NetApp Inc (NTAP) 2023 Q3 法說會逐字稿

Good day, and welcome to the NetApp Third Quarter Fiscal Year 2023 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 NetApp 2023 財年第三季度收益電話會議。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to Kris Newton, Vice President of Investor Relations. Please go ahead.

我現在想將會議轉交給投資者關係副總裁 Kris Newton。請繼續。

Hi, everyone. Thanks for joining us. With me today are our CEO, George Kurian; and CFO, Mike Berry. This call is being webcast live and will be available for replay on our website at netapp.com.

大家好。感謝您加入我們。今天和我在一起的是我們的首席執行官 George Kurian；和首席財務官 Mike Berry。此電話會議正在進行網絡直播，可在我們的網站 netapp.com 上重播。

During today's call, we will make forward-looking statements and projections with respect to our financial outlook and future prospects such as our guidance for fourth quarter and fiscal year 2023; our expectations regarding future revenue, profitability and shareholder returns; our alignment with the secular growth trends of data-driven digital and cloud transformation; our expectations regarding the future growth in the number of cloud customers, their usage of cloud services and the resulting impact on our Public Cloud and Hybrid Cloud segments; our ability to deliver innovation, sharpen our execution and focus on our strategic growth opportunities while optimizing our operating cost; and our ability to strengthen our position, rebalance our sales and marketing efforts and drive sustained growth in both our Hybrid Cloud and Public Cloud segments in a turbulent macroeconomic environment, all of which involve risk and uncertainty.

在今天的電話會議上，我們將就我們的財務前景和未來前景做出前瞻性陳述和預測，例如我們對第四季度和 2023 財年的指導；我們對未來收入、盈利能力和股東回報的預期；我們與數據驅動的數字化和雲轉型的長期增長趨勢保持一致；我們對雲客戶數量未來增長、他們對雲服務的使用以及由此對我們的公共雲和混合雲部門產生的影響的預期；我們提供創新、提高執行力和專注於戰略增長機會的能力，同時優化我們的運營成本；以及我們在動蕩的宏觀經濟環境中鞏固我們的地位、重新平衡我們的銷售和營銷工作並推動我們的混合雲和公共雲領域持續增長的能力，所有這些都涉及風險和不確定性。

We disclaim any obligation to update our forward-looking statements and projections. Actual results may differ materially for a variety of reasons, including macroeconomic and market conditions, such as the IT capital spending environment, including the focus on optimization of cloud spending, inflation, rising interest rates and foreign exchange volatility and the continuing impact and uneven recovery of the COVID-19 pandemic, including the resulting supply chain disruption, as well as our ability to keep pace with the rapid industry technological and market trends and changes in the markets in which we operate, execute our evolved cloud strategy and introduce and gain market acceptance for our products and services, maintain our customer partner supplier and contract manufacturer relationships on favorable terms and conditions, manage material cybersecurity and other security breaches and manage our gross profit margins and generate greater cash flow.

我們不承擔任何更新我們的前瞻性陳述和預測的義務。實際結果可能因各種原因而存在重大差異，包括宏觀經濟和市場條件，例如 IT 資本支出環境，包括對雲支出優化的關注、通貨膨脹、利率上升和外匯波動以及持續影響和不均衡的複蘇COVID-19 大流行的影響，包括由此造成的供應鏈中斷，以及我們跟上快速的行業技術和市場趨勢以及我們運營所在市場的變化、執行我們不斷發展的雲戰略以及引入和贏得市場的能力接受我們的產品和服務，以優惠的條款和條件維護我們的客戶合作夥伴供應商和合同製造商關係，管理重大網絡安全和其他安全漏洞，管理我們的毛利率並產生更大的現金流。

Please also refer to the documents we file from time to time with the SEC and available on our website, specifically our most recent Form 10-K and Form 10-Q, including in the Management's Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors section.

另請參閱我們不時向美國證券交易委員會提交並在我們網站上提供的文件，特別是我們最近的 10-K 表格和 10-Q 表格，包括管理層對財務狀況和經營業績的討論和分析以及風險因素部分。

During the call, all financial measures presented will be non-GAAP, unless otherwise indicated. Reconciliations of GAAP to non-GAAP estimates are posted on our website.

在電話會議期間，除非另有說明，否則所有提出的財務措施都將是非公認會計原則。 GAAP 與非 GAAP 估計的對賬已發佈在我們的網站上。

I'll now turn the call over to George.

我現在將電話轉給喬治。

Thanks, Kris. Good afternoon, everyone. Thanks for joining us today.

謝謝，克里斯。大家下午好。感謝您今天加入我們。

In Q3, we executed well on the elements under our control in the face of a weakening IT spending environment and continued cloud cost optimization. Disciplined operational management yielded operating margin and EPS that exceeded expectations despite revenue coming in at the low end of our guidance.

在第三季度，面對疲軟的 IT 支出環境和持續的云成本優化，我們在我們控制的要素上執行良好。儘管收入處於我們指導的低端，但紀律嚴明的運營管理產生了超出預期的營業利潤率和每股收益。

We are delivering on our commitments and responding to the dynamic environment. We adjusted our cost structure, introduced a portfolio of capacity flash arrays to support cost-sensitive customers and continue to work with our customers to help them optimize their cloud spending.

我們正在兌現我們的承諾，並對不斷變化的環境做出反應。我們調整了成本結構，推出了容量閃存陣列產品組合，以支持對成本敏感的客戶，並繼續與我們的客戶合作，幫助他們優化雲支出。

On today's call, I will discuss our Q3 results in the context of the current environment and our plans to sharpen our execution to accelerate near-term results and enhance our long-term position.

在今天的電話會議上，我將在當前環境的背景下討論我們第三季度的業績，以及我們加強執行力以加速取得近期成果並增強我們的長期地位的計劃。

We continue to see increased budget scrutiny, requiring higher level approvals, which resulted in smaller deal sizes, longer selling cycles and some deals pushing out. We are feeling this most acutely in large enterprise and the Americas tech and service provider sectors.

我們繼續看到越來越多的預算審查，需要更高級別的批准，這導致交易規模更小、銷售週期更長以及一些交易被推遲。我們在大型企業以及美洲科技和服務提供商領域對此感受最為強烈。

Customers are looking to stretch their budget dollars, sweating assets, shifting spend to hybrid flash and capacity flash arrays from higher cost performance flash arrays and, as our cloud partners have described, optimizing cloud spending.

客戶正在尋求擴展他們的預算資金、消耗資產、將支出從更高性價比的閃存陣列轉移到混合閃存和容量閃存陣列，並且正如我們的雲合作夥伴所描述的那樣，優化雲支出。

We saw signs of a softening environment early in fiscal year '23 and took swift action to control costs with increased scrutiny of program spending, a hiring slowdown in Q2 and a hiring freeze in Q3. At the start of Q4, we implemented a workforce reduction of approximately 8%.

我們在 23 財年初期看到了環境走軟的跡象，並迅速採取行動控製成本，包括加強對計劃支出的審查、第二季度的招聘放緩和第三季度的招聘凍結。在第四季度初，我們實施了約 8% 的裁員。

Decisions that impact our employees are always difficult. I take great pride in fostering the NetApp culture, and I'm committed to using this difficult action to refocus our team guided by the values and mission of the company.

影響我們員工的決策總是很困難。我為培育 NetApp 文化感到非常自豪，我致力於利用這一艱難的行動，以公司的價值觀和使命為指導，重新調整我們團隊的重點。

Our hybrid flash and QLC-based all-flash arrays continue to perform well, benefiting from customers' price sensitivity in this challenging macro. The shift from high-performance all-flash arrays to lower-cost solutions, coupled with the lower spending environment, especially among large enterprise and U.S. tech and service provider customers who are large consumers of flash, created headwinds to our product and all-flash array revenues.

我們的混合閃存和基於 QLC 的全閃存陣列繼續表現良好，這得益於客戶在這個具有挑戰性的宏觀環境中的價格敏感性。從高性能全閃存陣列向低成本解決方案的轉變，再加上支出環境較低，尤其是在大型企業和美國技術和服務提供商客戶中，這些客戶是閃存的大消費者，這給我們的產品和全閃存帶來了阻力陣列收入。

In Q3, our all-flash array business decreased 12% from Q3 a year ago to an annualized revenue run rate of $2.8 billion. Public Cloud ARR of $605 million did not meet our expectations, driven by a shortfall in cloud storage as a result of the same factors we experienced last quarter. Spending optimization and the winding down of project-based workloads like chip design, EDA and HPC were headwinds again in Q3.

在第三季度，我們的全閃存陣列業務比一年前的第三季度下降了 12%，年化收入運行率為 28 億美元。 6.05 億美元的公共雲 ARR 沒有達到我們的預期，這是由於我們上個季度經歷的相同因素導致雲存儲短缺。支出優化和芯片設計、EDA 和 HPC 等基於項目的工作負載的減少在第三季度再次成為不利因素。

We have a sizable base of public cloud customers with a number of large customers who have grown rapidly over the past year and are now optimizing. Their cost optimizations masked the growth of other customers. We continue to add new customers, and churn has remained consistently low. Overall, the Cloud Ops portfolio performed to plan.

我們擁有相當大的公有云客戶群，其中有一些大客戶在過去一年中增長迅速，目前正在優化中。他們的成本優化掩蓋了其他客戶的增長。我們繼續增加新客戶，客戶流失率一直很低。總體而言，Cloud Ops 產品組合按計劃執行。

Cloud Insights have stabilized, and Spot continues to grow nicely, benefiting from the cost optimization trend. Our dollar-based net revenue retention rate decreased to 120% but is still within healthy industry norms. We are confident that we remain well-positioned to take advantage of the secular growth trends of data-driven digital and cloud transformations.

Cloud Insights 已經穩定下來，Spot 繼續良好增長，受益於成本優化趨勢。我們基於美元的淨收入保留率下降至 120%，但仍處於健康的行業規範之內。我們相信，我們仍然處於有利地位，可以利用數據驅動的數字和雲轉型的長期增長趨勢。

We are aligned to customers' top priorities and have demonstrated success in controlling the elements within our control. Building on that solid foundation, we are sharpening our execution to accelerate near-term results while strengthening our position for when the spending environment rebounds. We have 3 areas of focus. First, we will remain prudent stewards of the business, and we'll continue to tightly manage the elements within our control. Second, we are reinvigorating efforts across the company in support of our storage business. Third, we are building a more focused approach to our Public Cloud business.

我們與客戶的首要任務保持一致，並在控制我們控制範圍內的元素方面取得了成功。在此堅實的基礎上，我們正在加強執行力以加速取得近期成果，同時加強我們在支出環境反彈時的地位。我們有 3 個重點領域。首先，我們將保持審慎的業務管家，我們將繼續嚴格管理我們控制範圍內的元素。其次，我們正在重振整個公司的努力，以支持我們的存儲業務。第三，我們正在為我們的公共雲業務構建一種更加集中的方法。

Starting with the first area of focus, remaining prudent stewards of the business and managing the elements within our control. We will maintain our focus on cost controls so that expenses do not grow ahead of revenue. We will achieve this by maintaining our scrutiny on program spending and hiring as well as focusing our investments on the products that represent the biggest opportunity.

從第一個重點領域開始，保持謹慎的業務管家並管理我們控制範圍內的元素。我們將繼續專注於成本控制，以免支出增長超過收入增長。我們將通過保持對計劃支出和招聘的審查以及將我們的投資集中在代表最大機會的產品上來實現這一目標。

We've made difficult decisions to reduce investment in products with smaller revenue potential like Astra Data Store and SolidFire. The results of this focus are visible in our ability to maintain our free cash flow, operating margin and EPS guidance despite lower revenue.

