Q4 2024 Seagate Technology Holdings PLC Earnings Call Transcript
Key Points
- Fourth-quarter revenue increased 18% year on year, supported by strengthening global cloud demand.
- Achieved non-GAAP gross margin of nearly 31%, supported by HDD gross margins above that level.
- Non-GAAP EPS of $1.05, far exceeding the high end of the guidance range.
- Expanded non-GAAP operating profit by 64% for fiscal 2024.
- Grew free cash flow sequentially every quarter of the fiscal year, maintaining healthy liquidity levels.
- Visibility in enterprise OEM markets is not as strong as with CSPs, leading to uncertainty in demand sustainability.
- Underutilization costs, although decreasing, still impacted the financials in the previous quarters.
- Legacy product revenue and non-HDD business revenue both declined sequentially.
- Concerns about potential market share loss to competitors like Western Digital during HAMR qualification delays.
- Ongoing global macro uncertainty affecting near-term budget visibility for smart city projects.
Good afternoon, and welcome to the Seagate Technology fourth quarter and fiscal year 2024 conference call. (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.
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 don't reconcile certain non-GAAP outlook measures because material items that may impact these measures are out of our control and/or cannot be reasonably
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