NetApp, Inc. Revenue Disclosure
7. Revenue
Disaggregation of revenue
Product revenues include the sale of our hardware and software solutions across our entire product set, including All-Flash FAS, SolidFire, EF-series, Hybrid FAS, E-series, NetApp HCI, and StorageGrid. In addition to the sale of our products and solutions, we provide a variety of services to our customers, including software support, hardware support and other services including professional services, and customer education and training. Revenues generated by our Public Cloud Services (formerly referred to as Cloud Data Services) offerings, are included in software support revenues.
The following table depicts the disaggregation of revenue by our products and services (in millions):
|
|
Year Ended |
|
|||||||||
|
|
April 30, 2021 |
|
|
April 24, 2020 |
|
|
April 26, 2019 |
|
|||
|
Product revenues |
$ |
2,991 |
|
|
$ |
2,995 |
|
|
$ |
3,755 |
|
|
Software support revenues |
|
1,281 |
|
|
|
1,034 |
|
|
|
946 |
|
|
Hardware support and other services revenues |
|
1,472 |
|
|
|
1,383 |
|
|
|
1,445 |
|
|
Hardware support contracts |
|
1,195 |
|
|
|
1,142 |
|
|
|
1,182 |
|
|
Professional and other services |
|
277 |
|
|
|
241 |
|
|
|
263 |
|
|
Net revenues |
$ |
5,744 |
|
|
$ |
5,412 |
|
|
$ |
6,146 |
|
Revenues by geographic region are presented in Note 16 – Segment, Geographic, and Significant Customer Information.
Deferred revenue and financed unearned services revenue:
The following table summarizes the components of our deferred revenue and financed unearned services balance as reported in our consolidated balance sheets (in millions):
|
|
April 30, 2021 |
|
|
April 20, 2020 |
|
||
|
Deferred product revenue |
$ |
59 |
|
|
$ |
75 |
|
|
Deferred services revenue |
|
3,873 |
|
|
|
3,567 |
|
|
Financed unearned services revenue |
|
71 |
|
|
|
56 |
|
|
Total |
$ |
4,003 |
|
|
$ |
3,698 |
|
|
|
|
|
|
|
|
|
|
|
Reported as: |
|
|
|
|
|
|
|
|
Short-term |
$ |
2,062 |
|
|
$ |
1,894 |
|
|
Long-term |
|
1,941 |
|
|
|
1,804 |
|
|
Total |
$ |
4,003 |
|
|
$ |
3,698 |
|
Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware support contracts and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 18 – Commitments and Contingencies for additional information related to these arrangements.
The following tables summarize the activity related to deferred revenue and financed unearned services revenue (in millions):
|
|
Year Ended |
|
|||||
|
|
April 30, 2021 |
|
|
April 20, 2020 |
|
||
|
Balance at beginning of period |
$ |
3,698 |
|
|
$ |
3,668 |
|
|
Additions |
|
3,191 |
|
|
|
2,513 |
|
|
Revenue recognized during the period |
|
(2,886 |
) |
|
|
(2,483 |
) |
|
Balance at end of period |
$ |
4,003 |
|
|
$ |
3,698 |
|
During the years ended April 30, 2021 and April 24, 2020, we recognized $1,894 million and $1,822 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods.
As of April 30, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $4,003 million, which is equivalent to our deferred revenue and unearned services revenue balance. Because customer orders are typically placed on an as-needed basis, and cancellable without penalty prior to shipment, orders in backlog may not be a meaningful indicator of future revenue and have not been included in this amount. We expect to recognize as revenue approximately 52% of our deferred revenue and financed unearned services revenue balance in the next 12 months, approximately 24% in the next 13 to 24 months, and the remainder thereafter.
Deferred commissions
The following tables summarize the activity related to deferred commissions and their balances as reported in our consolidated balance sheets (in millions):
|
|
Year Ended |
|
|||||
|
|
April 30, 2021 |
|
|
April 24, 2020 |
|
||
|
Balance at beginning of period |
$ |
156 |
|
|
$ |
172 |
|
|
Additions |
|
142 |
|
|
|
79 |
|
|
Expense recognized during the period |
|
(101 |
) |
|
|
(95 |
) |
|
Balance at end of period |
$ |
197 |
|
|
$ |
156 |
|
|
|
April 30, 2021 |
|
|
April 24, 2020 |
|
||
|
Other current assets |
$ |
86 |
|
|
$ |
67 |
|
|
Other non-current assets |
|
111 |
|
|
|
89 |
|
|
Total deferred commissions |
$ |
197 |
|
|
$ |
156 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Jun 21, 2021 | Showing above |
| 2020 | Jun 15, 2020 | |
| 2019 | Jun 18, 2019 | |
| 2018 | Jun 19, 2018 | |
| 2017 | Jun 20, 2017 | |
| 2016 | Jun 22, 2016 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.