我們做出了艱難的決定，以減少對 Astra Data Store 和 SolidFire 等收入潛力較小的產品的投資。這種關注的結果在我們保持自由現金流、營業利潤率和 EPS 指導的能力中可見一斑，儘管收入較低。

On to the second focus area, reinvigorating our storage business. As we moved rapidly to embrace cloud, we lost some momentum in our Hybrid Cloud business. We are taking decisive action to strengthen our position and performance by better addressing the areas of market growth, delivering more customer value and realigning our go-to-market activities to better address this opportunity.

關於第二個重點領域，重振我們的存儲業務。隨著我們迅速轉向擁抱雲，我們在混合雲業務中失去了一些動力。我們正在採取果斷行動，通過更好地應對市場增長領域、提供更多客戶價值和重新調整我們的上市活動以更好地抓住這一機會，來加強我們的地位和績效。

We were slow to fully embrace the customer desire for lower cost, capacity-oriented all-flash systems. At the start of Q4, we rectified that situation with the introduction of the AFF C-Series, the most comprehensive industry-leading portfolio of QLC-based all-flash arrays that addresses a wide range of workloads and price points. These products will help customers manage through a cost-sensitive environment while at the same time supporting their pursuit of sustainability targets.

我們在完全接受客戶對低成本、以容量為導向的全閃存系統的需求方面進展緩慢。在第四季度初，我們通過推出 AFF C 系列糾正了這種情況，這是行業領先的最全面的基於 QLC 的全閃存陣列產品組合，可解決各種工作負載和價位問題。這些產品將幫助客戶應對對成本敏感的環境，同時支持他們實現可持續發展目標。

Initial response has been very positive, and we are already quoting deals for customers. The AFF C-Series will drive AFA revenue and support product gross margin as customers rotate from lower-margin hybrid flash to all-flash systems.

最初的反應非常積極，我們已經在為客戶報價。隨著客戶從利潤率較低的混合閃存轉向全閃存系統，AFF C 系列將推動 AFA 收入並支持產品毛利率。

In addition to expanding our product portfolio, we've introduced a number of innovations to improve the customer experience and bring predictability to their investment process. In Q3, we released BlueXP, a unified control plane that helps decrease resource waste, complexity and the risk of managing diverse environments. As a part of our sustainability commitment, we are previewing a new dashboard in BlueXP to help customers understand their data center carbon footprint across environments.

除了擴大我們的產品組合外，我們還引入了許多創新來改善客戶體驗並為他們的投資過程帶來可預測性。在第三季度，我們發布了 BlueXP，這是一個統一的控制平面，有助於減少資源浪費、複雜性和管理不同環境的風險。作為我們可持續發展承諾的一部分，我們正在預覽 BlueXP 中的新儀表板，以幫助客戶了解他們的數據中心跨環境的碳足跡。

Early in Q4, we introduced NetApp Advance, our best-in-class portfolio of programs and guarantees, which is already helping us win new customers and drive revenue.

在第 4 季度初，我們推出了 NetApp Advance，這是我們一流的計劃和保證組合，已經幫助我們贏得了新客戶並增加了收入。

We are rebalancing our sales and marketing efforts to better address the significant storage market opportunity, including aligning compensation plans to drive sales of our reinvigorated storage portfolio. We believe that these actions will enable us to drive product revenue growth and regain share in the all-flash array market.

我們正在重新平衡我們的銷售和營銷工作，以更好地應對重要的存儲市場機遇，包括調整薪酬計劃以推動我們重新煥發活力的存儲產品組合的銷售。我們相信這些行動將使我們能夠推動產品收入增長並重新獲得全閃存陣列市場的份額。

Finally, our third area of focus, building a more focused approach to cloud. While we are reinvigorating our storage business, we have no intention of taking our foot off the pedal in public cloud. It represents a huge growth opportunity for us with a gross margin profile that is accretive to the business.

最後，我們的第三個重點領域，即構建一個更有針對性的雲方法。雖然我們正在重振我們的存儲業務，但我們無意在公共雲中脫穎而出。這對我們來說代表了一個巨大的增長機會，其毛利率狀況可以增加業務。

Additionally, our Public Cloud Services are highly differentiated with a multiyear advantage over our traditional competitors and create customer preference for NetApp. We have sharpened the focus in our Cloud Ops portfolio and have taken actions that could have future revenue and ARR implications. We believe that our Cloud Ops services will continue to deliver stable, steady growth over the long term. Our customer success team has made good progress in driving utilization of our Cloud Ops services, but we need to do more with our cloud storage and data services.

此外，我們的公有云服務與我們的傳統競爭對手相比具有多年優勢，具有高度差異化優勢，並為 NetApp 創造了客戶偏好。我們加強了對 Cloud Ops 產品組合的關注，並採取了可能對未來收入和 ARR 產生影響的行動。我們相信，從長遠來看，我們的 Cloud Ops 服務將繼續實現穩定、穩定的增長。我們的客戶成功團隊在推動 Cloud Ops 服務的使用方面取得了良好進展，但我們需要在雲存儲和數據服務方面做得更多。

Additionally, we recognize that we have not been using our go-to-market resources to their best effect here. In addition to refocusing our sales team on the reinvigorated storage portfolio, we are identifying ways to most effectively align our sales resources to the buying centers and consumption models for all our solutions.

此外，我們認識到我們沒有在這裡充分利用我們的上市資源。除了將我們的銷售團隊重新聚焦於重新煥發活力的存儲產品組合之外，我們還在尋找最有效地將我們的銷售資源與我們所有解決方案的購買中心和消費模型相結合的方法。

Our cloud storage business is predominantly consumption-based and largely driven by our hyperscaler partners. These factors, coupled with the current cloud cost optimization environment, have impacted our ability to forecast ARR. However, as we grow the business, the impact from a subset of customers will be mitigated, smoothing its growth and improving predictability. I want to underscore my confidence in this opportunity. The migration of enterprise applications like SAP and VMware to the cloud as well as cloud-native applications, like artificial intelligence, create a massive market in which we can grow.

我們的雲存儲業務主要以消費為基礎，主要由我們的超大規模合作夥伴推動。這些因素，加上當前的云成本優化環境，影響了我們預測 ARR 的能力。然而，隨著我們業務的發展，來自一部分客戶的影響將得到緩解，從而使其增長平穩並提高可預測性。我想強調我對這個機會的信心。 SAP 和 VMware 等企業應用程序以及人工智能等雲原生應用程序向雲的遷移創造了一個巨大的市場，我們可以在其中發展。

We believe strongly that Public Cloud services can be a multibillion-dollar ARR business for us. However, achieving that target will take longer than we initially planned due to the industry-wide slowdown in cloud spending and our recent performance.

我們堅信，公共雲服務可以成為我們價值數十億美元的 ARR 業務。但是，由於整個行業的雲支出放緩和我們最近的表現，實現該目標將比我們最初計劃的時間更長。

In closing, we have seen tangible success from our efforts to manage the elements within our control in a challenging environment. Despite our lowered revenue outlook, we have preserved free cash flow and EPS expectations. In the first 3 fiscal quarters of this year, we have returned over $1 billion to shareholders and reduced share count by 4%. We are sharpening our execution to accelerate near-term results and enhance our position for the long term. We are taking these steps now so that as we begin FY '24, we are in a new, more focused operating model to attack the opportunity ahead, drive growth and deliver shareholder value.

最後，我們在充滿挑戰的環境中努力管理我們控制範圍內的要素，取得了切實的成功。儘管我們下調了收入前景，但我們保留了自由現金流和每股收益預期。在今年的前 3 個財政季度，我們向股東返還了超過 10 億美元，並將股份數量減少了 4%。我們正在加強執行力，以加快取得近期成果並增強我們的長期地位。我們現在正在採取這些步驟，以便在我們開始 24 財年時，我們採用一種新的、更專注的運營模式來抓住未來的機會，推動增長並為股東創造價值。

Before turning the call over to Mike, I want to give my thanks to the NetApp team for their operational discipline and rapid response to set us up for better results. I have seen firsthand how hard they are working to navigate the challenging environment, and I really appreciate their efforts.

在將電話轉給 Mike 之前，我要感謝 NetApp 團隊的運營紀律和快速響應，使我們能夠取得更好的結果。我親眼目睹了他們如何努力應對充滿挑戰的環境，我非常感謝他們的努力。

Thank you, George. Good afternoon, everyone, and thank you for joining us. Before we go through the financial details, I think it would be valuable to reiterate the key themes for today's discussion that George highlighted.

謝謝你，喬治。大家下午好，感謝您加入我們。在我們討論財務細節之前，我認為有必要重申喬治強調的今天討論的關鍵主題。

Number one, despite the temporary headwinds to revenue, our disciplined operational management yielded op margin and EPS above the high end of guidance.

第一，儘管收入暫時受到不利影響，但我們紀律嚴明的運營管理產生了高於指導高端的營業利潤率和每股收益。

Number two, the macro backdrop and demand environment continue to be major headwinds. The weakening IT spending environment was most pronounced in our large enterprise and U.S. technology and service provider customers and materially impacted our all-flash revenue in Q3, while significant cloud optimization across all 3 major hyperscalers continue to weigh heavily on ARR growth. Although the U.S. dollar weakened slightly during Q3, FX continues to be a material headwind to our financial results on a year-over-year basis.

第二，宏觀背景和需求環境仍然是主要的不利因素。疲軟的 IT 支出環境在我們的大型企業和美國技術和服務提供商客戶中最為明顯，並對我們第三季度的全閃存收入產生了重大影響，而所有 3 大超大規模企業的顯著雲優化繼續嚴重影響 ARR 增長。儘管美元在第三季度略有走軟，但與去年同期相比，外匯仍然是我們財務業績的重大阻力。

Number three, as we navigate through this fluid demand environment, we remain laser-focused on driving operating margins and free cash flow generation. Towards this end, we took swift action in Q3 to control costs through increased program spending scrutiny and a hiring freeze. And at the start of Q4, we implemented a reduction in force of approximately 8%. In addition to adjusting our own cost structure, we also introduced C-Series, a portfolio of QLC capacity flash arrays to support cost-sensitive data center customers, and we continue to work with our cloud customers to help optimize their spending.

第三，在我們應對這種瞬息萬變的需求環境時，我們仍然專注於推動營業利潤率和自由現金流的產生。為此，我們在第三季度迅速採取行動，通過加強計劃支出審查和凍結招聘來控製成本。在第四季度初，我們實施了約 8% 的裁員。除了調整我們自己的成本結構，我們還推出了 C 系列，這是一個 QLC 容量閃存陣列產品組合，以支持對成本敏感的數據中心客戶，我們將繼續與我們的雲客戶合作，幫助優化他們的支出。

And number four, as a result of our disciplined cost management, we are reiterating our full year EPS guide of $5.30 to $5.50. We are also confident in our free cash flow target of $1.1 billion, adjusting for the restructuring and onetime cash payment in Q4. From a capital allocation perspective, we remain committed to returning more than 100% of fiscal '23 free cash flow to investors through dividends and share repurchases.

第四，由於我們嚴格的成本管理，我們重申我們的全年 EPS 指南為 5.30 美元至 5.50 美元。我們也對 11 億美元的自由現金流目標充滿信心，調整了第四季度的重組和一次性現金支付。從資本配置的角度來看，我們仍然致力於通過股息和股票回購將 23 財年自由現金流的 100% 以上返還給投資者。

Now to the details. As a reminder, I'll be referring to non-GAAP numbers, unless otherwise noted. Q3 billings were $1.57 billion, down 11% year-over-year. Revenue came in at $1.53 billion, down 5% year-over-year. Adjusting for the 340 basis point headwind from FX, billings and revenue would have been down 7% and 2% year-over-year, respectively. Even with the challenging Q3, our cloud portfolio continues to positively impact the overall revenue growth profile of NetApp.

