Slide 1: First Quarter 2022 Financial Results
FIRST QUARTER 2022 FINANCIAL RESULTS MAY 3, 2022
Slide 2: Cautionary Statement
2 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 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; that AMD’s acquisition of X
Slide 3: Our Journey
3 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 OUR JOURNEY Outstanding Financial Performance Expanding Customer & Partner Ecosystem Best Product Portfolio in History Significant Business Acceleration
Slide 4: Diversified and Growing Markets, Data Center Momentum
4 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 Diversified and Growing Markets Data Center Momentum Non-GAAP Margin Expansion Industry-Leading Products Non-GAAP EPS and Free Cash Flow Accretive for 2022 Xilinx Acquisition Creates Industry’s High-Performance and Adaptive Computing Leader
Slide 5: Our Leadership
5 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 Open-source software co-designed with hardware, and optimized for performance across heterogenous solutions Driving leadership process technology and 3D chiplet packaging Executing leadership CPU, GPU, FPGA and Adaptive SoC products and roadmaps Driving inno
Slide 6: Our Best Ever Product Portfolio
6 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 CPUs, FPGAs and Adaptive SoCs for a broad set of markets Leadership processors for ultrathin, commercial and gaming notebooks and consumer, gaming and workstation desktop PCs Leadership AMD EPYC server processors for cloud, enterprise and HPC. Data center so
Slide 7: Quarterly Summary Q1 2022
7 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 1. See Appendices for GAAP to Non-GAAP reconciliation QUARTERLY SUMMARY Q1 2022¹ $3.4 $5.9 Q1 2021 Q1 2022 +71% y/y Quarterly Revenue ($B) Record revenue of $5.9 billion grew 71% y/y and 22% q/q Gross margin 48%, up 2 pp y/y and down 2 pp q/q Non-GAAP g
Slide 8: Computing and Graphics Segment Q1 2022
8 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 COMPUTING AND GRAPHICS SEGMENT Q1 2022 Record Revenue $2.8 billion • Up 33% y/y driven by RyzenTM and RadeonTM processor sales • Up 8% q/q driven by Ryzen processor sales Average Selling Prices (ASP) • Client processor ASP grew y/y and q/q driven by a ri
Slide 9: Enterprise, Embedded and Semi-Custom Segment Q1 2022
9 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 ENTERPRISE, EMBEDDED AND SEMI-CUSTOM SEGMENT Q1 2022 Record Revenue $2.5 billion • Up 88% y/y and 13% q/q driven by record EPYCTM processor, semi-custom and embedded revenue Record Operating Income $881 million or 35% of revenue • Improvements primarily
Slide 10: Xilinx Q1 2022
10 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 XILINX Q1 2022 AMD’s acquisition of Xilinx closed on February 14, 2022 Xilinx adds multiple high-margin, long-term revenue streams spanning a new set of markets for AMD Xilinx generated $559 million of revenue for the six weeks of Q1’22 after the tran
Slide 11: Significant Revenue Growth
11 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 $1,932 $2,801 $3,244 $3,445 $3,850 $4,313 $4,826 $5,887 1000 2000 3000 4000 5000 6000 7000 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 +71% y/y REVENUE TREND ($ IN MILLIONS) SIGNIFICANT REVENUE GROWTH
Slide 12: Gross Margin Expansion
12 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 44% 44% 45% 46% 48% 48% 50% 48% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 53% (Non-GAAP) GAAP +2 pp y/y Non-GAAP + 7pp y/y GROSS MARGIN TREND (GAAP AND NON-GAAP)¹ 1. See Appendices for GAAP to Non-GAAP reconciliation. GAAP and non-GAAP gross margin ar
Slide 13: Y/Y Growth in Profitability
13 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 EARNINGS PER SHARE TREND $0.13 $0.32 $0.39 $0.45 $0.58 $0.75 $0.80 $0.56 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 A x is T it le +24% y/y (GAAP) $1.45 1 1. In Q4 2020, AMD released $1.3 billion of its $2.9 billion income tax valuation allowance. The
Slide 14: Strong EPS Trajectory
14 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 $0.18 $0.41 $0.52 $0.52 $0.63 $0.73 $0.92 $1.13 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 +117% y/y EARNINGS PER SHARE TREND (NON-GAAP)1 1. 1. See Appendices for GAAP to Non-GAAP reconciliation STRONG EPS TRAJECTORY
Slide 15: Q1 2022 Summary P&L – GAAP
15 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 ($ in millions, except per share data) Q1’22 Q1’21 Y/Y Q4’21 Q/Q Revenue $5,887 $3,445 Up 71% $4,826 Up 22% Gross Profit $2,818 $1,587 Up 78% $2,426 Up 16% Gross Margin % 48% 46% Up 190 bps 50% Down 240 bps Operating Expenses $1,950 $929 Up 110% $1,223 Up 5
Slide 16: Q1 2022 Summary P&L – Non-GAAP
16 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 ($ in millions, except per share data) Q1’22 Q1’21 Y/Y Q4’21 Q/Q Revenue $5,887 $3,445 Up 71% $4,826 Up 22% Gross Profit $3,100 $1,588 Up 95% $2,427 Up 28% Gross Margin % 53% 46% Up 660 bps 50% Up 240 bps Operating Expenses $1,346 $830 Up 62% $1,103 Up 22%
