Guidance 20% - 20.5% Adjustments: Amortization of intan