Q1 2025 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$101.18April 26, 2024
Final Price$126.15July 26, 2024
Price Change$24.97
% Change+24.68%
- Strong growth in all-flash array business, with 21% year-over-year growth and an annualized revenue run rate of $3.4 billion, driven by both new customer acquisitions and upgrades from existing customers.
- NetApp's broadened and differentiated product portfolio, including capacity flash and performance flash products across all price points, is capturing market share and outperforming integrated system vendors.
- Positioned to capitalize on the growing enterprise AI demand, with unique capabilities in AI workloads, data preparation, and hybrid cloud pipelines, placing NetApp in the early innings of a large AI-driven storage opportunity.
- NetApp's AI storage revenue is still in early stages, with the CEO acknowledging that they are "in the early innings of the AI landscape from a storage perspective," suggesting that significant revenue impact may not materialize in the near term.
- Despite strong growth in all-flash array sales (up 21% this quarter), the penetration of flash into NetApp's installed base has remained steady quarter-over-quarter, indicating challenges in increasing adoption among existing customers.
- The competitive landscape in AI storage is intensifying, with competitors like Vast Data and WEKA being mentioned by analysts, which may affect NetApp's ability to capture market share despite their confidence in their capability set.