NetApp Inc (NTAP) 2024 Q1 法說會逐字稿

Good day, and welcome to the NetApp First Quarter of Fiscal Year 2024 Earnings Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Kris Newton, Vice President, Investor Relations. Please go ahead.

美好的一天，歡迎參加 NetApp 2024 財年第一季度財報電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將會議交給投資者關係副總裁克里斯·牛頓 (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；和首席財務官邁克·貝里。本次電話會議正在進行網絡直播，並將在我們的網站 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, including, without limitation, our guidance for the second quarter and fiscal year 2024, our expectations regarding future revenue, profitability and shareholder returns and other growth initiatives and strategies.

在今天的電話會議中，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，包括但不限於我們對第二季度和2024 財年的指導，我們對未來收入、盈利能力和股東回報的預期，以及其他增長舉措和戰略。

These statements are subject to various risks and uncertainties, which may cause our actual results to differ materially.

這些陳述受到各種風險和不確定性的影響，可能導致我們的實際結果存在重大差異。

For more information, please refer to the documents we file from time to time with the SEC and on our website, including our most recent Form 10-K and Form 10-Q. We disclaim any obligation to update our forward-looking statements and projections.

如需了解更多信息，請參閱我們不時向 SEC 以及我們網站上提交的文件，包括我們最新的 10-K 表格和 10-Q 表格。我們不承擔更新前瞻性陳述和預測的義務。

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

除非另有說明，在電話會議期間提出的所有財務指標都將採用非公認會計準則。我們的網站上提供了 GAAP 與非 GAAP 估算的調節表。

I'll now turn the call over to George.

我現在把電話轉給喬治。

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

謝謝，克里斯。大家下午好。感謝您今天加入我們。

Q1 marks a solid start to FY '24 in what continues to be a challenging macroeconomic environment. We delivered revenue above the midpoint of guidance while our operational discipline yielded operating margin and EPS above our guidance ranges.

在仍然充滿挑戰的宏觀經濟環境中，第一季度標誌著 24 財年的良好開端。我們的收入高於指導中點，而我們的運營紀律使營業利潤率和每股收益高於我們的指導範圍。

As I have outlined on previous calls, we are focused on managing the elements within our control, reinvigorating efforts to drive better performance in our storage business and building a more focused approach to our Public Cloud business.

正如我在之前的電話會議中概述的那樣，我們專注於管理我們控制範圍內的要素，重振努力以提高我們的存儲業務的性能，並為我們的公共雲業務建立更加集中的方法。

We are seeing positive early indicators from this plan to sharpen our execution, deliver growth, increase profitability and further strengthen our position for long-term success.

我們從該計劃中看到了積極的早期指標，可以提高我們的執行力、實現增長、提高盈利能力並進一步鞏固我們的長期成功地位。

Looking at the results of the quarter, I am especially pleased with the reception to our recent product introductions. The AFF C-Series has been the fastest ramping all-flash product launch in our history, with strong demand across all products in the family. Similarly, the AFF A150, our entry-level high-performance all-flash array, grew quickly in its first full quarter of shipping. Our Storage Lifecycle Program is also seeing good early uptake, driving longer-term commitments to NetApp as we help customers future-proof their environments with a world-class ownership experience.

看看本季度的業績，我對我們最近推出的產品受到的歡迎感到特別滿意。 AFF C 系列是我們歷史上推出速度最快的全閃存產品，該系列所有產品的需求強勁。同樣，我們的入門級高性能全閃存陣列 AFF A150 在第一個完整季度的出貨量中快速增長。我們的存儲生命週期計劃也得到了良好的早期採用，推動了對 NetApp 的長期承諾，因為我們幫助客戶通過世界一流的擁有體驗來適應未來的環境。

Building on this momentum, we introduced more storage innovation in Q1. We announced the ASA A-Series, a family of SAN-specific all flash arrays, supported by industry-leading data availability and efficiency guarantees. These systems are the only all-SAN storage arrays with virtual machine and application-granular data protection mechanisms. Complementing our unified storage offering, they enable us to expand on the tens of thousands of customers who already use NetApp for block storage today and drive share gains in the $18 billion SAN market.

在此勢頭的基礎上，我們在第一季度推出了更多存儲創新。我們推出了 ASA A 系列，這是一系列 SAN 專用的全閃存陣列，由行業領先的數據可用性和效率保證提供支持。這些系統是唯一具有虛擬機和應用程序粒度數據保護機制的全SAN存儲陣列。它們是對我們統一存儲產品的補充，使我們能夠擴大目前已使用 NetApp 進行塊存儲的數以萬計的客戶，並在價值 180 億美元的 SAN 市場中推動份額增長。

In addition to delivering on our innovation agenda, we have implemented the go-to-market changes we outlined on the Q4 call, focusing our enterprise sellers on the flash opportunity and building a dedicated model for cloud. In May, we held our annual sales kickoff meeting, the first time we've gathered the global team in person since the pandemic. Everyone was energized by the innovation we're bringing to market and the objective appropriately aligned to each team's strength. Because many of the products we've introduced open new TAM for us, we are also including training to sharpen our attack on these opportunities. The changes have been well received, are already showing up in pipeline expansion and should help drive top line growth in the second half.

除了實現我們的創新議程之外，我們還實施了我們在第四季度電話會議中概述的入市變革，使我們的企業賣家重點關注閃存機會並構建專用的雲模型。五月，我們舉行了年度銷售啟動會議，這是自疫情爆發以來我們第一次親自召集全球團隊。每個人都被我們推向市場的創新和與每個團隊的實力相匹配的目標所激勵。由於我們推出的許多產品都為我們開闢了新的 TAM，因此我們還提供了培訓，以加強我們對這些機會的攻擊。這些變化受到了好評，已經在管道擴張中顯現出來，應該有助於推動下半年的收入增長。

Q1 Hybrid Cloud segment revenue of $1.3 billion, was down 12% year-over-year. Our all-flash array business decreased 7% from Q1 a year ago to an annualized revenue run rate of $2.8 billion. The demand environment is unchanged from the last half of FY '23, with headwinds from enterprise continuing to weigh on products and AFA revenue. Additionally, as Mike will outline, the first half of fiscal year '23 benefited from elevated backlog, impacting the year-over-year comparisons.

第一季度混合雲部門收入為 13 億美元，同比下降 12%。我們的全閃存陣列業務較去年第一季度下降 7%，年化收入運行率為 28 億美元。需求環境與 23 財年下半年相比沒有變化，來自企業的不利因素繼續影響產品和 AFA 收入。此外，正如邁克將概述的那樣，23 財年上半年受益於積壓的增加，影響了同比比較。

In the past few quarters, every conversation I've had with customers and investors has touched on artificial intelligence. Generative AI is top of mind for everyone. While still in the early innings of this opportunity, AI is not a new topic for us. We have been a leader in storage for predictive AI and machine learning workloads since we introduced ONTAP AI, a joint NetApp and NVIDIA proven architecture in 2018. Today, hundreds of customers rely on NetApp storage infrastructure and data management for their AI workloads, including some of the largest pharmaceutical, financial services and retail companies in the world.

在過去的幾個季度中，我與客戶和投資者的每次對話都涉及人工智能。生成式人工智能是每個人最關心的問題。雖然人工智能仍處於這個機會的早期階段，但對我們來說並不是一個新話題。自2018 年推出ONTAP AI（NetApp 和NVIDIA 聯合驗證的架構）以來，我們一直是預測性AI 和機器學習工作負載存儲領域的領導者。如今，數百名客戶依靠NetApp 存儲基礎架構和數據管理來處理他們的AI 工作負載，其中包括一些世界上最大的製藥、金融服務和零售公司。

Effective predictive and generative AI projects depend on high-quality, well-managed unstructured data. The data pipeline and workflow typically involve data from multiple file and object sources across cloud and on-premises, high-performance, highly scalable hybrid cloud storage and data management is a core NetApp advantage and naturally positions us as a leader in this market and will continue to benefit us as the Gen AI market evolves. While early, we are already engaged with customers who are interested in fine-tuning large language models with their own data on-premises as well as those who are leveraging the hyperscalers' Gen AI offerings on the public cloud together with the storage and data management capabilities of NetApp cloud volume services.

有效的預測和生成人工智能項目依賴於高質量、管理良好的非結構化數據。數據管道和工作流程通常涉及來自跨雲和本地的多個文件和對像源的數據，高性能、高度可擴展的混合雲存儲和數據管理是NetApp 的核心優勢，自然使我們成為該市場的領導者，並將隨著 Gen AI 市場的發展，我們將繼續受益。雖然很早，我們已經與那些有興趣使用自己的本地數據微調大型語言模型的客戶以及那些在公共雲上利用超大規模企業的 Gen AI 產品以及存儲和數據管理的客戶進行了接觸NetApp 雲卷服務的功能。

Accelerated by the rise of AI, data continues to grow in both volume and value. A company's data is its most valuable asset. Our robust cyber resilience portfolio helps customers ensure that they have the right enterprise data protection and security on premises and in the cloud with built-in features that protect and secure data and deliver rapid recovery based on AI and machine learning, our systems can proactively spot and counter malicious or anomalous actions. Our confidence in our industry-leading capabilities is underscored by the ransomware recovery guarantee we announced in Q1 and demonstrated by the fact that NetApp is the only enterprise storage vendor on the NSA's classified program components list.

隨著人工智能的興起，數據的數量和價值都在持續增長。公司的數據是其最有價值的資產。我們強大的網絡彈性產品組合可幫助客戶確保他們在本地和雲中擁有正確的企業數據保護和安全性，並通過內置功能保護數據並提供基於人工智能和機器學習的快速恢復，我們的系統可以主動發現並反擊惡意或異常行為。我們在第一季度宣布的勒索軟件恢復保證凸顯了我們對行業領先能力的信心，NetApp 是 NSA 機密程序組件列表上唯一的企業存儲供應商也證明了這一點。

Now turning to Public Cloud. I want to acknowledge our cloud results have not been where we want them to be and assure you we are taking definitive action to hone our approach and get back on track. At the start of this year, we aligned our cloud sales specialists to our hyperscaler partners' go-to-market structures. Additionally, we are in the process of a strategic review to sharpen the focus of our cloud portfolio, expand on the success of first-party services and improved subscription performance. We will add more details to share with you on our next call.

現在轉向公共雲。我想承認我們的雲結果並沒有達到我們想要的效果，並向您保證我們正在採取明確的行動來磨練我們的方法並回到正軌。今年年初，我們將雲銷售專家與超大規模合作夥伴的上市結構進行了調整。此外，我們正在進行戰略審查，以加強我們的雲產品組合的重點，擴大第一方服務的成功並提高訂閱性能。我們將添加更多詳細信息，以便在下次通話中與您分享。

That said, Public Cloud segment revenue in Q1 was $154 million, an increase of 17% year-over-year. Public cloud DBNRR declined to 107%. Within these numbers, strength in first-party and marketplace consumption services was masked by weakness in our subscription services. Let me emphasize that our strategic focus is on first-party cloud storage services, and we continue to see customer expansion and deepening partnerships as well as revenue and ARR growth in this part of our portfolio. Our expectations for FY '24 Public Cloud revenue are reflected in the guidance Mike will walk you through.

也就是說，第一季度公共雲部門收入為 1.54 億美元，同比增長 17%。公有云 DBNRR 下降至 107%。在這些數字中，第一方和市場消費服務的實力被我們訂閱服務的弱點所掩蓋。我要強調的是，我們的戰略重點是第一方雲存儲服務，我們將繼續看到客戶的擴張和合作夥伴關係的深化，以及這部分產品組合的收入和 ARR 的增長。我們對 24 財年公共雲收入的預期反映在 Mike 將向您介紹的指南中。

First-party storage services, branded and sold by our cloud partners, position us uniquely and represent our biggest opportunity. Our partnerships with the cloud providers are strong and delivering growth. Our close and long-standing relationship with Microsoft Azure continues to deliver solid growth. Likewise, our partnership with Google remains strong. And in the coming weeks, you can expect to hear exciting news about an expansion of our partnership.

由我們的雲合作夥伴品牌和銷售的第一方存儲服務使我們處於獨特的地位，並代表了我們最大的機會。我們與雲提供商的合作夥伴關係非常牢固，並且正在不斷增長。我們與 Microsoft Azure 密切而長期的關係繼續帶來穩健的增長。同樣，我們與穀歌的合作關係依然牢固。在接下來的幾週內，您可以期待聽到有關我們擴大合作夥伴關係的令人興奮的消息。

Our relationship with AWS is also yielding positive results. As expected, we are starting to win large enterprise deployments with FSx for NetApp ONTAP. We were chosen to be the cloud storage infrastructure for a global sportswear manufacturer's, SAP HANA deployment. FSxN was the only storage service that could meet the company's mission-critical service level, availability and recovery requirements. This is a large long-term SAP project that will continue to develop and grow over the coming years, driving significant consumption of FSxN capacity. Once completed, it will be one of the largest SAP environment on AWS.

我們與 AWS 的關係也產生了積極的成果。正如預期的那樣，我們開始使用 FSx for NetApp ONTAP 贏得大型企業部署。我們被選為全球運動服裝製造商 SAP HANA 部署的雲存儲基礎設施。 FSxN 是唯一能夠滿足公司關鍵任務服務級別、可用性和恢復要求的存儲服務。這是一個大型長期 SAP 項目，將在未來幾年繼續發展和增長，推動 FSxN 容量的大量消耗。建成後，它將成為 AWS 上最大的 SAP 環境之一。

In the face of the challenging macro, demand remains muted and sales cycles remain elongated. Although customers continue to exhibit caution, they are moving forward with strategic initiatives, prioritizing investments in applications and technologies that drive business productivity and growth. Our modern approach to hybrid multi-cloud infrastructure and data management enables IT organizations to leverage data across their entire estate, simply, securely and sustainably. Customers turn to NetApp to help them increase the performance and reliability of their digital and cloud transformational projects.

面對充滿挑戰的宏觀形勢，需求依然低迷，銷售週期依然拉長。儘管客戶繼續表現出謹慎態度，但他們正在推進戰略計劃，優先投資於可推動業務生產力和增長的應用程序和技術。我們的混合多雲基礎設施和數據管理的現代方法使 IT 組織能夠簡單、安全和可持續地利用整個資產的數據。客戶求助於 NetApp 來幫助他們提高數字和雲轉型項目的性能和可靠性。

Looking forward, our priorities are clear. We will continue to tightly manage the elements within our control, reinvigorate efforts to drive better performance in the storage business and continue to refine our Public Cloud business. Early results indicate we are on track to drive margin expansion and earnings growth year-over-year while yielding top line growth in the back half of fiscal year '24.

展望未來，我們的優先事項很明確。我們將繼續嚴格管理我們控制範圍內的要素，重振旗鼓，推動存儲業務取得更好的業績，並繼續完善我們的公共雲業務。早期結果表明，我們有望推動利潤率擴張和盈利同比增長，同時在 24 財年後半段實現營收增長。

Before turning the call over to Mike, I want to thank the NetApp team for their continued focus. I also want to remind you, we will be hosting our INSIGHT user conference in person in Las Vegas this October. We hope to see you there.

在將電話轉給 Mike 之前，我要感謝 NetApp 團隊的持續關注。我還想提醒您，我們將於今年 10 月在拉斯維加斯親自舉辦 INSIGHT 用戶大會。我們希望看到你在那裡。

Thank you, George, and good afternoon, everyone. We executed a solid quarter in a challenging macro environment, hitting or exceeding all our guidance ranges. We are delivering on our commitments evident in our solid Q1 results.

謝謝喬治，大家下午好。我們在充滿挑戰的宏觀環境中實現了穩健的季度業績，達到或超過了我們的所有指導範圍。我們正在兌現我們的承諾，這一點在我們第一季度的穩健業績中得到了體現。

Before I get into the financial details, let me walk you through the key themes for the quarter. As a reminder, all numbers discussed are non-GAAP unless otherwise noted.

在介紹財務細節之前，讓我先向您介紹本季度的關鍵主題。提醒一下，除非另有說明，所有討論的數字均非公認會計原則。

Our disciplined operational management and the strong customer acceptance of our innovation continues to pay off. We expect improved execution and new products will drive growth and operating margin expansion as we move through the second half of the year.

我們嚴格的運營管理和客戶對我們創新的強烈認可不斷帶來回報。我們預計，隨著下半年的發展，執行力的提高和新產品將推動增長和營業利潤率的擴大。

As expected, Q1 consolidated gross margin was strong. Product margin came in at 55%. Given our expectation for competitive dynamics and product mix, we remain confident in our projection that product margin will hold at these levels through the remainder of the fiscal year.

正如預期，第一季度綜合毛利率強勁。產品利潤率為 55%。考慮到我們對競爭動態和產品組合的預期，我們對產品利潤率在本財年剩餘時間內將保持在這些水平的預測仍然充滿信心。

Cash from operations was a first quarter all-time high. Operating cash flow benefited from the reduction of premiums, as well as lower component pricing and incentive compensation payouts. Over the course of fiscal year '24, cash flow should normalize with operating cash flow tracking relatively in line with non-GAAP net income.

第一季度運營現金創歷史新高。運營現金流受益於保費減少以及零部件定價和激勵性薪酬支出的降低。在 24 財年期間，現金流量應正常化，運營現金流量跟踪與非 GAAP 淨利潤相對一致。

We returned approximately 120% of free cash flow to stockholders through cash dividends and share repurchases, reducing Q1 fiscal '24 share count by almost 4% year-over-year. As we discussed during last quarter's call, we intend to return 100% of free cash flow this year.

我們通過現金股息和股票回購向股東返還了約 120% 的自由現金流，使 24 財年第一季度的股票數量同比減少了近 4%。正如我們在上季度電話會議中討論的那樣，我們打算今年返還 100% 的自由現金流。

Now to the details of the quarter.

現在介紹本季度的詳細信息。

Q1 billings of $1.3 billion decreased 17% year-over-year. Revenue of $1.4 billion decreased 10% year-over-year. The challenging macro environment continued to pressure IT spending. However, as George pointed out, we are well aligned to customers' priority investments and remain confident our go-to-market changes and product innovations will drive growth in the second half of fiscal year '24.

第一季度營收為 13 億美元，同比下降 17%。收入為 14 億美元，同比下降 10%。充滿挑戰的宏觀環境繼續給 IT 支出帶來壓力。然而，正如喬治指出的那樣，我們與客戶的優先投資保持一致，並對我們的上市變化和產品創新將推動 24 財年下半年的增長充滿信心。

Hybrid Cloud revenue of $1.3 billion was down 12% year-over-year. Product revenue of $590 million was down 25%. Remember that first half fiscal year 2023 revenue, most notably product revenue, benefited from elevated levels of backlog, which impacts the year-over-year comparisons. Support revenue of $611 million grew 2% year-over-year.

