Disks Spin, Western Digital Cloud Revenues Higher
Western Digital has reported its Q1 FY2024 financial results, with revenue of $3.8 billion, down 10% year-over-year. However, the company’s cloud revenue saw significant growth, increasing by 20% year-over-year.
Hard Disk Drive Sales
Western Digital shipped 34.4 million hard disk drives (HDDs) in Q1 FY2024, down 15% from the same quarter last year. The average selling price (ASP) of HDDs was $54, down 5% year-over-year. The company’s HDD revenue was $1.86 billion, down 18% year-over-year.
| HDD Shipments | Q1 FY2023 | Q1 FY2024 | Year-over-Year Change |
|---|---|---|---|
| Total HDDs | 40.3M | 34.4M | -15% |
| Nearline HDDs | 14.5M | 12.3M | -15% |
| Video HDDs | 4.5M | 3.8M | -15% |
| Client HDDs | 21.3M | 18.3M | -14% |
Cloud Revenue Growth
Western Digital’s cloud revenue saw significant growth, increasing by 20% year-over-year to $1.1 billion. The company’s cloud business now accounts for 29% of its total revenue.
Solid-State Drive Sales
Western Digital shipped 4.4 million solid-state drives (SSDs) in Q1 FY2024, up 10% from the same quarter last year. The ASP of SSDs was $64, up 5% year-over-year. The company’s SSD revenue was $282 million, up 16% year-over-year.
| SSD Shipments | Q1 FY2023 | Q1 FY2024 | Year-over-Year Change |
|---|---|---|---|
| Total SSDs | 4M | 4.4M | 10% |
| Client SSDs | 2.5M | 2.8M | 12% |
| Enterprise SSDs | 1.5M | 1.6M | 7% |
Financial Highlights
Western Digital’s Q1 FY2024 financial highlights include:
- Revenue: $3.8 billion, down 10% year-over-year
- Gross margin: 23.1%, down 1.5 percentage points year-over-year
- Operating expenses: $734 million, down 10% year-over-year
- Net income: $243 million, down 25% year-over-year
- Earnings per share: $0.83, down 25% year-over-year
Guidance
Western Digital provided guidance for Q2 FY2024, expecting revenue to be between $3.7 billion and $4.1 billion, with a gross margin of 22-24%. The company also expects operating expenses to be around $750 million.
Conclusion
Western Digital’s Q1 FY2024 financial results show a decline in revenue and net income, but significant growth in cloud revenue. The company’s HDD sales declined, but SSD sales saw an increase. Western Digital’s guidance for Q2 FY2024 indicates a continued decline in revenue, but a stable gross margin.