NetApp, Inc. (NASDAQ:NTAP) Q2 2021 Earnings Conference Call - Final Transcript

Dec 01, 2020 • 05:00 pm ET


NetApp, Inc. (NASDAQ:NTAP) Q2 2021 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the NetApp Second Quarter Fiscal Year 2021 Conference Call. My name is Liz and I will 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 third quarter fiscal year 2021; our expectations regarding future revenue, profitability and shareholder return; 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 such as the continuing impact of the COVID-19 pandemic and the capital spending environment as well as our ability to gain share in the storage market, scale our cloud business, 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 Forms 10-Q and 10-K including in 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. Good afternoon, everyone. I hope you and your loved ones are safe and healthy. Thank you for joining us on our Q2 FY '21 earnings call.

NetApp delivered another strong quarter with revenue, operating margins and EPS, all exceeding our guidance. I am pleased with our continued progress in an uncertain market environment. The improvements we made to sales coverage in fiscal year '20 and our tight focus on execution against our biggest opportunities continue to pay off. We saw strength in all geographies with larger customers accelerating their digital transformations with NetApp. We will continue to exploit competitive transitions, the growth of the all-flash market and the accelerating shift to cloud to expand our leadership position.

It was a busy quarter for us. We hosted an Investor Day, held our annual customer conference and introduced significant new products and services, which further advance our Data Fabric strategy. I want to thank the team for their focus on execution and customer success, especially in these challenging times. At our Investor Day, we introduced our vision for a new NetApp, a cloud-led data-centric software company. We are building the new NetApp on a strong foundation. We are a trusted partner to the world's leading