混合雲收入為 13 億美元，同比下降 12%。產品收入為 5.9 億美元，下降 25%。請記住，2023 財年上半年的收入，尤其是產品收入，受益於積壓水平的提高，這會影響同比比較。支持收入為 6.11 億美元，同比增長 2%。

Public Cloud ARR grew 6% year-over-year to $619 million. Public Cloud revenue of $154 million, increased 17% from Q1 a year ago. First-party and marketplace services grew as customers continue to choose solutions based on NetApp technology for mission critical and cloud native workloads. This growth was offset by underperformance in subscription services. As George noted earlier, Public Cloud did not meet our expectations for the quarter, and we are taking action to hone our approach and reaccelerate growth.

公共雲 ARR 同比增長 6%，達到 6.19 億美元。公共雲收入為 1.54 億美元，較去年同期增長 17%。隨著客戶繼續選擇基於 NetApp 技術的解決方案來處理關鍵任務和雲原生工作負載，第一方和市場服務不斷增長。這一增長被訂閱服務的表現不佳所抵消。正如喬治早些時候指出的那樣，公共雲沒有達到我們對本季度的預期，我們正在採取行動磨練我們的方法並重新加速增長。

Q1 consolidated gross margin of 71%, came in above our guidance, up 400 basis points from a year ago and again, reaching an all-time company high.

第一季度綜合毛利率為 71%，高於我們的指引，比去年同期上升 400 個基點，達到公司歷史新高。

Product gross margin was 55%, in line with expectations. As we discussed on the Q4 call, we made strategic purchase commitments to lock-in record loan NAND pricing and mitigate rising prices in the future. NAND prices continued to decline in Q1, and we are still positioned favorably versus the market. The potential for increased price competition is factored into our expectations, and we remain confident in our ability to hold product gross margin consistent at this level through the year. Our recurring support business continues to be highly profitable with gross margin of 92%. Public Cloud gross margin improved to 67% from 66% last quarter.

產品毛利率為55%，符合預期。正如我們在第四季度電話會議上討論的那樣，我們做出了戰略採購承諾，以鎖定創紀錄的貸款 NAND 定價並緩解未來價格上漲的影響。第一季度 NAND 價格繼續下跌，我們仍處於市場有利地位。我們的預期中考慮了價格競爭加劇的可能性，我們對全年保持產品毛利率穩定在這一水平的能力充滿信心。我們的經常性支持業務繼續保持高利潤，毛利率高達 92%。公共雲毛利率從上季度的 66% 提高至 67%。

As expected, operating expenses of $703 million, were flat year-over-year and grew 4% from Q4 '23. The sequential increase was driven by annual merit increases and a reset of incentive compensation as well as expenses related to our in-person sales kickoff meeting.

正如預期，運營支出為 7.03 億美元，與去年同期持平，較 2023 年第四季度增長 4%。環比增長是由年度績效增長、激勵薪酬重置以及與我們的現場銷售啟動會議相關的費用推動的。

Q1 again highlighted the strength of our business model and disciplined operational execution with operating margin of 22%, ahead of expectations. EPS of $1.15, was also above the high end of our guidance.

第一季度再次凸顯了我們業務模式的優勢和嚴格的運營執行，營業利潤率為 22%，超出預期。每股收益 1.15 美元，也高於我們指導的上限。

Operating cash flow was $453 million in Q1, an increase of 61% year-over-year, driven by lower supply chain payments and variable compensation, partially offset by lower collections.

第一季度的運營現金流為 4.53 億美元，同比增長 61%，這是由於供應鏈付款和​​可變薪酬減少所致，但部分被收款減少所抵消。

In Q1, DSO decreased to 41 and inventory turns improved to 13. Free cash flow increased 94% year-over-year to $418 million, helped by strong operating cash flow and lower CapEx.

第一季度，DSO 減少至 41，庫存周轉率改善至 13。得益於強勁的運營現金流和較低的資本支出，自由現金流同比增長 94% 至 4.18 億美元。

During the quarter, we returned $506 million to stockholders through shares repurchased and cash dividends, ending the quarter with approximately $600 million in net cash. We have approximately $1 billion remaining on our existing repurchase authorization.

本季度，我們通過股票回購和現金股息向股東返還 5.06 億美元，本季度末淨現金約為 6 億美元。我們現有的回購授權還剩大約 10 億美元。

Our balance sheet remains healthy. Total deferred revenue as of the end of Q1 was $4.2 billion, up slightly from a year ago. We ended the quarter with approximately $3 billion in cash and short-term investments.

我們的資產負債表保持健康。截至第一季度末，遞延收入總額為 42 億美元，較去年同期略有增長。本季度結束時，我們擁有約 30 億美元的現金和短期投資。

Now turning to guidance.

現在轉向指導。

We are reiterating our guidance for the full year. Our total revenue guide is unchanged, with revenue down low-to-mid single digits year-over-year, measured on a percentage basis. Based on our Q1 results and updated projections, we expect Public Cloud revenue growth to come in lower than initially expected, primarily due to softness in our subscription services. This minor weakness is expected to be at least offset by strength in our Hybrid Cloud revenue. We continue to expect fiscal year '24 consolidated gross margin to be roughly 70%, operating margin to be approximately 25%, and EPS to be in the range of $5.65 to $5.85. We expect Q2 revenue to range between $1.455 billion and $1.605 billion, which at the midpoint implies a decline of 8% year-over-year. If FX rates stay at the end of July levels, we would see nearly 2 points of FX tailwinds to revenue. As I called out earlier, first half fiscal year '23 revenue benefited from elevated levels of backlog due to last year's supply chain constraints, which impacts the year-over-year comparisons. We expect Q2 consolidated gross margin to be roughly 70%, and operating margin to be approximately 24%. EPS should be in the range of $1.35 to $1.45.

我們重申全年的指導。我們的總收入指南保持不變，按百分比衡量，收入同比下降了低至中個位數。根據我們第一季度的業績和更新的預測，我們預計公共雲收入增長將低於最初預期，這主要是由於我們的訂閱服務疲軟。預計這一小幅弱點至少將被我們混合雲收入的強勁所抵消。我們繼續預計 24 財年綜合毛利率約為 70%，營業利潤率約為 25%，每股收益將在 5.65 美元至 5.85 美元之間。我們預計第二季度收入將在 14.55 億美元至 16.05 億美元之間，這意味著同比下降 8%。如果匯率保持在 7 月底的水平，我們將看到外匯對收入的推動作用接近 2 個百分點。正如我之前指出的，23 財年上半年的收入受益於去年供應鏈限制導致的積壓水平上升，這影響了同比比較。我們預計第二季度綜合毛利率約為 70%，營業利潤率約為 24%。 EPS 應在 1.35 美元至 1.45 美元之間。

In closing, I want to thank our employees, customers and investors for their commitment and investment in NetApp. I am confident in our ability to help our customers successfully achieve their digital and cloud transformation goals. We are well aligned to priority IT investments and are committed to deliver sustainable long-term value for our stockholders.

最後，我要感謝我們的員工、客戶和投資者對 NetApp 的承諾和投資。我對我們幫助客戶成功實現數字和雲轉型目標的能力充滿信心。我們與優先 IT 投資保持一致，並致力於為股東提供可持續的長期價值。

I'll now turn the call over to Kris to open the Q&A. Kris?

我現在將把電話轉給克里斯來開始問答。克里斯？

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

謝謝，邁克。接線員，我們開始問答吧。

(Operator Instructions) Our first question is from Sidney Ho with Deutsche Bank.

（操作員說明）我們的第一個問題來自德意志銀行的 Sidney Ho。

So last quarter, you guys talked about spending for large enterprises were cautious where, obviously, you guys are overexposed. That doesn't seem like that has changed that much. From your conversation with the customers, do you have a sense when demand could start picking up maybe based on utilization data or whatnot? First, just give us some historical context at what utilization rate level do you start seeing demand pickup? And do you think that will be quite any different this cycle?

所以上個季度，你們談到大型企業的支出是謹慎的，顯然，你們暴露過度了。這似乎並沒有改變那麼多。從您與客戶的對話中，您是否感覺到需求何時會根據利用率數據或其他因素開始回升？首先，請給我們一些歷史背景，在什麼利用率水平下您開始看到需求回升？您認為這個週期會有什麼不同嗎？

I mean, while you are at it, talk about the trends in small and medium businesses as well.

我的意思是，在討論的同時，也談談中小企業的趨勢。

Overall, thank you for the question. Overall, the spending environment this past quarter was unchanged from what we saw in the second half of the prior fiscal year. Our mid-sized enterprise business across the globe and public sector did better than large enterprise. Within large enterprise, as we noted, the same verticals remained cautious in spending, service provider, high tech and to a lesser extent, financial services.

總的來說，謝謝你的提問。總體而言，上一季度的支出環境與上一財年下半年的情況相比沒有變化。我們在全球和公共部門的中型企業業務比大型企業表現更好。正如我們所指出的，在大型企業中，相同的垂直行業在支出、服務提供商、高科技以及較小程度上的金融服務方面仍然保持謹慎態度。

With regard to their spending criteria, they are spending on strategic projects but are running infrastructure, broadly speaking, harder than meaning at higher levels of utilization than they typically do and what we typically tell them is best practice. That is common in such macro environment, but it's not a long-term trend. I think we expect them as we progress through the fiscal year for them to start to expand investment because they cannot run systems that hard.

就他們的支出標準而言，他們在戰略項目上進行支出，但從廣義上講，他們運行的基礎設施比他們通常使用的更高水平的基礎設施更難，我們通常告訴他們的是最佳實踐。這在這樣的宏觀環境下很常見，但這不是長期趨勢。我認為，隨著本財年的進展，我們預計他們會開始擴大投資，因為他們無法那麼努力地運行系統。

As we noted in our prepared remarks and in prior calls, we do not expect the macro to change substantially to support our guidance for the year. Our guidance for the year reflects our confidence both in the changes that we made in go-to-market as well as in our product portfolio that we've recently introduced.

正如我們在準備好的發言和之前的電話會議中指出的那樣，我們預計宏觀經濟不會發生重大變化以支持我們今年的指引。我們今年的指導反映了我們對上市方面所做的變化以及我們最近推出的產品組合的信心。

The next question is from Mehdi Hosseini with SIG.

下一個問題來自 SIG 的 Mehdi Hosseini。

I have two quick follow-ups. George, I want to go back to the big picture and revisit the topic of repatriation. How do you see generative AI strengthening this argument that there will be repatriation enterprises have better ownership of the data that, that would actually help with a faster adoption? Is there any update? Is there any feedback from the -- your conversation from your enterprise customers that you can share?

我有兩個快速跟進。喬治，我想回到大局，重新討論遣返的話題。您如何看待生成式人工智能強化了這一論點，即遣返企業將擁有更好的數據所有權，這實際上有助於更快地採用？有更新嗎？您與企業客戶的對話中是否有任何反饋可以分享？

And a quick follow-up. Can you provide a mix of a QLC NAND that you're procuring? And how do you see that changing towards the end of the calendar year?

并快速跟進。您能否提供您正在採購的 QLC NAND 的組合？您如何看待今年年底這種情況的變化？

With regard to Gen AI projects, which we are already engaged in, in a number of customers, we see a mix of use cases. I would say there are 3 common patterns. One is unstructured data. The second is the need for consistent data management, both security and privacy are hot topics as well as the lineage of data so that they can keep track of which version of Gen AI model is the best and most accurate.

關於我們已經參與的 Gen AI 項目，我們在許多客戶中看到了多種用例。我想說有 3 種常見模式。一是非結構化數據。其次是需要一致的數據管理，安全和隱私以及數據的沿襲都是熱門話題，以便他們可以跟踪哪個版本的 Gen AI 模型是最好和最準確的。

And then the third is from a deployment architecture, we are seeing them engage in both on-prem discussions as well as public cloud discussions. In public cloud, the advantages are much faster feature velocity as well as prepackaged models available on the public cloud. With the on-prem environments, the major sensitivity is the data being kept in a restricted location. So we intend to benefit from both. I don't think that it is a meaningful driver of repatriation at this point in the discussion Mehdi. There we're seeing a mix of public cloud and on-prem environments.

第三個來自部署架構，我們看到他們同時參與本地討論和公共雲討論。在公共雲中，優點是更快的功能速度以及公共雲上可用的預打包模型。在本地環境中，主要的敏感性是數據保存在受限位置。因此，我們打算從兩者中受益。我認為，在邁赫迪的討論中，目前這並不是遣返的一個有意義的推動因素。在那裡，我們看到了公共雲和本地環境的混合。

And Mehdi, it's Mike. On the QLC, we're not going to break out specific numbers, but we would say we are procuring more of that. We've started to see the pickup. We'll see how the rest of the year goes, but we do expect that to continue as a percentage as we go through fiscal '24.

邁赫迪，是邁克。關於 QLC，我們不會透露具體數字，但我們會說我們正在採購更多的數量。我們已經開始看到皮卡了。我們將看看今年剩餘時間的情況如何，但我們確實預計在 24 財年期間這一百分比將繼續下去。

The next question is from Samik Chatterjee with JPMorgan.

下一個問題來自摩根大通的 Samik Chatterjee。

This is Joe Cardoso on for Samik. Just one question for me. You reported a strong gross margin performance in the quarter. And I was just curious if you could quantify how much of the improvement was it related to premium? The premium benefits, strategic purchases, et cetera, that you've highlighted and how we should think about that tailwind as we progress through this year, including and excluding the expected price competition that you have embedded into the guide? And then just real quickly, a clarification on that last part. Like are you guys actually seeing price competition currently from your competitors?

我是喬·卡多佐 (Joe Cardoso) 替補薩米克 (Samik)。只是問我一個問題。您報告了本季度強勁的毛利率表現。我只是很好奇您是否可以量化有多少改進與保費相關？您強調的溢價福利、戰略採購等，以及隨著今年的進展，我們應該如何考慮這一順風車，包括和排除您在指南中嵌入的預期價格競爭？然後很快地對最後一部分進行澄清。就像你們目前是否真的看到了競爭對手的價格競爭？

Joe, it's Mike. So on your question, we've talked a lot about premiums. And as we talked about last time, we're super excited to not have to talk about them anymore. So largely in Q1, all of those premiums have, I would say, gone away not only from a P&L perspective but cash. We talked about that number was anywhere typically between, call it, $30 million and $40 million a quarter. Sometimes it bumped up to $50 million, so call it an average of about $40 million.

喬，是邁克。關於你的問題，我們已經討論了很多關於保費的問題。正如我們上次談到的，我們非常高興不必再談論它們了。我想說，在第一季度，所有這些保費不僅從損益角度消失，而且從現金角度消失。我們談到這個數字通常在每季度 3000 萬美元到 4000 萬美元之間。有時它會飆升至 5000 萬美元，因此平均約為 4000 萬美元。

That -- a good bit of that, we did not have to accrue in Q4 and then the rest rolled to Q1. So you saw 55 last quarter, 55 this quarter and now premiums are fully out of the number. So as you look forward, it's one of the reasons why we feel confident in the 55% guide, hey, there's always been price competition. We see it in certain geographies or certain customers. We haven't seen any material change to that. In our guide, we do expect that we will be -- we will need to be, call it, marginally more aggressive in certain situations, but certainly nothing significantly different than we are today.

其中很大一部分，我們不必在第四季度積累，然後其餘的滾動到第一季度。所以上個季度有 55 個，本季度有 55 個，現在保費完全超出了這個數字。所以當你展望未來時，這就是我們對 55% 指南充滿信心的原因之一，嘿，價格競爭一直存在。我們在某些地區或某些客戶中看到了這種情況。我們還沒有看到任何實質性的變化。在我們的指南中，我們確實期望在某些情況下我們將需要更加激進，但肯定與今天沒有什麼顯著不同。

The next question is from Aaron Rakers with Wells Fargo.

下一個問題來自富國銀行的 Aaron Rakers。

This is Michael on behalf of Aaron. I wanted to ask your ARR in the quarter -- your ARR growth in the quarter slowed quite a bit. And I know you guys have pushed out your $2 billion sort of target. But I just want to take a step back and then think about like, to your first $1 billion, what -- how would you describe the trajectory to getting there? And maybe timing, if you can kind of just help us think about where we go from here?

這是邁克爾代表亞倫。我想問一下你們本季度的 ARR——你們本季度的 ARR 增長放緩了很多。我知道你們已經實現了 20 億美元的目標。但我只想退後一步，然後想一想，對於你的第一個 10 億美元，你會如何描述實現這一目標的軌跡？也許是時間安排，如果你能幫助我們思考一下我們接下來要走向何方？

Yes. I think, first of all, our -- we have 2 models in which we serve customers, the consumption model, which is essentially a pay-as-you-go utility model and then a subscription model, which is where the customer pays for a certain amount of capacity or managed units or capability and then renews that on an annual basis or a term basis. The consumption part of our business has grown to about 3/4 of our total business, roughly speaking, of our cloud business subscription is a quarter.

是的。我認為，首先，我們有兩種為客戶提供服務的模式，即消費模式，本質上是即用即付的實用模式，然後是訂閱模式，即客戶付費的模式一定數量的能力或管理單位或能力，然後每年或按期限更新。我們業務的消費部分已經增長到我們總業務的3/4左右，粗略地說，我們的雲業務訂閱是四分之一。

And if you look at the last quarter's performance, the cloud storage and consumption businesses continue to perform well. They grew year-on-year. Their dollar-based net retention rate was at the industry average industry norms. Subscription is where we saw a challenge, both a small part of cloud storage subscription as well as cloud apps, and we are conducting a review, and we'll get to you an update at the next quarterly call about our plans for that part of our business.

如果你看看上個季度的表現，雲存儲和消費業務繼續表現良好。他們逐年增長。他們以美元計算的淨保留率處於行業平均水平。訂閱是我們面臨的挑戰，既是雲存儲訂閱的一小部分，也是雲應用程序的一部分，我們正在進行審查，我們將在下一個季度的電話會議上向您提供有關我們這部分計劃的最新信息。我們的業務。

Okay. That's helpful. And if I can just add one more. I just want to understand your all-flash business was down about 7%, and I can appreciate the macro backdrop there. But I'm wondering if you can just help me understand the share kind of trends and maybe your best estimate where that's been this quarter? How it's changing and kind of what your expectations are moving through the year?

好的。這很有幫助。如果我可以再添加一個。我只是想了解你們的全閃存業務下降了約 7%，我可以理解那裡的宏觀背景。但我想知道您是否可以幫助我了解股票趨勢以及您對本季度情況的最佳估計？這一年發生了怎樣的變化？您的期望有何變化？

I think, first of all, the year-on-year compare for our flash product business is impacted by last year benefiting from elevated levels of backlog that we shipped in the comparable quarter last year. If you remove that backlog, flash actually grew year-on-year this quarter, and we saw strong growth from our capacity flash products. We expect the overall flash portfolio to grow as a percentage of our business through the course of the year.

