Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q1 2025 Earnings Presentation
13 slides from Seagate Technology's earnings presentation, Oct 22, 2024
Slide 1: Supplemental Financial Information Q1FY25
SUPPLEMENTAL FINANCIAL INFORMATION Q1FY25 OCTOBER 22, 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 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: Executive Summary
Executive Summary Started FY25 with strong financial results demonstrating our Q1FY25 ability to drive profitable growth Revenue $2.17B o Revenue up 15% QoQ and 49% YoY, reflecting strength in Gross Margin (non-GAAP) 33.3% nearline cloud and enterprise markets o Gross margin (non-GAAP) of 33.3%, up
Slide 4: Markets and Technology Highlights
Markets and Technology Highlights Markets Technology o Mass Capacity revenue grew for the 5th consecutive o Seagate’s high-capacity HDD product roadmap is quarter, exabyte shipments represented 93% of total addressing cloud and enterprise customers cost, scale HDD exabytes and power challenges, that
Slide 5: Quarterly Financial Trends
Quarterly Financial Trends Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 QoQ YoY 1 Results (non-GAAP) Revenue ($M) 1,454 1,555 1,655 1,887 2,168 15% 49% Gross Margin % 19.8% 23.6% 26.1% 30.9% 33.3% 2.4 ppt 13.5 ppt Operating Expenses ($M) 248 240 249 256 281 10% 13% Operating Margin % 2.8% 8.2% 11.1% 17.3% 20.
Slide 6: Quarterly Financial Trends Continued
Quarterly Financial Trends Continued Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 QoQ YoY Revenue by Product Line ($M) HDD 1,295 1,384 1,477 1,727 2,004 16% 55% Mass Capacity 1,017 1,060 1,180 1,437 1,733 21% 70% Mass Capacity as a % of HDD revenue 79% 77% 80% 83% 87% 3 ppt 8 ppt Legacy 278 324 297 290 270 -7
Slide 7: Guidance Q2FY25
Guidance Q2FY25 Q2FY25 Revenue $2.30 billion ± $150 million Operating Margin1 (non-GAAP) Low twenties % of revenue Diluted Earnings Per Share1,2 (non-GAAP) $1.85 ± $0.20 At the mid point of the guidance: o Operating Expense (non-GAAP) expected to be ~$285 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 $5.7B Debt2, weighted average interest rate of 5.6%, weighted average maturity of ~5 years o More than 90% of our long-term debt obligations are due in FY27 and beyond o Link to Illustrative Table of Potential D
Slide 9: Reconciliation Tables
Reconciliation Tables Seagate | 9
Slide 10: Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 GAAP Gross Profit $ 149 $ 362 $ 425 $ 600 $ 714 Accelerated depreciation, impairment and other charges related to cost saving efforts 13 — — — — Purchase order cancellation fees 118 (4) (1) (26) (1)
Slide 11: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net (Loss) Income ($M) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 GAAP Net (Loss) Income $ (184) $ (19) $ 25 $ 513 $ 305 Accelerated depreciation, impairment and other charges related to cost saving efforts 13 — — — — Net gain from business divestiture —
Slide 12: Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted EBITDA
Reconciliation of Net Cash Provided by Operating Activities to Free Q1FY24 Q2FY24 Q3FY24 Q4 FY24 Q1FY25 Cash Flow ($M) Net Cash Provided by Operating Activities $ 127 $ 169 $ 188 $ 434 $ 95 Acquisition of property, equipment and leasehold improvements (70) (70) (60) (54) (68) Free Cash Flow $ 57 $ 9
Slide 13: www.seagate.com
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