Western Digital Corporation Q1 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Revenue: $4.1B, up 9% sequentially and 49% YoY.
  • Non-GAAP Gross Margin: 38.5%, up 220 bps sequentially.
  • Non-GAAP EPS: $1.78.
  • Strong performance across both Flash and HDD, driven by enterprise SSD demand and nearline HDD strength.
  • AI infrastructure demand continues to be a major tailwind for both businesses.

Flash Business Highlights

  • Flash revenue: $1.9B, up 7% sequentially and 21% YoY.
  • Bit shipments: up 14% sequentially, down 12% YoY.
  • ASP: up 4% like-for-like; down 6% blended due to mix (more mobile bits, but rising enterprise SSD mix).
  • Enterprise SSD revenue grew 76% sequentially, reaching highest level since FYQ4 2022.
  • Enterprise SSD qualifications doubled vs. FYQ4 2024 start; expected to exceed 15% of total Flash bit shipments in FY2025 (previous expectation was ~10%).
  • Weakness continued in consumer and PC OEM, though recovery expected through CY2025.
  • Technology progress includes PCIe Gen5 enterprise SSDs and 30TB/60TB high-capacity offerings.

Flash Outlook

  • Sequential growth expected in Q2 on continued enterprise SSD ramp and seasonal consumer strength.
  • PC OEM demand stabilizing; gaming softens post-holiday.
  • Broader Flash market expected to recover through CY2025 as supply/demand remains disciplined.

HDD Business Highlights

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Operator: Good afternoon and thank you for standing by. Welcome to Western Digital's Fiscal First Quarter 2025 Conference Call. Presently, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded. Now I will turn the call over to Mr. Peter Andrew, Vice President, Financial Planning and Analysis and Investor Relations. You may begin. Peter Andrew: Thank you and good afternoon everyone. Joining me today are David Goeckeler, Chief Executive Officer; and Wissam Jabre, Chief Financial Officer. Before we begin, let me remind everyone that today's discussion contains forward-looking statements based on management's current assumptions and expectations and as such, does include risks and uncertainties. These forward-looking statements include expectations for our product portfolio, our business plans and performance, the separation of our Flash and HDD businesses, ongoing market trends and our future financial results. We assume no obligation to update these statements. Please refer to our most recent financial report on Form 10-K and our other filings with the SEC for more information on the risks and uncertainties that could cause actual results to differ materially from expectations. We will also make references to non-GAAP financial measures today. Reconciliations between the non-GAAP and comparable GAAP financial measures are included in the press release and other materials

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