NetApp, Inc. stock research
FY2023 Q4
NetApp (NTAP) Gross Margin — Quarter Ended Apr 28, 2023
Revenue increased sequentially but was lower than the same quarter last year. Gross profit rose slightly while cost of revenue declined, resulting in an improved gross margin compared to both prior periods.
Gross margin takeaway
Quarter ended Apr 28, 2023 · FY2023 Q4
Revenue increased sequentially but was lower than the same quarter last year. Gross profit rose slightly while cost of revenue declined, resulting in an improved gross margin compared to both prior periods.
- The gross margin improvement was driven by a decline in cost of revenue alongside a sequential increase in revenue, widening the spread between revenue and cost.
- Sequentially, revenue and gross profit were higher, while cost of revenue was lower, leading to a stronger gross margin. Compared to the same quarter last year, revenue was lower but gross profit was similar, and cost of revenue was significantly lower, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.0%
Gross profit
$1.1B
Revenue
$1.6B
Cost of revenue
$506.0M
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+3.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 27, 2023 | $1.5B | $1.0B | $525.0M | 65.6% |
| Apr 28, 2023 | $1.6B | $1.1B | $506.0M | 68.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 27, 2023
+2.4 pts
Year-over-year change
Apr 29, 2022
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a decline in cost of revenue alongside a sequential increase in revenue, widening the spread between revenue and cost.
Sequentially, revenue and gross profit were higher, while cost of revenue was lower, leading to a stronger gross margin. Compared to the same quarter last year, revenue was lower but gross profit was similar, and cost of revenue was significantly lower, resulting in a higher gross margin.
Monitor the trajectory of cost of revenue relative to revenue in the coming quarters to assess whether the current margin expansion is sustainable.