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Segment, Geographic, and Significant Customer Information
 6 Months Ended
Oct. 25, 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 October 25, 2024

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

768

 

 

$

—

 

 

$

768

 

Support revenues

 

635

 

 

 

—

 

 

 

635

 

Professional and other services revenues

 

87

 

 

 

—

 

 

 

87

 

Public cloud revenues

 

—

 

 

 

168

 

 

 

168

 

     Net revenues

 

1,490

 

 

 

168

 

 

 

1,658

 

Cost of product revenues

 

305

 

 

 

—

 

 

 

305

 

Cost of support revenues

 

51

 

 

 

—

 

 

 

51

 

Cost of professional and other services revenues

 

64

 

 

 

—

 

 

 

64

 

Cost of public cloud revenues

 

—

 

 

 

44

 

 

 

44

 

     Segment cost of revenues

 

420

 

 

 

44

 

 

 

464

 

         Segment gross profit

$

1,070

 

 

$

124

 

 

$

1,194

 

         Segment gross margin

 

71.8

%

 

 

73.8

%

 

 

72.0

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

17

 

                   Total gross profit

 

 

 

 

 

 

$

1,177

 

                   Total gross margin

 

 

 

 

 

 

 

71.0

%

1 Unallocated cost of revenues are composed of $8 million of stock-based compensation expense and $9 million of amortization of intangible assets.

 

 

 

 

Three Months Ended October 27, 2023

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

706

 

 

$

—

 

 

$

706

 

Support revenues

 

623

 

 

 

—

 

 

 

623

 

Professional and other services revenues

 

79

 

 

 

—

 

 

 

79

 

Public cloud revenues

 

—

 

 

 

154

 

 

 

154

 

     Net revenues

 

1,408

 

 

 

154

 

 

 

1,562

 

Cost of product revenues

 

275

 

 

 

—

 

 

 

275

 

Cost of support revenues

 

50

 

 

 

—

 

 

 

50

 

Cost of professional and other services revenues

 

60

 

 

 

—

 

 

 

60

 

Cost of public cloud revenues

 

—

 

 

 

52

 

 

 

52

 

     Segment cost of revenues

 

385

 

 

 

52

 

 

 

437

 

         Segment gross profit

$

1,023

 

 

$

102

 

 

$

1,125

 

         Segment gross margin

 

72.7

%

 

 

66.2

%

 

 

72.0

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

15

 

                   Total gross profit

 

 

 

 

 

 

$

1,110

 

                   Total gross margin

 

 

 

 

 

 

 

71.1

%

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

 

 

 

Six Months Ended October 25, 2024

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

1,437

 

 

$

—

 

 

$

1,437

 

Support revenues

 

1,266

 

 

 

—

 

 

 

1,266

 

Professional and other services revenues

 

169

 

 

 

—

 

 

 

169

 

Public cloud revenues

 

—

 

 

 

327

 

 

 

327

 

     Net revenues

 

2,872

 

 

 

327

 

 

 

3,199

 

Cost of product revenues

 

573

 

 

 

—

 

 

 

573

 

Cost of support revenues

 

101

 

 

 

—

 

 

 

101

 

Cost of professional and other services revenues

 

128

 

 

 

—

 

 

 

128

 

Cost of public cloud revenues

 

—

 

 

 

90

 

 

 

90

 

     Segment cost of revenues

 

802

 

 

 

90

 

 

 

892

 

         Segment gross profit

$

2,070

 

 

$

237

 

 

$

2,307

 

         Segment gross margin

 

72.1

%

 

 

72.5

%

 

 

72.1

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

32

 

                   Total gross profit

 

 

 

 

 

 

$

2,275

 

                   Total gross margin

 

 

 

 

 

 

 

71.1

%

1 Unallocated cost of revenues are composed of $15 million of stock-based compensation expense and $17 million of amortization of intangible assets.

 

 

 

Six Months Ended October 27, 2023

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

1,296

 

 

$

—

 

 

$

1,296

 

Support revenues

 

1,234

 

 

 

—

 

 

 

1,234

 

Professional and other services revenues

 

156

 

 

 

—

 

 

 

156

 

Public cloud revenues

 

—

 

 

 

308

 

 

 

308

 

     Net revenues

 

2,686

 

 

 

308

 

 

 

2,994

 

Cost of product revenues

 

539

 

 

 

—

 

 

 

539

 

Cost of support revenues

 

97

 

 

 

—

 

 

 

97

 

Cost of professional and other services revenues

 

118

 

 

 

—

 

 

 

118

 

Cost of public cloud revenues

 

—

 

 

 

103

 

 

 

103

 

     Segment cost of revenues

 

754

 

 

 

103

 

 

 

857

 

         Segment gross profit

$

1,932

 

 

$

205

 

 

$

2,137

 

         Segment gross margin

 

71.9

%

 

 

66.6

%

 

 

71.4

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

31

 

                   Total gross profit

 

 

 

 

 

 

$

2,106

 

                   Total gross margin

 

 

 

 

 

 

 

70.3

%

1 Unallocated cost of revenues are composed of $14 million of stock-based compensation expense and $17 million of amortization of intangible assets.

 

 

 

Geographical Revenues and Certain Assets

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

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

October 25,
 2024

 

 

October 27,
2023

 

 

October 25,
 2024

 

 

October 27,
2023

 

United States, Canada and Latin America (Americas)

 

$

862

 

 

$

789

 

 

$

1,625

 

 

$

1,543

 

Europe, Middle East and Africa (EMEA)

 

 

543

 

 

 

525

 

 

 

1,056

 

 

 

971

 

Asia Pacific (APAC)

 

 

253

 

 

 

248

 

 

 

518

 

 

 

480

 

Net revenues

 

$

1,658

 

 

$

1,562

 

 

$

3,199

 

 

$

2,994

 

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $807 million and $729 million during the three months ended October 25, 2024 and October 27, 2023, respectively, and were $1,506 million and $1,427 million during the six months ended October 25, 2024 and October 27, 2023, respectively.

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):

 

 

 

October 25,
 2024

 

 

April 26,
  2024

 

U.S.

 

$

311

 

 

$

1,142

 

International

 

 

1,911

 

 

 

2,110

 

Total

 

$

2,222

 

 

$

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):

 

 

 

October 25,
 2024

 

 

April 26,
  2024

 

U.S.

 

$

369

 

 

$

378

 

International

 

 

224

 

 

 

226

 

Total

 

$

593

 

 

$

604

 

Significant Customers

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

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

October 25,
 2024

 

 

October 27,
2023

 

 

October 25,
 2024

 

 

October 27,
2023

 

Arrow Electronics, Inc.

 

 

21

%

 

 

22

%

 

 

22

%

 

 

23

%

TD Synnex Corporation

 

 

24

%

 

 

22

%

 

 

23

%

 

 

21

%

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

 

 

October 25,
 2024

 

 

April 26,
  2024

 

Arrow Electronics, Inc.

 

 

7

%

 

 

10

%

TD Synnex Corporation

 

 

26

%

 

 

26

%