Slide 1: Wolfspeed FY24 Q2 Earnings
Wolfspeed FY24 Q2 Earnings JANUARY 31, 2024 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2024 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 2: Forward-Looking Statements and Non-GAAP Measures
. FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Note on Forward-Looking Statements This presentation contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause Wolfspeed’s actual results to differ materially from those indicated in the forward-lo
Slide 3: Wolfspeed at a Glance
WOLFSPEED AT A GLANCE With the sale of the RF business, Wolfspeed is now the world’s only pure-play, vertically integrated silicon carbide company By the Numbers $208 million The JP: the world’s largest and only $6.5 billion in planned #1 >60% FY24 Q2 revenue 200mm materials facility capacity invest
Slide 4: Mohawk Valley Update
MOHAWK VALLEY UPDATE Key Takeaways Mohawk Valley Fab Revenue • FY24 Q2 revenue contribution of $12M $20M–$30M • FY24 Q3 targeted revenue of $25M at the midpoint • On track to achieve 20% utilization by June 2024 • Qualified more than 12 additional products including two of our most complicated autom
Slide 5: Materials Update
MATERIALS UPDATE Building 10: Durham, NC • 200mm buildout complete; production exceeding original utilization target for MVF • Able to support ~25% utilization by end of CY24 • Consistently producing high-quality, high-yielding 200mm wafers The JP: Siler City, NC • Will begin installing crystal grow
Slide 6: Capturing Share Amidst Rapidly Accelerating Demand
CAPTURING SHARE AMIDST RAPIDLY ACCELERATING DEMAND Key Takeaways Cumulative Power Device Design-Ins ($M) 1 ~$22,400 • $2.1B of Power Device design-ins in FY24 Q2, the ~$20,300 4th largest on record • Strong demand for Wolfspeed automotive products despite broader market headwinds ~$13,600 • $2.9B of
Slide 7: Strong Conversion from Design-Ins to Design-Wins Since FY20
STRONG CONVERSION FROM DESIGN-INS TO DESIGN-WINS SINCE FY20 Auto-dominant design-win pipeline capitalizes on robust EV TAM while providing greater insight into future revenue due to longer design cycles Power DWINs since FY201 FY24 YTD Power DWINs by Application Value of New Power DWINs (per quarter
Slide 8: FY24 Q2 Financial Performance – Revenue
FY24 Q2 FINANCIAL PERFORMANCE – REVENUE1 $203M $209M $193M $197M $174M 107 108 102 101 96 91 96 96 101 78 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 Materials Devices Key Takeaways FY24 Q2 Drivers • Results came in above midpoint of guidance provided in October • $12M contribution from Mohawk Valley •
Slide 9: FY24 Q2 Financial Performance – EPS and Margins
FY24 Q2 FINANCIAL PERFORMANCE – EPS AND MARGINS1 Key Takeaways • Non-GAAP gross margin of 16.4% compared to 35.8% the year prior Non-GAAP EPS – Non-GAAP gross margin up 80 bps Q/Q FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 – FY24 Q2 includes $35.6 million, or approximately 1700 bps, of underutilization
Slide 10: Annual Design-Ins Deliver Long Tail Revenue Opportunity
ANNUAL DESIGN-INS DELIVER LONG TAIL REVENUE OPPORTUNITY • Design cycles, while long, are sticky and create multi-year revenue streams • Automotive design-wins typically mature over a five- to seven-year period • Automotive design-wins represented nearly 90% of $2.9B total for the quarter 2-4 Years D
Slide 11: FY24 Q3 Guidance
FY24 Q3 GUIDANCE Revenue $185M - $215M Non-GAAP Gross Margin 13% - 20% Non-GAAP OpEx $108M - $110M Non-GAAP Net Loss $(87)M - $(71)M Guidance Drivers Upcoming Milestones • $20M - $30M revenue contribution from Mohawk Valley; • Mohawk Valley Fab partially offset by China I&E weakness – 20% utilizatio
Slide 12: Appendix
APPENDIX
Slide 13: Non-GAAP Reconciliation – Gross Margin
NON-GAAP RECONCILIATION – GROSS MARGIN Three Months Three Months Ended Ended December 31, 2023 December 25, 2022 GAAP gross margin from continuing operations 13% 33% Adjustments: Stock-based compensation expense 3% 3% Non-GAAP gross margin from continuing operations 16% 36% WOLFSPEED CONFIDENTIAL &
Slide 14: Non-GAAP Reconciliation – EPS (5 Quarter Trend)
NON-GAAP RECONCILIATION – EPS (5 QUARTER TREND)1 Three Months Three Months Three Months Three Months Three Months Ended Ended Ended Ended Ended December 31, September 24, June 25, 2023 March 26, 2023 December 25, (in millions of U.S. Dollars) 2023 2023 2022 GAAP net loss (126) (124) (91) (83) (72) G
Slide 15: Non-GAAP Reconciliation – Gross Margin Outlook
NON-GAAP RECONCILIATION – GROSS MARGIN OUTLOOK Three Months Ended March 31, 2024 GAAP gross margin from continuing operations outlook range 9% to 16% Adjustments: Stock-based compensation expense 4% Non-GAAP gross margin from continuing operations outlook range 13% to 20% WOLFSPEED CONFIDENTIAL & PR
Slide 16: Non-GAAP Reconciliation – Operating Expenses Outlook
NON-GAAP RECONCILIATION – OPERATING EXPENSES OUTLOOK Three Months Ended (in millions of U.S. Dollars) March 31, 2024 GAAP operating expenses from continuing operations outlook $129 - $131 Adjustments: Stock-based compensation expense (14) Project, transformation and transaction costs (7) Total adjus
Slide 17: Non-GAAP Reconciliation – Net Loss Outlook
NON-GAAP RECONCILIATION – NET LOSS OUTLOOK Three Months Ended (in millions of U.S. Dollars) March 31, 2024 GAAP net loss from continuing operations outlook range ($155) to ($134) Adjustments: Stock-based compensation expense 22 Amortization of discount and debt issuance costs, net of capitalized int
Slide 18: Glossary of Terms
GLOSSARY OF TERMS Design-ins: Design-ins are customer commitments to purchase our products and are one of the factors we use to forecast long-term demand and future revenue. To meet the qualification of a design-in, the customer provides us with documentation (e.g., a letter of intent, statement of
Slide 19: Let's Reimagine a More Sustainable World. Together.
LET’S REIMAGINE A MORE SUSTAINABLE WORLD. TOGETHER. WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2024 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.