Seagate Technology Holdings plc Q4 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Quarterly & Full-Year Highlights

  • Seagate closed FY2024 with strong operational execution and improving supply-demand conditions, driven primarily by strengthening global cloud demand.
  • Q4 revenue was $1.89 billion, up 14% sequentially and 18% year-over-year, marking one of the strongest rebounds since the industry downturn.
  • Non-GAAP gross margin reached 30.9%, up 480 bps sequentially, supported by improved pricing, reduced underutilization costs, and richer mass-capacity product mix. This is within the high end of Seagate’s long‑term target range.
  • Non-GAAP EPS of $1.05 significantly exceeded guidance and compares to $0.32 in the prior-year quarter.
  • Full‑year non-GAAP operating profit grew 64% year-over-year, and free cash flow grew sequentially every quarter.
  • Seagate emphasized its built‑to‑order (BTO) strategy, which improved visibility, cash efficiency, and supply-demand alignment.

Market & Demand Environment

  • Cloud / Nearline: Nearline cloud revenue more than doubled year-over-year. Exabyte demand remains strong and is fully committed through the end of calendar 2024. Strength driven by both traditional cloud workloads and early AI-related infrastructure buildouts.
  • Enterprise OEM: Second consecutive quarter of improvement. Growth expected to strengthen into the second half of calendar 2024, with AI-triggered on-prem investments gradually emerging.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Good afternoon, and welcome to the Seagate Technology Fourth Quarter and Fiscal Year 2024 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Shanye Hudson, Investor Relations. Please go ahead. Shanye Hudson: Thank you. Hello, everyone, and welcome to today's call. Joining me are Dave Mosley, Seagate's Chief Executive Officer, and Gianluca Romano, our Chief Financial Officer. We posted our earnings press release and detailed supplemental information for our June quarter results on the Investors section of our website. During today's call, we'll refer to GAAP and non-GAAP measures. Non-GAAP figures are reconciled to GAAP figures in the earnings press release posted on our website and included in our Form 8-K. We've not reconciled certain non-GAAP outlook measures because material items that may impact these measures are out of our control and/or cannot be reasonably predicted. Therefore, reconciliation to the corresponding GAAP measures is not available without unreasonable effort. Before we begin, I'd like to remind you that today's call contains forward-looking statements that reflect management's current views and assumptions based on information available to us as of today and should not be relied upon as of any subsequent date. Actual result

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional