Slide 1: Fiscal Q1 2022 Results
FISCAL Q1 2022 RESULTS November 2, 2021
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 • F1Q revenue: $1.03B, +35% YoY and -3% QoQ • Revenue growth was driven by large enterprise, cloud, AI, and Telco markets Executing on our Strategy • Transforming from a server hardware company into a total IT solutions company • Taiwan expansion complete (near 3M sq ft)
Slide 4: SMCI vs Industry Growth
SMCI vs INDUSTRY GROWTH Resuming Much Faster Growth than Industry v Supermicro Industry Avg* Today Target* *Industry Avg based on Gartner & IDC estimates 4
Slide 5: Transforming to Total IT Solution
TRANSFORMING TO TOTAL IT SOLUTION • 5S: Software, SMCI 3.0 Total IT Services, Switch Solutions and more SMCI 2.0 • Total Solution Servers & Storage Systems Enterprise, OEM SMCI 1.0 Components & Appliance / Cloud Subsystems 5S • Complete Total Solutions 10K Delay Systems Complete System Sub-System •
Slide 6: Campus Expansions
CAMPUS EXPANSIONS • Taiwan Building 62 complete and 500+ employees moved in – 2X-3X our APAC capacity in FY22 • US Building 23 complete with move-in plan in process (Command Center, B2B/C, and Cloud) 6
Slide 7: Business Automation Program
BUSINESS AUTOMATION PROGRAM ❖ Auto-configurator servicing select customers ❖ Enhance business and operational efficiency ❖ Improve customer interaction and satisfaction ❖ Command Center to streamline service 7
Slide 8: Revenue
REVENUE 1,200 Revenue Above the Midpoint of Guidance Range 1,000 • +35% YoY, -3% QoQ 800 • Strong performance from new and existing large multinational $M 600 1,033 customers 400 200 0 Q1 Q2 Q3 Q4 Q1 FY21 FY22 Geographic Mix Others 3% 1,050 Asia 1,000 26% 950 900-980 $M US 1,033 900 54% 850 Europe 1
Slide 9: Non-GAAP EPS
NON-GAAP EPS 100 70 80 60 50 60 Cents 40 Cents 28-48 40 30 58 58 20 20 0 10 Q1 Q2 Q3 Q4 Q1 0 FY21 FY22 Guidance (8/10) Q1 Non-GAAP EPS Non-GAAP EPS above guidance range • Higher revenues and lower operating expenses, offset by lower gross margins A reconciliation of GAAP to non-GAAP measures can be
Slide 10: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 18% 16% 14% 12% 10% 8% 6% 13.4% 4% 2% 0% Q1 Q2 Q3 Q4 Q1 FY21 FY22 Non-GAAP Gross Margin • -30bps QoQ, -370bps YoY • Higher freight and supply chain costs A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. 10
Slide 11: Non-GAAP Operating Expenses
NON-GAAP OPERATING EXPENSES 120 100 80 $M 60 101 40 20 0 Q1 Q2 Q3 Q4 Q1 FY21 FY22 Non-GAAP Operating Expenses • 2% QoQ, 7% YoY • QoQ and YoY increase driven by higher personnel expenses due to increased headcount, especially in Asia A reconciliation of GAAP to non-GAAP measures can be found in the a
Slide 12: Cash Flow and Net Cash
CASH FLOW AND NET CASH Cash Flow From Operations Net Cash 150 300 100 250 200 50 150 $M $M 0 100 -50 -135 50 -100 0 -9 -150 -50 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY21 FY22 FY21 FY22 • Cash Flow from Operations -$135M • Free Cash Flow -$147M • Net Cash and Cash Equivalents -$9M • No Share Repurchases 12
Slide 13: Q2 2022 Outlook
Q2 2022 OUTLOOK REVENUE NON-GAAP EPS $1.1B to $1.2B 70c to 90c (GAAP: 60c to 80c) The outlook for Q2 of fiscal year 2022 GAAP diluted net income per common share includes approximately $7 million in expected stock-based compensation expense and $1 million in other expenses that are excluded from non
Slide 14: FY 2022 Outlook
FY 2022 OUTLOOK REVENUE NON-GAAP EPS $4.2B to $4.6B at least $3.20 (GAAP: at least $2.77) The outlook for fiscal year 2022 GAAP diluted net income per common share includes approximately $33 million in expected stock-based compensation expense and other expenses, net of tax effects, that are exclude
Slide 15: Appendix
APPENDIX 15
Slide 16: Q1 2022 Highlights
Q1 2022 HIGHLIGHTS Q1 QoQ YoY Revenue $1,033M -3% +35% Gross Margin (non-GAAP) 13.4% -30bps -370bps Earnings Per Share (non-GAAP) 58c -23c +3c Cash Flow from Operations -$135M -$198M -$255M Mix: Systems $850M (82%) +2% +38% Subsystems & Accessories $183M (18%) -21% +27% A reconciliation of GAAP to n
Slide 17: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) FY2021 FY2022 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 In Thousands (except per share amounts) Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Consolidated Statement of Operations Net Sales $ 762,250 $ 830,306 $ 895,881 $ 1,068,985 $ 1,032,730 GAAP GROSS PROFIT $ 129,915 $ 136,095 $
Slide 18: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) FY2021 FY2022 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 In Thousands (except per share amounts) Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 GAAP INCOME FROM OPERATIONS $ 30,446 $ 37,365 $ 17,055 $ 39,081 $ 29,128 Stock-based compensation 7,170 6,453 7,494 7,432 7,015 Executive SE