Slide 1: Fiscal Q1 2023 Results
FISCAL Q1 2023 RESULTS November 1, 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 • Q1 FY23 revenue: $1.85B, +79% YoY and +13% QoQ growth • Strong product mix, increased shipments of rack scale Total IT Solutions • Expanding Total IT Solutions product lines to address adjacent markets • Continued strength in OEM/Appliance & Large DC segment with addit
Slide 4: SMCI vs Industry Growth Rate (FY)
SMCI vs INDUSTRY GROWTH RATE (FY) 100 Total IT Solutions @ Rack Scale Green IT With Software, Service, Global Operation 80 Large Scale With Multi CPU, GPU, DPU Platforms More Technology Partnerships Sub System and System Supermicro 60 Small Business Scale Operations In High-Cost Silicon Valley 40 20
Slide 5: Total IT Solutions - Our Path to $10B+
TOTAL IT SOLUTIONS - OUR PATH TO $10B+ ▪ 5S: Software, Service, SMCI 3.0 Total IT Switch, Storage, Security & Solutions More SMCI 2.0 ▪ Total IT Solutions Servers & SMCI 1.0 Storage Systems Enterprise, OEM – Components & Subsystems Appliance / Cloud ▪ Complete Systems ▪ Sub-systems & Components Our
Slide 6: Enabling Total IT Solutions
ENABLING TOTAL IT SOLUTIONS Value of Supermicro Total IT Solutions ✓ Rack-scale Plug & Play (L10, L11, L12) w/ optimized BBA Solutions ✓ Scalable Optimized compute, storage, software & service ✓ Cloud composer, Cloud orchestrator, IT & Cloud security, Cloud subscription ✓ Addressing key verticals: A
Slide 7: Expanding Our PnP Rack Designs
EXPANDING OUR PnP RACK DESIGNS High Density Compute High Density Compute Rack High Density High Performance GPU Rack with Liquid Cooling Storage Rack Rack 7 Better Faster Greener™ © 2022 Supermicro
Slide 8: Operations: Expansion Plans
OPERATIONS: EXPANSION PLANS • Manufacturing Resilience with flexible footprint • Current capacity scalable and aligned to growth trends • Optimizing global operations ensuring tight cost controls • Taiwan Building 62: 2X-3X APAC capacity in FY23 • US Building 23 (Command Center, B2B/C, and Cloud Ser
Slide 9: Green Computing for the Planet
GREEN COMPUTING FOR THE PLANET • Improve Industry PUE (Target 1.05) • Adopting More Efficient Datacenter Cooling • Optimal Free-Air Cooling PUE @ 1.06 Intel® Case Study • Optimal Liquid or Submerged PUE @ 1.05 • >$10B TCO Savings across industry 300,000+ Supermicro Resource-Saving Blade Servers: • $
Slide 10: Q1 FY2023 Highlights
Q1 FY2023 HIGHLIGHTS Server and Storage Systems Revenue +102% YoY Q1FY23 QoQ YoY Revenue $1,852M +13% +79% Gross Margin (non-GAAP) 18.8% +120bps +540bps Earnings Per Share (non-GAAP) $3.42 +$0.80 +$2.84 Cash Flow from Operations +$314M +$339M +$448M Mix Server and Storage Systems $1,713M (92%) +16%
Slide 11: Revenue
REVENUE 1,852 • Q1FY23 Revenue: $1,852M vs Guide:$1,520 to $1,620 • 7th Quarter of Accelerating YoY Growth 1,636 Guidance: 1,520M-1,620M • +79% YoY, +13% QoQ 1,355 Revenue Mix By Geography 1,172 1,033 3% 14% Million $ 13% 70% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 USA Europe Asia Other *China < 3% of To
Slide 12: Revenue Mix
REVENUE MIX Server and Storage Systems & Subsystems Vertical Markets 9% 8% 6% 6% 5% 5% 18% 16% 15% 12% 24% 24% 32% 44% 50% 91% 92% 82% 84% 85% 70% 64% 62% 51% 45% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Subsystems & Accessories 5G,Telco & Edge/IOT Server and Storage Sys
Slide 13: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 18.8% 17.6% 15.6% 13.4% 14.0% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 • +120bps QoQ, +540bps YoY • Gross margin expansion driven by price discipline, higher factory efficiency, and lower freight costs A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this
Slide 14: Non-GAAP Operating Expenses & Margins
NON-GAAP OPERATING EXPENSES & MARGINS Operating Expenses Operating Margins 12.5% 114 117 10.7% 110 101 103 7.5% Million $ 5.2% 3.7% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 • Operating Margins benefiting due to leverage • Expense discipline despite increased headcount A
Slide 15: Non-GAAP EPS
NON-GAAP EPS $3.42 $2.62 Guidance: $2.07-$2.32 $1.55 $0.88 $0.58 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 • Q1FY23 Non-GAAP EPS of $3.42 • Exceeds previous guidance range: $2.07 to $2.32 • EPS improvement due to higher revenues and factory utilization with operating expense control A reconciliation of GAA
Slide 16: Cash Flow & Net Cash
CASH FLOW & NET CASH Cash Flow From Operations Net Cash Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 314 -12 -9 -69 Million $ Million $ Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 -53 -25 -135 -228 -300 -329 • Q1FY23 Record Operating Cash Flow +$314M, Free Cash Flow +$303M • Total Cash $238M, Reduced Total Debt by $34
Slide 17: Revenue & EPS Outlook
REVENUE & EPS OUTLOOK REVENUE EPS Q2 FY2023* $1.7B to $1.8B NON-GAAP: $2.64 to $2.90 GAAP: $2.54 to $2.81 Full Year FY2023** $6.5B to $7.5B NON-GAAP: $9.00 to $11.30 GAAP: $8.50 to $11.00 *The outlook for Q2 of fiscal year 2023 GAAP diluted net income per common share includes approximately $11.8 mi
Slide 18: Appendix
APPENDIX 18 Better Faster Greener™ © 2022 Supermicro
Slide 19: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) FY2022 FY2023 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 In Thousands (except per share amounts) Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Consolidated Statement of Operations Net Sales $ 1,032,730 $ 1,172,419 $ 1,355,490 $ 1,635,460 $ 1,852,130 GAAP GROSS PROFIT $ 138,139 $ 163
Slide 20: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) FY2022 FY2023 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 In Thousands (except per share amounts) Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 GAAP INCOME FROM OPERATIONS $ 29,128 $ 51,049 $ 89,777 $ 165,213 $ 220,123 Stock-based compensation 7,015 9,176 7,741 8,884 11,014 Litigatio