NetApp, Inc. (NASDAQ:NTAP) Q1 2024 Earnings Call Transcript

George Kurian: We already use AI tools in three ways. One is to accelerate software development and to increase the pace at which we can deliver more innovation to customers. 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. 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.

Shannon Cross: Thank you.

George Kurian: 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. Early results of this focus indicate we are on track to drive 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. I hope to see you at INSIGHT and look forward to updating on our continued progress on next quarter’s call. Thank you.

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