現在到細節。提醒一下，除非另有說明，否則我指的是非 GAAP 數字。第三季度的賬單額為 15.7 億美元，同比下降 11%。收入為 15.3 億美元，同比下降 5%。調整來自外彙的 340 個基點逆風，營業額和收入將分別同比下降 7% 和 2%。儘管第三季度充滿挑戰，但我們的雲產品組合繼續對 NetApp 的整體收入增長狀況產生積極影響。

Hybrid Cloud segment revenue of $1.38 billion was down 9% year-over-year. Product revenue of $682 million decreased 19% year-over-year as customers took a decidedly cautious approach to capital spending. Total Q3 recurring support revenue of $616 million increased 5% year-over-year, highlighting the health of our installed base.

混合雲部門收入為 13.8 億美元，同比下降 9%。產品收入為 6.82 億美元，同比下降 19%，因為客戶對資本支出採取了非常謹慎的態度。第三季度經常性支持總收入為 6.16 億美元，同比增長 5%，凸顯了我們安裝基礎的健康狀況。

Public Cloud ARR exited Q3 at $605 million, up 29% year-over-year. Public Cloud revenue recognized in the quarter was $150 million, up 36% year-over-year and 6% sequentially. As highlighted by our 3 major hyperscaler partners, customers continue to optimize our cloud spend as organizations are exercising caution given the macroeconomic uncertainty. While the timing of the recovery remains unclear, we are confident that secular trends of AI, machine learning, IoT and high-performance computing, along with the migration of enterprise apps like VMware and SAP, will drive long-term growth in cloud storage consumption.

公共雲 ARR 以 6.05 億美元退出第三季度，同比增長 29%。本季度確認的公有云收入為 1.5 億美元，同比增長 36%，環比增長 6%。正如我們的 3 個主要超大規模合作夥伴所強調的那樣，由於宏觀經濟的不確定性，組織正在謹慎行事，因此客戶繼續優化我們的雲支出。雖然復甦的時機仍不明朗，但我們相信人工智能、機器學習、物聯網和高性能計算的長期趨勢，以及 VMware 和 SAP 等企業應用程序的遷移，將推動雲存儲消費的長期增長.

Recurring support and Public Cloud revenue of $766 million was up 10% year-over-year, constituting 50% of total revenue.

經常性支持和公共雲收入為 7.66 億美元，同比增長 10%，佔總收入的 50%。

We ended Q3 with $4.2 billion in deferred revenue, an increase of 6% year-over-year. Q3 marks the 20th consecutive quarter of year-over-year deferred revenue growth, which is the best leading indicator for recurring revenue growth.

我們以 42 億美元的遞延收入結束了第三季度，同比增長 6%。第三季度是遞延收入連續第 20 個季度同比增長，這是經常性收入增長的最佳領先指標。

Total gross margin was 67% in Q3, in line with our guidance. Total Hybrid Cloud gross margin was also 67% in Q3. Within our Hybrid Cloud segment, product gross margin was 46.5%, including a 2-point year-over-year headwind from FX. As noted, our large enterprise and U.S. tech and service provider customers have continued to reduce CapEx spend as they right-size their spending envelops. These customers are the most forward-leaning technology adopters and the biggest consumers of all-flash systems in the economy, and their pause in CapEx spending has had a material impact on our total revenue, all-flash mix and product margins.

第三季度總毛利率為 67%，符合我們的指引。第三季度混合雲的總毛利率也為 67%。在我們的混合雲部門，產品毛利率為 46.5%，包括來自外彙的 2 個百分點的同比逆風。如前所述，我們的大型企業和美國技術和服務提供商客戶在調整支出規模時繼續減少資本支出。這些客戶是經濟中最具前瞻性的技術採用者和全閃存系統的最大消費者，他們暫停資本支出支出對我們的總收入、全閃存組合和產品利潤率產生了重大影響。

And while the supply chain component premiums and NAND pricing notably improved in Q3, we had to work through higher cost inventory during the quarter. We expect the improving supply chain and NAND pricing to be a tailwind to product margin in Q4 and fiscal '24.

雖然供應鏈組件溢價和 NAND 定價在第三季度顯著改善，但我們不得不在本季度解決更高成本的庫存問題。我們預計供應鍊和 NAND 定價的改善將成為第四季度和 24 財年產品利潤率的順風。

Our growing recurring support business continues to be very profitable with gross margin of 93%. Public Cloud gross margin of 69% was accretive to the corporate average for the ninth consecutive quarter. We remain confident in our long-term Public Cloud gross margin goal of 75% to 80% as the business scales and an increasing percentage of our Public Cloud revenue is driven by cloud and software solutions.

我們不斷增長的經常性支持業務繼續非常有利可圖，毛利率為 93%。公有云毛利率為 69%，連續第九個季度高於企業平均水平。隨著業務規模的擴大，我們對 75% 至 80% 的公共雲毛利率的長期目標仍然充滿信心，而且我們的公共雲收入中越來越多的百分比是由雲和軟件解決方案驅動的。

While revenue came in at the low end of guidance, Q3 highlighted our operational discipline and cost controls, with operating margin of 24%, including 2 points of FX headwinds. EPS of $1.37 came in above the high end of guidance and included $0.14 of year-over-year FX headwind.

雖然收入處於指導的低端，但第三季度強調了我們的運營紀律和成本控制，營業利潤率為 24%，包括 2 個外匯逆風點。每股收益 1.37 美元高於指引的上限，其中包括 0.14 美元的同比外匯逆風。

Cash flow from operations was $377 million, and free cash flow was $319 million. Inventory turns increased to 12 in Q3, up from 9 in Q2, as supply chain challenges eased in the quarter, enabling us to take down inventory by nearly $70 million sequentially.

運營現金流為 3.77 億美元，自由現金流為 3.19 億美元。隨著本季度供應鏈挑戰的緩解，庫存周轉率從第二季度的 9 次增加到第三季度的 12 次，使我們能夠連續減少近 7000 萬美元的庫存。

During Q3, we repurchased $200 million in stock and paid out $108 million in cash dividends. In total, we returned $308 million to shareholders, representing 97% of free cash flow. Share count of 219 million was down 4% year-over-year.

第三季度，我們回購了 2 億美元的股票，並支付了 1.08 億美元的現金股息。我們總共向股東返還了 3.08 億美元，佔自由現金流的 97%。股票數量為 2.19 億股，同比下降 4%。

We closed Q3 with $3.1 billion in cash and short-term investments, up $108 million sequentially.

我們以 31 億美元的現金和短期投資結束了第三季度，比上一季度增加了 1.08 億美元。

Now to guidance. As George discussed, we have seen continued softening in the macro backdrop, with customers taking a decidedly cautious approach to spending. We now expect fiscal '23 revenue to be roughly flat year-over-year, which includes 3 to 4 percentage points of FX headwind. In fiscal '23, we continue to expect gross margin to range between 66% and 67% as elevated component costs and FX headwinds weigh on product margins.

現在來指導。正如 George 所討論的那樣，我們看到宏觀背景持續走軟，客戶對支出採取了非常謹慎的態度。我們現在預計 23 財年的收入同比大致持平，其中包括 3 到 4 個百分點的外匯逆風。在 23 財年，我們繼續預計毛利率將在 66% 至 67% 之間，因為組件成本上升和外匯逆風對產品利潤率構成壓力。

While the timing is uncertain, we remain confident that our structural product margins will normalize back to the mid-50s in the fullness of time, particularly when you factor in our new C-Series portfolio, which will largely displace lower-margin hybrid spinning disk systems in our product mix.

雖然時間不確定，但我們仍然相信我們的結構性產品利潤率將在適當的時候恢復正常，回到 50 年代中期，特別是當你考慮到我們新的 C 系列產品組合時，這將在很大程度上取代利潤率較低的混合旋轉磁盤我們產品組合中的系統。

Given our disciplined cost controls, we are raising our fiscal '23 operating margin guidance. We now expect op margin to range between 23% and 24%, which includes approximately 2 points of FX headwinds. Last quarter, we committed to protecting both EPS and free cash flow during this uncertain macro environment. Today, we are reiterating our full year EPS guide of $5.30 to $5.50, which includes $0.54 of currency impacts. We also continue to expect to generate $1.1 billion in free cash flow, excluding onetime items. From a capital allocation perspective, we remain committed to returning more than 100% of fiscal '23 free cash flow to investors through dividends and share repurchases.

鑑於我們嚴格的成本控制，我們正在提高我們的 23 財年營業利潤率指導。我們現在預計營業利潤率介於 23% 和 24% 之間，其中包括大約 2 個百分點的外匯逆風。上個季度，我們承諾在這種不確定的宏觀環境中保護每股收益和自由現金流。今天，我們重申 5.30 美元至 5.50 美元的全年每股收益指南，其中包括 0.54 美元的貨幣影響。我們還繼續期望產生 11 億美元的自由現金流，不包括一次性項目。從資本配置的角度來看，我們仍然致力於通過股息和股票回購將 23 財年自由現金流的 100% 以上返還給投資者。

Now on to Q4 guidance. We expect Q4 net revenues to range between $1.475 billion and $1.625 billion, which, at the midpoint, implies an 8% decrease year-over-year or a 6% decrease in constant currency. In this macro environment, we expect customers to continue to optimize our cloud spend at our 3 major hyperscaler partners. As a result, we expect cloud revenue and ARR to be approximately flat sequentially in Q4.

現在進入第四季度的指導。我們預計第四季度淨收入將在 14.75 億美元至 16.25 億美元之間，按中點計算，這意味著同比下降 8% 或按固定匯率計算下降 6%。在這種宏觀環境下，我們希望客戶繼續優化我們在 3 個主要超大規模合作夥伴的雲支出。因此，我們預計第四季度雲收入和 ARR 將大致持平。

Please note, as we head into fiscal '24, we plan to anchor our cloud segment guidance on revenue dollars instead of ARR. To be clear, we will continue to disclose cloud ARR as a key metric as we go through the year.

請注意，在我們進入 24 財年之際，我們計劃將我們的雲部門指導錨定在收入美元而不是 ARR 上。需要明確的是，我們將在這一年中繼續將雲 ARR 作為一項關鍵指標進行披露。

We expect consolidated gross margin to be approximately 67%. As we head into Q4, we are forecasting a material reduction in component premiums, decreasing NAND costs and engineering product efficiencies. As such, we are confident that product margins will rise in Q4. These trends also position us nicely heading into fiscal '24 to drive the leverage through our business model, particularly as customers begin to reengage on all-flash capacity buildouts and customers mix shift away from hybrid spinning disk systems to new QLC all-flash solutions.

我們預計綜合毛利率約為 67%。當我們進入第四季度時，我們預測組件溢價將大幅減少，NAND 成本和工程產品效率將下降。因此，我們有信心產品利潤率將在第四季度上升。這些趨勢也使我們很好地進入 24 財年，以通過我們的業務模型推動槓桿作用，特別是當客戶開始重新參與全閃存容量擴建以及客戶組合從混合旋轉磁盤系統轉向新的 QLC 全閃存解決方案時。

While the exact timing is unclear, large enterprise and U.S. tech and service provider customers are the largest consumers of data and storage in the global economy, and our all-flash ONTAP systems are structurally linked to their data growth cross-cycle.

雖然確切時間尚不清楚，但大型企業和美國技術和服務提供商客戶是全球經濟中最大的數據和存儲消費者，我們的全閃存 ONTAP 系統在結構上與其數據增長跨週期相關聯。

In Q4, we expect operating margin to range between 23% and 24%. We anticipate our tax rate to be approximately 21%. We are forecasting earnings per share for Q4 to range between $1.30 and $1.40 per share. Assumed in our Q4 guidance is net interest income of $7.5 million and a share count of approximately 218 million.

在第四季度，我們預計營業利潤率將在 23% 至 24% 之間。我們預計我們的稅率約為 21%。我們預測第四季度每股收益在 1.30 美元至 1.40 美元之間。在我們的第四季度指南中假設淨利息收入為 750 萬美元，股票數量約為 2.18 億股。

In closing, I want to thank the entire NetApp team for their continued commitment in such an uncertain economic environment.

