Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q3 2024 Earnings Presentation
15 slides from Seagate Technology's earnings presentation, Apr 23, 2024
Slide 1: Supplemental Financial Information Q3FY24
SUPPLEMENTAL FINANCIAL INFORMATION Q3FY24 APRIL 23, 2024
Slide 2: Safe Harbor Statement and Use of Non-GAAP Financial Information
Safe Harbor Statement and Use of Non-GAAP Financial Information This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and incl
Slide 3: Executive Summary
Executive Summary FQ3’24 results reflect improving cloud demand, price execution Q3FY24 and strong cost discipline o Revenue up 6% sequentially due primarily to continued improvement Revenue $1.66B in nearline cloud market demand and price increases Gross Margin (non-GAAP)1 26.1% o Operating income
Slide 4: Markets and Technology Highlights
Markets and Technology Highlights Markets Technology o Mass Capacity demand improved sequentially, led o 24TB CMR / 28TB SMR: Multiple qualifications by stronger nearline Cloud more than offsetting completed, including one major enterprise OEM. seasonally lower VIA demand Volume ramp starting early
Slide 5: Quarterly Financial Trends
Quarterly Financial Trends Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 QoQ YoY 1 Results (non-GAAP) Revenue ($M) 1,860 1,602 1,454 1,555 1,655 6% -11% Gross Margin % 18.7% 19.5% 19.8% 23.6% 26.1% 2.5 ppt 7.4 ppt Operating Expenses ($M) 282 258 248 240 249 4% -12% Operating Margin % 3.5% 3.4% 2.8% 8.2% 11.1%
Slide 6: Quarterly Financial Trends Continued
Quarterly Financial Trends Continued Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 QoQ YoY Revenue by Product Line ($M) HDD 1,604 1,385 1,295 1,384 1,477 7% -8% Mass Capacity 1,233 984 1,017 1,060 1,180 11% -4% Mass Capacity as a % of HDD revenue 77% 71% 79% 77% 80% 3.0 ppt 3.0 ppt Legacy 371 401 278 324 297 -
Slide 7: Guidance Q4FY24
Guidance Q4FY24 Q4FY24 Revenue $1.85 billion ± $150 million Operating Margin1 (non-GAAP) Low-teens % of revenue Diluted Earnings Per Share1,2 (non-GAAP) $0.70 ± $0.20 At the mid point of the guidance: o Operating Expense (non-GAAP) expected to be ~$260 million o Tax Expense (non-GAAP) expected to be
Slide 8: Debt Capital Structure
Debt Capital Structure o $2.3B Liquidity1, $795M cash, $1.5B revolving credit facility o $5.7B Debt2, weighted average interest rate of 5.6%, weighted average maturity of ~6 years o More than 90% of our long-term debt obligations are beyond three years o Link to Illustrative Table of Potential Dilut
Slide 9: Environmental, Social, Governance
Environmental, Social, Governance Seagate | 9
Slide 10: 2023 Sustainable Datasphere Report Highlights
2023 Sustainable Datasphere Report Highlights ~1.19M Drives ~33.6K MWh 63% Total drives that had their useful Of energy conserved Decreased scope 2 market- life extended based emissions by 63% from our base year CY2017 3,700 99% 2.5M Global Employee Of non-manufacturing Seagate employees Resource Gr
Slide 11: Reconciliation Tables
Reconciliation Tables Seagate | 11
Slide 12: Reconciliation of GAAP Gross Profit and Operating Expenses to Non-GAAP
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 GAAP Gross Profit $ 319 $ 304 $ 149 $ 362 $ 425 Accelerated depreciation, impairment and other charges related to cost saving efforts 18 3 13 — — Amortization of acquired intangible assets 1 — — — —
Slide 13: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net (Loss) Income ($M) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 GAAP Net (Loss) Income $ (433) $ (92) $ (184) $ (19) $ 25 Accelerated depreciation, impairment and other charges related to cost saving efforts 21 3 13 — — Amortization of acquired intangib
Slide 14: Reconciliation to Free Cash Flow and Adjusted EBITDA
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ($M) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Net Cash Provided by Operating Activities $ 228 $ 218 $ 127 $ 169 $ 188 Acquisition of property, equipment and leasehold improvements (54) (50) (70) (70) (60) Free Cash Flow $ 174 $
Slide 15: www.seagate.com
OQ) seacate www.seagate.com
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