Advanced Micro Devices Inc · NASDAQ:AMD
Advanced Micro Devices — Q2 2021 Earnings Presentation
27 slides from Advanced Micro Devices's earnings presentation, Jul 27, 2021
Slide 1: Second Quarter 2021 Financial Results
SECOND QUARTER 2021 FINANCIAL RESULTS JULY 27, 2021
Slide 2: Cautionary Statement
2 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 CAUTIONARY STATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s journey; the features, functionality, performance, availability, timing and expected benefits of AMD product
Slide 3: Our Journey
3 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 OUR JOURNEY Best-in-Class Financial Performance Expanding Customer & Partner Ecosystem Best Product Portfolio in History Significant Business Acceleration
Slide 4: Our Leadership Technology
4 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 Driving Leadership PC Experiences and Gaming Solutions PC/GAMING SOLUTIONS Leadership Process Technology and Innovative 3D Chiplet Packaging ADVANCED TECHNOLOGY Delivering Multi-generational Leadership CPU and GPU Roadmaps INDUSTRY-LEADING IP I
Slide 5: Performance Leadership in PCs, Data Center and Gaming
5 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 z PERFORMANCE LEADERSHIP IN PCS, DATA CENTER AND GAMING OUR BEST EVER PRODUCT PORTFOLIO See endnotes R5K-002 and CZM-35 Desktop and mobile processors provide world’s fastest gaming, leadership performance and advanced battery life Performance a
Slide 6: Financial Summary Q2 2021
6 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 1. See Appendices for GAAP to Non-GAAP reconciliation FINANCIAL SUMMARY Q2 2021¹ $1.93 $3.85 Q2 2020 Q2 2021 +99% y/y Quarterly Revenue ($B) Record revenue $3.85 billion, up 99% y/y and 12% q/q Gross margin 48%, up 4pp y/y and 2 pp q/q OpE
Slide 7: Computing and Graphics Segment Q2 2021
7 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 COMPUTING AND GRAPHICS SEGMENT Q2 2021 Revenue $2.25 billion ‒ Up 65% y/y and 7% q/q driven by higher client and graphics processor sales ‒ Record client revenue and 5th straight quarter of revenue share gains ‒ Graphics revenue growth led by
Slide 8: Enterprise, Embedded and Semi-Custom Segment Q2 2021
8 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 ENTERPRISE, EMBEDDED AND SEMI-CUSTOM SEGMENT Q2 2021 Revenue $1.60 billion ‒ Up 183% y/y and 19% q/q driven by higher EPYC processor revenue and semi-custom product sales ‒ 5th straight quarter of record server processor revenue, including st
Slide 9: Strong Revenue Trajectory
9 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 $1,801 $2,127 $1,786 $1,932 $2,801 $3,244 $3,445 $3,850 1000 1500 2000 2500 3000 3500 4000 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 +99% y/y REVENUE TREND ($ IN MILLIONS) STRONG REVENUE TRAJECTORY
Slide 10: Continued Gross Margin Expansion
10 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 43% 45% 46% 44% 44% 45% 46% 48% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 +4pp y/y GROSS MARGIN TREND (GAAP AND NON-GAAP)¹ 1. See Appendices for GAAP to Non-GAAP reconciliation CONTINUED GROSS MARGIN EXPANSION
Slide 11: Significant Profit Growth: Earnings Per Share Trend
11 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 EARNINGS PER SHARE TREND $0.11 $0.15 $0.14 $0.13 $0.32 $0.39 $0.45 $0.58$0.20 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Ax is T itl e +$0.45 y/y (GAAP) $1.451 SIGNIFICANT PROFIT GROWTH 1. In Q4 2020, AMD released $1.3 billion of its $2.9
Slide 12: Earnings Per Share Trend (Non-GAAP)
12 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 $0.18 $0.32 $0.18 $0.18 $0.41 $0.52 $0.52 $0.63 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 +$0.45 y/y EARNINGS PER SHARE TREND (NON-GAAP)1 1. 1. See Appendices for GAAP to Non-GAAP reconciliation 2. 2. Includes a higher tax rate beginning
Slide 13: Q2 2021 Summary P&L – GAAP
13 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 ($ in millions, except per share data) Q2’21 Q2’20 Y/Y Q1’21 Q/Q Revenue $3,850 $1,932 Up 99% $3,445 Up 12% Gross Profit $1,830 $848 Up 116% $1,587 Up 15% Gross Margin % 48% 44% Up 4pp 46% Up 2pp Operating Expenses $1,000 $675 Up 48% $929 Up 8
Slide 14: Q2 2021 Summary P&L – Non-GAAP