最後，我要感謝整個 NetApp 團隊在如此不確定的經濟環境中的持續承諾。

I'll now hand the call back to Kris to open the call for Q&A. Kris?

我現在將電話轉回給 Kris，以打開問答環節。克里斯？

Thanks, Mike. Operator, let's begin the Q&A.

謝謝，邁克。接線員，讓我們開始問答。

(Operator Instructions) And the first question will come from Amit Daryanani with Evercore.

（操作員說明）第一個問題將來自 Evercore 的 Amit Daryanani。

I guess the first one I had was if I think about the delta and cloud ARR from $700 million last quarter that we were expecting to maybe $605 million range right now, how much of the delta or the drop, if you may, is due to macro issues versus something that might be more company-specific? Is there a way to parse that out? And then do you see the resumption of growth happening in '24 as you go forward?

我想我的第一個問題是，如果我考慮上個季度 7 億美元的增量和雲 ARR，我們現在預計可能達到 6.05 億美元的範圍，如果可以的話，增量或下降有多少是由於宏觀問題與可能更針對公司的問題？有沒有辦法解析出來？然後，隨著您的前進，您是否看到 24 年恢復增長？

I think the broad themes that we saw were shared across all of the hyperscalers and across a broad range of customers. We continue to see good numbers of new customer additions to our cloud storage offerings. Even though the impact in the quarter from there being acquired is lower, we had -- we saw no changes to the churn in our cloud storage business, but we did see optimization, meaning movement of capacity from higher cost, more high-performance levels to lower cost, lower performance levels. And there was no predictable pattern in terms of what types of customers.

我認為我們看到的廣泛主題在所有超大規模用戶和廣泛的客戶中都是共享的。我們繼續看到大量新客戶加入我們的雲存儲產品。儘管本季度收購的影響較小，但我們看到雲存儲業務的流失沒有變化，但我們確實看到了優化，這意味著容量從更高的成本、更高的性能水平轉移以降低成本，降低性能水平。在客戶類型方面沒有可預測的模式。

As we noted last quarter, we also saw some reductions in spending from customers, who wrapped up projects with us. So I will just say this is part of normal cloud behavior and consumption. We feel good about the additions. We feel good about our engagement with customers. And we feel good about the fact that we continue to broaden the number of use cases and customer value propositions we can address that should benefit us moving forward with a more focused route-to-market approach for cloud as well.

正如我們在上個季度指出的那樣，我們還看到與我們結束項目的客戶的支出有所減少。所以我只想說這是正常的雲行為和消費的一部分。我們對新增功能感到滿意。我們對與客戶的互動感到滿意。我們感到高興的是，我們繼續擴大我們可以解決的用例和客戶價值主張的數量，這也應該有利於我們通過更集中的雲市場路徑方法向前邁進。

Got it. And could I spend maybe 60 seconds on the gross margin dynamics into April quarter? I think you're essentially saying, I think, gross margins are flat, up 20 basis points sequentially, but that's despite the fact you have a little bit of revenue leverage. And then it sounds like NAND pricing and commodity pricing broadly is coming down. So I would have thought gross margins could be up a bit more maybe in the April quarter. So maybe you can just talk about the puts and takes on the gross margin line, that'd be super helpful.

知道了。我可以花 60 秒時間了解 4 月季度的毛利率動態嗎？我認為你基本上是在說，我認為毛利率持平，連續上升 20 個基點，但儘管事實上你有一點收入槓桿。然後聽起來 NAND 定價和商品定價普遍下降。所以我原以為毛利率可能會在 4 月份季度上漲更多一點。因此，也許您可以只談論看跌期權並接受毛利率線，這將非常有幫助。

Sure. Amit, it's Mike. So I'll do both Hybrid Cloud just -- and a little bit of cloud margins as well. So on Hybrid Cloud, what we really saw was if you go back to the 2 big drivers that we saw in the business, one is with our lower spending in U.S. strategic large enterprise. They are the largest purveyors of all-flash. So we saw all-flash dollar and mix come down. In addition, we've talked about seeing lower capacity, i.e., folks buying less terabytes per system. That happened within both flash and hybrid. So those 2 added together brought our margins down in Q3.

當然。阿米特，我是邁克。所以我會同時做混合雲——還有一點雲利潤。因此，在混合雲上，我們真正看到的是，如果你回到我們在業務中看到的兩大驅動因素，一個是我們在美國戰略性大型企業中的支出較低。他們是最大的全閃存供應商。所以我們看到全閃存美元和混合下降。此外，我們還談到了看到容量降低，即人們為每個系統購買的 TB 更少。這發生在閃存和混合中。所以這兩個加在一起使我們在第三季度的利潤率下降了。

We didn't really see a benefit on NAND or premiums yet. This is hopefully the last time I'm going to say this on a call because we fully expect in Q4 that to finally start to realize in the P&L. We will see the benefits of a lot lower premiums. And finally, the lower cost NAND as we work through the inventory will roll through the P&L. So we feel good about the gross margin projection in the April quarter being at least 50%.

我們還沒有真正看到 NAND 或溢價的好處。希望這是我最後一次在電話中說這個，因為我們完全期望在第四季度最終開始在損益表中實現這一點。我們將看到保費低得多的好處。最後，在我們處理庫存時成本較低的 NAND 將通過損益表滾動。因此，我們對 4 月份季度的毛利率預測至少為 50% 感到滿意。

And then cloud margins, hey, it's really dependent more than anything on scale. We feel good about getting to the mid-70s as we scale that business, but we do need to drive higher revenue. So hopefully, that helps.

然後是雲利潤率，嘿，它真的比任何規模都更重要。隨著我們擴展業務，我們對進入 70 年代中期感覺很好，但我們確實需要推動更高的收入。希望這會有所幫助。

The next question will come from David Vogt with UBS.

下一個問題將來自瑞銀集團的 David Vogt。

Okay. Maybe, George, I just want to go back to your comment that you mentioned that you lost some momentum in Hybrid Cloud. Just wanted to drill down on that comment. Can you maybe elaborate on a little bit more specifically, what did you mean by that? Obviously, it's a key driver of the business and an important cash flow engine, but just would love to get some more color on that. And then I have a follow-up.

好的。也許，喬治，我只想回到你的評論，你提到你在混合雲中失去了一些動力。只是想深入了解該評論。您能否更具體地詳細說明一下，您的意思是什麼？顯然，它是業務的關鍵驅動力和重要的現金流引擎，但只是希望在這方面獲得更多色彩。然後我有一個後續行動。

I think there are 3 elements of that. I think the first, we have been a little bit later than we would have liked to introduce lower cost, more value-oriented capacity flash arrays. We've corrected that. We feel really good about the early interest in our C-Series.

我認為這有3個要素。我認為首先，我們推出成本更低、更注重價值的容量閃存陣列的時間比我們希望的要晚一些。我們已經糾正了這一點。我們對早期對我們的 C 系列感興趣感到非常高興。

The second was that we have moved resources to the more stable, steady growth parts of the market like the commercial market and lower parts of the enterprise from the cyclical large enterprise segment. We haven't done as much as we need to, and we'll continue to do that heading forward.

二是我們把資源從周期性的大企業板塊轉移到商業市場等更穩定、穩定增長的市場部分和企業的低端部分。我們還沒有做我們需要做的那麼多，我們將繼續這樣做。

And the third is that from a compensation and goal alignment perspective, we're going to sharply focus certain parts of our field organization to drive our flash portfolio while aligning other parts of our field organization to focus on the cloud business.

第三，從薪酬和目標調整的角度來看，我們將重點關注我們現場組織的某些部分來推動我們的閃存產品組合，同時調整我們現場組織的其他部分以專注於雲業務。

Got it. And then maybe just a follow-up to that is, so typically, what is the lead time? Or how does the cycle or the sales cycle work from, let's say, start to traction for these initiatives? Should we expect sort of a recovery in, let's say, the second half of fiscal '24 in these particular markets driven by the strategy? Or does it take a little bit longer or maybe shorter to see some tangible benefits?

知道了。然後也許只是後續行動，通常情況下，交貨時間是多少？或者說，週期或銷售週期是如何運作的，比方說，開始對這些計劃產生吸引力？我們是否應該期待在該戰略驅動的這些特定市場中，比方說，24 財年下半年會出現復甦？還是需要更長或更短的時間才能看到一些切實的好處？

I think first of all, we are excited about the C-Series products. They will be available this quarter. I think the material impact of those product portfolios will be in the first half of next fiscal year.

我認為首先，我們對 C 系列產品感到興奮。它們將於本季度上市。我認為這些產品組合的實質性影響將在下個財政年度的上半年出現。

The large enterprise segment will continue to be a place of caution for us. I think that we will need -- we are working with our customers to understand their buying behavior. My sense is that -- and my hope is that they are back buying more aggressively than they have been in the second part of next fiscal year. So we hope that the product portfolio is in the market this quarter. Commercial and lower-end parts of the enterprise should see some benefits from that in the first half of next fiscal year. But the large enterprise segment, we're a bit more cautious about. And your expectation is more accurate around second half of next fiscal year, is our hope.

大型企業板塊將繼續成為我們謹慎的地方。我認為我們需要——我們正在與客戶合作以了解他們的購買行為。我的感覺是——我希望他們比下一財年下半年更積極地回購。所以我們希望產品組合在本季度上市。企業的商業和低端部分應該會在下個財政年度上半年看到一些好處。但是對於大型企業部門，我們要謹慎一些。您的預期在下個財政年度下半年左右更準確，這是我們的希望。

Next question will come from Steven Fox with Fox Advisors.

下一個問題將來自 Steven Fox 和 Fox Advisors。

Just following up on those last comments around the commercial versus large enterprise. I guess how do we think about just sort of a pivot back so that you prepared for the cycle? Like what are you looking for in order to maybe have the right resources ready for when the large enterprises do come back and you need to be prepared to service them in a more aggressive manner? And then I had a follow-up.

只是跟進關於商業與大型企業的最後評論。我想我們如何考慮某種迴轉，以便您為周期做好準備？就像您在尋找什麼，以便在大型企業真正回來時準備好合適的資源，並且您需要準備好以更積極的方式為他們提供服務？然後我進行了跟進。

We are very closely engaged with these customers. We've known them for decades. I think the fundamental pattern is the improvements in their business prospects. So as soon as they see that, they start the discussions with us on purchasing.

我們與這些客戶密切合作。我們認識他們幾十年了。我認為基本模式是他們業務前景的改善。所以他們一看到，就開始與我們討論採購事宜。

Okay. That's helpful. And then just in terms of the benefits now with NAND and other component costs low, can you just talk about -- give us a sense for how much of your sales are benefiting from the low-cost NAND in this current quarter? And how much more there would be to go before you're like at 100% of where NAND prices are?

好的。這很有幫助。然後就現在 NAND 和其他組件成本低的好處而言，您能否談談 - 讓我們了解本季度您的銷售額中有多少受益於低成本 NAND？在您達到 NAND 價格的 100% 之前，還有多少路要走？

So this quarter, on the low cost -- and it's not a big number, Steve, in this quarter. We do expect that, that will be a significant contributor going into fiscal '24. I would just say, take a step back on the margin side. There are 2 significant drivers to our optimism as we look at product margins in '24. One is the premiums. We've talked about that. It's about $50 million a quarter. It is a material improvement going into next year.

所以這個季度，在低成本方面——史蒂夫，這個季度的成本並不大。我們確實預計，這將成為進入 24 財年的重要貢獻者。我只想說，在保證金方面退後一步。當我們審視 24 年的產品利潤率時，我們的樂觀情緒有兩個重要驅動因素。一是保費。我們已經談過了。大約是每季度 5000 萬美元。這是明年的實質性改進。

NAND, as we all know, has come down materially every quarter since in the last 3 quarters. We're finally going to be able to realize in our P&L as we got -- as we move through the high-cost inventory.

