Slide 1: Q1 Earnings
Q1 Earnings April 25, 2024
Slide 2: 1st Quarter Earnings Presentation
1st Quarter Earnings Presentation Pat Gelsinger David Zinsner Chief Executive Officer Executive Vice President and Chief Financial Officer
Slide 3: Non-GAAP Financial Measures and Forward-Looking Statements
Non-GAAP Financial Measures and Forward-Looking Statements • This presentation contains non-GAAP financial measures. Intel gross margin, and earnings per share, including year-over-year comparisons, are presented on a non-GAAP basis. The Appendix provides a reconciliation of these measures to the mo
Slide 4: Executive Summary
Executive Summary Q1 Revenue In-Line, Beat on Gross Margin and EPS (non-GAAP) Expect full year revenue and EPS growth in 2024 with revenue growth accelerating in 2H Numerous Accomplishments to Start the Year Direct Connect, CHIPS, Intel Vision, Sustainability Summit, Open Source Summit, Leap Forward
Slide 5: 2024 YTD Highlights
2024 YTD Highlights CHIPS Act Intel Vision Open Direct Connect Largest Proposed Award Intel® Gaudi® 3 Intro Source Summit Sustainability Summit Rebranded FPGA New Operating & Financial Business Reporting Structure
Slide 6: seseae
seseae intel intel foundry intel prox altera. immobile intel.
Slide 7: Driving Our Transformation
Driving Our Transformation Execution Engine Intel Foundry Intel Products 5 Nodes in 4 Years Nearing Completion Systems Foundry for the AI Era Modular Platforms for the AI Era AI PC Cloud and Enterprise AI at the Edge Intel Sapphire Emerald 7 Rapids Rapids Intel Meteor EUV 4 Lake Intel Sierra Granite
Slide 8: Q1 Financial Highlights
Q1 Financial Highlights $12.7B 45.1% $0.18 Revenue Gross Margin EPS (non-GAAP) (non-GAAP) Up 9% YoY Up 6.7 ppt YoY Up $0.22 YoY Flat to Jan outlook1 0.6 ppt above Jan outlook1 $0.05 above Jan outlook1 GAAP Gross Margin 41.0%, up 6.8 ppt YoY GAAP EPS ($0.09), up $0.57 YoY 1 Comparisons are based on t
Slide 9: Intel Segment Reporting
Intel Segment Reporting Intel Products Intel Foundry All Other Client Computing Group Foundry Services Altera Foundry Manufacturing Data Center & AI & Supply Chain Mobileye Foundry Technology Network & Edge Development Other
Slide 10: Intel consolidated revenue, gross margin and operating income
($B) Revenue GM% (non-GAAP) Op Income (non-GAAP) • New operating model driving transparency & accountability $15.4 • Target model reasonable & $14.2 conservative, working to overachieve $12.9 $12.7 • Capital allocations & efficiency in $11.7 focus post 5N4Y 48.8% 45.8% 45.1% 39.8% 38.4% $1.9 $2.6 $(
Slide 11: Intel Products results
($B) Revenue OM% Op Income • Solid fabless business with strong ecosystem from edge to cloud $13.8 • Well positioned in AI for on prem inference, AI PC & connectivity $12.4 $11.9 $11.3 • Expect strong 2H growth with $10.2 momentum into 2025 31.9% 26.4% 27.7% 22.3% 11.2% $4.4 $3.3 $3.3 $2.5 $1.1 Q1’2
Slide 12: CCG, DCAI and NEX results
CCG DCAI NEX Revenue OM% Op Income Revenue OM% Op Income Revenue OM% Op Income ($B) ($B) ($B) 40.3% 35.3% 35.1% $3.5 $1.5 29.3% $1.5 $1.5 $3.2 $3.1 $3.0 $1.4 $1.4 $8.8 $2.9 20.5% $7.9 21.1% $7.5 13.5% $6.8 14.9% 15.9% 12.7% 6.9% 7.4% $5.8 4.7% $2.8 $3.6 -4.6% $2.0 $2.6 0.8% $0.7 $1.2 $0.5 $0.4 $0.5
Slide 13: Intel Foundry results
($B) Revenue OM% Op Income • Expect PnL trough in 2024, path to breakeven is largely in our control $5.2 • Pre-EUV to post-EUV, expect wafer $4.8 $4.7 $4.4 ASPs to grow 3x faster than cost $4.2 • Announced 6th 18A customer, PDK 1.0 in Q2 with vol ramp in 1H’25 $(1.4) $(1.3) $(1.9) $(2.4) -29.7% -25.
Slide 14: Altera and Mobileye results
($M) ($M) Revenue OM% Op Income Revenue OM% Op Income $816 $848 $735 $637 $530 $480 $458 $454 $239 40.8% $342 38.0% 35.5% 35.8% 26.9% 28.4% 32.1% $346 0.8% -11.4% $290 $263 $242 -28.5% $123 $129 $170 $4 $(39) $(68) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 • Industry wide inventory
Slide 15: Outlook
Outlook intel.
Slide 16: Q2 2024 Outlook
Q2 2024 Outlook $12.5-13.5B 43.5% $0.10 Revenue Gross Margin1 EPS1 (non-GAAP) (non-GAAP) ~Flat YoY 1 Up 3.7 ppt YoY Down $0.03 YoY 1 Revenue growth comparison, gross margin outlook and EPS outlook based on the mid-point of the revenue range
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of Non-GAAP Actuals
Reconciliation of Non-GAAP Actuals Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 (In Billions, Except Per Share Amounts) GAAP gross margin percentage 34.2% 35.8% 42.5% 45.7% 41.0% Acquisition-related adjustments 2.8% 2.4% 2.1% 1.9% 1.8% Share-based compensation 1.4% 1.6% 1.2% 1.1% 2.3% Non-GAAP gross marg
Slide 19: Reconciliation of Non-GAAP Q2 Outlook
Reconciliation of Non-GAAP Q2 Outlook Q2 2024 Outlook1 Q2 2023 Actuals Approximately GAAP gross margin percentage 40.2% 35.8% Acquisition-related adjustments 1.7% 2.4% Share-based compensation 1.6% 1.6% Non-GAAP gross margin percentage 43.5% 39.8% GA AP earnings (loss) per share attributable to Inte
Slide 20: Recast Segment Results (2023)
Recast Segment Results (2023) (In Millions, unaudited) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Operating Segment Revenue: Intel Products: CCG $ 5,767 $ 6,780 $ 7,867 $ 8,844 DCAI 2,901 3,155 3,076 3,503 NEX 1,489 1,364 1,450 1,471 Total Intel Products Revenue $10,157 $ 11,299 $ 12,393 $ 13,818 Intel Foundry