Slide 1: AMD Financial Results Second Quarter 2023
AMD FINANCIAL RESULTS Second Quarter 2023 August 1, 2023
Slide 2: Cautionary Statement
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202322 CAUTIONARY STATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as the features, functionality, performance, availability, timing and expected benefits of AMD products; AMD’s expected third qua
Slide 3: Our Journey
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202333 Expanding Customer & Partner Ecosystem Data Center and AI Growth Strong Financial Foundation Leadership Product Portfolio OUR JOURNEY
Slide 4: Our Leadership Technology
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202344 OUR LEADERSHIP TECHNOLOGY Software Enablement Open-source software optimized for performance across heterogenous solutions Data Center Leadership Delivering innovation in cloud, enterprise, AI and accelerated computing Advanced Technology Driving leadersh
Slide 5: Our Leadership Products
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202355 OUR LEADERSHIP PRODUCTS Embedded Leadership FPGAs, Adaptive SoCs and SoMs, and embedded CPUs and GPUs for a broad set of markets Gaming Top-to-bottom desktop and notebook GPUs, game console and semi-custom SoCs Client Leadership CPUs and APUs for notebook
Slide 6: AMD Is Uniquely Positioned in AI
AMD IS UNIQUELY POSITIONED IN AI RyzenTM 7040 Mobile processors with AI accelerator First x86 with Integrated AI accelerator Embedded VersalTM AI Edge ZynqTM MPSoC Adaptive SoC + AI for Embedded AMD AlveoTM Accelerators AI Inference Optimized Solutions DELIVERING A COMPREHENSIVE AI COMPUTE PORTFOLIO
Slide 7: Revenue Q2 2023
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 20237 REVENUE Q2 2023 ▪ Revenue of $5.4 billion declined 18% y/y as Embedded segment strength was more than offset primarily by lower Client segment revenue ▪ Client segment revenue was impacted by a weaker PC market and a significant inventory correction across
Slide 8: Gross Margin Q2 2023
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 20238 GROSS MARGIN Q2 2023 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Non-GAAP gross margin decrease primarily due to lower Client segment performance partially offset by strong Embedded segment performance Non-GAAP1 46% 46% Q2 2022 Q2 2023 GAAP ▪ G
Slide 9: Operating Income (Loss) Q2 2023
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 20239 $0.5B $(0.02)B Q2 2022 Q2 2023 OPERATING INCOME (LOSS) Q2 2023 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 $2.0B $1.1B Q2 2022 Q2 2023 ▪ Operating loss primarily due to lower Client segment performance ▪ Non-GAAP operating income d
Slide 10: Earnings Per Share Q2 2023
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202310 $1.05 $0.58 Q2 2022 Q2 2023 EARNINGS PER SHARE Q2 2023 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 ▪ Net income of $27 million, down 94% y/y ▪ EPS of $0.02, compared to EPS of $0.27, declined primarily due to Client segment perfor
Slide 11: Q2 2023 Summary P&L | GAAP
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202311 ($ in millions, except per share data) Q2’23 Q2’22 Y/Y Q1’23 Q/Q Revenue $5,359 $6,550 Down 18% $5,353 Flat Gross Profit $2,443 $3,028 Down 19% $2,359 Up 4% Gross Margin 46% 46% Flat 44% Up 2ppts Operating Expenses $2,471 $2,508 Down 1% $2,514 Down 2% Ope
Slide 12: Q2 2023 Summary P&L | Non-GAAP
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202312 ($ in millions, except per share data) Q2’23 Q2’22 Y/Y Q1’23 Q/Q Revenue $5,359 $6,550 Down 18% $5,353 Flat Gross Profit $2,665 $3,538 Down 25% $2,675 Flat Gross Margin 50% 54% Down 4 ppts 50% Flat Operating Expenses $1,605 $1,562 Up 3% $1,587 Up 1% Opera
Slide 13: Revenue ($ in Billions)
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202313 $4.3 $4.8 $5.9 $6.6 $5.6 $5.6 $5.4 $5.4 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 REVENUE ($ in Billions)
Slide 14: Gross Margin (GAAP)
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202314 48% 50% 48% 46% 42% 43% 44% 46% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 GROSS MARGIN (GAAP)
Slide 15: Gross Margin (Non-GAAP)
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202315 48% 50% 53% 54% 50% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 50% GROSS MARGIN (Non-GAAP)1 1. See Appendices for GAAP to Non-GAAP reconciliation. 50%51%
Slide 16: Earnings (Loss) Per Share (GAAP)
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202316 $0.75 $0.80 $0.56 $0.27 $0.04 $0.01 $(0.09) $0.02 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 EARNINGS (LOSS) PER SHARE (GAAP)
Slide 17: Earnings Per Share (Non-GAAP)
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202317 $0.73 $0.92 $1.13 $1.05 $0.67 $0.69 $0.60 $0.58 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 EARNINGS PER SHARE (Non-GAAP)1 1. See Appendices for GAAP to Non-GAAP reconciliation