眾所周知，自過去 3 個季度以來，NAND 每個季度都在大幅下降。當我們處理高成本庫存時，我們最終將能夠在我們的損益表中實現。

And then you talked about the mix, that will also benefit product margins going into next year. And then, goodness, hopefully, FX also helped. So I would add all 4 of those together when you look at product margins in fiscal '24.

然後你談到了組合，這也將有利於明年的產品利潤率。然後，天哪，希望 FX 也有所幫助。因此，當您查看 24 財年的產品利潤率時，我會將所有 4 個加在一起。

The next question will come from Wamsi Mohan with Bank of America.

下一個問題將來自美國銀行的 Wamsi Mohan。

It sounds like you were impacted by both share and weaker demand in all-flash. Is that correct? And is the share loss because of product gap that you are now filling with AFFC? It just seems like a large decline coming just from the low end of the AFF market? So any color there would be helpful. And I have a follow-up.

聽起來您受到了全閃存市場份額和需求疲軟的影響。那是對的嗎？您現在正在用 AFFC 填補的產品缺口是否會導致份額損失？這似乎只是來自低端 AFF 市場的大幅下降？所以那裡的任何顏色都會有所幫助。我有一個後續行動。

I think that our exposure to the large tech and service provider segments and our large market share in markets like Germany exposed us when those segments and countries slowed down in their purchasing behavior. I think that having a smaller number of QLC products also precluded us from participating in some purchasing activities, some RFPs in the past couple of quarters. And I think we are excited about the return to having the best lineup of flash, both performance and capacity flash. And we've got to see progress in terms of -- continued progress in our enterprise and commercial customers over the next few quarters to wait for the large enterprise purchasing to come back.

我認為，當這些細分市場和國家/地區的購買行為放緩時，我們對大型技術和服務提供商細分市場的敞口以及我們在德國等市場的巨大市場份額暴露了我們。我認為 QLC 產品數量較少也使我們無法參與過去幾個季度的一些採購活動和一些 RFP。而且我認為我們對恢復擁有最佳閃存陣容感到興奮，包括性能和容量閃存。我們必須看到在未來幾個季度我們的企業和商業客戶的持續進步，以等待大型企業採購回來。

Okay, okay. And you're exiting this year with somewhat worsening momentum given the macro from down 2% constant currency in Q3 to guiding down 6% in Q4 despite sort of this new introduction of new products. Any early thoughts into fiscal '24? I know you commented on your -- the margin improvement and the confidence there, but anything on the revenue side that you can help us with would be super helpful.

好吧好吧。儘管推出了新產品，但鑑於宏觀經濟從第三季度固定匯率下降 2% 到第四季度指導下降 6%，今年你退出的勢頭有所惡化。對 24 財年有任何早期想法嗎？我知道你評論了你的 - 利潤率的提高和那裡的信心，但你可以幫助我們的收入方面的任何事情都會非常有幫助。

Yes. I think first of all, you have seen us be disciplined stewards of the business in good times and bad. You should expect us to continue to maintain operating expenses tightly managed until we see growth. Product margins, as Mike said, should have significant upside as we roll into fiscal year '24 as both mix shifts towards all-flash and component costs in all-flash come down as well as premiums go away.

是的。我認為首先，您已經看到我們在順境和逆境中都是紀律嚴明的企業管家。您應該期望我們將繼續嚴格控制運營費用，直到我們看到增長。正如 Mike 所說，隨著我們進入 24 財年，產品利潤率應該有顯著的上升空間，因為兩者都向全閃存和全閃存中的組件成本下降以及保費消失。

In terms of returning to growth, listen, I think that we will -- we are aligning our resources to be much more focused on our respective businesses. In the flash market, you should expect us to continue to track the progress of our flash market share. I think that, as I said, both enterprise and commercial segments should see growth while the large enterprise takes some more time to come back.

在恢復增長方面，聽著，我認為我們會——我們正在調整我們的資源，以更加專注於我們各自的業務。在閃存市場，您應該期待我們繼續跟踪閃存市場份額的進展。我認為，正如我所說，企業和商業部門都應該看到增長，而大型企業需要更多時間才能恢復。

And then I think in terms of cloud, listen, I think consumption will continue to be a headwind for a period of time, as our cloud provider partners have also said. That does not mean that we are going to not continue to accelerate new customer acquisition. And a more aligned go-to-market model for flash and for public cloud services, respectively, will help us do that, execute better against each of those opportunities.

然後我認為就雲而言，聽著，我認為消費將在一段時間內繼續成為逆風，正如我們的雲提供商合作夥伴所說的那樣。這並不意味著我們不會繼續加速新客戶的獲取。分別針對閃存和公共雲服務的更一致的上市模型將幫助我們做到這一點，更好地應對每一個機會。

We'll tell you more when we guide fiscal year '24.

當我們指導 24 財年時，我們會告訴您更多信息。

The next question will come from Mehdi Hosseini with SIG.

下一個問題將來自 SIG 的 Mehdi Hosseini。

It seems like April being the fourth quarter fiscal year helps with a little sequential bump in revenue, but should I expect a rather seasonal trend into Q1 fiscal year '24? And I have a follow-up.

似乎 4 月是第四季度財政年度有助於收入略有連續增長，但我是否應該期待 24 財年第一季度出現相當季節性的趨勢？我有一個後續行動。

Listen, at this point, we are being appropriately conservative in our guidance. I think that we see the impact of a tough macro environment on customer spending. And both Mike and I are being appropriately prudent in our Q4 guide. We're not guiding Q1 at this point. We'll guide fiscal year '24 and Q1 when we do that. But at this point, I want to be prudent about what we see in the market.

聽著，在這一點上，我們的指導方針是適當保守的。我認為我們看到了嚴峻的宏觀環境對客戶支出的影響。邁克和我在我們的第四季度指南中都非常謹慎。我們目前不指導 Q1。當我們這樣做時，我們將指導 24 財年和第一季度。但在這一點上，我想對我們在市場上看到的情況持謹慎態度。

Got it. And then for Mike, should I assume that the full impact of the headcount reduction is dialed into the April quarter? Or would you be able to reduce the OpEx into July quarter?

知道了。然後對於 Mike，我是否應該假設裁員的全部影響會在 4 月季度出現？或者您能否將 OpEx 減少到 7 月季度？

Yes. Thanks, Mehdi, for the questions. So we'll get a portion of the restructuring, call it, 70% to 80% because of notifications and other things. So that is baked into our Q4 implied OpEx of about $675 million, which is down from our previous number of about $715 million. Most of that is restructuring and some incentive comp.

是的。謝謝 Mehdi 提出的問題。因此，由於通知和其他事項，我們將獲得一部分重組，稱之為 70% 到 80%。因此，這已計入我們的第四季度隱含運營支出約為 6.75 億美元，低於我們之前的約 7.15 億美元。其中大部分是重組和一些激勵補償。

And then, hey, the other thing -- again, we will guide Q1 when we get there. I just want to add 2 other things to George's great summary going into next year. We talked about product margins. We talked about OpEx. Keep in mind, too, that FX has been a material headwind for us this year, and we expect -- hope that, that is at least flat. The other thing is, keep in mind, from a tax rate perspective, we've grown EPS even with a significantly higher tax rate. So hey, lots of good things going into fiscal '24 that give us confidence in being able to drive the bottom line.

然後，嘿，另一件事——再次，我們將在到達那裡時指導 Q1。我只想在 George 明年的精彩總結中再補充兩點。我們談到了產品利潤率。我們談到了運營支出。還要記住，外匯今年對我們來說是一個重大的不利因素，我們預計 - 希望這至少是持平的。另一件事是，請記住，從稅率的角度來看，即使稅率高得多，我們的每股收益也有所增長。所以，嘿，進入 24 財年的很多好事讓我們有信心能夠提高利潤。

The next question will come from Tim Long with Barclays.

下一個問題將來自巴克萊銀行的 Tim Long。

Two questions, if I could. First, just curious on the flash C product. Could you talk a little bit about -- it sounds like you're expecting that'll cannibalize or replace some of the disk and hybrid-based systems. Any risk there that there is some impact on the higher performance flash? And what would that mean to margin structure or revenues? And then I have a follow-up on the cloud after that.

兩個問題，如果可以的話。首先，只是對 flash C 產品感到好奇。你能談談嗎——聽起來你希望這會蠶食或取代一些基於磁盤和混合的系統。是否存在對更高性能閃存產生影響的風險？這對利潤率結構或收入意味著什麼？之後我對雲進行了跟進。

I think the capacity flash arrays that we recently announced have a workload profile and a performance profile that's distinct from the performance flash array. Performance flash are typically sub-millisecond kind of latency. And capacity flash, it's about 2 to 3 milliseconds. So they are distinct use cases.

我認為我們最近宣布的容量閃存陣列具有不同於性能閃存陣列的工作負載配置文件和性能配置文件。性能閃存通常是亞毫秒級的延遲。而容量閃存，大約是2到3毫秒。所以它們是不同的用例。

Capacity flash will be an upsell on the hybrid flash array and will, over time, impact the percentage of our business mix that's hybrid flash.

容量閃存將成為混合閃存陣列的追加銷售，並且隨著時間的推移，將影響我們業務組合中混合閃存的百分比。

Okay. That's helpful. And then on the cloud part and the recovery, 2-parter. One, have you noticed any level of engagement? And we've got the pushouts that's going around. But any different level of engagement by the big cloud players? And then related to that, how have you guys progressed with transitioning ONTAP on-premise customers to also start taking some of your cloud-based services in their hybrid cloud deployments?

好的。這很有幫助。然後在雲部分和恢復部分，2 部分。第一，您是否注意到任何程度的參與？我們已經得到了正在發生的推出。但大型雲玩家的參與程度有何不同？然後與此相關的是，你們在過渡 ONTAP 本地客戶方面取得了怎樣的進展，也開始在他們的混合雲部署中採用你們的一些基於雲的服務？

We continue to have great engagement with our cloud provider partners. As I mentioned, customer acquisition continues to be a good part of our cloud business. The impact in the quarter is limited because the initial deployments are small. So that's the first.

我們繼續與我們的雲提供商合作夥伴保持良好的合作關係。正如我所提到的，客戶獲取仍然是我們雲業務的重要組成部分。該季度的影響有限，因為最初的部署規模很小。這是第一個。

Second, with regard to cross-selling multiple cloud services after the initial use case, we have done well, and I'm pleased with progress.

其次，關於在初始用例之後交叉銷售多個雲服務，我們做得很好，我對進展感到滿意。

In terms of the customers that we are engaged with on consumption, there is no churn difference, right? So the pattern is they are reducing the performance level of the storage use case, but they're not churning off our service. So I feel really good. Actually, I think it's the best part of being a partner is to help your clients use the right -- use combination of services.

就我們在消費方面接觸的客戶而言，沒有流失差異，對吧？所以模式是他們正在降低存儲用例的性能水平，但他們並沒有取消我們的服務。所以我感覺真的很好。實際上，我認為作為合作夥伴最好的部分是幫助您的客戶使用正確的服務組合。

And then in terms of penetration of our installed base, while it's early, we continue to see that moving forward steadily. I think the penetration in our NetApp managed enterprise accounts is much higher than in our commercial segment.

然後就我們已安裝基礎的滲透而言，雖然現在還很早，但我們繼續看到它穩步向前發展。我認為我們 NetApp 管理的企業賬戶的滲透率比我們的商業部門高得多。

The next question will come from Samik Chatterjee with JPMorgan.