我認為，首先，我們的閃存產品業務的同比比較受到去年的影響，受益於我們去年同期出貨量增加的積壓水平。如果除去積壓的訂單，本季度閃存實際上同比增長，我們看到容量閃存產品的強勁增長。我們預計今年整體閃存產品組合在我們業務中所佔的比例將會增長。

The first quarter customers were still qualifying our capacity flash products, the C-Series. And so we weren't able to move all of our intended customer environments over to all-flash yet, but they are headed that way. And so we feel really good about both the go-to-market changes that are starting to reflect in pipeline expansion as well as in the flash product portfolio that we have.

第一季度客戶仍在驗證我們的容量閃存產品 C 系列。因此，我們還無法將所有預期的客戶環境轉移到全閃存，但他們正在朝這個方向發展。因此，我們對開始反映在管道擴張以及我們擁有的閃存產品組合中的上市變化感到非常滿意。

And you should see that reflected in growth in the second half of the year. With regard to share gains, our expectation based on what the others have guided is that we have picked up the second position in share in the market behind Dell.

你應該看到這反映在下半年的增長中。關於份額增長，根據其他公司的指導，我們的預期是我們在市場份額中佔據第二位，僅次於戴爾。

The next question is from Simon Leopold with Raymond James.

下一個問題是西蒙·利奧波德和雷蒙德·詹姆斯提出的。

This is Victor Chiu in for Simon Leopold. You guys noted that the product gross margin is expected to hold for the remainder of the year. But I think the latest industry forecast and commentary from NAND manufacturers implies that the market experience as a sharp overcorrection next year. Can you help us understand how this impacts your expectations for the next fiscal year and whether you've secured any pricing agreements for flash media beyond this fiscal year?

這是維克多·趙（Victor Chiu）飾演西蒙·利奧波德（Simon Leopold）。你們注意到，該產品的毛利率預計將在今年剩餘時間內保持不變。但我認為，最新的行業預測和 NAND 製造商的評論暗示，明年的市場將經歷急劇的過度修正。您能否幫助我們了解這將如何影響您對下一財年的預期，以及您是否已在本財年之後達成任何閃存媒體定價協議？

Yes. Victor, it's Mike. So we haven't guided for fiscal '25, but let us walk you to that. As we talked about between prebuys and price locks, we have secured a large portion of our NAND purchases for fiscal '24, not all of that. You never want to hedge the whole bucket, but we feel really good about that. In addition, some of those agreements do flow into fiscal '25. It's not a majority at this point.

是的。維克多，是邁克。因此，我們還沒有為 25 財年提供指導，但讓我們引導您實現這一點。正如我們在預購和價格鎖定之間討論的那樣，我們已經確保了 24 財年 NAND 採購的很大一部分，而不是全部。你永遠不想對沖整個桶，但我們對此感覺非常好。此外，其中一些協議確實會流入 25 財年。目前這還不是多數。

So where we stand today is we feel really good about where we are in '24. We have some of that rolling into '25, and we're certainly looking forward about, hey, what should we do? We'll do a lot more work on that, call it, in the next 90 days and update you on the next call. As you know, it's a very changing market. We want to make sure it be prudent and think through that. But it is something that we are looking hard at.

因此，我們今天的處境是，我們對 24 年的處境感到非常滿意。我們有一些進入 25 年的計劃，我們當然很期待，嘿，我們應該做什麼？我們將在接下來的 90 天內為此做更多工作，並在下次通話時向您通報最新情況。如您所知，這是一個瞬息萬變的市場。我們希望確保謹慎行事並深思熟慮。但這是我們正在努力關注的事情。

Okay. That's helpful. And just on the other side of the legacy part of the business, the last several quarters have seen pretty sharp declines in shipments of legacy spinning drives. And I know historically, there's not very much correlation between storage media trends and storage systems. But more recently, one of your competitors have asserted that there won't be any new spinning -- these drives manufactured in 5 years. Do you have any view on this just commentary? Do you agree with this perspective? And how do you see this impacting the -- I guess, over the long run?

好的。這很有幫助。就在傳統業務的另一面，過去幾個季度傳統旋轉驅動器的出貨量大幅下降。我知道，從歷史上看，存儲介質趨勢和存儲系統之間並沒有太大的相關性。但最近，您的一位競爭對手聲稱不會有任何新的旋轉 - 這些驅動器將在 5 年內製造。對於這樣的評論，你有什麼看法嗎？你同意這個觀點嗎？我想，從長遠來看，您如何看待這會產生影響？

Listen, I think we have the best spinning media and the best flash technologies in the market. I think that's reflected by the richness of our feature set, the flexibility of our operating system and increasingly, the data security functionality that natively integrated into our offerings. I think that the outlines of what our competitors have talked about is a long time.

聽著，我認為我們擁有市場上最好的旋轉介質和最好的閃存技術。我認為這反映在我們功能集的豐富性、操作系統的靈活性以及越來越多地本地集成到我們的產品中的數據安全功能上。我認為我們的競爭對手已經談論了很長時間的輪廓。

And so we give our customers choice, and we'll continue to invest in a broad range of technologies that meet the right price performance points. When you cannot support a type of technology like our competitors cannot, then you have to throw grenades and say that, that technology doesn't exist because you frankly can't support it.

因此，我們為客戶提供選擇，並且我們將繼續投資於滿足適當性價比點的廣泛技術。當你無法像我們的競爭對手那樣支持某種技術時，你就必須扔手榴彈並說，該技術不存在，因為你坦率地無法支持它。

Okay. So you think that, that's an extreme view, that legacy -- that spinning drives will be gone in 5 years. That's extreme in your opinion?

好的。所以你認為這是一種極端的觀點，旋轉驅動器的遺產將在 5 年內消失。你認為這很極端嗎？

5 years is a long time in technology, as we've all learned.

我們都知道，5 年對於技術來說是一段很長的時間。

The next question is from Asiya Merchant with Citigroup.

下一個問題來自花旗集團的 Asiya Merchant。

In the past, I think you guided for some linearity on first half versus second half. So I just wanted to clarify if that still holds for the remainder of this year? And just back on the Public Cloud side of things. I know it's guiding to a little bit lower relative to prior expectations due to the subscription weakness.

過去，我認為您對上半場和下半場的指導是有一定線性的。所以我只是想澄清這一點在今年剩餘時間內是否仍然有效？回到公共雲方面。我知道由於訂閱疲軟，其指導價格相對於之前的預期要低一些。

How should we think about just the linearity? I mean are we expecting these run rates to kind of continue? Do you have any more insight into how we should think about the growth rates for the rest of the year? Are we still looking at something -- are we still expecting from a year-on-year basis as the comps get easier in the back half of fiscal '24 to have cloud revenues accelerate from this point?

我們應該如何考慮線性？我的意思是，我們是否期望這些運行率能夠持續下去？您對我們應該如何看待今年剩餘時間的增長率有更多的見解嗎？我們是否還在關註一些事情——隨著 24 財年後半段的比較變得更容易，我們是否仍然期望從同比來看雲收入將從此時開始加速？

Yes. Thank you for the question. So on the first question on linearity, based on the midpoint of guidance, we are still assuming about 48% revenue in the first half and 52% in the second, pretty close to rounding, which is very consistent with what we did last quarter. So no big change there, and that's very consistent with the linearity that we've shown historically. Also our Q2 guide is up about 7% quarter-on-quarter, which is well within our historical linearity as well.

是的。感謝你的提問。因此，關於第一個問題，基於指導的中點，我們仍然假設上半年收入約為 48%，下半年收入約為 52%，非常接近四捨五入，這與我們上季度的情況非常一致。所以沒有大的變化，這與我們歷史上顯示的線性非常一致。此外，我們的第二季度指導值環比增長約 7%，這也完全符合我們的歷史線性範圍。

On the cloud revenue number, so we're not going to update the guidance. We had originally thought and forecasted somewhere around, call it, mid-teens growth in that cloud revenue business. Even if as you look at the historical numbers, that cloud revenue, and we're not forecasting it. It will. If it stays where it's at today, there would still be growth year-over-year because of the growth last year.

關於雲收入數字，因此我們不會更新指導。我們最初認為並預測雲收入業務將出現十幾歲左右的增長。即使您查看歷史數據，我們也不會預測雲收入。它會。如果保持今天的水平，由於去年的增長，同比仍然會增長。

So we have baked all of that into our full year number. So we feel good about where we are on that guide. We'll see how the rest of the year goes. But at this point, we've reflected that in our full year number.

因此，我們已將所有這些納入全年數據中。因此，我們對自己在該指南中所處的位置感到滿意。我們將看看今年剩餘時間的情況如何。但目前，我們已經在全年數據中反映了這一點。

The next question is from Krish Sankar with TD Cowen.

下一個問題來自 Krish Sankar 和 TD Cowen。

I have two high-level questions on AI for George. Our understanding is that most of the benefits of storage as we put all-flash unified file and object solution, a, is that assessment accurate? Or are you seeing hybrid HDD solution being used in AI workloads today?

我有兩個關於人工智能的高級問題要問喬治。我們的理解是，當我們採用全閃存統一文件和對象解決方案時，存儲的大部分好處是，評估準確嗎？或者您現在是否看到混合 HDD 解決方案被用於 AI 工作負載？

And second, for unified file and objects, can you speak about your product portfolio there and your competitive position compared to other solutions like Flash Array from Pure Storage and Power Scale from Dell?

