NetApp, Inc. (NASDAQ:NTAP) Q1 2021 Earnings Conference Call - Final Transcript

Aug 26, 2020 • 05:00 pm ET


NetApp, Inc. (NASDAQ:NTAP) Q1 2021 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen. And welcome to the NetApp First Quarter Fiscal Year 2021 Conference Call. My name is Joel and I'll be your conference call coordinator for today. [Operator Instructions] I will now turn the call over to Kris Newton, Vice President of Investor Relations. Please proceed Ms. Newton.

Kris Newton

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

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 second quarter fiscal year 2021; our expectations regarding future revenue, profitability, and shareholder returns; and our ability to return to growth, gain share, and scale our cloud business, 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, including the continuing impact of the COVID-19 pandemic; the IT capital spending environment; and our ability to expand our total available market, capitalize on our Data Fabric strategy, generate cash flow and execute our capital allocation strategy.

Please also refer to the documents we file from time-to-time with the SEC, and available on our website, specifically our most recent Form 10-K for fiscal year 2020, 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 GAAP to non-GAAP estimates are posted on our website.

I'll now turn the call over to George.

George Kurian

Thanks, Kris. And good afternoon, everyone. Thank you for joining us today. We hope that you all are staying safe and healthy.

As we navigate the health, economic and social changes impacting all of us, we continue to focus on what we can control and improve our operational execution. In the face of an uncertain environment, NetApp performed well in the quarter, with revenue, operating margin and EPS, all exceeding our guidance. I want to thank all of our employees for their hard work in the midst of this pandemic.

Due to the global pandemic, the macroeconomic and IT spending environments remain challenging, consistent with what we saw exiting Q4. Despite these pressures, enterprises are prioritizing transformational and hybrid cloud projects, which drove our momentum as customers turn to NetApp to help them accelerate these plans.

At NetApp, we work hard to be the best partner to our customers, a value that is even more important during these particularly challenging times. We continue to deliver heightened support for customers delivering vital public health and safety services, first responders and public sector institutions. For IT teams affected by the pandemic, we are offering 25 terabytes of NetApp Cloud Volumes Service for Google Cloud free of charge. We also extended our