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Segment, Geographic, and Significant Customer Information
 9 Months Ended
Jan. 24, 2025
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 January 24, 2025

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

758

 

 

$

—

 

 

$

758

 

Support revenues

 

621

 

 

 

—

 

 

 

621

 

Professional and other services revenues

 

88

 

 

 

—

 

 

 

88

 

Public cloud revenues

 

—

 

 

 

174

 

 

 

174

 

     Net revenues

 

1,467

 

 

 

174

 

 

 

1,641

 

Cost of product revenues

 

328

 

 

 

—

 

 

 

328

 

Cost of support revenues

 

48

 

 

 

—

 

 

 

48

 

Cost of professional and other services revenues

 

63

 

 

 

—

 

 

 

63

 

Cost of public cloud revenues

 

—

 

 

 

41

 

 

 

41

 

     Segment cost of revenues

 

439

 

 

 

41

 

 

 

480

 

         Segment gross profit

$

1,028

 

 

$

133

 

 

$

1,161

 

         Segment gross margin

 

70.1

%

 

 

76.4

%

 

 

70.7

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

16

 

                   Total gross profit

 

 

 

 

 

 

$

1,145

 

                   Total gross margin

 

 

 

 

 

 

 

69.8

%

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

 

 

 

Three Months Ended January 26, 2024

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

747

 

 

$

—

 

 

$

747

 

Support revenues

 

631

 

 

 

—

 

 

 

631

 

Professional and other services revenues

 

77

 

 

 

—

 

 

 

77

 

Public cloud revenues

 

—

 

 

 

151

 

 

 

151

 

     Net revenues

 

1,455

 

 

 

151

 

 

 

1,606

 

Cost of product revenues

 

280

 

 

 

—

 

 

 

280

 

Cost of support revenues

 

49

 

 

 

—

 

 

 

49

 

Cost of professional and other services revenues

 

58

 

 

 

—

 

 

 

58

 

Cost of public cloud revenues

 

—

 

 

 

52

 

 

 

52

 

     Segment cost of revenues

 

387

 

 

 

52

 

 

 

439

 

         Segment gross profit

$

1,068

 

 

$

99

 

 

$

1,167

 

         Segment gross margin

 

73.4

%

 

 

65.6

%

 

 

72.7

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

16

 

                   Total gross profit

 

 

 

 

 

 

$

1,151

 

                   Total gross margin

 

 

 

 

 

 

 

71.7

%

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

 

 

 

Nine Months Ended January 24, 2025

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

2,195

 

 

$

—

 

 

$

2,195

 

Support revenues

 

1,887

 

 

 

—

 

 

 

1,887

 

Professional and other services revenues

 

257

 

 

 

—

 

 

 

257

 

Public cloud revenues

 

—

 

 

 

501

 

 

 

501

 

     Net revenues

 

4,339

 

 

 

501

 

 

 

4,840

 

Cost of product revenues

 

901

 

 

 

—

 

 

 

901

 

Cost of support revenues

 

149

 

 

 

—

 

 

 

149

 

Cost of professional and other services revenues

 

191

 

 

 

—

 

 

 

191

 

Cost of public cloud revenues

 

—

 

 

 

131

 

 

 

131

 

     Segment cost of revenues

 

1,241

 

 

 

131

 

 

 

1,372

 

         Segment gross profit

$

3,098

 

 

$

370

 

 

$

3,468

 

         Segment gross margin

 

71.4

%

 

 

73.9

%

 

 

71.7

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

48

 

                   Total gross profit

 

 

 

 

 

 

$

3,420

 

                   Total gross margin

 

 

 

 

 

 

 

70.7

%

1 Unallocated cost of revenues are composed of $23 million of stock-based compensation expense and $25 million of amortization of intangible assets.

 

 

 

Nine Months Ended January 26, 2024

 

 

Hybrid Cloud

 

 

Public Cloud

 

 

Consolidated

 

Product revenues

$

2,043

 

 

$

—

 

 

$

2,043

 

Support revenues

 

1,865

 

 

 

—

 

 

 

1,865

 

Professional and other services revenues

 

233

 

 

 

—

 

 

 

233

 

Public cloud revenues

 

—

 

 

 

459

 

 

 

459

 

     Net revenues

 

4,141

 

 

 

459

 

 

 

4,600

 

Cost of product revenues

 

819

 

 

 

—

 

 

 

819

 

Cost of support revenues

 

146

 

 

 

—

 

 

 

146

 

Cost of professional and other services revenues

 

176

 

 

 

—

 

 

 

176

 

Cost of public cloud revenues

 

—

 

 

 

155

 

 

 

155

 

     Segment cost of revenues

 

1,141

 

 

 

155

 

 

 

1,296

 

         Segment gross profit

$

3,000

 

 

$

304

 

 

$

3,304

 

         Segment gross margin

 

72.4

%

 

 

66.2

%

 

 

71.8

%

            Unallocated cost of revenues1

 

 

 

 

 

 

 

47

 

                   Total gross profit

 

 

 

 

 

 

$

3,257

 

                   Total gross margin

 

 

 

 

 

 

 

70.8

%

1 Unallocated cost of revenues are composed of $21 million of stock-based compensation expense and $26 million of amortization of intangible assets.

 

 

Geographical Revenues and Certain Assets

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

January 24,
 2025

 

 

January 26,
2024

 

 

January 24,
 2025

 

 

January 26,
2024

 

United States, Canada and Latin America (Americas)

 

$

833

 

 

$

802

 

 

$

2,458

 

 

$

2,345

 

Europe, Middle East and Africa (EMEA)

 

 

559

 

 

 

567

 

 

 

1,615

 

 

 

1,538

 

Asia Pacific (APAC)

 

 

249

 

 

 

237

 

 

 

767

 

 

 

717

 

Net revenues

 

$

1,641

 

 

$

1,606

 

 

$

4,840

 

 

$

4,600

 

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $768 million and $744 million during the three months ended January 24, 2025 and January 26, 2024, respectively, and were $2,273 million and $2,172 million during the nine months ended January 24, 2025 and January 26, 2024, 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):

 

 

 

January 24,
 2025

 

 

April 26,
  2024

 

U.S.

 

$

230

 

 

$

1,142

 

International

 

 

2,031

 

 

 

2,110

 

Total

 

$

2,261

 

 

$

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):

 

 

 

January 24,
 2025

 

 

April 26,
  2024

 

U.S.

 

$

348

 

 

$

378

 

International

 

 

219

 

 

 

226

 

Total

 

$

567

 

 

$

604

 

Significant Customers

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

January 24,
 2025

 

 

January 26,
2024

 

 

January 24,
 2025

 

 

January 26,
2024

 

Arrow Electronics, Inc.

 

 

20

%

 

 

21

%

 

 

21

%

 

 

22

%

TD Synnex Corporation

 

 

26

%

 

 

21

%

 

 

24

%

 

 

21

%

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

 

 

 

January 24,
 2025

 

 

April 26,
  2024

 

Arrow Electronics, Inc.

 

 

6

%

 

 

10

%

TD Synnex Corporation

 

 

27

%

 

 

26

%