Slide 1: Fiscal Q3 2023 Results
FISCAL Q3 2023 RESULTS May 2, 2023 Better Faster Greener™ © 2023 Supermicro
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 Q3 FY23 Revenue • Q3 FY23 revenue: $1.28B, -5% YoY and -29% QoQ • Key new component shortages for next generation products delayed shipments • Record demand for AI related systems at rack scale • Officially launched Supermicro systems on the X13, H13, and H100 platform • Expanded AI of
Slide 4: SMCI vs Industry Growth Rate (FY)
SMCI vs INDUSTRY GROWTH RATE (FY) 100 Total IT Solutions @ Rack Scale Green IT w/ Software, Service, Global Operations Large Scale w/ Multi CPU, GPU, DPU Platforms 80 More Technology Partnerships 60 Sub System and System Supermicro Small Business Scale Main Operation In High-Cost Silicon Valley 40 2
Slide 5: Total IT Solutions - Our Path to $10B+
TOTAL IT SOLUTIONS - OUR PATH TO $10B+ ▪ 5S: Software, Service, SMCI 3.0 Total IT Switch, Storage, Security Solutions & More SMCI 2.0 ▪ Total IT Solutions Servers & SMCI 1.0 Storage Systems Enterprise, OEM – Components & Subsystems Appliance / Cloud ▪ Complete Systems ▪ Sub-systems & Components Our
Slide 6: Enabling Total IT Solutions
ENABLING TOTAL IT SOLUTIONS Total IT Solutions = Higher Value • Rack-scale Plug & Play (L10, L11, L12) w/ optimized BBA Solutions • Scalable Optimized compute, storage, software & service • Cloud composer, Cloud orchestrator, IT & Cloud security, Cloud subscription • Addressing key verticals: AI, Cl
Slide 7: Artificial Intelligence Opportunities
ARTIFICIAL INTELLIGENCE OPPORTUNITIES • The Most Extensive GPU System Product Lines WW • Key wins with TTM and Optimized Features • Close-Strategic Partnership with NVIDIA, Intel, AMD • Liquid Cooling: • 700W+ GPU & 350W/400W+ CPU Support • System Level Liquid Cooling • Rack Level Liquid Cooling • D
Slide 8: Operations: Addressing $10B+
OPERATIONS: ADDRESSING $10B+ • Optimizing Global Operations with Scale and Cost • Green Computing Park: • B23 (Command Center, B2B/C, and Cloud Services) • Liquid Cooling DC/Cloud — 100kW Rack-scale • Taiwan B62: 2X-3X APAC capacity in FY23+ • Supermicro Malaysia Campus and Partners • High Vol. Prod
Slide 9: Green Computing for the Planet
GREEN COMPUTING FOR THE PLANET • Improve Industry PUE (Target 1.05) • Adopting More Efficient Datacenter Cooling • Optimal Free-Air Cooling PUE @ 1.06 Intel® Case Study • Optimal Liquid or Submerged PUE @ 1.05 • >$10B TCO Savings across industry 300,000+ Supermicro Resource-Saving Blade Servers: • $
Slide 10: Q3 FY2023 Highlights
Q3 FY2023 HIGHLIGHTS Q3FY23 QoQ YoY Revenue $1,283M -29% -5% Gross Margin (non-GAAP) 17.7% -110bps +210bps Earnings Per Share (non-GAAP) $1.63 -$1.63 +$0.08 Cash Flow from Operations +$198M +$37M +$426M Mix Server and Storage Systems $1,164M (91%) -30% +2% Subsystems & Accessories $119M (9%) -16% -4
Slide 11: Revenue
REVENUE • Q3FY23 Revenue: $1,283M 1,852 1,803 • -5% YoY, -29% QoQ 1,636 Guide: 1,420M-1,520M 1,355 Revenue Mix By Geography 1,283 4% 17% 18% 61% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 USA Europe Asia Other *China 3% of Total Revenue 11 Better Faster Greener™ © 2023 Supermicro
Slide 12: Revenue Mix
REVENUE MIX Server and Storage Systems & Subsystems Vertical Markets 9% 8% 8% 9% 6% 5% 5% 4% 3% 15% 33% 45% 43% 47% 50% 91% 92% 92% 91% 85% 61% 50% 53% 50% 45% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 5G,Telco & Edge/IOT Subsystems & Accessories OEM Appliance & Large DC
Slide 13: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 18.8% 18.8% 17.6% 17.7% 15.6% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 • -110bps QoQ, +210bps YoY • Gross margin lower due to product/customer mix and new platform ramps A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. 13 Better Faster
Slide 14: Non-GAAP Operating Expenses & Margins
NON-GAAP OPERATING EXPENSES & MARGINS Operating Expenses Operating Margins 12.5% 12.8% 114 117 116 110 109 10.7% 8.7% 7.5% Million $ Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 • Operating expenses higher QoQ due to lower NRE credits and higher headcount • Operating margins
Slide 15: Non-GAAP EPS
NON-GAAP EPS $3.42 $3.26 $2.62 Guide: $1.88-$2.14 $1.55 $1.63 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 • Q3FY23 Non-GAAP EPS of $1.63, lower than guidance of $1.88 to $2.14 • EPS lower due to lower revenues and operating margins A reconciliation of GAAP to non-GAAP measures can be found in the appendix of
Slide 16: Cash Flow & Net Cash
CASH FLOW & NET CASH Cash Flow From Operations Net Cash 314 176 198 135 161 Million $ Million $ Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 -25 -12 -228 -300 -329 • Q3FY23 Operating Cash Flow +$198M, Free Cash Flow +$190M • Total Cash $363M, Debt increased by $17M to $187M
Slide 17: Revenue & EPS Outlook
REVENUE & EPS OUTLOOK REVENUE EPS Q4 FY2023* $1.7B to $1.9B NON-GAAP: $2.21 to $2.71 GAAP: $2.13 to $2.65 Full Year FY2023** $6.6B to $6.8B NON-GAAP: $10.50 to $11.00 GAAP: $10.14 to $10.66 *The outlook for Q4 of fiscal year 2023 GAAP diluted net income per common share includes approximately $7 mil
Slide 18: Appendix
APPENDIX Better Faster Greener™ © 2023 Supermicro
Slide 19: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) 19 Better Faster Greener™ © 2023 Supermicro
Slide 20: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) 20 Better Faster Greener™ © 2023 Supermicro
Slide 21: www.supermicro.com
www.supermicro.com