Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q2 2025 Earnings Presentation
13 slides from Seagate Technology's earnings presentation, Jan 21, 2025
Slide 1: Supplemental Financial Information Q2FY25
SUPPLEMENTAL FINANCIAL INFORMATION Q2FY25 JANUARY 21, 2025
Slide 2: Safe Harbor Statement and Use of Non-GAAP Financial Information
Safe Harbor Statement and Use of Non-GAAP Financial Information This document and our other communications regarding our quarterly financial results contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide curre
Slide 3: Q2FY25 Financial Results
Q2FY25 Financial Results Closed out CY2024 on a strong note, underscoring our focus on Q2FY25 profitable growth Revenue $2.33B o Revenue up 7% QoQ and 50% YoY, reflecting strength in nearline cloud and improvement in enterprise markets Gross Margin (non-GAAP) 35.5% o Gross margin (non-GAAP) of 35.5%
Slide 4: Markets and Technology Highlights
Markets and Technology Highlights Markets Technology o Mass Capacity revenue grew for the 6th o Seagate’s areal density-driven HDD roadmap is consecutive quarter, exabyte shipments gaining strong momentum; offers economic represented 93% of total HDD exabytes advantages to both customers and the com
Slide 5: Quarterly Financial Trends
Quarterly Financial Trends Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 QoQ YoY 1 Results (non-GAAP) Revenue ($M) 1,555 1,655 1,887 2,168 2,325 7% 50% Gross Margin % 23.6% 26.1% 30.9% 33.3% 35.5% 2.2 ppt 11.9 ppt Operating Expenses ($M) 240 249 256 281 287 2% 20% Operating Margin % 8.2% 11.1% 17.3% 20.4% 23.1
Slide 6: Quarterly Financial Trends Continued
Quarterly Financial Trends Continued Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 QoQ YoY Revenue by Product Line ($M) HDD 1,384 1,477 1,727 2,004 2,169 8% 57% Mass Capacity 1,060 1,180 1,437 1,733 1,894 9% 79% Mass Capacity as a % of HDD revenue 77% 80% 83% 87% 87% 0 ppt 10 ppt Legacy 324 297 290 270 275 2%
Slide 7: Guidance Q3FY25
Guidance Q3FY25 Q3FY25 Revenue $2.10 billion ± $150 million Operating Margin1 (non-GAAP) Low twenties % of revenue Diluted Earnings Per Share1,2 (non-GAAP) $1.70 ± $0.20 At the mid point of the guidance: o Operating Expense (non-GAAP) expected to be ~$290 million o Tax Expense (non-GAAP) expected to
Slide 8: Debt Capital Structure
Debt Capital Structure o $2.7B Liquidity1, $1.2B cash, $1.5B revolving credit facility o $5.7B Debt2, weighted average interest rate of 5.6%, weighted average maturity of ~5 years o On January 2, 2025, the entire outstanding principal amount of $479M was repaid at par, plus accrued and unpaid intere
Slide 9: Reconciliation Tables
Reconciliation Tables Seagate | 9
Slide 10: Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 GAAP Gross Profit $362 $425 $600 $714 $812 Purchase order cancellation fees (4) (1) (26) (1) — Share-based compensation 8 8 9 10 13 Other charges 1 — — — — Non-GAAP Gross Profit $367 $432 $583 $723 $
Slide 11: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net Income ($M) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 GAAP Net (Loss) Income $(19) $25 $513 $305 $336 Net gain from business divestiture — — (313) — — Purchase order cancellation fees (4) (1) (26) (1) — Restructuring and other, net (31) 2 (3) 1 1 Sha
Slide 12: Reconciliation of Operating Cash Flow to Free Cash Flow and EBITDA
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ($M) Q2FY24 Q3FY24 Q4 FY24 Q1FY25 Q2FY25 Net Cash Provided by Operating Activities $169 $188 $434 $95 $221 Acquisition of property, equipment and leasehold improvements (70) (60) (54) (68) (71) Free Cash Flow $99 $128 $380
Slide 13: www.seagate.com
OQ) seacate www.seagate.com
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