Revenue Performance:
- Q4 2024 revenue of $1.89 billion, an 18% increase YoY and a 14% increase QoQ.
- Cloud-driven nearline revenue doubled YoY, highlighting a recovery in demand after a period of decline.
Profitability:
- Gross profit reached $583 million, with a gross margin of 30.9%, up 480 basis points sequentially due to favorable pricing and improved operational efficiencies.
- Non-GAAP operating income increased by 79% QoQ, reflecting strong revenue growth and efficient cost management.
- Net income surged to $513 million, a notable YoY increase of 657.6%.
Balance Sheet Health:
- Cash and cash equivalents totaled $1.4 billion, indicating robust liquidity.
- Net debt decreased to approximately $4.4 billion, reflecting a 11% reduction from the previous quarter.
- The debt-to-equity ratio highlights a highly leveraged position, yet management has committed to reducing debt to around $5 billion over time.
Cash Flow:
- Free cash flow generated was $380 million, supported by operational cash flow of $434 million, demonstrating healthy cash generation capabilities.