Slide 1: Financial results FQ4 2024
Financial results FQ4 2024
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, market and pricing trends and drivers, the impact of technologies such as AI, cost reductions, expected product volume production, our market posit
Slide 3: Sanjay Mehrotra, President and CEO
Sanjay Mehrotra President and CEO September 25, 2024 3
Slide 4: Overview
Overview • Micron delivered a strong finish to fiscal year 2024, with fiscal Q4 revenue at the high end of our guidance range, and gross margins and EPS above the high end of our guidance ranges. • Micron’s fiscal 2024 revenue grew over 60%, we expanded company gross margins by over 30 percentage po
Slide 5: Technology and Operations
Technology and Operations • Our 1-beta DRAM and G8 and G9 NAND nodes are ramping in high volume and will become an increasing portion of our mix through fiscal 2025. As a reminder, our G8 NAND node refers to our 232-layer NAND technology node. • Our 1-gamma DRAM pilot production using extreme ultrav
Slide 6: Manufacturing Strategy
Manufacturing Strategy • We continue to make progress on the construction for our new fab in Idaho and are working with state and federal agencies on the permitting process for our New York site. • Construction is underway on our India assembly and test facility, as well as our China Xi’an back-end
Slide 7: Impact of AI on End Markets
Impact of AI on End Markets • Memory is essential to extend the frontier of AI capability. • Multiple vectors will drive AI memory demand over the coming years: growing model sizes and input token • Micron is focused on translating the opportunities from AI requirements, multi-modality, multi agent
Slide 8: Data Center
Data Center • Industry server unit shipments are expected to grow in the mid-to-high single digits in calendar 2024, driven by strong growth for AI servers as well as low-single digits growth for traditional servers. • Our mix of data center revenue reached a record level in fiscal 2024, and we expe
Slide 9: Data Center (continued)
Data Center (continued) • Micron’s HBM3E 12-high 36GB delivers 20% lower power consumption than our competitors’ HBM3E 8-high 24GB solutions, while providing 50% higher DRAM capacity. • We expect to ramp our HBM3E 12-high output in early calendar 2025 and increase the 12-high mix in our shipments th
Slide 10: PC
PC • As sell through of PCs continues at a steady pace with a seasonal increase in the second half of calendar 2024, we expect healthier inventories at PC OEMs by spring 2025. • PC unit volumes remain on track to grow in the low single-digit range for calendar 2024. • We expect unit growth to contin
Slide 11: Mobile
Mobile • Smartphone customer inventory dynamics are evolving in a manner somewhat similar to that of PC customers. • Smartphone unit volumes in calendar 2024 are on track to grow in the low-to-mid single digit percentage range, and we expect unit growth to continue in 2025. • Recently, leading Andro
Slide 12: Automotive
Automotive • In the automotive market, infotainment and ADAS are driving long-term memory and storage content growth. • For the fourth consecutive year, Micron achieved a fiscal year record for automotive revenue in 2024. • Micron has built an industry-leading portfolio of automotive-grade DRAM and
Slide 13: Demand Outlook
Demand Outlook • Calendar 2024 DRAM industry demand outlook has improved, driven by strength in data center servers, and growth in the other market segments has performed consistent with our prior market commentary. – We have upgraded our expectation for calendar 2024 industry DRAM bit demand growth
Slide 14: Supply Outlook
Supply Outlook • We expect industry wafer capacity in both DRAM and NAND in 2024 to be below 2022 peak levels, and for NAND meaningfully so. • This factor, combined with the increasing mix of HBM wafers, is reducing DRAM supply allocated to traditional products, and contributing to the healthy indus
Slide 15: Capex Plan
