Western Digital Corporation Q4 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview (Fiscal Q4 2024)

  • Revenue: $3.8B (up 9% sequentially, up 41% YoY).
  • Non-GAAP Gross Margin: 36.3% (up 7 pts sequentially, up 32.4 pts YoY).
  • Non-GAAP EPS: $1.44 (above guidance).
  • Strong performance driven by cloud demand, pricing improvements, cost efficiency, and mix optimization.

Full Fiscal Year 2024 Results

  • Revenue: $13B (up 6% YoY).
  • Non-GAAP Gross Margin: 22.8% (up 7.1 pts YoY).
  • Non-GAAP Operating Margin: 3.9% (up 8.7 pts YoY).
  • Non-GAAP Loss Per Share: ($0.20).
  • Cloud revenue grew 2% YoY due to enterprise HDD demand and pricing; client revenue grew 7%; consumer grew 9%.

Business Segment Highlights

Flash Business
  • Flash Revenue: $1.8B (up 3% sequentially, up 28% YoY).
  • Flash ASPs increased 14% sequentially (11% like‑for‑like); bit shipments declined 7% sequentially due to strategic mix optimization.
  • Enterprise SSD momentum: strong pricing and demand; sequential bit shipment growth of ~60%.
  • Key Innovations:
    • BiCS8 2TB QLC die for data center and AI workloads.
    • 64TB enterprise SSD sampling, with volume shipments expected later in 2024.
    • PCIe Gen5 SSD qualifying with a hyperscaler; ramp expected in H2 2024.

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Operator: Good afternoon and thank you for standing by. Welcome to Western Digital's Fourth Quarter and Fiscal 2024 Conference Call. Presently, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, today's call is being recorded. I'd now like to turn the conference 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 upon 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 releas

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