Slide 1: Fiscal Q3 2022 Results
FISCAL Q3 2022 RESULTS May 3, 2022 Better Faster Greener™ © 2022 Supermicro
Slide 2: Disclosures
DISCLOSURES Cautionary Statement Regarding Forward Looking Statements Statements contained in this presentation that are not historical fact may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such
Slide 3: CEO Takeaways
CEO TAKEAWAYS Record Revenue • Q3 FY22 revenue: $1.36B, +51% YoY and +16% QoQ growth • Favorable product mix with increased shipments of Total IT Solutions • Balanced vertical growth: Enterprise, AI/ML, OEM Appliance/Datacenter, 5G/Edge/IOT Executing on Our Strategy • Delivering Total IT Solutions b
Slide 4: Transforming to Total IT Solutions
TRANSFORMING TO TOTAL IT SOLUTIONS ▪ 5S: Software, SMCI 3.0 Total IT Services, Switch Solutions SMCI 2.0 and two more “S” SMCI 1.0 Servers & Storage Systems ▪ Total Solutions Components & Subsystems Enterprise, OEM / Appliance, Cloud ▪ Complete Systems ▪ Sub-systems and Components 1993 Today 4 Bette
Slide 5: SMCI vs. Industry Growth
SMCI VS. INDUSTRY GROWTH YoY Revenue Growth 5S New Business Automation Auto- configurator Total IT Solutions Optimized Complete Systems The Best Server Hardware – Building Block Architecture *Industry Avg based on Gartner & IDC estimates 5 Better Faster Greener™ © 2022 Supermicro
Slide 6: Enabling Total IT Solutions
ENABLING TOTAL IT SOLUTIONS Value of Supermicro Total IT Solutions ✓ Plug and Play Rack (L10, L11, L12) ✓ Optimized with Building Blocks Solutions ✓ Single vendor solution: direct engineering resource ✓ Green computing with lower TCO ✓ Worldwide field support Foundations of Total IT Solutions: Optim
Slide 7: New Architecture & Technologies
NEW ARCHITECTURE & TECHNOLOGIES GrandTwin Universal GPU Superset Enterprise, Cloud AI/ML, Omniverse, Autonomous Next-gen platforms SuperEdge 5S New Business Models & Tools 5G/Edge, Telco Switch, Software, Service… B2B/B2C, Command Center & More
Slide 8: Campus Expansion Update
CAMPUS EXPANSION UPDATE • Increase manufacturing capacity to match growth trend • Manage and lower cost with optimal operations arrangement • Taiwan Building 62: 2X-3X APAC capacity in FY22 • US Building 23 (Command Center, B2B/C, and Cloud Service) • Capacity: 2000+ Racks/month
Slide 9: Q3 FY2022 Highlights
Q3 FY2022 HIGHLIGHTS Server and Storage Systems Revenue +65% YoY Q3 QoQ YoY Revenue $1,355M +16% +51% Gross Margin (non-GAAP) 15.6% +160bps +180bps Earnings Per Share (non-GAAP) $1.55 +$0.67 +$1.05 Cash Flow from Operations -$228M -$175M -$104M Mix Server and storage systems $1,146M (85%) +16% +65%
Slide 10: Revenue
REVENUE • Q3FY22 revenue of $1,355M 1,355 • Exceeded guidance: $1,100M to $1,200M 1,172 Guidance: • +51% YoY, +16% QoQ $1100M - $1200M 1,069 1,033 Revenue Mix By Geography 896 6% Million $ 23% 56% 15% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 USA Europe Asia Other 10 Better Faster Greener™ © 2022 Supermicr
Slide 11: Revenue Mix
REVENUE MIX Server and Storage Systems & Subsystems Vertical Markets 4% 3% 6% 7% 18% 16% 15% 12% 23% 22% 31% 34% 24% 24% 31% 82% 84% 85% 77% 78% 70% 65% 63% 64% 62% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Server and Storage Systems 5G,Telco & Edge/IOT Subsystems & Acces
Slide 12: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 15.6% 14.0% 13.8% 13.7% 13.4% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 • +160bps QoQ, +180bps YoY • Higher revenues and improving product/customer mix • Freight and supply chain costs remain elevated A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this p
Slide 13: Non-GAAP Operating Expenses & Margins
NON-GAAP OPERATING EXPENSES & MARGINS Operating Expenses Operating Margin 7.5% 110 101 103 95 99 5.2% 4.4% Million $ 3.7% 3.2% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 • Operating Margins improved with scale • Sound expense discipline despite increased headcount A reconc
Slide 14: Non-GAAP EPS
NON-GAAP EPS $1.55 $0.88 $0.81 Guidance: $0.70-$0.90 $0.58 $0.50 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 • Q3FY22 Non-GAAP EPS of $1.55 • Exceeds prior guidance range: $0.70 to $0.90 • New design wins, ramping production, and favorable customer/product mix A reconciliation of GAAP to non-GAAP measures ca
Slide 15: Cash Flow & Net Cash
CASH FLOW & NET CASH Cash Flow From Operations Net Cash 134 64 93 Million $ Million $ Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 -53 -9 -69 -124 -135 -228 -300 • Q3 Operating Cash Flow -$228M and Free Cash Flow -$239M • Total Cash $247M and Debt $547M • Increased working c
Slide 16: Revenue & EPS Outlook
REVENUE & EPS OUTLOOK REVENUE EPS Q4 FY2022* $1.4B to $1.48B NON-GAAP: $1.51 to $1.69 GAAP: $1.45 to $1.64 Full Year FY2022** $4.96B to $5.04B NON-GAAP: $4.53 to $4.71 GAAP: $4.16 to $4.35 *The outlook for Q4 of fiscal year 2022 GAAP diluted net income per common share includes approximately $8.0 mi
Slide 17: Appendix
APPENDIX 17 Better Faster Greener™ © 2022 Supermicro
Slide 18: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) FY2021 FY2022 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 In Thousands (except per share amounts) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Consolidated Statement of Operations Net Sales $ 895,881 $ 1,068,985 $ 1,032,730 $ 1,172,419 $ 1,355,490 GAAP GROSS PROFIT $ 123,017 $ 145,5
Slide 19: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) FY2021 FY2022 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 In Thousands (except per share amounts) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 GAAP INCOME FROM OPERATIONS $ 17,055 $ 39,081 $ 29,128 $ 51,049 $ 89,777 Stock-based compensation 7,494 7,432 7,015 9,176 7,741 Legal settle