Our online revenue was 34% of our domestic revenue, and while it declined versus last year, it was up 115% or $8.8 billion compared to two years ago.
Over the past 24 months, they have flexibly dealt with rapidly changing store operations as we responded to impacts of the pandemic.
Our comparable sales growth was 10.4% on top of a very strong 9.7% last year, growing $8 billion over the past two years.
Our non-GAAP earnings per share was just over $10, up 27% compared to last year.
And compared to two years ago, we expanded our non-GAAP operating income rate by 110 basis points.
Our non-GAAP return on investment improved 840 basis points compared to two years ago, and we drove more than $6.5 billion of free cash flow in the last two years.
In fiscal '22, we returned $4.2 billion of that to shareholders in the form of dividends and share repurchases.
We committed to spend at least $1.2 billion with BIPOC and diverse businesses by 2025.
We also committed to opening 100 Teen Tech Centers by fiscal '25.
During fiscal '22, we opened nine to end the year with a total of 44.
Online sales were almost 40% of domestic revenue compared to 43% last year and 25% in Q4 of fiscal '20.
We reached our fastest holiday delivery times ever, shipping products to customer homes more than 25% faster than last year and two years ago.
Our Q4 revenue was $16.4 billion.
Our domestic comparable sales declined 2.1%, and our enterprise comp sales declined 2.3%.
Revenue grew 8% versus two years ago.
Our non-GAAP gross profit rate decreased 50 basis points to 20.2%.
This was about 20 basis points lower than we expected primarily due to increased promotionality.
Lastly, our International gross profit rate improved 210 basis points to last year, which provided a weighted benefit of approximately 20 basis points to our enterprise results.
Our enterprise non-GAAP SG&A dollars grew 5% versus last year, less than our guide of 8% growth primarily due to lower-than-anticipated incentive compensation.
Within our domestic segment, our SG&A dollars increased $139 million.
First, at $199, the stand-alone membership is profitable.
Our guide is anchored around a comparable sales decline in the range of 1% to 4% and a 5.4% non-GAAP operating income rate.
Our non-GAAP diluted earnings per share outlook is $8.85 to $9.15.
Our non-GAAP effective tax rate is planned at a more normalized level of 24.5% in fiscal '23 compared to 19% rate in fiscal '22.
As you may recall, our Q2 results this past year included a $0.47 diluted earnings per share benefit from the resolution of certain discrete matters.
In addition, we anticipate the number of store closures to be in the range of 20 to 30, which is consistent with the trend over the past five years.
As I mentioned, our fiscal '23 guidance assumes non-GAAP operating income rate of approximately 5.4% compared to 6% in fiscal '22.
As I mentioned earlier, in the past two years, we have delivered more than $8 billion of revenue growth and improved our operating income rate by 110 basis points to 6%.
We now expect to generate approximately $1 billion more in operating income than our original targets.
I already mentioned our fiscal '22 online business was 34% of our Domestic sales.
That is more than $16 billion in sales compared to just $3.5 billion in fiscal '15.
And our My Best Buy program now has more than 100 million total members.
40% of Americans use digital technology or the Internet in new or different ways compared with before the pandemic, and the use of telemedicine is triple what it was in just Q1 of 2020.
That could be between a $400 and $500 value.
Just in the first year, that's just under $120 of value.
That's a $30 value.
For televisions, you get a full 10 inches more in screen size, almost no Bezel and the ability to navigate your TV with voice if you'd like to.
In fact, when we look at our customers' behavior, we're seeing a 7% to 15% reduction in the amount of time it takes a customer to get back into a category.
Previously, our customers would tell us when they wanted to upgrade a computing product, it would take them 60 minutes to get it the exact way they'd want to that would be moving their icons, their data, just getting it the way the old one was and having the features of the new.
Today, with cloud, you simply put in your credentials and in 10 to 15 minutes, it's actually exactly the way you want.
As we look over the past decade, we've had over $12 billion in sales growth with the vast majority coming from large categories like TVs, computing and appliances and a third coming from new categories like wearables and VR, just to name a few.
For the next 12 to 24 months, we'll continue to focus on these five areas of expansion.
This is a $34 billion industry that we are uniquely positioned to compete in with our Blue Shirts but also our large product fulfillment network that was built for televisions and appliances.
Our assortment has grown by 650% in the last 12 months, and we are implementing a larger, more premium experience in 90 stores over the next 18 months with dedicated zones for vendors.
This is a $3 billion industry with rapid growth.
We've introduced 250 new products this holiday with 500 additional accessories around those products.
We'll be adding physical assortment to 900 stores and a more premium experience in 90 stores over the next 18 months.
This is over a $30 billion industry, and our acquisition of Yardbird, a leading premium outdoor furniture company, provides the ability for us to accelerate this business across a nationwide network.
I am incredibly happy to say that we are indeed seeing increased interactions with our Totaltech customers to the tune of about 60%.
Also, when we look at NPS surveys specifically from customers who are Totaltech members, they are running about 1,400 basis points higher than nonmembers.
From a spend perspective, it's difficult to calculate with precision given the early stage of the membership and our historical customer frequency, but we currently believe customers who sign up for the membership are spending about 20% more than they would have if they did not have the membership.
We already have 4.6 million members.
Now, to be transparent, we auto converted 3.7 million Totaltech support and other legacy support programs.
We have actively enrolled more than 1 million members since launching nationwide in October, and we see a path to double the number of members by the end of fiscal '25.
First, the connection between our online sales, which expanded to 34% of our total domestic revenue, and the 150% growth we've seen in our virtual interaction across video, chat and voice.