Capex Plan • Micron invested $8.1 billion in capex in fiscal 2024. • We expect fiscal 2025 capex to be meaningfully higher, and at around mid-30s percentage range of revenue based on our current capex and revenue expectations. • The growth in both greenfield fab construction and HBM capex investment
Slide 16: Mark Murphy, Chief Financial Officer
Mark Murphy Chief Financial Officer September 25, 2024 16
Slide 17: FQ4-24 and FY-24 revenue
FQ4-24 revenue FY-24 revenue $7.8B $25.1B Revenue up 14% Q/Q Revenue up 62% Y/Y and up 93% Y/Y September 25, 2024 17
Slide 18: Performance by technology
Performance by technology DRAM FQ4-24 NAND FQ4-24 • $5.3 billion, representing 69% of total revenue in FQ4-24 • $2.4 billion, representing 31% of total revenue in FQ4-24 • Revenue increased 14% Q/Q • Revenue increased 15% Q/Q • Bit shipments flattish Q/Q • Bit shipments increased in the high-single
Slide 19: Revenue by business unit
Revenue by business unit Q/Q % Y/Y % Y/Y % Amounts in millions FQ4-24 FQ3-24 Change FQ4-23 Change FY-24 FY-23 Change Compute and Networking (CNBU) $3,018 $2,573 17% $1,200 152% $9,513 $5,710 67% Mobile (MBU) $1,875 $1,588 18% $1,211 55% $6,354 $3,630 75% Storage (SBU) $1,681 $1,353 24% $739 127% $4,
Slide 20: FQ4-24 Non-GAAP operating results
FQ4-24 Non-GAAP operating results Revenue: $7.8 billion Gross margin: 36.5% Operating expenses: $1.08 billion Operating income: $1.7 billion Net income: $1.34 billion Diluted earnings per share: $1.18 Cash from operations (GAAP): $3.4 billion See non-GAAP reconciliations in Appendix September 25, 20
Slide 21: FY-24 Non-GAAP operating results
FY-24 Non-GAAP operating results Revenue: $25.1 billion Gross margin: 23.7% Operating expenses: $4.01 billion Operating income: $1.9 billion Net income: $1.47 billion Diluted earnings per share: $1.30 Cash from operations (GAAP): $8.5 billion See non-GAAP reconciliations in Appendix September 25, 20
Slide 22: Cash flow and capital allocation
Cash flow and capital allocation From FY-21 to FY-24 Cash flow FQ4-24: $3.4 billion (44% of revenue) from operations FY-24: $8.5 billion (34% of revenue) • $4.4 billion towards repurchasing 63 million shares FQ4-24: $3.1 billion Net Capex1 FY-24: $8.1 billion • $1.5 billion towards dividends paid FQ
Slide 23: FQ1-25 guidance Non-GAAP
FQ1-25 guidance Non-GAAP Revenue $8.70 billion ± $200 million Gross margin 39.5% ± 1.0% Operating expenses $1.085 billion ± $15 million Diluted earnings per share* $1.74 ± $0.08 *Based on ~1.14 billion diluted shares. See non-GAAP reconciliations in Appendix. September 25, 2024 23
Slide 24: Appendix
Appendix September 25, 2024 24
Slide 25: Financial summary Non-GAAP
Financial summary Non-GAAP Amounts in millions, except per share FQ4-24 % of FQ3-24 % of FQ4-23 % of Revenue Revenue Revenue Revenue $7,750 100% $6,811 100% $4,010 100% Gross margin 2,826 36% 1,917 28% (366) (9)% Operating income (loss) 1,745 23% 941 14% (1,208) (30)% Income tax (provision) benefit
Slide 26: Financial summary Non-GAAP
Financial summary Non-GAAP Amounts in millions, except per share FY-24 % of Revenue FY-23 % of Revenue Revenue $25,111 100% $15,540 100% Gross margin 5,943 24% (1,196) (8)% Operating income (loss) 1,935 8% (4,819) (31)% Income tax (provision) benefit (379) (142) Net income (loss) 1,472 6% (4,862) (3
Slide 27: Non-GAAP financial data and guidance
Non-GAAP financial data and guidance % of Revenue FQ4-24 FQ4-24 Non-GAAP (amounts in millions, FQ1-25 DRAM 69% except per share) Non-GAAP Guidance NAND 31% Revenue $ 7,750 $8.70 billion ± $200 million Gross margin 36.5% 39.5% ± 1.0% % Sales Volume Change FQ4-24 Q/Q Operating expenses $ 1,081 $1.085
Slide 28: Revenue by technology
Revenue by technology Amounts in millions FQ4-24 % of FQ3-24 % of FQ4-23 % of Revenue Revenue Revenue DRAM $ 5,326 69% $ 4,692 69% $ 2,755 69% NAND 2,365 31% 2,065 30% 1,205 30% Other (primarily NOR) 59 1% 54 1% 50 1% Total $ 7,750 100% $ 6,811 100% $ 4,010 100% Percentages of total revenue may not
