Slide 1: Financial results FQ1 2024
Financial results FQ1 2024 d4icron
Slide 2: Safe harbor statement
Safe harbor statement During the course of this meeting, we may make projections or other forward-looking statements regarding market demand and supply, pricing, cost reductions, expected product volume production, expected product announcements, future events or the future financial performance or
Slide 3: Sanjay Mehrotra, President and CEO
Sanjay Mehrotra President and CEO December 20, 2023 3
Slide 4: Overview
Overview • In fiscal Q1, Micron delivered revenue, gross margin and • We intend to stay very disciplined with our supply and EPS above the high end of the guidance ranges we capacity investments as our pricing is still far from levels provided at the last earnings call, reflecting Micron’s associate
Slide 5: Technology End markets overview
Technology End markets overview • The vast majority of our bits are on leading-edge • Inventories for memory and storage are at or near normal nodes: 1-alpha and 1-beta in DRAM and 176-layer levels for most customers across PC, mobile, auto and and 232-layer in NAND. industrial end markets. Data cen
Slide 6: End market highlights: Data center
End market highlights Data center • Total server unit shipments are expected to increase by a mid-single digit • We are on track to begin our HBM3E volume production ramp in early percentage in calendar 2024, following a year of low double-digit calendar 2024 and to generate several hundred millions
Slide 7: End market highlights: PC, Mobile and intelligent edge
End market highlights PC Mobile and intelligent edge • PC: We forecast unit volumes to grow by a low to mid-single digit • Mobile: Smartphone demand is showing signs of recovery, and we forecast percentage in calendar 2024, after two years of double digit percentage PC smartphone unit shipments to g
Slide 8: Outlook and Capex plan
Outlook and Capex plan • Demand: We expect calendar 2023 DRAM bit demand to grow in the high-single digit Capex plan: percentage range, up from prior expectations for mid-single-digit growth. In NAND, we continue to expect calendar 2023 bit demand growth in the high-teens percentage range. • Micron’
Slide 9: Mark Murphy, Chief Financial Officer
Mark Murphy Chief Financial Officer December 20, 2023 9
Slide 10: FQ1-24 revenue
FQ1-24 revenue Revenue up 18% Q/Q and up 16% Y/Y December 20, 2023 10
Slide 11: Performance by technology
Performance by technology DRAM Q1-24 NAND Q1-24 • $3.4 billion, representing 73% of total revenue • $1.2 billion, representing 26% of total revenue • Revenue increased 24% Q/Q • Revenue increased 2% Q/Q • Bit shipments increased in the low-20s • Bit shipments decreased in the mid-teens percentage ra
Slide 12: Revenue by business unit
Revenue by business unit Amounts in millions Q/Q % Y/Y % FQ1-24 FQ4-23 Change FQ1-23 Change Compute and Networking (CNBU) $1,737 $1,200 45% $1,746 (1%) Mobile (MBU) $1,293 $1,211 7% $ 655 97% Embedded (EBU) $1,037 $ 860 21% $1,000 4% Storage (SBU) $ 653 $ 739 (12%) $ 680 (4%) December 20, 2023 12
Slide 13: FQ1-24 Non-GAAP operating results
FQ1-24 Non-GAAP operating results Revenue: $4.7 billion Gross margin: 1% Operating expenses: $992 million Operating income (loss): ($955 million) Net income (loss): ($1.0 billion) Diluted earnings (loss) per share: ($0.95) Cash from operations (GAAP): $1.4 billion See non-GAAP reconciliations in App
Slide 14: Cash flow and capital allocation