其次，對於統一文件和對象，您能否談談您的產品組合以及與 Pure Storage 的閃存陣列和戴爾的 Power Scale 等其他解決方案相比的競爭地位？

And also if the unified file and object solutions are most expected to benefit from AI, is the market share there similar to your market share and other storage solutions like block and pipe?

此外，如果統一文件和對象解決方案最有望從人工智能中受益，那麼那裡的市場份額是否與您的市場份額以及塊和管道等其他存儲解決方案的市場份額相似？

Listen, I think that the first comment that I would make is AI primarily operates today on unstructured data, whether it's predictive AI using unstructured data to analyze images or audio files or generative AI that analyzes text in various types of document format, unstructured data is the priority.

聽著，我想我要說的第一條評論是人工智能今天主要在非結構化數據上運行，無論是使用非結構化數據來分析圖像或音頻文件的預測人工智能，還是分析各種類型文檔格式的文本的生成人工智能，非結構化數據都是優先級。

Second, I think with regard to unified file and object, listen, we created unified storage, and we have a really strong track record in unified across filed block, object and cloud.

其次，我認為關於統一文件和對象，聽著，我們創建了統一存儲，並且我們在跨領域塊、對象和雲的統一方面擁有非常強大的記錄。

And I think that is the new definition of unified rather than little systems that try to say that they've got one protocol or the other.

我認為這是統一的新定義，而不是試圖說它們擁有一種協議或另一種協議的小系統。

I think the third is when you talk about AI, it's a broad topic and therefore, what customers typically have is, versions of data that they use to train different models at the time that they are running the training workload, they typically store it on a high-performance landscape like an on all-flag system, but they keep those models available so that they can go back and look at when they make changes to models and data sets and what the implications are for accuracy.

我認為第三個是當你談論人工智能時，這是一個廣泛的話題，因此，客戶通常擁有的是，他們在運行訓練工作負載時用於訓練不同模型的數據版本，他們通常將其存儲在像全旗系統這樣的高性能環境，但他們保持這些模型可用，以便他們可以回去查看何時對模型和數據集進行更改以及對準確性的影響。

And so the archival life cycle of that data is usually on disk or on cloud. And then I think the last point I would make is, listen, we are seeing clients use hybrid workflows. Public cloud is a strong place where a lot of the developers and data science teams are beginning their workflows, either Vertex in and Google or SageMaker in Amazon and our solutions on public cloud give us a strong position to start with the data science team at the start of these AI projects.

因此，該數據的歸檔生命週期通常位於磁盤或云上。然後我想我要說的最後一點是，聽著，我們看到客戶使用混合工作流程。公共雲是一個強大的地方，許多開發人員和數據科學團隊都開始他們的工作流程，無論是Google 的Vertex 還是亞馬遜的SageMaker，我們在公共雲上的解決方案使我們在與數據科學團隊一起開始工作時處於有利地位。這些人工智能項目的啟動。

The next question is from David Vogt with UBS.

下一個問題來自瑞銀集團的大衛·沃格特。

I had some phone difficulties. So I apologize if you addressed this. On sort of the AI sort of strategy going forward versus like mass capacity storage, what are you hearing from your customers from the enterprise side in terms of what the priority looks like from an investment perspective? I know your mass capacity product is seeing some really strong traction out of the gate.

我在打電話時遇到了一些困難。因此，如果您解決了這個問題，我深表歉意。關於未來的人工智能策略與大容量存儲之類的問題，您從企業方面的客戶那裡聽到了什麼，從投資的角度來看，優先事項是什麼？我知道你們的大容量產品正在受到一些非常強大的關注。

But over the longer term, how do you think the mix between high end, high-performance storage and mass capacity trends? And then maybe just on Public Cloud real quickly. I know this has been sort of a fits and starts business for you. When you think about how much of maybe an impact that is on your management bandwidth, how are you thinking about that business longer term now?

但從長遠來看，您如何看待高端、高性能存儲和大容量趨勢之間的結合？然後也許很快就可以在公共雲上實現。我知道這對你來說是一段斷斷續續的生意。當您考慮這對您的管理帶寬可能產生多大影響時，您現在如何考慮該業務的長期發展？

I know you're talking about giving out updated outlook maybe next quarter. But do you still think it has the same opportunity to be a key driver for the business? Or is it maybe a little bit less of a longer-term opportunity today than you might have thought 90 days ago or even a year ago at this point?

我知道您正在談論可能在下個季度發布最新的展望。但您仍然認為它有同樣的機會成為業務的關鍵驅動力嗎？或者，今天的長期機會是否比您在 90 天前甚至一年前想像的要少一些？

Let me hit on those two points. I think the first is with regard to AI, again, as I mentioned, it's a broad life cycle of tasks. There are light portions of the life cycle that run on extremely high-performance systems. And then there are portions of the life cycle where that data sits on more fine-tuned capacity-oriented systems because you want to keep versions of your models available. And so I look at it like any type of workload, there's a portion of time where the workload has data that's hot and then there's a portion of its life cycle where you want to keep a copy of that data.

讓我談談這兩點。我認為第一個是關於人工智能，正如我所提到的，它是一個廣泛的任務生命週期。生命週期的一小部分是在極高性能的系統上運行的。然後，在生命週期的某些部分，數據位於更微調的面向容量的系統上，因為您希望保持模型版本可用。因此，我將其視為任何類型的工作負載，工作負載在一段時間內擁有熱門數據，然後在其生命週期的一部分中您希望保留該數據的副本。

With regard to the overall all-flash array outlook, listen, I think we have 1 quarter in. We are really pleased with the adoption of our capacity flash products. Overall, what I see is all-flash will grow at higher -- than our total storage business and will be a bigger part of our mix. Within all-flash, the capacity flash products will grow more quickly than the performance flash products because one is attacking the next tranche of upgrades and refreshes, which is the 10K drive market while the high-performance products have already been in market for a long period of time.

關於全閃存陣列的整體前景，聽著，我認為我們還有四分之一的時間。我們對我們的容量閃存產品的採用感到非常高興。總體而言，我認為全閃存業務的增長速度將高於我們的總存儲業務，並將成為我們業務組合的更大組成部分。在全閃存中，容量閃存產品將比性能閃存產品增長更快，因為他們正在進攻下一波升級和更新，即10K驅動器市場，而高性能產品已經上市很長時間了一段的時間。

So I think that's how they break that out. With regard to cloud, I think that, listen, the opportunity is strong. We are excited about the growth of our cloud storage services. All of the capabilities and the pace of customer adoption of those services. We have more exciting news to come with Google around the work we're doing with them, both with regard to the expansion of our offerings as well as new use cases in the Google Cloud that you'll hear more about in the next couple of weeks.

所以我認為這就是他們解決這個問題的方式。關於雲，我認為，聽著，機會很大。我們對雲存儲服務的增長感到興奮。客戶採用這些服務的所有功能和速度。我們與Google 一起發布了更多令人興奮的消息，圍繞我們正在與他們開展的工作，包括我們的產品擴展以及Google Cloud 中的新用例，您將在接下來的幾個小時中聽到更多相關信息幾週。

And I think that our approach right now is to focus on the best parts of our cloud portfolio, have a dedicated go-to-market model that has been well received by the hyperscalers. We're 1 quarter in. The cloud storage and consumption offerings performed well. We have work to do on the subscription side. We'll give you an update next quarter. Our overall view of cloud has not changed.

我認為我們現在的方法是專注於我們的雲產品組合中最好的部分，擁有一個受到超大規模企業好評的專門的上市模型。我們已經進入第一個季度了。雲存儲和消費產品表現良好。我們在訂閱方面還有工作要做。我們將在下個季度向您提供最新情況。我們對雲的總體看法沒有改變。

The next question is from Steven Fox with Fox Advisors.

下一個問題來自福克斯顧問公司的史蒂文·福克斯。

I just wanted to follow up on some of those last comments, George, especially on subscription. I guess I'm wondering, obviously, you want to grow faster in public cloud. And the subscription business being down, it seems like it's consistent with the type of macro we're in. So I guess I'm trying to understand more specifically, given all the other stuff that's going on in terms of public cloud, in terms of refining the business, why the subscription business is especially disappointing here as opposed to maybe riding it out until you start to see an up cycle?

喬治，我只是想跟進一些最後的評論，特別是關於訂閱的評論。顯然，我想我想知道您希望在公共雲中更快地發展。訂閱業務正在下降，這似乎與我們所處的宏觀類型一致。因此，考慮到公共雲方面正在發生的所有其他事情，我想我正在嘗試更具體地了解在完善業務的過程中，為什麼訂閱業務在這里特別令人失望，而不是可能會一直堅持到開始看到上升週期？

Yes. Listen, I think that we are not the only company in the world that had a subscription cloud software business that got impacted. When we saw the trends for optimization, you generally see the consumption part of the business get optimized quickly because you are on a pay-as-you-go contract. I think the subscription part usually gets affected at the time of a renewal of a subscription or a decision to expand or not expand a subscription.

是的。聽著，我認為我們並不是世界上唯一一家訂閱雲軟件業務受到影響的公司。當我們看到優化趨勢時，您通常會看到業務的消費部分得到快速優化，因為您簽訂的是現收現付合同。我認為訂閱部分通常會在續訂訂閱或決定擴展或不擴展訂閱時受到影響。

That doesn't excuse the fact that we wanted to do better in the subscription part of our business. I think we've got work to do to refine our portfolio, sharpen the value proposition, optimize pricing in certain cases to meet customers' expectations, and we'll give you an update on that. We're already working on those. We'll give you an update on that on the next call.