下一個問題將來自摩根大通的 Samik Chatterjee。

I guess I had 2 on the Public Cloud. And if I can just start with just the broader trends that you're seeing in relation to Public Cloud and the pressures around consumption and optimization. It does indicate that not every use case that the enterprises were leveraging were critical in the cloud. I mean how do you think about some of the addressable market that you were defining around the cloud storage and Cloud Ops? Just in relation to that, I guess, enterprises don't see everything as being critical in the cloud. And there's a lot more room for optimization as is being demonstrated during these budget cuts. And I have a follow-up.

我想我在公共雲上有 2 個。如果我可以從您看到的與公共雲相關的更廣泛趨勢以及消費和優化方面的壓力開始。它確實表明並非企業利用的每個用例在雲中都是至關重要的。我的意思是，您如何看待圍繞雲存儲和 Cloud Ops 定義的一些潛在市場？就此而言，我想，企業並不認為雲中的一切都是關鍵的。正如這些預算削減期間所證明的那樣，還有更多的優化空間。我有一個後續行動。

First of all, I think that the long-term trend towards cloud continues to be a strong trend. I think even if you look at the most recent data from analysts as well as from the cloud providers, the public cloud market growth is higher than data center infrastructure growth. So that's one.

首先，我認為雲的長期趨勢仍然是一個強勁的趨勢。我認為即使你查看來自分析師和雲提供商的最新數據，公共雲市場的增長也高於數據中心基礎設施的增長。這就是一個。

I think second is we are learning the behavior patterns of different workload profiles in our customer base. I actually think the fact that customers can spin up and spin down environment is a benefit to the cloud model over the long term because the real cost of operating a cloud environment will then be lower than what you would see on premises.

我認為其次是我們正在了解客戶群中不同工作負載配置文件的行為模式。實際上，我認為客戶可以加速和減速環境這一事實從長遠來看對雲模型是一個好處，因為運營雲環境的實際成本將低於您在本地看到的成本。

We are, for example, being able to understand -- and as we spread the consumption of our cloud services across a much larger customer base, the impact of any particular customer's change in behavior will actually be much less than it is today. So we remain bullish about the cloud opportunity. We're more sharply focusing our go-to-market resources to go after it and continuing to sharpen the customer success motion to allow our customers to benefit from the use of our technology more completely.

例如，我們能夠理解——隨著我們將雲服務的消費分散到更大的客戶群中，任何特定客戶行為變化的影響實際上將比今天小得多。因此，我們仍然看好雲機會。我們正在更加集中我們的上市資源來追求它，並繼續加強客戶成功行動，讓我們的客戶更充分地從我們的技術使用中受益。

Okay. And maybe on the same line, just digging a little bit deeper. Like what are you seeing in relation to sort of the difference in engagement on Spot versus Cloud Insights? And when you have net revenue retention rates of around 120%, like how does that break down between Spot and the rest of the portfolio may be seeing a bit more challenges?

好的。也許在同一條線上，只是挖得更深一點。就像您看到的關於 Spot 與 Cloud Insights 的參與度差異有何不同？當您的淨收入保留率約為 120% 時，例如 Spot 和其他投資組合之間的差異可能會遇到更多挑戰？

Spot has done well, and Cloud Insights has stabilized and met our internal targets. So the shortfall was mostly from the cloud storage business. I think that in Spot, it's the opposite, right? When people are concerned about cost optimization, Spot is a perfect tool for that, and they had a good quarter.

Spot 表現不錯，Cloud Insights 已經穩定並達到了我們的內部目標。因此，短缺主要來自云存儲業務。我認為在 Spot 中，情況恰恰相反，對吧？當人們關心成本優化時，Spot 是一個完美的工具，他們有一個很好的季度。

The next question will come from Krish Sankar with Cowen and Company.

下一個問題將來自 Cowen and Company 的 Krish Sankar。

The first one is it seems like despite the cloud optimization service being 40% of your portfolio, your cloud portfolio [the fact you] have declined from Public Cloud service seems to be more than offsetting. Any improvement there?

第一個是，儘管雲優化服務佔您投資組合的 40%，但您的雲投資組合 [事實上您] 拒絕使用公共雲服務似乎不僅僅是抵消。那裡有什麼改進嗎？

Second is, can you just tell us how was the performance of this? And do you think at some point this year -- calendar year, it could get to be more than 50% of your cloud ARR? And then I have a follow-up.

其次，您能告訴我們這方面的表現如何嗎？你認為在今年的某個時候——日曆年，它可能會超過你的雲 ARR 的 50%？然後我有一個後續行動。

We continue to add new customers to our -- all of our cloud services, Cloud Ops and Cloud Storage. The impact of those customers in the first few quarters of there being acquired is actually small because they typically find small deals. And they are testing out the services or they deploy a development and test environment rather than a production environment. Those customers were actually -- the benefits to our business from those customers was overrun by the reduction from some of the large customers who contracted their spending in the quarter. So we feel good about new customer additions. Can we do more there? Surely. But I don't think that was a material issue in the quarter.

我們繼續為我們的所有云服務、Cloud Ops 和 Cloud Storage 添加新客戶。這些客戶在被收購的前幾個季度的影響實際上很小，因為他們通常會找到小額交易。他們正在測試服務，或者部署開發和測試環境而不是生產環境。這些客戶實際上是 - 這些客戶給我們的業務帶來的好處被一些在本季度縮減支出的大客戶的減少所淹沒。因此，我們對新客戶的增加感到滿意。我們可以在那裡做更多嗎？一定。但我認為這不是本季度的重大問題。

And if I could -- it's Mike. We talked about, Krish, hey, cloud storage is about 60%. Cloud Ops is about 40%. We don't see that changing materially. It'll move around a little bit by quarter, but we expect that to remain relatively consistent over the next several quarters.

如果可以的話——是邁克。我們談到，Krish，嘿，雲存儲大約是 60%。 Cloud Ops 約為 40%。我們認為這不會發生實質性變化。它會按季度移動一點點，但我們預計在接下來的幾個季度內會保持相對穩定。

Got it. Got it. Super helpful, George and Mike. And then as a quick follow-up, George, kind of like what is your visibility today? Like how many months visibility do you have? And also to an earlier question, George, you mentioned that when a customer's business gets better, they'll start spending again. I mean I just wanted to find, is it as simple as that? Or do you have to look at other metrics like kind of how you said, deal sizes are smaller, maybe deal size gets larger, you don't need a CFO approval for purchases? Are there any other leading indicators to look into?

知道了。知道了。超級有幫助，喬治和邁克。然後作為快速跟進，喬治，有點像你今天的知名度是多少？比如你有幾個月的知名度？對於之前的一個問題，喬治，你提到當客戶的業務好轉時，他們會再次開始消費。我的意思是我只是想找到，就這麼簡單嗎？或者你是否必須查看其他指標，比如你所說的交易規模較小，也許交易規模變大，你不需要 CFO 批准購買？還有其他領先指標需要研究嗎？

We do a whole lot of account level analysis, especially for our larger customers. We look at their total wallet. We look at whether we are gaining share or losing share. We look at are we -- do we need to bring new business models to the customer? We have done well with our consumption business. Our Keystone offering, there are many customers that have chosen to use that over the past couple of quarters rather than go the CapEx route. So we're heavily involved with customers, right?

我們做了很多賬戶級別的分析，尤其是對我們的大客戶。我們看看他們的總錢包。我們看看我們是在增加份額還是在減少份額。我們看看我們是否需要為客戶帶來新的商業模式？我們的消費業務做得很好。我們的 Keystone 產品，有許多客戶在過去幾個季度選擇使用它，而不是走資本支出路線。所以我們與客戶密切相關，對嗎？

I'll just tell you that it's a daily conversation with customers. I'm just starting to sort of take the broader theme that, in general, what we see with the larger customers is that when their business outlook improves, they generally start to purchase. Some segments that typically go ahead of GDP and economic performance lead the market, and other parts of that large enterprise segment come along when GDP turns around. So look at the business cycle of those customers, that's probably the best leading indicator.

我只是告訴你，這是與客戶的日常對話。我剛剛開始採用更廣泛的主題，一般來說，我們從大客戶身上看到的是，當他們的業務前景改善時，他們通常會開始購買。一些通常領先於 GDP 和經濟表現的細分市場引領市場，而當 GDP 好轉時，大型企業細分市場的其他部分也會出現。所以看看這些客戶的商業周期，這可能是最好的領先指標。

The next question will come from Matt Sheerin with Stifel.

下一個問題將來自 Stifel 的 Matt Sheerin。

I had a question on the pricing environment. Are you seeing any incremental pricing pressure from competitors given the slower demand environment? And would the expectation of lower input costs both on components and NAND give you an opportunity to be more aggressive on pricing? Or is that not part of the playbook?

我對定價環境有疑問。鑑於需求環境放緩，您是否看到來自競爭對手的任何增量定價壓力？組件和 NAND 投入成本降低的預期是否會給您帶來更積極定價的機會？或者這不是劇本的一部分？

I think it's always a competitive environment, and it continues to be a competitive environment in a tough demand environment. I don't see any player doing anything kind of out of the ordinary. I think that just like everyone else, we see the opportunity, especially with QLC-based flash arrays, to be competitive in the market.

我認為它始終是一個競爭環境，並且在艱難的需求環境中仍然是一個競爭環境。我沒有看到任何球員做出任何不同尋常的事情。我認為，就像其他人一樣，我們看到了在市場上具有競爭力的機會，尤其是基於 QLC 的閃存陣列。

The next question will come from Sidney Ho with Deutsche Bank.

下一個問題將來自德意志銀行的 Sidney Ho。

You guys have seen a few down cycles in the past 10 years, where you saw multiple quarters of overall revenue decline of 10% or more on a year-over-year basis. I think that was in 2016, 2020. Curious how you think this cycle will shake out. Maybe just help us compare and contrast with the previous cycles in terms of the depth and duration of the downturn. Maybe they're completely different. But -- and then I have a follow-up question.

你們在過去 10 年中看到了幾個下行週期，其中多個季度的總收入同比下降 10% 或更多。我想那是在 2016 年、2020 年。很好奇你認為這個週期將如何擺脫。也許只是幫助我們在衰退的深度和持續時間方面與之前的周期進行比較和對比。也許他們是完全不同的。但是 - 然後我有一個後續問題。

Listen, I think that we've got a different mix of business today than we did in the past. I think there's a growing percentage of our business from more recurring revenue business models like the cloud business. I think we have tried to move more of our resources to parts of the market that are less cyclical, and that allow us to acquire new customers to broaden our customer base. I would say we've done a good job, not enough, but we've certainly seen good progress. And we will continue to pivot in that direction.

聽著，我認為我們今天的業務組合與過去不同。我認為我們的業務中有越來越多的業務來自云業務等經常性收入業務模型。我認為我們已嘗試將更多資源轉移到週期性較弱的部分市場，這使我們能夠獲得新客戶以擴大我們的客戶群。我會說我們做得很好，但還不夠，但我們確實看到了很好的進展。我們將繼續朝這個方向發展。

I think the large customer segment behavior pattern is quite similar to what we've seen in the past. I think that 2016 is quite similar to what we see today. The only thing that I would point out is that the -- for many customers, 2020 was a very difficult year. And so there's -- it hasn't been -- this downturn has not been presaged by many, many years of economic expansion. So we're hopeful that customers will be back buying in a more predictable pattern than they have in the past.

我認為大客戶群的行為模式與我們過去看到的非常相似。我認為 2016 年與我們今天所看到的非常相似。我唯一要指出的是——對於許多客戶來說，2020 年是非常艱難的一年。因此，很多很多年的經濟擴張都沒有預示到這種衰退——但事實並非如此。因此，我們希望客戶能夠以比過去更可預測的方式重新購買。

Okay. That's great. Maybe a quick follow-up here. Just on the earlier answer on the operating expenses. You talked about holding OpEx flat until you see growth. But to be clear, are you expecting OpEx to be down in the July quarter from the $675 million level in the April quarter, which I know it's seasonally down for OpEx anyway for the July quarter? And you hold expenses at those levels going forward until revenue growth resumes, is that how we should think about it?