Slide 29: Revenue by technology
Revenue by technology Amounts in millions FY-24 % of Revenue FY-23 % of Revenue DRAM $ 17,603 70% $ 10,978 71% NAND 7,227 29% 4,206 27% Other (primarily NOR) 281 1% 356 2% Total $ 25,111 100% $ 15,540 100% Percentages of total revenue may not total 100% due to rounding. September 25, 2024 29
Slide 30: Non-GAAP reconciliations
Non-GAAP reconciliations September 25, 2024 30
Slide 31: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions FQ4-24 FQ3-24 FQ4-23 GAAP gross margin $ 2,737 $ 1,832 $ (435) Stock-based compensation 85 80 64 Other 4 5 5 Non-GAAP gross margin $ 2,826 $ 1,917 $ (366) GAAP operating expenses $ 1,215 $ 1,113 $ 1,037 Stock-based compensation (128)
Slide 32: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions FQ4-24 FQ3-24 FQ4-23 GAAP cost of goods sold $ 5,013 $ 4,979 $ 4,445 Stock-based compensation (85) (80) (64) Other (4) (5) (5) Non-GAAP cost of goods sold $ 4,924 $ 4,894 $ 4,376 GAAP research and development $ 903 $ 850 $ 719 Stock-b
Slide 33: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions FQ4-24 FQ3-24 FQ4-23 GAAP net income (loss) $ 887 $ 332 $ (1,430) Stock-based compensation 213 217 151 Restructure and asset impairments 1 — 4 Goodwill impairment — — 101 Other 5 3 7 Estimated tax effects of above and other tax adjust
Slide 34: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions FQ4-24 FQ3-24 FQ4-23 GAAP net income (loss) $ 887 $ 332 $ (1,430) Interest (income) expense, net 5 14 (5) Income tax provision (benefit) 623 377 (24) Depreciation expense and amortization of intangible assets 1,986 1,955 1,937 Non-GAA
Slide 35: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions, except per share FQ4-24 FQ3-24 FQ4-23 GAAP shares used in diluted EPS calculations 1,125 1,123 1,095 Adjustment for stock-based compensation 12 13 — Non-GAAP shares used in diluted EPS calculations 1,137 1,136 1,095 GAAP diluted earn
Slide 36: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions FY-24 FY-23 GAAP gross margin $ 5,613 $ (1,416) Stock-based compensation 312 201 Other 18 19 Non-GAAP gross margin $ 5,943 $ (1,196) GAAP operating expenses $ 4,309 $ 4,329 Stock-based compensation (509) (363) Restructure and asset im
Slide 37: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions FY-24 FY-23 GAAP cost of goods sold $ 19,498 $ 16,956 Stock-based compensation (312) (201) Other (18) (19) Non-GAAP cost of goods sold $ 19,168 $ 16,736 GAAP research and development $ 3,430 $ 3,114 Stock-based compensation (296) (226
Slide 38: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions FY-24 FY-23 GAAP net income (loss) $ 778 $ (5,833) Stock-based compensation 821 564 Restructure and asset impairments 1 171 Patent cross-licence agreement gain (200) — Goodwill impairment — 101 Litigation settlement — 68 Other — 32 Es
Slide 39: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions FY-24 FY-23 GAAP net income (loss) $ 778 $ (5,833) Interest (income) expense, net 33 (80) Income tax provision (benefit) 451 177 Depreciation expense and amortization of intangible assets 7,780 7,756 Non-GAAP adjustments Stock-based c
Slide 40: Consolidated results
Consolidated results Non-GAAP reconciliations Amounts in millions, except per share FY-24 FY-23 GAAP shares used in diluted EPS calculations 1,118 1,093 Adjustment for stock-based compensation 16 — Non-GAAP shares used in diluted EPS calculations 1,134 1,093 GAAP diluted earnings (loss) per share $
Slide 41: FQ1-25 guidance
FQ1-25 guidance Non-GAAP reconciliations GAAP Outlook Adjustments Non-GAAP Outlook Revenue $8.70 billion ± $200 million — $8.70 billion ± $200 million Gross margin 38.5% ± 1.0% 1.0% A 39.5% ± 1.0% Operating expenses $1.211 billion ± $15 million $126 million B $1.085 billion ± $15 million Diluted ear
Slide 42: on an “AS IS” basis without warranties of any kind. Statements regarding products, including
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