這並不能成為我們希望在訂閱業務方面做得更好的藉口。我認為我們還有很多工作要做，以完善我們的產品組合，強化價值主張，在某些情況下優化定價以滿足客戶的期望，我們將為您提供最新信息。我們已經在做這些工作了。我們將在下次通話時向您通報最新情況。

The next question is from Wamsi Mohan with Bank of America.

下一個問題來自美國銀行的瓦姆西·莫漢 (Wamsi Mohan)。

It sounds from your comments like you had at least 7 to 8 points of backlog-related headwind from last year in AFA. Can you help us think through -- is the magnitude sort of similar in fiscal 2Q? And for fiscal second half on the Hybrid Cloud side, is it fair to think that there's going to be a 4- to 5-point acceleration in growth?

從你的評論來看，去年 AFA 至少有 7 到 8 個與積壓相關的逆風。您能否幫助我們思考一下——第二財季的規模是否相似？對於混合雲方面的下半財年，認為增長將出現 4 到 5 個百分點的加速是否公平？

And as you look at the estimates that the Street's modeling is kind of -- that's kind of what is implied. And I'm wondering if you could talk about what is the upside that you're seeing in hybrid that's offsetting the weakness in public, given your relative overall guidance didn't change?

當你看到華爾街的模型的估計時，這就是所暗示的。我想知道您是否可以談談您在混合動力中看到的好處是什麼，可以抵消公開的弱點，因為您的相對整體指導沒有改變？

Wamsi, it's Mike. Thanks for the question. So let's go through the numbers. So yes, you're pretty close on the impact. It was about -- so last quarter, we talked about, if you adjust for the backlog benefit in the first half of fiscal '23 and you compared our growth this first half with the second half of last year when we declined about 5% or 6%, we expect the growth to be better than that, still slightly negative. That is about the same in Q1 and Q2.

瓦姆西，是邁克。謝謝你的提問。讓我們看一下這些數字。所以是的，你已經非常接近其影響了。上個季度，我們談到，如果你對 23 財年上半年的積壓效益進行調整，並將我們上半年的增長與去年下半年的增長進行比較，當時我們下降了約 5% 或6%，我們預計增長會好於這個數字，但仍略有負值。 Q1 和 Q2 的情況大致相同。

So Q2 has about the same impact. Based on the midpoint of guidance, we do expect Hybrid Cloud then to have growth in the second half, the low single-digit growth based on the guidance that we gave. And we're still comfortable with that based on the progress that we saw in Q1, especially related to C-Series. The focus that we have on the new products as well as the go-to-market changes, we do expect those to bear more fruit as we go into the second half, and that's based on what we've seen not only in pipelines and then also sales activity.

所以第二季度的影響大致相同。根據指導的中點，我們確實預計混合雲將在下半年實現增長，根據我們給出的指導，增長率為低個位數。基於我們在第一季度看到的進展，特別是與 C 系列相關的進展，我們仍然對此感到滿意。我們對新產品以及上市變化的關注，我們確實預計這些將在進入下半年時取得更多成果，這基於我們不僅在管道和產品中看到的情況然後還有銷售活動。

So overall, yes, that would be accurate, and that's what gives us confidence as we go into the second half of the year.

所以總的來說，是的，這是準確的，這就是我們進入下半年時給予我們信心的原因。

The next question is from Meta Marshall with Morgan Stanley.

下一個問題來自摩根士丹利的梅塔·馬歇爾。

Maybe as a first question, you noted that the storage and consumption piece of the business you expected that, that was growing about market rate this quarter. I guess just is kind of the assumption there that essentially optimization has stabilized, and we are starting to see growth again? I just kind of want to get a sense of where you guys are in terms of what you -- if we're at kind of the bottom of optimization and seeing growth again or if we're still kind of in this bottomed out period?

也許作為第一個問題，您注意到您預期的業務存儲和消費部分本季度的市場增長率有所增長。我想這只是一種假設，即優化基本上已經穩定下來，並且我們開始再次看到增長？我只是想了解一下你們現在的情況——我們是否處於優化的底部並再次看到增長，或者我們是否仍然處於這個底部時期？

And then as a second question, just if there's any kind of surprises in terms of customer types or workload types that have been more interested in C-Series than kind of initially expected?

第二個問題是，就客戶類型或工作負載類型而言，對 C 系列的興趣是否超出最初預期？

On the first question, Meta, I think that what we saw was continued good pace of customer additions, which means that there are cloud projects and ongoing deployment of workloads on the cloud. We saw the pace of optimization slowdown as customers have basically done the easy stuff. And so now they probably are more cautious about what further to optimize. Within the latter bucket, the customers that have been optimizing, there are early signs of them starting to do new projects on our technology, but they haven't ramped those projects yet.

關於第一個問題，Meta，我認為我們看到的是客戶增加的持續良好步伐，這意味著雲項目和雲上工作負載的持續部署。我們看到優化的步伐放緩，因為客戶基本上已經完成了簡單的事情。因此，現在他們可能對進一步優化的內容更加謹慎。在後一類中，一直在優化的客戶，有早期跡象表明他們開始利用我們的技術開展新項目，但他們尚未擴大這些項目。

So the benefit we saw within the quarter was new customers and new workloads as opposed to the ones that optimize reaccelerating spending. With regard to the second question, capacity flash, we were selling high-performance flash into use cases, where capacity flash was a better product. Those were in 2 flavors. One would be more of a general purpose private cloud environment where customers don't care about the performance of a particular application, but generally want good performance.

因此，我們在本季度看到的好處是新客戶和新工作負載，而不是優化重新加速支出的好處。關於第二個問題，即容量閃存，我們將高性能閃存銷售到用例中，其中容量閃存是更好的產品。這些有兩種口味。一種是通用私有云環境，客戶不關心特定應用程序的性能，但通常希望獲得良好的性能。

And so that was one. And then smaller environments where we had the A150 product that was also introduced at a lower price point than any other flash product. Both of them saw strength. And I think we saw strength in the mid-market segment, broadly speaking, across all of our products.

這就是其中之一。然後是較小的環境，我們擁有 A150 產品，該產品的推出價格也低於任何其他閃存產品。兩人都看到了力量。我認為，從廣義上講，我們在所有產品中都看到了中端市場的優勢。

The next question is from Amit Daryanani with Evercore.

下一個問題來自 Evercore 的 Amit Daryanani。

I got cut off in the middle, so I apologize if this was addressed. But on the Public Cloud, can you just talk about what are the reasons that led to the miss of here? Was it macro or was there any micro impact as well? And then when you talk about the initiatives you're taking, is it more around just aligning your specialists to the hyperscalers? Or are you taking any more incremental initiatives? Just love to understand macro versus micro impact? And then what are the initiatives you're specifically taking to address them?

我在中間被打斷了，所以如果這個問題得到解決，我深表歉意。但是在公有云上，您能談談導致這裡錯過的原因是什麼嗎？是宏觀影響還是微觀影響？然後，當您談論您正在採取的舉措時，是否更多的是讓您的專家與超大規模企業保持一致？或者您是否正在採取更多漸進舉措？只是喜歡了解宏觀與微觀影響？那麼您具體採取了哪些舉措來解決這些問題？

I think broadly speaking, if you look at our cloud business, roughly 3/4 is consumption and 1/4 is subscription. That mix has shifted in favor of consumption a meaningful amount over the last year as customers have preferred more of the marketplace and first-party offerings over some of our more traditional subscription type, bring your own license offerings.

我認為從廣義上講，如果你看看我們的雲業務，大約 3/4 是消費，1/4 是訂閱。去年，這種組合已經轉向有利於消費，因為與我們的一些更傳統的訂閱類型（自帶許可證產品）相比，客戶更喜歡更多的市場和第一方產品。

I think the impact that we saw was more pronounced in subscription rather than consumption. Consumption performed quite well. And so I would point out that it's in the 1/4 of the business in subscription. Then second, with regard to whether it was macro or micro, it was a mix of things. I think it was -- in some customers, clearly, it was related to budget constraints, where upon renewal, they said, listen, I want to use less of the product and only use it for the most mission-critical environment, some of our monitoring tools. In other cases, it was the customer not being ready to deploy the product and so we've taken a couple of actions.

我認為我們看到的影響在訂閱方面而不是消費方面更為明顯。消費表現相當不錯。所以我要指出的是，它佔訂閱業務的 1/4。其次，無論是宏觀還是微觀，都是一個混合體。我認為，在某些客戶中，顯然，這與預算限制有關，在續訂時，他們說，聽著，我想少用該產品，只將其用於最關鍵的任務環境，其中一些我們的監控工具。在其他情況下，是客戶沒有準備好部署產品，因此我們採取了一些措施。

One action is to, as we said, conduct a review of our products, make sure we have the right products tailored to the right use cases that pricing is set up right, that the value share between us and the customers set up right, that is already underway. We've implemented some of those changes. We'll give you a more fulsome update.

正如我們所說，一項行動是對我們的產品進行審查，確保我們擁有適合正確用例的正確產品，定價設置正確，我們與客戶之間的價值份額設置正確，已經在進行中。我們已經實施了其中一些更改。我們將為您提供更豐富的更新。

And then with regard to go-to-market, we've, as we noted, implemented both a dedicated cloud specialist organization aligned with the hyperscalers and also implemented customer success so that customers can get expertise from NetApp on how to use the products. It's early. We've seen some good evidence of progress, but there's more work to be done.

