NetApp, Inc. stock research
FY2024 Q1
NetApp (NTAP) Gross Margin — Quarter Ended Jul 28, 2023
Revenue and cost of revenue both declined from the preceding quarter, but gross profit decreased less proportionally, resulting in a higher gross margin. Compared to the same quarter last year, revenue and cost of revenue were both lower, while gross profit improved and gross margin expanded.
Gross margin takeaway
Quarter ended Jul 28, 2023 · FY2024 Q1
Revenue and cost of revenue both declined from the preceding quarter, but gross profit decreased less proportionally, resulting in a higher gross margin. Compared to the same quarter last year, revenue and cost of revenue were both lower, while gross profit improved and gross margin expanded.
- The gross margin strengthened sequentially and year-over-year, driven by a larger reduction in cost of revenue relative to the change in revenue, though the absolute dollar amounts of each declined.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were lower, while gross margin was higher. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, gross profit was higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.6%
Gross profit
$996.0M
Revenue
$1.4B
Cost of revenue
$436.0M
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+3.8 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% |
| Jul 28, 2023 | $1.4B | $996.0M | $436.0M | 69.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 28, 2023
+1.6 pts
Year-over-year change
Jul 29, 2022
+3.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially and year-over-year, driven by a larger reduction in cost of revenue relative to the change in revenue, though the absolute dollar amounts of each declined.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were lower, while gross margin was higher. Compared to the same quarter one year earlier, revenue and cost of revenue were lower, gross profit was higher, and gross margin was higher.
Monitor the trajectory of revenue relative to cost of revenue, as the current margin improvement occurred on lower revenue.