NetApp, Inc. stock research
FY2024 Q4
NetApp (NTAP) Gross Margin — Quarter Ended Apr 26, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose sequentially but fell year over year. Gross margin improved relative to last year but weakened slightly from the prior quarter.
Gross margin takeaway
Quarter ended Apr 26, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose sequentially but fell year over year. Gross margin improved relative to last year but weakened slightly from the prior quarter.
- The strongest observable margin driver is the year-over-year decline in cost of revenue relative to revenue, which supported gross margin expansion. This contrasts with the sequential increase in cost of revenue that slightly compressed margins.
- Compared to the prior quarter, gross margin was lower as cost of revenue grew faster than revenue. Compared to the same quarter last year, gross margin was higher, driven by a larger increase in gross profit relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.5%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$492.0M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+2.5 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 |
|---|---|---|---|---|
| Jul 28, 2023 | $1.4B | $996.0M | $436.0M | 69.6% |
| Oct 27, 2023 | $1.6B | $1.1B | $452.0M | 71.1% |
| Jan 26, 2024 | $1.6B | $1.2B | $455.0M | 71.7% |
| Apr 26, 2024 | $1.7B | $1.2B | $492.0M | 70.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 26, 2024
-1.2 pts
Year-over-year change
Apr 28, 2023
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year decline in cost of revenue relative to revenue, which supported gross margin expansion. This contrasts with the sequential increase in cost of revenue that slightly compressed margins.
Compared to the prior quarter, gross margin was lower as cost of revenue grew faster than revenue. Compared to the same quarter last year, gross margin was higher, driven by a larger increase in gross profit relative to revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its sequential increase contributed to the slight margin compression.