Executive Summary
NetApp’s QQ4 2024 results demonstrate a resilient profitability profile against a backdrop of modest quarterly top-line movement. Revenue for the quarter was $1.667 billion, essentially flat versus the prior-year period, with gross margin around 70% and an operating margin near 22%. Net income of $291 million supported an EPS of $1.41 (diluted $1.37), underscoring effective cost controls and a favorable product mix that sustains profitability despite modest revenue growth. Cash generation remains robust, with operating cash flow of $613 million and free cash flow of $567 million, enabling continued capital deployment via share repurchases and dividends while maintaining a strong liquidity position and a meaningful net cash/low-leverage balance sheet.
From a balance-sheet and cash-flow perspective, NetApp entered QQ4 2024 with substantial liquidity: cash and short-term investments totaling approximately $3.258 billion against reported debt of about $2.652 billion, implying a net cash posture (subject to data caveats noted below). The company generated solid cash flow (operating cash flow of $613 million) and deployed capital through a modest stock repurchase (~$100 million) and a $104 million dividend, highlighting a balanced approach to shareholder value creation. Management commentary (where available) and the business mix suggest continued emphasis on cloud-data-management offerings and hybrid cloud solutions as long-term growth levers, with ongoing investment in R&D (approximately $271 million for the quarter) to advance ONTAP, Astra, and cloud-native capabilities.
Investment implications: (1) Profitability and cash generation remain the strength, supporting a constructive long-term view despite near-term revenue volatility. (2) The balance sheet shows ample liquidity and a potential net-cash stance, providing flexibility for strategic investments and resilience to macro headwinds. (3) The revenue trajectory appears modest on a quarterly basis but is supported by a favorable mix toward software-enabled data-management and cloud services, which aligns with the secular shift to hybrid and multi-cloud environments.
Key Performance Indicators
Key Insights
Revenue: $1.667B in QQ4 2024, YoY growth reported as 6.72% and QoQ change reported as -0.06% in the dataset; Gross Profit: $1.169B with gross margin ~70.1%; Operating Income: $366M with operating margin ~21.96%; Net Income: $291M with net margin ~17.46%; EPS (GAAP): $1.41; Diluted EPS: $1.37; EBITDA: $460M with an EBITDA margin ~27.6%; Weighted-average shares (diluted): 212M; Cash Flow from operations: $613M; Free Cash Flow: $567M; Cash and investments: ~$3.258B; Total debt: ~$2.652B; Net debt p...
Financial Highlights
Revenue: $1.667B in QQ4 2024, YoY growth reported as 6.72% and QoQ change reported as -0.06% in the dataset; Gross Profit: $1.169B with gross margin ~70.1%; Operating Income: $366M with operating margin ~21.96%; Net Income: $291M with net margin ~17.46%; EPS (GAAP): $1.41; Diluted EPS: $1.37; EBITDA: $460M with an EBITDA margin ~27.6%; Weighted-average shares (diluted): 212M; Cash Flow from operations: $613M; Free Cash Flow: $567M; Cash and investments: ~$3.258B; Total debt: ~$2.652B; Net debt position reported as $749M in the dataset but calculated net cash position based on cash & investments vs debt is approximately -$0.606B; this reflects a data inconsistency that should be reconciled with the company’s filings.
Balance sheet health indicators include current ratio ~1.18 and quick ratio ~1.13, suggesting solid short-term liquidity. Capital deployment included a $100M share repurchase and $104M in dividends, contributing to earnings-per-share support and returning cash to shareholders. Cash end of period stood at about $1.903B, with investment securities bringing total cash & short-term investments to roughly $3.258B.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.67B |
6.72% |
-0.06% |
| Gross Profit |
1.17B |
5.32% |
-0.60% |
| Operating Income |
366.00M |
20.39% |
0.00% |
| Net Income |
291.00M |
24.89% |
0.00% |
| EPS |
1.41 |
25.89% |
6.82% |
Key Financial Ratios
operatingProfitMargin
22%
operatingCashFlowPerShare
$2.98
freeCashFlowPerShare
$2.75
dividendPayoutRatio
35.7%
Management Commentary
Transcript content not provided in the data set. No management-color quotes or thematic notes from an earnings call are available in this input to summarize or quote. When the transcript is available, add sections on strategy, operations, market conditions, and a synthesis of sentiment around cloud adoption, product roadmap, and execution.
Transcript not provided in the data set.
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Transcript not provided in the data set.
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Forward Guidance
No formal forward-looking guidance was extracted from the provided data. Given NetApp’s positioning in cloud-led and data-centric offerings (e.g., ONTAP, Astra, Cloud Volumes) and the broader industry shift toward multi-cloud data management, investors should monitor: (1) trajectory of software-enabled revenue and subscription mix versus hardware; (2) progress in hybrid-cloud deployments and net retention rates; (3) margin progression as cloud-related services scale; (4) cadence of R&D investments and product cycle refreshes; (5) macro IT spending trends and enterprise data-storage refresh cycles. Absent explicit guidance, the scenario assumes continued demand for data-management software and cloud services with potential margin expansion if the services mix improves and operating leverage materializes.