Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q3 2023 Earnings Presentation
19 slides from Seagate Technology's earnings presentation, Apr 20, 2023
Slide 1: Supplemental Financial Information Q3FY23
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 SUPPLEMENTAL FINANCIAL INFORMATION Q3FY23 Seagate | FY23 | 1
Slide 2: Safe Harbor Statement
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Safe Harbor Statement This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations
Slide 3: Use of Non-GAAP Financial Information
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Use of Non-GAAP Financial Information To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses non-GAAP measu
Slide 4: Executive Summary
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) Executive Summary Q3FY23 results reflect rising economic uncertainties & elongated inventory correction • Revenue slightly above low-end of guidance at $1.86B $ • • Nearline demand impacted by prolonged inventory consum
Slide 5: Q3FY23 Financial Highlights
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Q3FY23 Financial Highlights $1.86B 17.2% -16.9% -$2.09 119EB REVENUE GROSS MARGIN OPERATING MARGIN DILUTED EPS HDD CAPACITY GAAP GAAP GAAP SHIPPED $228M 18.7% 3.5% -$0.28 8.2TB CASH FLOW GROSS MARGIN OPER
Slide 6: Q3FY23 Market Highlights
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) Q3FY23 Market Highlights Legacy Mass Capacity Non-HDD • Legacy revenue down 12% sequentially • Macroeconomic uncertainties drove more • Enterprise Systems revenue grew QoQ as cautious Cloud and Enterprise spending, comp
Slide 7: Quarterly Financial Trends
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Quarterly Financial Trends Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 QoQ YoY GAAP Results In Q3FY23: Revenue ($M) 2,802 2,628 2,035 1,887 1,860 -1% -34% • Revenue slightly lower QoQ, Gross Margin % Operating Exp
Slide 8: HDD Product Trends
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 HDD Product Trends Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 QoQ YoY Capacity Shipped (EB) 154.2 154.6 118.2 112.5 118.7 5% -23% Mass Capacity 132.7 138.5 104.0 96.7 104.1 8% -22% Nearline 117.5 119.0 85.1 79.7
Slide 9: Cash, Cash Flow, and Operational Trends
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Cash, Cash Flow, and Operational Trends Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 In Q3FY23: Cash1 ($M) 1,138 615 761 770 766 Debt ($M) 5,644 5,646 6,249 6,029 5,958 • Reduced Debt by $71M, down 1% QoQ Cash Flow
Slide 10: Capital Structure
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Capital Structure $M Debt Maturity Profile1 $800 $750 $698 $668 $649 $586 $617 $2.5B Liquidity2 $600 $563 $495 $490 • $766M Cash • $1.75B Revolving credit facility $400 $6.0B Debt3 $275 • Weighted average
Slide 11: Debt Metrics
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Debt Metrics Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Debt ($M) 5,644 5,646 6,249 6,029 5,958 Cash and cash equivalents ($M) 1,138 615 761 770 766 Net Debt ($M) 4,506 5,031 5,488 5,259 5,192 LTM Cash Interest E
Slide 12: Environmental, Social and Governance
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Environmental, Social and Governance Seagate | FY23 | 12
Slide 13: ESG Focus: Environmental
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 ESG Focus: Environmental We recognize that we must responsibly address the environmental impacts created by our operations. Our programs and policies are designed to protect the remarkable planet we share
Slide 14: Reconciliation Tables
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 RECONCILIATION TABLES Seagate | FY23 | 14
Slide 15: Reconciliation of GAAP Gross Profit and Operating Expenses to Non-GAAP
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 GAAP Gross Profit 806 759 482 246 319 Accelerated depreciation, impairment and other charges related to
Slide 16: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income ($M) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 GAAP Net Income (Loss) 346 276 29 (33) (433) Accelerated depreciation, impairment and other charges
Slide 17: Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted EBITDA
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ($M) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Net Cash Provided by Operating Activities 460 180 245 251 228 Acquisition of property,
Slide 18: Non-GAAP Measures Adjusted for the Following Items
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Non-GAAP Measures Adjusted for the Following Items: Accelerated depreciation, impairment and other charges related to cost saving efforts These expenses are excluded in the non-GAAP measures due to the in
Slide 19: Income Tax Adjustments, Free Cash Flow and EBITDA Definitions
Supplemental Financial Information Fiscal Q3 2023 (quarter ended March 31, 2023) April 20, 2023 Income tax adjustments Provision or benefit for income taxes represents the tax effects of non-GAAP adjustments determined using a hybrid with and without method and effective tax rate for the applicable
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