Press Releases

Western Digital Reports Fiscal First Quarter 2024 Financial Results

News Summary

  • First quarter revenue was $2.75 billion, up 3% sequentially (QoQ). Cloud revenue decreased 12% (QoQ), Client revenue increased 11% (QoQ) and Consumer revenue increased 14% (QoQ).

  • First quarter GAAP earnings per share (EPS) was $(2.17) and Non-GAAP EPS was $(1.76), which includes $225 million of underutilization-related charges in Flash and HDD.

  • Expect fiscal second quarter 2024 revenue to be in the range of $2.85 billion to $3.05 billion.

  • Expect Non-GAAP EPS in the range of $(1.35) to $(1.05), which includes $110 to $130 million of underutilization-related charges in Flash and HDD.

SAN JOSE, Calif. - October 30, 2023

Western Digital Corp. (Nasdaq: WDC) today reported fiscal first quarter 2024 financial results.

“Western Digital’s fiscal first quarter results exceeded our expectations as the team’s efforts to bolster business agility and develop differentiated and innovative products across a broad range of end-markets have resulted in sequential margin improvement across flash and HDD businesses,” said David Goeckeler, Western Digital CEO. “Our Consumer and Client end markets continue to perform well and we now expect our Cloud end market to grow going forward. Our improved cost structure positions Western Digital to capitalize on enhanced earnings power as market conditions continue to improve.”

Q1 2024 Financial Highlights

 

GAAP

Non-GAAP

 

Q1 2024

Q4 2023

Q/Q

Q1 2024

Q4 2023

Q/Q

Revenue ($M)

$2,750

$2,672

up 3%

$2,750

$2,672

up 3%

Gross Margin

3.6%

3.4%

up 0.2 ppt

4.1%

3.9%

up 0.2 ppt

Operating Expenses ($M)

$695

$742

down 6%

$555

$582

down 5%

Operating Loss ($M)

$(596)

$(650)

*

$(443)

$(478)

*

Net Loss ($M)

$(685)

$(715)

*

$(554)

$(621)

*

Earnings Per Share

$(2.17)

$(2.27)

*

$(1.76)

$(1.98)

*

 

 

GAAP

Non-GAAP

 

Q1 2024

Q1 2023

Y/Y

Q1 2024

Q1 2023

Y/Y

Revenue ($M)

$2,750

$3,736

down 26%

$2,750

$3,736

down 26%

Gross Margin

3.6%

26.3%

down 22.7 ppt

4.1%

26.7%

down 22.6 ppt

Operating Expenses ($M)

$695

$823

down 16%

$555

$689

down 19%

Operating Income (Loss) ($M)

$(596)

$158

*

$(443)

$307

*

Net Income (Loss) ($M)

$(685)

$27

*

$(554)

$64

*

Earnings Per Share

$(2.17)

$0.08

*

$(1.76)

$0.20

*

* not a meaningful figure

The company had an operating cash outflow of $626 million and ended the quarter with $2.03 billion of total cash and cash equivalents.

Additional details can be found within the company's earnings presentation, which is accessible online at investor.wdc.com.

End Market Summary


Revenue ($M)

Q1 2024

Q4 2023

Q/Q

Q1 2023

Y/Y

Cloud

$872

$994

down 12%

$1,829

down 52%

Client

1,147

1,035

up 11%

1,229

down 7%

Consumer

731

643

up 14%

678

up 8%

Total Revenue

$2,750

$2,672

up 3%

$3,736

down 26%

In the fiscal first quarter:

  • Cloud represented 32% of total revenue. Sequentially, the decline was primarily due to lower nearline hard drive shipments to data center customers. The year-over-year decrease was primarily due to declines in shipments for both hard drive and flash products.

  • Client represented 42% of total revenue. Sequentially, the increase was due to growth in flash bit shipments. The year-over-year decrease was primarily due to declines in flash pricing.

  • Consumer represented