NetApp's all flash array business hits $2.6 billion annual run rate

NetApp reported its fourth quarter financial results on Wendsday. Nutanix and Autodesk also reported earnings.
Written by Natalie Gagliordi, Contributor and  Stephanie Condon, Senior Writer

Data storage provider NetApp delivered solid fourth quarter financial results on Wednesday, leading an earnings parade that also includes Nutanix and Autodesk. 

For Q4, NetApp reported non-GAAP net income of $196 million, or 88 cents per share, on revenue of $1.4 billion, down from $1.59 billion the year prior. Non-GAAP earnings were $1.19 per share. Wall Street was looking for earnings of $1.15 per share on revenue of $1.43 billion.

NetApp said that its all flash array business had an annualized net revenue run rate of $2.6 billion, up from $2.3 billion last quarter. Meanwhile, annualized recurring revenue from its cloud data services increased 113% year-over-year to $111 million. 

"Despite the challenging environment, we delivered solid gross margin, cash flow and operating leverage in the fourth quarter," said NetApp CEO George Kurian. "Our cloud business grew substantially and our new customer acquisition districts again performed well. The strength and resiliency of our business model enables us to continue to execute our strategy while navigating a range of potential demand environments. While we cannot predict when the world will return to normal, the enduring importance of data is clear. We are confident that the demand for our products and services will be strong as we emerge from this crisis."

For the full fiscal year, NetApp's revenue came to $5.41 billion, with non-GAAP earnings of $4.05 per share. NetApp said product revenue for fiscal year 2020 came to $2.99 billion. 

For the current quarter, NetApp said it expects non-GAAP earnings per share between 36 cents and 44 cents and revenue in the range of $1.09 billion and $1.24 billion. Wall Street was predicting non-GAAP EPS of 72 cents on $1.21 billion of revenue. For the year, analysts are looking for NetApp to deliver earnings of $4.07 per share on revenue of $5.38 billion. 

Meanwhile, Nutanix's third quarter financial results beat market estimates. The enterprise cloud company reported a non-GAAP net loss per share of 69 cents on revenue of $318.3 million, up 11 percent year-over-year. 

Analysts were looking for a net loss of 88 cents per share on revenue of $307.41 million. 

"We are pleased to have delivered a solid quarter, particularly in light of the global uncertainty caused by the COVID-19 pandemic," CEO Dheeraj Pandey said in a statement. "We are delighted to be in a position to support our customers with mission-critical solutions as they navigate the rapidly changing landscape of the future of work. Our near-term focus is on thoughtful cash and expense management, while proactively preparing to emerge from this time with the ability to drive long-term growth and scale our business with the market."

Billings for the quarter came to $383.5 million, up 11 percent year-over-year.

Nutanix continued its transition to a subscription-based business model, with subscription billings up 43 percent year-over-year to $321 million, representing 84 percent of total billings. Subscription revenue was up 55 percent year-over-year to $261 million, representing 82 percent of total revenue.

The company ended the quarter with 16,580 end-customers. 

Rounding out Wednesday's earnings, Autodesk published first quarter results that beat market expectations. Its non-GAAP diluted EPS was 85 cents on revenue of $886 million, an increase of 20 percent. 

Analysts were looking for earnings of 81 cents per share on revenue of $879.24 million. 

"We posted solid first quarter results," CEO Andrew Anagnost said in a statement. "Our ability to succeed through challenging times is driven by our people, products, and technology and how they adapt to a rapidly changing world... We have also maintained our focus on long-term opportunities and remain confident in our growth drivers and fiscal 2023 targets."

Total billings for the quarter increased 11 percent to $884 million.

Subscription plan revenue was $803 million, an increase of 35 percent. Autodesk's net revenue retention rate was within the range of 110 to 120 percent.

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