Slide 18: Q2 2023 Summary Balance Sheet Items
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202318 ▪ Inventories up q/q to support the continued ramp of advanced technology products Q2 2023 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q2’23 Q1’23 Q/Q Cash, Cash Equivalents and Short-term Investments $6,285 $5,939 Up 6% Accounts Receivable, Net $4,312 $4
Slide 19: Q2 2023 Segment Results
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202319 Q2 2023 SEGMENT RESULTS ($ in millions) Q2’23 Q2’22 Y/Y Q1’23 Q/Q Data Center Net Revenue $1,321 $1,486 Down 11% $1,295 Up 2% Operating Income $147 $472 Down 69% $148 Down 1% Client Net Revenue $998 $2,152 Down 54% $739 Up 35% Operating Income (Loss) $(69
Slide 20: Data Center Segment Q2 2023
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202320 DATA CENTER SEGMENT Q2 2023 ▪ AWS, Microsoft Azure and OCI announced new cloud instances powered by 4th Gen AMD EPYCTM processors ▪ Expanding enterprise customer adoption of EPYC processors including with Banco de Brasil, BNP Paribas, Petronas and Uber ▪
Slide 21: Client Segment Q2 2023
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202321 CLIENT SEGMENT Q2 2023 ▪ Announced new Ryzen™ PRO 7040 Series Mobile processors, the most advanced x86 processors for premium Windows 11 business laptops and mobile workstations ▪ Launched Ryzen PRO 7000 Series processors for desktop, bringing the power o
Slide 22: Gaming Segment Q2 2023
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202322 11% 14% Q2 2022 Q2 2023 GAMING SEGMENT Q2 2023 ▪ Strong semi-custom SoC sales driven by healthy game console demand based on improved global retail availability and new AAA game launches ▪ Launched RadeonTM RX 7600 graphics card for next-generation, high-
Slide 23: Embedded Segment Q2 2023
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202323 EMBEDDED SEGMENT Q2 2023 ▪ Announced Versal™ Premium VP1902 adaptive SoC, the industry’s largest and most performant solution for emulating and verifying next generation ASICs and SoCs ▪ AMD EPYC Embedded Series processors power HPE’s new modular storage
Slide 24: Financial Outlook – Non-GAAP
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202324 ($ in millions) Q3’23 FY 2023 Revenue ~$5.7 Billion +/- $300 Million Increase of ~2.5% y/y Data Center and Embedded Segments expected to grow y/y Gross Margin ~51% Expansion in 2H Operating Expenses ~$1.65 Billion Modest increase in 2H Effective Tax Rate
Slide 25: Q2 2023 Summary
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 20232525 Data Center and Embedded Segments >50% of Revenue Gross Margin 46% Non-GAAP Gross Margin 50% EPS $0.02 Non-GAAP EPS $0.58 Revenue $5.4B Q2 2023 SUMMARY 1 EXECUTING WELL TO OUR STRATEGIC PRIORITIES 1. 1. See Appendices for GAAP to Non-GAAP reconciliation
Slide 26: AMD Commitment to ESG
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 20232626 AMD COMMITMENT TO ESG Governance Delivering industry leading products with integrity, innovation and quality in order to help solve global challenges Social Creating a culture that drives innovation by fostering diversity, inclusion and belonging Enviro
Slide 27: Our Momentum Driving Long-Term Shareholder Returns
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 20232727 Large and Compelling TAM World-Class Execution and Focus Technology Leadership Expanding Data Center and AI Leadership Strong Balance Sheet OUR MOMENTUM DRIVING LONG-TERM SHAREHOLDER RETURNS
Slide 28: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202328 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN (Millions) (Unaudited) Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 GAAP gross profit $ 2,086 $ 2,426 $ 2,818 $ 3,028 $ 2,354 $ 2,403 $ 2,359 $ 2,443 GAAP gross margin 48% 50% 48% 46% 42%
Slide 29: Reconciliation of GAAP Operating Income to Non-GAAP
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202329 APPENDICES RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (Millions) (Unaudited) Q2’23 Q2’22 Q1’23 GAAP operating income (loss) $ (20) $ 526 $ (145) GAAP operating margin 0% 8% (3)% Stock-based compensation 348 259 305 Amortiz
Slide 30: Reconciliation of GAAP to Non-GAAP Net Income / EPS
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202330 RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) / EARNINGS (LOSS) PER SHARE (1) Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination
Slide 31: Share Count Overview
Q2 2023 FINANCIAL RESULTS – AUGUST 1, 202331 Shares (millions) (1) Q2’23 Q3’23 2023 Actual Estimate Estimate Basic shares 1,612 1,618 1,618 Dilutive impact from employee equity grants (2) 15 12 10 Diluted shares 1,627 1,630 1,628 APPENDICES SHARE COUNT OVERVIEW The table above provides actual share
Slide 32: AMD together we advance
AMD«¢l together we advance_