Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q1 2024 Earnings Presentation
13 slides from Seagate Technology's earnings presentation, Oct 26, 2023
Slide 1: Supplemental Financial Information Q1FY24
SUPPLEMENTAL FINANCIAL INFORMATION Q1FY24 OCTOBER 26, 2023
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 FQ1 results reflect resilient operational & financial execution amid a Q1FY24 difficult macro backdrop Revenue $1.45B o Consistent with our recent public commentary, revenue impacted by softer than anticipated demand in the legacy markets, while ongoing Gross Margin (non-GAAP)1 19.
Slide 4: Markets and Technology Highlights
Markets and Technology Highlights Markets Technology o Mass Capacity demand improved slightly QoQ, led o Extending our areal density leadership and by VIA strength executing on our product roadmap o Nearline revenue influenced by ongoing cloud o PMR 2.4TB per disk with volume shipments to inventory
Slide 5: Quarterly Financial Trends
Quarterly Financial Trends Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 QoQ YoY 1 Results (non-GAAP) Revenue ($M) 2,035 1,887 1,860 1,602 1,454 -9% -29% Gross Margin % 24.5% 21.4% 18.7% 19.5% 19.8% 0.3 ppt -4.7 ppt Operating Expenses ($M) 314 294 282 258 248 -4% -21% Operating Margin % 9.0% 5.8% 3.5% 3.4% 2.8
Slide 6: Quarterly Financial Trends Continued
Quarterly Financial Trends Continued Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 QoQ YoY Revenue by Product Line ($M) HDD 1,772 1,663 1,604 1,385 1,295 -6% -27% Mass Capacity 1,381 1,242 1,233 984 1,017 3% -26% Mass Capacity as a % of HDD revenue 78% 75% 77% 71% 79% 8 ppt 1 ppt Legacy 391 421 371 401 278 -31
Slide 7: Guidance Q2FY24
Guidance Q2FY24 Q2FY24 Revenue $1.55 billion ± $150 million Operating Margin1 (non-GAAP) Mid-single-digit % of revenue (Loss) Per Share1,2 (non-GAAP) ($0.10) ± $0.20 At the mid point of the guidance: o Tax expense (non-GAAP) expected to be ~$15 million o Diluted Shares O/S for EPS (non-GAAP) expecte
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 Debt Metrics Debt Maturity Profile (Principal Outstanding) $1,600 $1,500 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 $1,400 Debt
Slide 9: Reconciliation Tables
Reconciliation Tables Seagate | 9
Slide 10: Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GAAP Gross Profit 482 246 319 304 149 Accelerated depreciation, impairment and other charges related to cost saving efforts - 39 18 3 13 Amortization of acquired intangible assets 1 1 1 - - Pandemic-
Slide 11: Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) ($M) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 GAAP Net Income (Loss) 29 (33) (433) (92) (184) Accelerated depreciation, impairment and other charges related to cost saving efforts 22 39 21 3 13 Amortization of acquired intangible asset
Slide 12: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ($M) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Net Cash Provided by Operating Activities 245 251 228 218 127 Acquisition of property, equipment and leasehold improvements (133) (79) (54) (50) (70) Free Cash Flow 112 172 174 168 5
Slide 13: www.seagate.com
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