NetApp, Inc. (NASDAQ:NTAP) Q2 2020 Earnings Conference Call - Final Transcript

Nov 13, 2019 • 05:30 pm ET

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NetApp, Inc. (NASDAQ:NTAP) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the NetApp Second Quarter of Fiscal Year 2020 Conference Call. My name is Andrew and I will be your conference call coordinator for today. [Operator Instructions]

I will now turn the call over to Kris Newton, Vice President, Corporate Communications and Investor Relations. Please proceed Ms. Newton.

Executive
Kris Newton

Thank you for joining us. With me today are our CEO, George Kurian; and CFO, Ron Pasek. This call is being webcast live and will be available for replay on our website at netapp.com.

During today's call we will make forward-looking statements and projections with respect to our financial outlook and future prospects such as our guidance for the third quarter and full fiscal year 2020, our expectations regarding future revenue, profitability and shareholder return, and our ability to improve execution gain share, reaccelerate growth and expand our sales capacity without increasing total operating expenses, all of which involve risk and uncertainty. We disclaim any obligation to update our forward-looking statements and projections. Actual results may differ materially for a variety of reasons, including macroeconomic and market conditions, the IT capital spending environment, and our ability to expand our total available market acquire new accounts expand in existing accounts, capitalize on our Data Fabric strategy, improve the consistency of our sales execution and continue our capital allocation strategy.

Please also refer to the documents we filed from time to time with the SEC and available on our website, specifically, our most recent Form 10-K for fiscal year 2019, including the Management's Discussion and Analysis of financial condition and results of operations and risk factors sections and our current reports on Form 8-K.

During the call, all financial measures presented will be non-GAAP unless otherwise indicated. Reconciliations of the GAAP to non-GAAP estimates are posted on our website.

I'll now turn the call over to George.

Executive
George Kurian

Thanks, Kris. Good afternoon and thank you for joining us. Our Q2 FY '20 results reflect the strength of our business model and the value of our innovation. We delivered gross margin, operating margin and EPS all solidly above our guidance ranges. Despite the ongoing macroeconomic uncertainty and the potential for continuing unpredictability in enterprise purchasing behavior, the fundamentals of our business are strong. I've just come from two great events NetApp Insight and Microsoft Ignite. And the many conversations I had with customers, prospects and partners, both underscore the power of our Data Fabric strategy to differentiate our solutions and highlight our success in reaching new customers and buying centers to expand our market share.

At this year's Insight User Conference, it was clear that we are solving real pain points for customers as they grapple with the complexity of hybrid multi-cloud IT. I witnessed the tangible enthusiasm for how we are helping customers address these challenges by building their own Data Fabric with NetApp. I'm sure, those of you who were able to join us felt that excitement. We saw an increase in overall attendance and for almost half