Data storage provider NetApp tops Q4 expectations

NetApp said the annualized revenue run rate (ARR) for its its public cloud services increased 171% year-over-year to $301 million.

Data storage provider NetApp delivered solid fourth quarter financial results on Wednesday, beating market expectations amid strong growth its its public cloud services business. For Q4, NetApp said the annualized revenue run rate (ARR) for its its public cloud services increased 171% year-over-year to $301 million.

Elsewhere on the balance sheet, NetApp reported non-GAAP net income of $334 million, or $1.46 per share, on revenue of $1.56 billion, up from $1.4 billion the year prior. Non-GAAP earnings were $1.17 per share. Wall Street was looking for earnings of $1.12 per share on revenue of $1.5 billion.

NetApp said that its all flash array business had an annualized net revenue run rate of $2.9 billion, up from $2.6 billion a year ago. Meanwhile, NetApp said billings increased 12% year-over-year to $1.74 billion in the fourth quarter.

"We delivered fourth quarter results above expectations, capping off a solid year of growth," said NetApp CEO George Kurian. "Our momentum underscores our value to customers in a hybrid, multi-cloud world. We are gaining share in key storage markets and our public cloud services are at a scale where they are positively impacting total company billings and revenue growth. Our focused execution last year has set us up well for FY22."

For the full fiscal year, NetApp's revenue came to $5.74 billion, with non-GAAP earnings of $4.06 per share. NetApp said product revenue for fiscal year 2021 came to $2.99 billion. 

For the current quarter, NetApp expects non-GAAP earnings per share between 89 cents and 97 cents and revenue in the range of $1.37 billion and $1.47 billion. Wall Street was predicting non-GAAP EPS of 87 cents on $1.37 billion of revenue. 

For the year, analysts are looking for NetApp to deliver earnings of $4.52 per share on revenue of $5.96 billion. NetApp followed up with full-year EPS guidance in the range of $4.45 to $4.65 per share with revenue growing between 6% to 7%.

Shares of NetApp were up slightly after hours.