Today, 84% of Best Buy customers use digital channels throughout their shopping journey.
Second, and also connected to our customers using digital channels throughout their shopping journey, is we've seen a 72% growth in customers who are using our app while in our stores.
At the same time, we will optimize our store portfolio, and as Matt mentioned, we will maintain the trend of closing 20 to 30 stores per year.
We've seen a more than 100 basis point improvement in store domestic labor expense as a percentage of revenue compared to FY '20.
We've increased our average wage rate 20% in the last two years by raising our minimum wage to $15 an hour and shifting some of our employees into higher-skilled, higher-paying roles.
In fact, our average wage for our field employees this year will be over $18 an hour.
Since we've started our flexible workforce initiative in 2020, 80% of our talented associates are now skilled to support multiple jobs inside and outside of our stores, and we're proud of the fact that our field turnover rates remain significantly below retail average and are near our pre-pandemic turnover rates.
As I showcased earlier, we have nearly 21 million services interactions across in-store and in-home services.
In fact, 35% of our mobile phone customers are new reengaged with Best Buy.
This is enabled by a technical workforce that has an average tenure of almost nine years and a retention rate at 86%.
And after we complete the repairs, customers spend 1.7 times more and engage 1.6 times more often across all Geek Squad services.
Employees who have the skill sets to complete the consultation has grown by 78% last year.
Customers spend 17% more across their lifetime value and they purchase more often when engaged for a consultation.
When surveyed 92% of customers say they will likely continue working with their expert.
So looking ahead, we believe our annual consultations will grow by more than 200% by fiscal '25.
As you saw earlier, we had 45 million virtual interactions across all channels, creating opportunities to engage our customers differently.
To date, our virtual store in comparison to historical chat experiences is generating higher close rate, higher sales and a 20% improvement in customer satisfaction.
We started with 17 vendors onboard, and we will end fiscal '23 with over 60 vendors investing in our virtual store.
And we will remodel 50 locations in fiscal '23 and about 300 locations expected by fiscal '25.
Now, I want to highlight our 16 outlet stores that are sort of open box, clearance, end-of-life, and otherwise distressed large product inventory across major appliances and televisions which might otherwise be liquidated at a significantly lower recovery rate.
16% of customers are new and 37% of customers are reengaged.
Within the test, we are looking at how a variety of store formats across 15,000, 25,000 and 35,000-square-feet locations can serve the customer's needs.
And this summer, we will be introducing a 5,000-square-foot store into the marketplace.
When you look at the before and after map of the Charlotte market, you can see we have reduced our overall square footage by 5% and yet, we've increased our customer coverage in the marketplace from 76% to 85%.
We've also added 260 access points where customers can get their gear and employee delivery covers nearly half of the metro.
We recognize an $80 billion market opportunity for health technology and the desire for consumers to use technology to manage their health.
By 2025, an estimated $265 billion in Medicare services will move into the home and 61% of patients say they would choose hospital care at home.
70% of the U.S. population lives within 10 miles of a Best Buy store, able to shop health and wellness products, speak with our expert blue shirts and utilize our distribution hubs to fulfill their health technology needs.
Geek Squad makes 9 million home visits annually, helping consumers set up technology and perhaps more importantly, teaching them how to use it.
Our Lively monthly subscription service provides a consistent revenue stream, and last year, we drove 15% year-over-year growth by adding 348,000 new lives served.
Our caring center agents connected with our customers over 9 million times last year, offering a variety of health and safety services.
Our revenue in fiscal year '22 was $525 million.
We're growing 35% to 45% a year, and we are accretive in fiscal year '27 as the health industry has a longer return on investment.
Our current target set in 2019 is to achieve an additional $1 billion in annualized cost reductions and efficiencies by the end of fiscal '25.
We achieved approximately $200 million during fiscal '22, taking our cumulative total to $700 million toward the $1 billion goal.
We expect our revenue in fiscal '25 to be in the range of $53.5 billion to $56.5 billion.
This range reflects a three-year compound annual growth rate of approximately 1% to 3%, despite the anticipated decline in sales in fiscal '23.
I would also note that due to expected store closures, our comparable sales CAGR would be approximately 2% to 4%.
As it relates to Totaltech, we believe that the combination of membership revenue and incremental purchases by members will add approximately $1.5 billion in revenue by fiscal '25 compared to fiscal '23.
As we move to our fiscal '25 operating income rate outlook, we expect to expand our rate to a range of 6.3% to 6.8%.
As Damien shared earlier, our outlook assumes closing 20 to 30 stores per year through fiscal '25.
This assumption reflects our belief that the online channel mix will grow approximately to 40% in fiscal '25.
Our average annual free cash flow over the past five years is more than $2.3 billion.
We expect our annual capital expenditures to increase to a range of $1 billion to $1.2 billion over the next three years.
Our targeted dividend payout remains in the range of 35% to 45% of prior year's non-GAAP diluted earnings per share.
Lastly, this year marked a record level of share repurchases at $3.5 billion.
In fiscal '23, we plan to spend approximately $1.5 billion on share repurchases.
Extraordinary ecosystems have formed over the past 20, 30, 40 years as digital has transformed every aspect of how we all do business.
And with that, we will break for 10 minutes before beginning our Q&A session.
We are excited to begin the Q&A portion of our event, which we expect to run approximately 45 minutes.

Summary:
Our domestic comparable sales declined 2.1%, and our enterprise comp sales declined 2.3%.
Our non-GAAP diluted earnings per share outlook is $8.85 to $9.15.