然後，在進入市場方面，正如我們所指出的，我們不僅建立了與超大規模提供商合作的專門雲專家組織，還實現了客戶成功，以便客戶可以從 NetApp 獲得有關如何使用產品的專業知識。現在還早。我們已經看到了一些良好的進展證據，但還有更多工作要做。

Got it. That's really helpful. And Mike, if I could just have you clarify Q1 free cash flow, I think, was much better than what I had expected and what you typically be in Q1, I think, as well. Can you just touch on maybe what drove that, if there was a bit of a pull-in or something with some of the stuff? And any view on fiscal year free cash flow, given the strong performance here?

知道了。這真的很有幫助。邁克，如果我能讓你澄清第一季度的自由現金流，我認為，這比我的預期以及第一季度的通常情況要好得多。您能否談談推動這一趨勢的原因，是否有一些拉動或某些因素？鑑於這裡的強勁表現，對本財年自由現金流有何看法？

Yes. Awesome. Thanks for the question on cash. Yes, there was -- it was quite a bit better than we thought. There was three moving parts. I mean I would say you've seen billings commence lower in the last 2 quarters. So collections were down year-over-year. But what really drove the operating and free cash flow was the reduction in our supply chain spending. And that's not only premiums. It's the quantity of components that came down significantly.

是的。驚人的。感謝您提出有關現金的問題。是的，有——比我們想像的要好得多。有三個活動部件。我的意思是，我想說你已經看到過去兩個季度的賬單開始下降。因此收藏量逐年下降。但真正推動運營和自由現金流的是我們供應鏈支出的減少。這不僅僅是保費。這是組件數量顯著減少。

And then, of course, pricing came down as well. So that, if you think about the rest of the year, we should expect to continue to see some of that benefit not as big as in Q1 because that compares to Q1 of last year when we were still, I'll call it, bulking up on inventory because we expect the growth before things slowed down in the middle of the year.

當然，價格也隨之下降。因此，如果你考慮一下今年剩下的時間，我們應該會繼續看到一些收益不像第一季度那麼大，因為與去年第一季度相比，當時我們仍然，我稱之為，膨脹庫存增加是因為我們預計在年中增速放緩之前會出現增長。

There was a onetime benefit year-over-year, which unfortunately is we paid a good bit less in incentive compensation. So that helped drive it as well. And then lower CapEx helped drive free cash flow as well. And we did say, hey, the $239 million we spent last year, we expect to be the high and we expect that to continue to come down. As you look at the rest of the year, we do expect on a full year basis, it to track pretty close to non-GAAP net income, which guidance is somewhere around $1.2 billion.

與去年同期相比，有一個一次性的福利，不幸的是我們支付的激勵薪酬少了很多。這也有助於推動它。較低的資本支出也有助於推動自由現金流。我們確實說過，嘿，我們去年花費的 2.39 億美元，我們預計會達到最高水平，並且預計會繼續下降。看看今年剩餘時間，我們確實預計全年的淨利潤將非常接近非 GAAP 淨利潤，指導值約為 12 億美元。

I do want to note, though, hey, folks in Q2 -- and this happens every year, keep in mind, it's the quarter we pay most of our taxes. So we pay almost $88 million in repatriation taxes and then we make our U.S. federal tax payment as well. So expect Q2 to be down from Q1, and it's been like that every year. And then in the back half, following more typical trends. So thanks for the question.

不過，我確實想指出，嘿，第二季度的人們——這種情況每年都會發生，請記住，這是我們繳納大部分稅款的季度。因此，我們支付了近 8800 萬美元的匯回稅，然後我們還繳納了美國聯邦稅。因此，預計第二季度將低於第一季度，而且每年都是這樣。然後在後半部分，遵循更典型的趨勢。謝謝你的提問。

And the final question today comes from Shannon Cross with Crédit Suisse.

今天的最後一個問題來自瑞士信貸銀行的香農·克羅斯。

I guess my first question, George, can you talk about ONTAP AI from a competitive standpoint? Are you seeing this as an ability basically to sell into your existing customer base who are using ONTAP and comfortable with it in that? Or is this something that, from a competitive differentiation standpoint, can actually drive switchers to NetApp's product set? And then I have a follow-up.

我想我的第一個問題是，喬治，您能從競爭的角度談論 ONTAP AI 嗎？您是否認為這基本上是一種向正在使用 ONTAP 並對此感到滿意的現有客戶群進行銷售的能力？或者，從競爭差異化的角度來看，這實際上可以促使用戶轉向 NetApp 產品集嗎？然後我有一個後續行動。

We sell ONTAP AI into data science teams and AI teams, whether they are in our installed base or net new accounts. They are -- it's a very verticalized selling model. So for example, in pharmaceuticals, we work with teams on rapid drug discovery, clinical data analysis so that they can apply really high-performance GPUs from NVIDIA with -- together with large-scale data storage from NetApp. We could also do the same thing. For example, in manufacturing, we are selling into advanced digital twin prototypes where they are optimizing manufacturing yield and sort of accelerating development.

我們將 ONTAP AI 出售給數據科學團隊和 AI 團隊，無論他們是在我們的現有客戶群中還是淨新客戶中。它們是——這是一種非常垂直化的銷售模式。例如，在製藥領域，我們與團隊合作進行快速藥物發現、臨床數據分析，以便他們能夠應用 NVIDIA 的真正高性能 GPU 以及 NetApp 的大規模數據存儲。我們也可以做同樣的事情。例如，在製造業中，我們正在銷售先進的數字雙胞胎原型，他們正在優化製造產量並加速開發。

So I think those are the key areas that we have sort of net new budget, net new customer landscape. Our advantages are high performance, large scale advanced data management, the best in the industry, and it's highly integrated into the data science toolkit of our customers. And then increasingly, we also now have the same versions of 2 chains running on all the leading public clouds, and you'll hear more about that in the next couple of weeks at the Google conference.

所以我認為這些是我們擁有淨新預算、淨新客戶景觀的關鍵領域。我們的優勢是高性能、大規模的先進數據管理，是業界最好的，並且它高度集成到我們客戶的數據科學工具包中。然後，我們現在也越來越多地在所有領先的公共雲上運行相同版本的 2 條鏈，您將在接下來幾週的 Google 會議上聽到更多相關信息。

Okay. And then I guess we've to ask you about AI from sort of an opportunity standpoint. But how are you thinking about utilizing generative AI internally within NetApp to increase productivity, save costs and maybe, I don't know, improve customer experience?

好的。然後我想我們必須從機會的角度向您詢問有關人工智能的問題。但是，您如何考慮在 NetApp 內部利用生成式 AI 來提高生產力、節省成本，或許還可以改善客戶體驗（我不知道）？

We already use AI tools in 3 ways.

我們已經通過三種方式使用人工智能工具。

One is to accelerate software development and to increase the pace at which we can deliver more innovation to customers.

一是加快軟件開發，加快為客戶提供更多創新的步伐。

The second, to integrate AI into our products and services so that we can automatically detect, for example, ransomware attacks or impending risks from running systems harder than they should be or various other things and give customers proactive advice rather than reactive response.

第二，將人工智能集成到我們的產品和服務中，以便我們能夠自動檢測勒索軟件攻擊或因係統運行過度而帶來的迫在眉睫的風險或各種其他事情，並為客戶提供主動建議，而不是被動響應。

And then the third is across the range of our businesses, everything from marketing collateral, documentation, multilingual support as well as chatbots. In customer service, we have AI capabilities already being integrated. And Gen AI is the next version of that. So there are lots of exciting projects underway on that. Thank you, Shannon.

第三個是我們的業務範圍，包括營銷材料、文檔、多語言支持以及聊天機器人。在客戶服務方面，我們已經集成了人工智能能力。 Gen AI 是它的下一個版本。因此，有很多令人興奮的項目正在進行中。謝謝你，香農。

Let me close with a few comments. The strong customer reception to the substantial innovation we have brought to market has got in FY '24 to a solid start, despite the choppy macro backdrop. We are laser-focused on our FY '24 priorities to be prudent stewards of the business, tightly managing the elements within our control, to reinvigorate efforts to drive better performance in our storage systems business and to build a more focused approach to our Public Cloud business.

讓我以幾點評論作為結束。儘管宏觀背景動盪，但客戶對我們推向市場的實質性創新的強烈反響使我們在 24 財年取得了良好的開端。我們專注於24 財年的優先事項，成為謹慎的業務管理者，嚴格管理我們控制範圍內的要素，重振努力，推動我們的存儲系統業務取得更好的業績，並為我們的公共雲建立更加集中的方法商業。

Early results of this focus indicate we are on track to drive the margin expansion and earnings growth while yielding top line growth in the back half of the year. I am absolutely delighted by the positive reception to our new products, the differentiation and continued growth of our first-party public cloud storage services and our exciting innovation road map.

這一重點的早期結果表明，我們有望推動利潤率擴張和盈利增長，同時在今年下半年實現營收增長。我對我們的新產品受到的積極歡迎、我們第一方公共雲存儲服務的差異化和持續增長以及我們令人興奮的創新路線圖感到非常高興。

I hope to see you at INSIGHT and look forward to updating on our continued progress on next quarter's call. Thank you.

我希望在 INSIGHT 上見到您，並期待在下季度的電話會議上更新我們的持續進展。謝謝。

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

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。