Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q4 2024 Earnings Presentation
13 slides from Seagate Technology's earnings presentation, Jul 23, 2024
Slide 1: Supplemental Financial Information Q4FY24
SUPPLEMENTAL FINANCIAL INFORMATION Q4FY24 JULY 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 Delivered robust Q4’24 performance and enter FY25 with strong Q4FY24 FY24 financial & operational execution amid improving demand trends Revenue $1.89B $6.55B o Revenue up 14% sequentially and 18% year-on-year underpinned Gross Margin (non-GAAP) 30.9% 25.5% by strengthening global
Slide 4: Markets and Technology Highlights
Markets and Technology Highlights Markets Technology o Mass Capacity exabyte shipments now represent o Seagate’s high-capacity HDD portfolio offers >90% of total exabyte shipments cloud and enterprise customers cost, power and space advantages, that are particularly valuable for o Nearline cloud rev
Slide 5: Quarterly Financial Trends
Quarterly Financial Trends Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 QoQ YoY 1 Results (non-GAAP) Revenue ($M) 1,602 1,454 1,555 1,655 1,887 14% 18% Gross Margin % 19.5% 19.8% 23.6% 26.1% 30.9% 4.8 ppt 11.4 ppt Operating Expenses ($M) 258 248 240 249 256 3% -1% Operating Margin % 3.4% 2.8% 8.2% 11.1% 17.3%
Slide 6: Quarterly Financial Trends Continued
Quarterly Financial Trends Continued Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 QoQ YoY Revenue by Product Line ($M) HDD 1,385 1,295 1,384 1,477 1,727 17% 25% Mass Capacity 984 1,017 1,060 1,180 1,437 22% 46% Mass Capacity as a % of HDD revenue 71% 79% 77% 80% 83% 3 ppt 12 ppt Legacy 401 278 324 297 290 -2%
Slide 7: Guidance Q1FY25
Guidance Q1FY25 Q1FY25 Revenue $2.10 billion ± $150 million Operating Margin1 (non-GAAP) High-teens % of revenue Diluted Earnings Per Share1,2 (non-GAAP) $1.40 ± $0.20 At the mid point of the guidance: o Operating Expense (non-GAAP) expected to be ~$270 million o Tax Expense (non-GAAP) expected to b
Slide 8: Debt Capital Structure
Debt Capital Structure o $2.9B Liquidity1, $1.4B 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) Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY24 GAAP Gross Profit $ 304 $ 149 $ 362 $ 425 $ 600 $ 1536 Accelerated depreciation, impairment and other charges related to cost saving efforts 3 13 — — — 13 Purchase order cancellation fees — 118
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) Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY24 GAAP Net (Loss) Income $ (92) $ (184) $ (19) $ 25 $ 513 $ 335 Accelerated depreciation, impairment and other charges related to cost saving efforts 3 13 — — — 13 Net gain from business
Slide 12: Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted EBITDA
Reconciliation of Net Cash Provided by Operating Activities to Free Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4 FY24 FY24 Cash Flow ($M) Net Cash Provided by Operating Activities $ 218 $ 127 $ 169 $ 188 $ 434 $ 918 Acquisition of property, equipment and leasehold improvements (50) (70) (70) (60) (54) (254) Free
Slide 13: www.seagate.com
OQ) seacate www.seagate.com
Seagate Technology Holdings — Q4 2024 Earnings Presentation on 6ix