14 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 ($ in millions, except per share data) Q2’21 Q2’20 Y/Y Q1’21 Q/Q Revenue $3,850 $1,932 Up 99% $3,445 Up 12% Gross Profit $1,832 $850 Up 116% $1,588 Up 15% Gross Margin % 48% 44% Up 4pp 46% Up 2pp Operating Expenses $909 $617 Up 47% $830 Up 10%
Slide 15: Q2 2021 Segment Results
15 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 Q2 2021 SEGMENT RESULTS ($ in millions) Q2’21 Q2’20 Y/Y Q1’21 Q/Q Computing and Graphics Net Revenue $2,250 $1,367 Up 65% $2,100 Up 7% Operating Income $526 $200 Up 163% $485 Up 8% Enterprise, Embedded and Semi-Custom Net Revenue $1,600 $565 U
Slide 16: Q2 2021 Summary Balance Sheet Items
16 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 Q2 2021 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q2’21 Q2’20 Y/Y Q1’21 Q/Q Cash, Cash Equivalents and Short-term Investments $3,793 $1,775 Up $2,018 $3,116 Up $677 Accounts Receivable, Net $2,020 $1,789 Up $231 $2,178 Down $158 Inventories
Slide 17: Third Quarter 2021 Outlook
17 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 1. See Cautionary Statement on Slide 2. These forward-looking outlook statements and non-GAAP measures are based on current expectations as of July 27, 2021, and assumptions and beliefs that involve numerous risks and uncertainties. AMD undert
Slide 18: Q2 2021 Summary
18 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 Q2 2021 SUMMARY Profitability More than Tripled Y/Y Gross Margin Expanded to 48%, Up 4 pp Y/Y Quarterly Revenue Up 99% Y/Y, 12% Q/Q Record Quarterly Free Cash Flow
Slide 19: AMD's Commitment to ESG
19 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 AMD’S COMMITMENT TO ESG Steadfast commitment to environmental stewardship and contributing to our local communities ENVIRONMENTAL Delivering industry leading products with integrity, innovation and quality in order to help solve global challen
Slide 20: Building the Best
20 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 BUILDING THE BEST Strong Shareholder Returns Execution Excellence Leadership Roadmaps Revenue Market Share Gains
Slide 21: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
21 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Millions) Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1’21 Q2’21 GAAP gross profit $ 777 $ 949 $ 818 $ 848 $ 1,230 $ 1,451 $ 1,587 $ 1,830 GAAP gross margin % 43% 45% 46% 44
Slide 22: Reconciliation of GAAP to Non-GAAP Operating Income
22 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 APPENDICES Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Millions) Q2’21 Q2’20 Q1’21 GAAP operating income $ 831 $ 173 $ 662 GAAP operating margin % 22% 9% 19% Stock-based compensation 83 60 85 Acquisition-related costs
Slide 23: Reconciliation of GAAP to Non-GAAP Net Income / EPS
23 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share (1) Q3’19 GAAP diluted EPS calculation did not include shares related to the assumed conversion of the Company's 2026 Convertible Notes and the associated interest e
Slide 24: Share Count Overview
24 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 APPENDICES Share Count Overview Shares (millions) (1) Q1’21 Q2’21 Q3’21 2021 Actual Actual Estimate Estimate Basic Shares 1,213 1,216 1,217 1,216 Dilutive impact from: Employee Equity Grants (2) 18 16 14 15 Diluted Shares (without 2026 Convert
Slide 25: Total Debt (Net) and Free Cash Flow
25 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 APPENDICES Total Debt (Net) (Millions) Q2’21 Q2’20 Q1’21 7.50% Senior Notes due 2022 $ 312 $ 312 $ 312 2.125% Convertible Senior Notes due 2026 1 251 2 Borrowings from secured revolving line of credit – 200 – Total Debt (principal amount) $ 31
Slide 26: Endnotes
26 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 ENDNOTES R5K-002: Testing by AMD Performance labs as of 5/28/2021 based on the average FPS of 20 PC games at 1920x1080 with the High image quality preset using an AMD Ryzen™ 9 5900X processor vs. Core i9-11900K. For Ryzen 5000 G-Series process
Slide 27: Disclaimers and Attributions
27 SECOND QUARTER 2021 FINANCIAL RESULTS | JULY 27, 2021 DISCLAIMERS AND ATTRIBUTIONS The information contained herein is for informational purposes only and is subject to change without notice. Timelines, roadmaps, and/or product release dates shown in these slides are plans only and subject to cha
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