Slide 1: Wolfspeed FY24 Q3 Earnings
Wolfspeed FY24 Q3 Earnings MAY 1, 2024 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2024 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 2: Forward-Looking Statements and Non-GAAP Measures
. FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Note on Forward-Looking Statements The schedules attached to this presentation are an integral part of the presentation. This presentation contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause
Slide 3: Wolfspeed at a Glance
WOLFSPEED AT A GLANCE With the sale of the RF business, Wolfspeed is now the world’s only pure-play, vertically integrated silicon carbide company By the Numbers $201 million The JP: world’s largest and only Multi-billion of planned #1 $25B+ FY24 Q3 revenue dedicated 200mm silicon carbide capacity i
Slide 4: Mohawk Valley Update
MOHAWK VALLEY UPDATE Key Takeaways Mohawk Valley Fab Revenue • FY24 Q3 revenue contribution of $28M $40M - $50M • FY24 Q4 targeted revenue of $45M at the midpoint • Achieved >16% utilization in April 2024 • On track to achieve 20% utilization by June 2024 $28M • Die costs at MVF better than equivale
Slide 5: Materials Update
MATERIALS UPDATE Building 10: Durham, NC • On track to support ~25% utilization at Mohawk Valley • Consistently producing high-quality, high-yielding 200mm wafers • 200mm automotive substrates already yielding more than 150mm at Durham and surpassing internal expectations The JP: Siler City, NC • Be
Slide 6: Power Device Footprint Will Help Capture Massive Market Opportunity
POWER DEVICE FOOTPRINT WILL HELP CAPTURE MASSIVE MARKET OPPORTUNITY BY END OF THE DECADE Key Takeaways Cumulative Power Device Design-Ins ($M) 1 • $2.8B of Power Device Design-Ins in FY24 Q3, the $25,200 2nd largest on record ~$20,300 • 80% of which were for EV applications • Demand continues to out
Slide 7: Strong Conversion from Design-Ins to Design-Wins Since FY20
STRONG CONVERSION FROM DESIGN-INS TO DESIGN-WINS SINCE FY20 EV-dominant Design-Win pipeline capitalizes on robust EV TAM while providing greater insight into future revenue due to longer design cycles Power DWINs since FY201 FY24 YTD Power DWINs by Application Value of New Power DWINs (per quarter)
Slide 8: FY24 Q3 Financial Performance – Revenue
FY24 Q3 FINANCIAL PERFORMANCE – REVENUE1 $203M $209M $201M $193M $197M 107 108 102 102 101 91 96 96 101 99 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 Materials Devices Key Takeaways FY24 Q3 Drivers • Results came in above midpoint of guidance provided in January • $28M contribution from Mohawk Valley •
Slide 9: FY24 Q3 Financial Performance – EPS and Margins
FY24 Q3 FINANCIAL PERFORMANCE – EPS AND MARGINS1 Key Takeaways • Non-GAAP gross margin of 15% compared to 34% the year prior2 – Non-GAAP gross margin down 140 bps Q/Q Non-GAAP EPS FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 – FY24 Q3 includes $30.4M, or approximately 1,500 bps, of underutilization costs
Slide 10: FY24 Q3 Financial Performance – Adj. EBITDA
FY24 Q3 FINANCIAL PERFORMANCE – ADJ. EBITDA1 Quarterly Non-GAAP Adjusted EBITDA FY23 Q3 FY24 Q3 Key Takeaways • FY24 Q3 Adjusted EBITDA down 6% year over year, driven by a significant step-up in underutilization costs at Mohawk Valley and start-up costs at the JP • Targeting positive Adjusted EBITDA
Slide 11: Design-Ins Deliver Long Tail Revenue Opportunity
DESIGN-INS DELIVER LONG TAIL REVENUE OPPORTUNITY • Design cycles, while long, are sticky and create multi-year revenue streams • EV Design-Ins represented over 80% of $2.8B total for the quarter • EV Design-Wins typically mature over a five- to seven-year period — EV applications represent over 80%
Slide 12: FY24 Q4 Guidance
FY24 Q4 GUIDANCE Revenue $185M - $215M Non-GAAP Gross Margin 8% - 16% Non-GAAP OpEx $116M - $122M Non-GAAP Net Loss $(109)M - $(91)M Guidance Drivers Upcoming Milestones • $40M - $50M revenue contribution from Mohawk Valley; • Mohawk Valley Fab partially offset by China I&E weakness – 20% utilizatio
Slide 13: Appendix
APPENDIX
Slide 14: Non-GAAP Reconciliation – Gross Margin
NON-GAAP RECONCILIATION – GROSS MARGIN Three Months Three Months Ended Ended March 31, 2024 March 26, 2023 GAAP gross margin from continuing operations 11% 31% Adjustments: Stock-based compensation expense 4% 3% Non-GAAP gross margin from continuing operations 15% 34% WOLFSPEED CONFIDENTIAL & PROPRI
Slide 15: Non-GAAP Reconciliation – EPS (5 Quarter Trend)
NON-GAAP RECONCILIATION – EPS (5 QUARTER TREND)1 Three Months Three Months Three Months Three Months Three Months Ended Ended Ended Ended Ended March 31, 2024 December 31, September 24, June 25, 2023 March 26, 2023 (in millions of U.S. Dollars) 2023 2023 GAAP net loss (149) (126) (124) (91) (83) GAA
Slide 16: Non-GAAP Reconciliation – EBITDA
NON-GAAP RECONCILIATION – EBITDA1 Three months ended Nine months ended March 31, 2024 March 26, 2023 March 31, 2024 March 26, 2023 GAAP net loss from continuing operations ($148.9) ($83.1) ($398.7) ($169.3) Reconciling items to EBITDA (Non-GAAP) Income tax expense 0.1 0.3 0.6 0.5 Interest expense (i
Slide 17: Non-GAAP Reconciliation – Gross Margin Outlook
NON-GAAP RECONCILIATION – GROSS MARGIN OUTLOOK Three Months Ended June 30, 2024 GAAP gross margin from continuing operations outlook range 3% to 12% Adjustments: Stock-based compensation expense 5% to 4% Non-GAAP gross margin from continuing operations outlook range 8% to 16% WOLFSPEED CONFIDENTIAL
Slide 18: Non-GAAP Reconciliation – Operating Expenses Outlook
NON-GAAP RECONCILIATION – OPERATING EXPENSES OUTLOOK Three Months Ended (in millions of U.S. Dollars) June 30, 2024 GAAP operating expenses from continuing operations outlook $137 to $143 Adjustments: Stock-based compensation expense (14) Project, transformation and transaction costs (7) Total adjus
Slide 19: Non-GAAP Reconciliation – Net Loss Outlook
NON-GAAP RECONCILIATION – NET LOSS OUTLOOK Three Months Ended (in millions of U.S. Dollars) June 30, 2024 GAAP net loss from continuing operations outlook range ($189) to ($166) Adjustments: Stock-based compensation expense 23 Amortization of discount and debt issuance costs, net of capitalized inte
Slide 20: Glossary of Terms
GLOSSARY OF TERMS Design-Ins: Design-Ins are customer commitments to purchase our products and are one of the factors we use to forecast long-term demand and future revenue. To meet the qualification of a Design-In, the customer provides us with documentation (e.g., a letter of intent, statement of
Slide 21: Let's Reimagine a More Sustainable World. Together.
LET’S REIMAGINE A MORE SUSTAINABLE WORLD. TOGETHER. WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2024 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.