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Segment, Geographic, and Significant Customer Information
 3 Months Ended
Jul. 26, 2024
Segment Reporting [Abstract]  
Segment, Geographic, and Significant Customer Information

13. Segment, Geographic, and Significant Customer Information

Our operations are organized into two segments: Hybrid Cloud and Public Cloud. The two segments are based on the information reviewed by our Chief Operating Decision Maker (CODM), who is the Chief Executive Officer, to evaluate results and allocate resources. The CODM measures performance of each segment based on segment revenue and segment gross profit. We do not allocate to our segments certain cost of revenues which we manage at the corporate level. These unallocated costs include stock-based compensation and amortization of intangible assets. We do not allocate assets to our segments.

Hybrid Cloud offers a unified data storage portfolio of storage management and infrastructure solutions that help customers modernize their data centers. This portfolio supports structured and unstructured data with unified storage optimized for flash, disk, and cloud storage to handle data-intensive workloads and applications. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services.

Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage and CloudOps services. Public Cloud includes certain reseller arrangements in which the timing of our consideration follows the end user consumption of the reseller services.

Segment Revenues and Gross Profit

Financial information by segment is as follows (in millions, except percentages):

 

Three Months Ended July 26, 2024

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

669

 

 

$

—

 

 

$

669

 

Support revenues

 

631

 

 

 

—

 

 

 

631

 

Professional and other services revenues

 

82

 

 

 

—

 

 

 

82

 

Public cloud revenues

 

—

 

 

 

159

 

 

 

159

 

     Net revenues

 

1,382

 

 

 

159

 

 

 

1,541

 

Cost of product revenues

 

268

 

 

 

—

 

 

 

268

 

Cost of support revenues

 

50

 

 

 

—

 

 

 

50

 

Cost of professional and other services revenues

 

64

 

 

 

—

 

 

 

64

 

Cost of public cloud revenues

 

—

 

 

 

46

 

 

 

46

 

     Segment cost of revenues

 

382

 

 

 

46

 

 

 

428

 

         Segment gross profit

$

1,000

 

 

$

113

 

 

$

1,113

 

         Segment gross margin

 

72.4

%

 

 

71.1

%

 

 

72.2

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

15

 

                   Total gross profit

 

 

 

 

 

 

$

1,098

 

                   Total gross margin

 

 

 

 

 

 

 

71.3

%

1 Unallocated cost of revenues are composed of $7 million of stock-based compensation expense and $8 million of amortization of intangible assets.

 

 

 

Three Months Ended July 28, 2023

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

590

 

 

$

—

 

 

$

590

 

Support revenues

 

611

 

 

 

—

 

 

 

611

 

Professional and other services revenues

 

77

 

 

 

—

 

 

 

77

 

Public cloud revenues

 

—

 

 

 

154

 

 

 

154

 

     Net revenues

 

1,278

 

 

 

154

 

 

 

1,432

 

Cost of product revenues

 

264

 

 

 

—

 

 

 

264

 

Cost of support revenues

 

47

 

 

 

—

 

 

 

47

 

Cost of professional and other services revenues

 

58

 

 

 

—

 

 

 

58

 

Cost of public cloud revenues

 

—

 

 

 

51

 

 

 

51

 

     Segment cost of revenues

 

369

 

 

 

51

 

 

 

420

 

         Segment gross profit

$

909

 

 

$

103

 

 

$

1,012

 

         Segment gross margin

 

71.1

%

 

 

66.9

%

 

 

70.7

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

16

 

                   Total gross profit

 

 

 

 

 

 

$

996

 

                   Total gross margin

 

 

 

 

 

 

 

69.6

%

1 Unallocated cost of revenues are composed of $7 million of stock-based compensation expense and $9 million of amortization of intangible assets.

 

Geographical Revenues and Certain Assets

Revenues summarized by geographic region are as follows (in millions):

 

 

Three Months Ended

 

 

 

July 26,
 2024

 

 

July 28,
2023

 

United States, Canada and Latin America (Americas)

 

$

763

 

 

$

754

 

Europe, Middle East and Africa (EMEA)

 

 

513

 

 

 

446

 

Asia Pacific (APAC)

 

 

265

 

 

 

232

 

Net revenues

 

$

1,541

 

 

$

1,432

 

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $699 million in each of the three months ended July 26, 2024 and July 28, 2023.

The majority of our assets, excluding cash, cash equivalents, short-term investments and accounts receivable, were attributable to our domestic operations. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions):

 

 

 

July 26,
 2024

 

 

April 26,
  2024

 

U.S.

 

$

697

 

 

$

1,142

 

International

 

 

2,320

 

 

 

2,110

 

Total

 

$

3,017

 

 

$

3,252

 

With the exception of property and equipment, we do not identify or allocate our long-lived assets by geographic area. The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions):

 

 

 

July 26,
 2024

 

 

April 26,
  2024

 

U.S.

 

$

372

 

 

$

378

 

International

 

 

222

 

 

 

226

 

Total

 

$

594

 

 

$

604

 

Significant Customers

The following customers, each of which is a distributor, accounted for 10% or more of our net revenues:

 

 

Three Months Ended

 

 

 

July 26,
 2024

 

 

July 28,
2023

 

Arrow Electronics, Inc.

 

 

23

%

 

 

24

%

TD Synnex Corporation

 

 

22

%

 

 

21

%

The following customers accounted for 10% or more of accounts receivable as of at least one of the dates presented:

 

 

July 26,
 2024

 

 

April 26,
  2024

 

Arrow Electronics, Inc.

 

 

6

%

 

 

10

%

TD Synnex Corporation

 

 

23

%

 

 

26

%