好的。那太棒了。也許在這裡快速跟進。只是關於運營費用的早期答案。你談到要保持 OpEx 持平直到你看到增長。但需要明確的是，您是否預計 7 月季度的 OpEx 會從 4 月季度的 6.75 億美元水平下降，我知道 7 月季度的 OpEx 季節性下降？在收入恢復增長之前，您將支出保持在這些水平，這是我們應該考慮的方式嗎？

Yes. Sidney, it's Mike. So there's a couple of nuances. I'll try to keep this brief, is that in the Q4 number, we do have a portion of the restructuring benefit. We'll get all of that in Q1. The thing that will come back in Q1 is incentive compensation, hopefully will come back. You've seen this, Sidney, in the last -- you talked about some of the downturns. You've seen this coming out of it as well. So on an absolute dollar perspective, it's probably up slightly Q4 to Q1 just based on that. But everything else from a controllable perspective, we will try to keep that as flat as we can outside of movements in incentive comp.

是的。西德尼，是邁克。所以有一些細微差別。我會盡量保持簡短，在第四季度的數字中，我們確實有一部分重組收益。我們將在第一季度獲得所有這些。第一季度會回來的是激勵補償，希望會回來。西德尼，你在上次看到了這一點——你談到了一些經濟低迷時期。你也看到了它的結果。因此，從絕對美元的角度來看，基於此，第四季度到第一季度可能略有上漲。但從可控的角度來看，其他一切，我們將盡量保持在激勵補償變動之外的水平。

The next question will come from Jim Suva with Citigroup.

下一個問題將來自花旗集團的 Jim Suva。

I have different questions, one for George and one for Mike. I'll ask them at the same time, and you all can answer them in any order. But George, in the past several years, you have gained significant market share, very significant. With the slowdown, I'm wondering if you're seeing any share shifts. Are you continuing to gain share? Or are you seeing any competitive pricing get even more aggressive? I know it's a competitive market, but your past several years have spoken multiple leagues of share gains. And so I'm just kind of wondering from that perspective.

我有不同的問題，一個給喬治，一個給邁克。我會同時問他們，你們都可以按任何順序回答。但是喬治，在過去的幾年裡，你獲得了很大的市場份額，非常重要。隨著經濟放緩，我想知道你是否看到任何份額變化。您是否繼續獲得份額？或者您是否看到任何有競爭力的定價變得更加激進？我知道這是一個競爭激烈的市場，但在過去的幾年中，您已經取得了多個聯盟的份額收益。所以我只是從那個角度想知道。

And then for Mike, can you comment on the FX? Are we looking at kind of maybe 2 more quarters and then a lapse or 3 or 4 more quarters because the FX headwinds are very severe, and you're still keeping your full year guidance, which is remarkable. But the FX, you simply can't just discredit it because it was so material. So any looks of when we start to lap that.

然後邁克，你能評論一下 FX 嗎？我們是在考慮再過 2 個季度，然後再過 3 個或 4 個季度，因為外匯逆風非常嚴重，而且您仍然保持全年指導，這非常了不起。但是 FX，你不能僅僅因為它太重要就抹黑它。所以我們什麼時候開始超越它的任何外觀。

I think on the share part, our exposure to the large enterprise is bigger than some of our competitors. And so I think in a down cycle, we will probably concede share given our exposure to those customers.

我認為在份額方面，我們對大型企業的敞口大於我們的一些競爭對手。因此，我認為在下行週期中，鑑於我們對這些客戶的敞口，我們可能會放棄份額。

I think the second is now that we have a more kind of full lineup of capacity flash arrays, I feel good that we can compete in all the segments of the flash market, which are key to driving share gains, and keep the hybrid flash segment where we have a strong offering moving forward.

我認為第二個是現在我們擁有更完整的容量閃存陣列陣容，我很高興我們可以在閃存市場的所有細分市場中競爭，這是推動市場份額增長的關鍵，並保持混合閃存細分市場我們有一個強大的產品向前發展。

And then I think, as I noted in my comments, we are going to better align our execution in the field so that we can more sharply focus on the storage market and more sharply focus on the cloud market in a more tailored go-to-market model for each.

然後我認為，正如我在評論中指出的那樣，我們將更好地調整我們在該領域的執行，以便我們能夠更加專注於存儲市場，更加專注於雲市場，以更加量身定制的方式-每個市場模型。

And Jim, it's Mike. On your FX question, for a full year now, this is on revenue. We expect it to be about a 350 basis point headwind for the full year, about 140 basis points in Q4 compared to 340 in Q3. I would expect that it would be almost 0, but slightly a headwind in Q1 and then lap in Q2.

吉姆，是邁克。關於您的外匯問題，現在整整一年，這是收入。我們預計全年逆風約為 350 個基點，第四季度約為 140 個基點，而第三季度為 340 個基點。我預計它幾乎為 0，但在 Q1 略有逆風，然後在 Q2 圈。

The next question will come from Jason Ader with William Blair.

下一個問題將來自 Jason Ader 和 William Blair。

George, are there any headwinds that you guys are seeing on the revenue side from NAND pricing coming down sharply on your AFA business? In other words, just street pricing because we know some of your competitors have kind of a cost-plus -- cost model -- margin model.

George，在你們的 AFA 業務中，NAND 定價急劇下降，你們在收入方面是否看到了任何不利因素？換句話說，只是街頭定價，因為我們知道你的一些競爭對手有一種成本加成——成本模型——利潤模型。

I think that, overall, customers budget in dollars, and so we segmented the market and the use cases quite distinctly for performance versus capacity flash. I don't think there's going to be material cannibalization between the 2. I think it really comes down to customer budget dollars being available.

我認為，總的來說，客戶預算以美元為單位，因此我們根據性能與容量閃存對市場和用例進行了非常明顯的細分。我不認為兩者之間會發生實質性的相互蠶食。我認為這真的取決於客戶預算是否可用。

Got you. So is it -- is this different than what we saw back in, like, 2018, 2019 where NAND prices came down really drastically and it affected kind of revenue for the whole industry?

明白了那麼，這與我們在 2018 年、2019 年看到的 NAND 價格大幅下跌並影響了整個行業的收入有什麼不同嗎？

I think that we've always seen customers buy in dollars, and they budget in dollars. So I think if you ask me right now, I don't actually see the NAND pricing coming down being the real headwind. I really do think it's customers' budget and IT spending that's the more material area of focus for us.

我認為我們一直看到客戶用美元購買，他們用美元做預算。所以我想如果你現在問我，我實際上並不認為 NAND 定價下降是真正的逆風。我真的認為客戶的預算和 IT 支出是我們關注的更重要的領域。

The next question will come from Meta Marshall with Morgan Stanley.

下一個問題將來自摩根士丹利的 Meta Marshall。

On the Cloud Ops portfolio, you guys have spoken to kind of a more aligned or sharpened go-to-market motion. I just wanted to get a sense of some of the integrations of that product portfolio that was going to happen and just whether that's a part of that kind of refined go-to-market and where we are on that.

在 Cloud Ops 產品組合中，你們談到了一種更一致或更敏銳的上市行動。我只是想了解即將發生的產品組合的一些集成，以及這是否是那種精緻的上市的一部分，以及我們在這方面的進展。

And then the second kind of piece of that question is just on the cloud storage piece. You guys have had a little bit less of visibility into kind of that customer set. Just getting a sense of, are some of these sharpening go-to-market motions kind of overlay sales? Just anything that's happening on the cloud storage to increase visibility there.

然後，該問題的第二部分就在雲存儲部分。你們對那種客戶群的了解有點少。只是想了解一下，這些加速上市的舉措中有一些是一種疊加銷售嗎？雲存儲上發生的任何事情都可以提高那裡的可見性。

Yes. I think first, Meta, on the Cloud Ops piece, we brought together the sales teams for Instaclustr, CloudCheckr and Spot into 1 unified Cloud Ops selling motion. And we've seen good momentum with the integrated team. I think particularly Spot and Instaclustr, there's good synergy in terms of customer buyers and buying motions that we hope to exploit over the next few quarters. It's too early to call it a success yet.

是的。我認為首先，Meta，在 Cloud Ops 部分，我們將 Instaclustr、CloudCheckr 和 Spot 的銷售團隊聚集到一個統一的 Cloud Ops 銷售動議中。我們已經看到整合團隊的良好勢頭。我認為特別是 Spot 和 Instaclustr，我們希望在未來幾個季度利用客戶購買者和購買動議方面的良好協同作用。現在說它成功還為時過早。

In terms of the product portfolio, we brought some of the functionality of CloudCheckr into Spot already for compliance, and you should see us bringing more of those capabilities into Spot.

在產品組合方面，我們已經將 CloudCheckr 的一些功能引入 Spot 以實現合規性，您應該會看到我們將更多這些功能引入 Spot。

With regard to cloud storage, listen, I think the most important work that we're doing is to be closely aligned with the hyperscalers -- hyperscaler cloud providers and some of the key application motions that are going on, SAP or Chip Design or VMware. And I think that what we are going to do as we head into FY '24 is even more closely align our hyperscaling -- hyperscale sales resources with those buying motions. I think that, that will give us a better understanding of customer behavior.

關於雲存儲，聽著，我認為我們正在做的最重要的工作是與超大規模雲供應商密切合作——超大規模雲提供商和正在進行的一些關鍵應用程序運動，SAP 或芯片設計或 VMware .而且我認為，在我們進入 24 財年時，我們將要做的是更緊密地使我們的超大規模——超大規模銷售資源與那些購買動議保持一致。我認為，這將使我們更好地了解客戶行為。

We've seen good adoption of our customer success capabilities in our subscription cloud storage business, but we are yet to see the full impact from doing so in the consumption cloud business, and that's work ahead of us.

我們已經看到在我們的訂閱雲存儲業務中很好地採用了我們的客戶成功能力，但我們還沒有看到在消費云業務中這樣做的全面影響，這是我們前面的工作。

Next question will come from Shannon Cross with Credit Suisse.

下一個問題將來自瑞士信貸的 Shannon Cross。

I'm wondering, how should we think about the impact of your 8% headcount reduction on your top line? I know you mentioned a couple of areas you've invested, but can you provide some more details on where the cuts were made? And how much of it was, I don't know, the proverbial back office versus revenue-focused headcount? And then I have a follow-up.

我想知道，我們應該如何考慮裁員 8% 對收入的影響？我知道你提到了你投資的幾個領域，但你能提供更多關於削減的地方的細節嗎？我不知道，眾所周知的後台辦公室與以收入為中心的員工人數有多少？然後我有一個後續行動。

I think that those cuts were -- are factored into our guidance for this quarter. And when we guide next year, you should expect us to factor those into the guidance. Broadly speaking, we focused our resources on the biggest market opportunities, and the places that we impacted were less significant contributors to revenue for us. I think in the cloud portfolio as well as in Cloud Ops, we've made some decisions that will have impact to ARR going forward.

我認為這些削減是 - 被納入我們本季度的指導中。當我們明年進行指導時，您應該期望我們將這些因素納入指導。從廣義上講，我們將資源集中在最大的市場機會上，而我們影響的地方對我們的收入貢獻不大。我認為在雲產品組合和 Cloud Ops 中，我們已經做出了一些將對 ARR 未來產生影響的決定。

But I think that those are in the spirit of let's focus on the best markets and the best opportunities. Our guidance for the quarter envisages those changes. Mike, do you want to add anything?

但我認為這些都是本著讓我們專注於最好的市場和最好的機會的精神。我們對本季度的指導設想了這些變化。邁克，你想補充什麼嗎？

No, no. I think that's a great answer. It's all baked in, and we did it across the board. We tried to focus where we didn't have productivity or revenue issues, as George said, a little bit of ARR. Outside of that, we feel good that we focused on the right areas.