Cash flow and capital allocation From FY-21 to FQ1-24: Cash flow FQ1-24: $1.4B from operations • $4.1 billion towards repurchasing 60 million shares FQ1-24: CapEx of $1.7B Net CapEx1 • $5.2 billion returned to shareholders from share FY-24: CapEx guidance between $7.5B and $8.0B repurchases and divi
Slide 15: FQ2-24 guidance Non-GAAP
FQ2-24 guidance Non-GAAP Revenue $5.30 billion ± $200 million Gross margin 13.0% ± 1.5% Operating expenses $950 million ± $15 million Diluted earnings (loss) per share* ($0.28) ± $0.07 *Based on ~1.10 billion diluted shares See non-GAAP reconciliations in Appendix December 20, 2023 15
Slide 16: Appendix
Appendix December 20, 2023 16
Slide 17: Financial summary Non-GAAP
Financial summary Non-GAAP Amounts in millions, except per share FQ1-24 % of FQ4-23 % of FQ1-23 % of Revenue Revenue Revenue Revenue $4,726 100% $4,010 100% $4,085 100% Gross margin 37 1% (366) (9%) 934 23% Operating income (loss) (955) (20%) (1,208) (30%) (65) (2%) Income tax (provision) benefit (5
Slide 18: Non-GAAP financial data and guidance
Non-GAAP financial data and guidance % of Revenue FQ1-24 FQ1-24 Non-GAAP FQ2-24 (amounts in millions, DRAM 73% Non-GAAP Guidance except per share) NAND 26% Revenue $ 4,726 $5.30 billion ± $200 million Gross margin 1% 13.0% ± 1.5% % Sales Volume Change FQ1-24 Q/Q Operating expenses $ 992 $950 million
Slide 19: Revenue by technology
Revenue by technology Amounts in millions % of % of % of FQ1-24 Revenue FQ4-23 Revenue FQ1-23 Revenue DRAM $ 3,427 73% $ 2,755 69% $ 2,829 69% NAND 1,230 26% 1,205 30% 1,103 27% Other (primarily NOR) 69 1% 50 1% 153 4% Total $ 4,726 100% $ 4,010 100% $ 4,085 100% Percentages of total revenue may not
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations December 20, 2023 20
Slide 21: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ1-24 FQ4-23 FQ1-23 GAAP gross margin $ (35) $ (435) $ 893 Stock-based compensation 67 64 36 Other 5 5 5 Non-GAAP gross margin $ 37 $ (366) $ 934 GAAP operating expenses $ 1,093 $ 1,037 $ 1,102 Stock-based compensation (115) (87) (90
Slide 22: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ1-24 FQ4-23 FQ1-23 GAAP cost of goods sold $ 4,761 $ 4,445 $ 3,192 Stock-based compensation (67) (64) (36) Other (5) (5) (5) Non-GAAP cost of goods sold $ 4,689 $ 4,376 $ 3,151 GAAP research and development $ 845 $ 719 $ 849 Stock-b
Slide 23: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ1-24 FQ4-23 FQ1-23 GAAP net income (loss) $ (1,234) $ (1,430) $ (195) Stock-based compensation 182 151 126 Restructure and asset impairments — 4 13 Goodwill impairment — 101 — Other (10) 7 10 Estimated tax effects of above and other
Slide 24: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions, except per share FQ1-24 FQ4-23 FQ1-23 GAAP diluted earnings (loss) per share $ (1.12) $ (1.31) $ (0.18) Effects of non-GAAP adjustments 0.17 0.24 0.14 Non-GAAP diluted earnings (loss) per share $ (0.95) $ (1.07) $ (0.04) Net cash pro
Slide 25: FQ2-24 guidance Non-GAAP reconciliations
FQ2-24 guidance Non-GAAP reconciliations GAAP Adjustments Non-GAAP Revenue $5.30 billion ± $200 million — $5.30 billion ± $200 million Gross margin 12.0% ± 1.5% 1.0% A 13.0% ± 1.5% Operating expenses $1.07 billion ± $15 million $122 million B $950 million ± $15 million Diluted earnings (loss) per sh
Slide 26: on an “AS IS” basis without warranties of any kind. Statements regarding products, including
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