NetApp, Inc. stock research
FY2024 Q2
NetApp (NTAP) Gross Margin — Quarter Ended Oct 27, 2023
Revenue and gross profit both increased from the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Compared to the same quarter last year, revenue was lower but gross profit held steady, and a lower cost of revenue resulted in a higher gross margin.
Gross margin takeaway
Quarter ended Oct 27, 2023 · FY2024 Q2
Revenue and gross profit both increased from the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Compared to the same quarter last year, revenue was lower but gross profit held steady, and a lower cost of revenue resulted in a higher gross margin.
- The strongest observable margin driver was the reduction in cost of revenue relative to revenue, which improved gross margin both sequentially and year over year.
- Sequentially, revenue and gross profit were higher, and gross margin strengthened. Year over year, revenue was lower but gross profit remained stable, while gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.1%
Gross profit
$1.1B
Revenue
$1.6B
Cost of revenue
$452.0M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+5.7 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% |
| Oct 27, 2023 | $1.6B | $1.1B | $452.0M | 71.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 28, 2023
+1.5 pts
Year-over-year change
Oct 28, 2022
+5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue relative to revenue, which improved gross margin both sequentially and year over year.
Sequentially, revenue and gross profit were higher, and gross margin strengthened. Year over year, revenue was lower but gross profit remained stable, while gross margin improved.
Monitor whether the revenue decline from the prior year continues or reverses in future quarters.