不，不。我認為這是一個很好的答案。一切都已完成，我們全面完成了。正如喬治所說，我們試圖把重點放在沒有生產力或收入問題的地方，一點點 ARR。除此之外，我們很高興我們專注於正確的領域。

I guess were there any cuts in Hybrid Cloud? And then my second question is, what drove the year-over-year increase in stock-based comp, given all of the pressures you're seeing?

我想混合云有沒有削減？然後我的第二個問題是，考慮到您所看到的所有壓力，是什麼推動了基於股票的薪酬同比增長？

In Hybrid Cloud, as I noted in my comments, we impacted Astra Data Store. We are able to solve the Kubernetes use case better through a combination of Astra control, which we continue to invest in, and ONTAP rather than a completely separate architecture like Astra Data Store. And then we had a small business in SolidFire that we continue to sustain, but we don't plan to grow going forward.

正如我在評論中指出的那樣，在混合雲中，我們影響了 Astra Data Store。通過結合我們繼續投資的 Astra 控制和 ONTAP，我們能夠更好地解決 Kubernetes 用例，而不是像 Astra Data Store 這樣的完全獨立的架構。然後我們在 SolidFire 中有一個我們繼續維持的小業務，但我們不打算繼續發展。

Shannon, on your question on stock-based comp, every 6 months, we have to do a look back on our ESPP program, and there was about an $11 million, I'll call it, catch-up entry in the quarter to take into account the lower price of those purchases. And you'll see that typically every 6 months when we do our ESPP, depending on the price movement of the stock during that period of time.

Shannon，關於你關於股票補償的問題，每 6 個月，我們必須回顧一下我們的 ESPP 計劃，大約有 1100 萬美元，我稱之為本季度的追趕項目考慮到這些採購的較低價格。當我們進行 ESPP 時，您通常會每 6 個月看到一次，具體取決於該時間段內股票的價格變動。

So that catch-up is done now. And assuming your stock stays where it's at, there will be another catch-up? So you'll be at the $50 million or $60 million level going forward? Just to be clear.

所以現在已經完成了追趕。假設你的股票保持在原位，還會有另一個追趕嗎？那麼你未來會達到 5000 萬美元或 6000 萬美元的水平嗎？只是為了清楚。

So it stays in the run rate. It won't drop down. And what happens in 6 months is dependent on where the stock price is at that purchase date.

所以它保持在運行率。它不會掉下來。 6 個月內發生的情況取決於股票價格在該購買日期的位置。

The Next question will come from Nehal Chokshi with Northland.

下一個問題將來自 Northland 的 Nehal Chokshi。

What has been the year-over-year demand trend in the month of February relative to the January quarter? Has it worsened as implied by the guidance even with the C-Series now available?

與 1 月季度相比，2 月的同比需求趨勢如何？即使 C 系列現已上市，情況是否如指南所暗示的那樣惡化？

We're not going to comment about what's happening this quarter. I think broadly speaking, we're cautious, as you can see in our guidance, about the pattern of IT spending for the year. I think many parts of our business performed well, but the large enterprise, particularly in the Americas, high tech and service provider segments, and certain parts of Europe, particularly U.K. and Germany, have not performed as well. And we're concerned about how spend -- how robust spending will be there in the short term.

我們不會對本季度發生的事情發表評論。我認為從廣義上講，正如您在我們的指南中所見，我們對今年的 IT 支出模式持謹慎態度。我認為我們業務的許多部分都表現良好，但大型企業，尤其是美洲的高科技和服務提供商部門，以及歐洲的某些地區，尤其是英國和德國，表現不佳。我們擔心支出如何——短期內會有多強勁的支出。

Okay. And what's the postmortem on why you guys were late with the lower capacity product on all-flash arrays?

好的。事後分析為什麼你們遲遲沒有使用全閃存陣列上的低容量產品？

We have hybrid flash arrays that serve those use cases. We believe that we could continue to support those use cases with hybrid flash. A few months ago, we -- a few quarters ago, we created a capacity flash product. We started to see strong pickup, but it was at the high end of our lineup, and we realized that we needed to introduce a full lineup. And that has taken us a little bit more time than we expected. So I feel good about our lineup now. It's the most comprehensive in terms of functionality, use cases, guarantees and price and capacity points in the market.

我們有服務於這些用例的混合閃存陣列。我們相信我們可以繼續使用混合閃存支持這些用例。幾個月前，我們 - 幾個季度前，我們創建了容量閃存產品。我們開始看到強勁的增長，但它處於我們陣容的高端，我們意識到我們需要引入一個完整的陣容。這比我們預期的花費了更多時間。所以我現在對我們的陣容感覺很好。它在功能、用例、保證以及市場上的價格和容量點方面是最全面的。

The next question will come from Ananda Baruah with Loop Capital.

下一個問題將來自 Loop Capital 的 Ananda Baruah。

George, just sort of circling back to your remarks about concentration with financial services and service provider. Do you feel the company has greater exposure to those end markets than within your key competitors? And is there anything that you can do or that you're focused on to try to diversify that exposure? And then I have a quick follow-up.

喬治，只是回到你關於專注於金融服務和服務提供商的評論。您是否認為公司在這些終端市場的曝光率高於您的主要競爭對手？有什麼你可以做的或你專注於嘗試分散風險敞口的嗎？然後我有一個快速跟進。

Listen, I don't want to comment about our competitors. I should let you ask them that question. I think what we have seen is that we are -- have got a large base of high-tech and service provider customers and large enterprise customers. They are demanding customers, and they are forward-leaning. And there's lots of benefits to having those customers. But when they are in a down cycle, it does impact our business.

聽著，我不想評論我們的競爭對手。我應該讓你問他們那個問題。我認為我們所看到的是我們 - 擁有大量的高科技和服務提供商客戶以及大型企業客戶。他們要求客戶，他們是前瞻性的。擁有這些客戶有很多好處。但是當他們處於下行週期時，它確實會影響我們的業務。

Over the years, we've done a few things to expand our business. I think one, we continue to invest in the commercial segment. It's too early to call that a broad push, but we've seen good results. We've also brought in the number of enterprise customers. We sign up below the large enterprise. And perhaps most importantly, has been the push to grow our cloud business. Cloud has been the single most strongest vehicle for new customer issues for us, and I'm very pleased with that route-to-market that we've enabled over the past few years.

多年來，我們做了一些事情來擴展我們的業務。我認為第一，我們繼續投資商業領域。現在稱其為廣泛推動還為時過早，但我們已經看到了良好的結果。我們還帶來了企業客戶的數量。我們在大企業下面報名。也許最重要的是，推動了我們雲業務的發展。雲一直是我們解決新客戶問題的最強大的工具，我對過去幾年我們啟用的上市途徑感到非常滿意。

That's great context. And the quick follow-up is, both you and Mike, in your prepared remarks -- or Mike, I think, in his prepared remarks and yours in response to a question, made reference to mix shift in all-flash in '24 -- sorry, not mix -- industry shift all-flash in '24. So I was just wondering, is that something that you guys see as being distinct from what current trend is? Do you see a break in the trend? And that's it. So an amplification of the trend.

這是很好的背景。快速跟進是，你和邁克，在你準備好的評論中——或者我認為邁克，在他準備好的評論和你回答問題時，提到了 24 年全閃存的混合轉變—— - 抱歉，不混合 - 24 年行業轉變全閃。所以我只是想知道，你們認為這與當前趨勢不同嗎？你看到趨勢中斷了嗎？就是這樣。所以趨勢的放大。

I think broadly speaking, as we have said in past cycles, when the price of NAND comes down, you see a mix shift towards a flash-based system. Disk-based systems costs have been more steady than sort of up and down like flash. So that's the broad trend. In our case, we expect that shift to also benefit from the fact that we now have 2 complete lineups, high-performance flash, which will benefit from NAND, and capacity flash, which will also benefit from NAND.

我認為從廣義上講，正如我們在過去的周期中所說的那樣，當 NAND 的價格下降時，您會看到向基於閃存的系統的混合轉變。基於磁盤的系統成本比像閃存那樣上下波動更為穩定。這就是大趨勢。在我們的案例中，我們預計這種轉變也將受益於我們現在擁有 2 個完整產品線的事實，高性能閃存將受益於 NAND，容量閃存也將受益於 NAND。

Our last question will come from Kyle McNealy with Jefferies.

我們的最後一個問題將來自 Jefferies 的 Kyle McNealy。

Can you talk a little bit about the positive impact you expect to have from AI on the business? What's the positive impact, where it will come from? Is it a higher mix of high-performance, low-latency all-flash? Is it sheer data growth or both those factors? And do you think we'll have to get past the near-term softer macro environment that you've been talking about through '23 until we see some kind of material new AI workload growth?

您能談談您期望人工智能對業務產生的積極影響嗎？什麼是積極影響，它將來自哪裡？它是高性能、低延遲全閃存的更高組合嗎？是純粹的數據增長還是這兩個因素？您是否認為我們必須度過 23 世紀以來您一直在談論的近期較為疲軟的宏觀環境，直到我們看到某種實質性的新 AI 工作負載增長？

AI workloads continue to grow in parts of the market that are more resilient to commodity cycles. So for example, life sciences, certain elements of financial services, industries that are more countercyclical have done well, and we continue to see that moving forward. AI workloads, especially those that do image and audio analysis, for example, in life sciences, cancer detection or various types of diagnostic cases are perfectly suited to NetApp. I mean we store a large number of files in a very high-performance system. And so we are benefiting from those use cases today. And certainly, as the range of AI tool chain continues to grow, we expect that to be a more material contributor to our business going forward.

在對商品週期更具彈性的部分市場中，AI 工作負載繼續增長。因此，例如，生命科學、金融服務的某些元素、更具反週期性的行業表現良好，我們將繼續看到這種情況向前發展。 AI 工作負載，尤其是那些在生命科學、癌症檢測或各種類型的診斷案例中進行圖像和音頻分析的工作負載，非常適合 NetApp。我的意思是我們將大量文件存儲在一個非常高性能的系統中。因此，我們今天從這些用例中受益。當然，隨著 AI 工具鏈範圍的不斷擴大，我們希望它能為我們未來的業務做出更大的貢獻。

Thanks, Kyle. I'm going to pass it back to George for some closing comments.

謝謝，凱爾。我將把它傳回給 George 以徵求一些結束意見。

Thanks, Kris. Our strategy is aligned to the long-term secular growth trend of data-driven digital and cloud transformation. We address key long-term priorities for our customers with strong positions in each of our key markets and have demonstrated success in controlling the elements within our control.

謝謝，克里斯。我們的戰略與數據驅動的數字化和雲轉型的長期長期增長趨勢保持一致。我們在每個主要市場都擁有強大的地位，為我們的客戶解決關鍵的長期優先事項，並在控制我們控制範圍內的要素方面取得了成功。

Over the course of our history, we have been through several challenging macroeconomic period that we have used to sharpen our focus, attack new opportunities and emerge in a better position. We are committed to doing that again. You can expect us to remain prudent stewards of the business, tightly managing the elements within our control, reinvigorate efforts across the company in support of our storage business and build a more focused approach to our Public Cloud business. We'll give you updates on our progress in the coming quarters. Thank you.

在我們的歷史進程中，我們經歷了幾個充滿挑戰的宏觀經濟時期，我們利用這些時期來加強我們的注意力，抓住新機遇並處於更好的位置。我們承諾再次這樣做。您可以期望我們繼續審慎地管理業務，嚴格管理我們控制範圍內的元素，重新振興整個公司的努力以支持我們的存儲業務，並為我們的公共雲業務建立一個更有針對性的方法。我們將在未來幾個季度向您通報我們的最新進展。謝謝。

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。