Slide 17: Q1 2022 – AMD Results Excluding Xilinx
17 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 Q1 2022 – AMD RESULTS EXCLUDING XILINX¹ ($ in millions, Non-GAAP measures) Q1’22 Q1’21 Y/Y Q4’21 Q/Q Revenue $5,328 $3,445 Up 55% $4,826 Up 10% Gross Profit $2,712 $1,588 Up 71% $2,427 Up 12% Gross Margin % 51% 46% Up 480 bps 50% Up 60 bps Operating Income
Slide 18: Q1 2022 Segment Results
18 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 Q1 2022 SEGMENT RESULTS ($ in millions) Q1’22 Q1’21 Y/Y Q4’21 Q/Q Computing and Graphics Net Revenue $2,802 $2,100 Up 33% $2,584 Up 8% Operating Income $723 $485 Up 49% $566 Up 28% Enterprise, Embedded and Semi-Custom Net Revenue $2,526 $1,345 Up $88% $2,24
Slide 19: Q1 2022 Summary Balance Sheet Items
19 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 Q1 2022 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q1’222 Q1’21 Y/Y Q4’21 Q/Q Cash, Cash Equivalents and Short-term Investments $6,532 $3,116 Up $3,416 $3,608 Up $2,924 Accounts Receivable, Net $3,677 $2,178 Up $1,499 $2,706 Up $971 Inventories $2,431 $1,6
Slide 20: Q2 2022 Outlook
20 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 1. See Cautionary Statement on Slide 2. These forward-looking outlook statements and non-GAAP measures are based on current expectations as of May 3, 2022, and assumptions and beliefs that involve numerous risks and uncertainties. AMD undertakes no intent o
Slide 21: Q1 2022 Summary
21 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 Q1 2022 SUMMARY Record Non-GAAP Profitability Gross Margin of 48% Non-GAAP GM of 53% Record revenue $5.9B Up 71% Y/Y, 22% Q/Q Repurchased $1.9B Common Stock COMPLETED ACQUISITION OF XILINX
Slide 22: AMD's Commitment to ESG
22 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 AMD’S COMMITMENT TO ESG CORPORATE RESPONSIBILITY REPORT ON AMD.COM ENVIRONMENTAL Steadfast commitment to environmental stewardship and contributing to our local communities SOCIAL Creating a culture that drives innovation by fostering diversity, inclusion a
Slide 23: Building the Best
23 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 BUILDING THE BEST Outstanding Financial Performance Execution Excellence Leadership Roadmaps Increasing Market Share
Slide 24: Appendices: Reconciliation of GAAP to Non-GAAP Gross Profit and Margin
24 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 APPENDICES Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Millions) (Unaudited) Q2'20 Q3'20 Q4'20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 GAAP gross profit $ 848 $ 1,230 $ 1,451 $ 1,587 $ 1,830 $ 2,086 $ 2,426 $ 2,818 GAAP gross margin % 44% 44% 45
Slide 25: Appendices: Reconciliation of GAAP to Non-GAAP Operating Income
25 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 APPENDICES Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Millions) (Unaudited) Q1’22 Q1’21 Q4’21 GAAP operating income $ 951 $ 662 $ 1,207 GAAP operating margin % 16% 19% 25% Stock-based compensation 174 85 112 Acquisition-related co
Slide 26: Appendices
26 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 APPENDICES (1) Acquisition-related costs primarily comprised of transaction costs, purchase price adjustments for inventory and certain compensation charges. (2) Q2’20 GAAP diluted EPS calculation includes 31 million shares related to the assumed conversion
Slide 27: Appendices: Total Debt and Free Cash Flow
27 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 APPENDICES Total Debt (Net) (Millions) (Unaudited) Q1’22 Q1’21 Q4’21 2.95% Senior Notes due 2024 $ 750 $ – $ – 2.375% Senior Notes due 2030 750 – – 7.50% Senior Notes due 2022 312 312 312 2.125% Convertible Senior Notes due 2026 1 2 1 Total Debt (principal
Slide 28: Appendices: Reconciliation of AMD GAAP to Non-GAAP Excluding Xilinx
28 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 APPENDICES Reconciliation of AMD GAAP to AMD Non-GAAP Excluding Xilinx Q1’22 (Millions) (Unaudited) Revenue Gross Profit Gross Margin % Operating Income Operating Margin % AMD GAAP $ 5,887 $ 2,818 48% $ 951 16% Stock-based compensation — 4 174 Acquisition-r
Slide 29: Appendices: Xilinx Segment to Pro Forma Revenue
29 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 APPENDICES Reconciliation of Xilinx Segment Revenue to Xilinx Pro Forma Revenue Q1’22 (Millions) (Unaudited) Revenue Xilinx Segment (1) $ 559 Xilinx Pre-Acquisition (2) 477 Xilinx Pro Forma (3) $ 1,036 (1) Represents unaudited Xilinx revenue from the date o
Slide 30: Appendices: Share Count Overview
30 Q1 2022 FINANCIAL RESULTS | MAY 3, 2022 APPENDICES Share Count Overview Shares (millions) (1) Q4’21 Q1’22 Q2’22 2022 Actual Actual Estimate Estimate Basic Shares 1,208 1,393 1,622 1,568 Dilutive impacts from: Employee Equity Grants (2) 14 13 13 12 Xilinx Assumed Awards - 4 6 4 Diluted Shares 1,22
Slide 31: Endnotes
31 FIRST QUARTER 2022 FINANCIAL RESULTS | MAY 3, 2022 [AMD Official Use Only] 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