Slide 1: AMD Third Quarter 2024 Financial Results
AMD Third Quarter 2024 FINANCIAL RESULTS October 29, 2024
Slide 2: Cautionary Statement
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; AMD's large growth opportunities across diverse set of markets; AMD'
Slide 3: Our Journey
OUR JOURNEY Leadership Expanding Customer Data Center Strong Product Portfolio & Partner Ecosystem and AI Growth Financial Foundation 33 Q3 2024 FINANCIAL RESULTS – OCTOBER 29, 2024
Slide 4: Our Strategy: High Performance Computing Leadership
Leadership Foundational IP Accelerating innovation in silicon architecture, advanced packaging, and software Broad Product Portfolio Our Strategy Scaling IP across a breadth of platforms, systems and solutions for diverse markets HIGH Open, Proven PERFORMANCE Software Ecosystem Delivering a producti
Slide 5: Large Growth Opportunities Across Diverse Set of Markets
LARGE GROWTH OPPORTUNITIES Across Diverse Set of Markets Data Center Client Gaming Embedded Leadership Performance and Stunning visuals Computing performance and energy efficiency for and immersive leadership for TCO across cloud, productivity, AI, experiences for diverse markets enterprise and AI g
Slide 6: Leadership AI Solutions
Announced at Advancing AI 2024 LEADERSHIP AI SOLUTIONS Data Center CPUs Data Center GPUs Networking AI PCs 5th Generation AMD Instinct AMD Pensando 3rd Generation AMD EPYC “Turin” MI325X Series Pollara 400, Salina 400 AMD Ryzen AI PRO Production Q4’24, Shipping Now Coming 1H’25 Shipping Now Systems
Slide 7: Expanding Data Center AI Solutions Capabilities
AMD to Acquire ZT Systems* EXPANDING DATA CENTER AI SOLUTIONS CAPABILITIES Technical Expertise Best-in-Class Talent Hyperscaler Experience ~2,500 employees worldwide: Systems architecture 15+ years of designing and ~1,000 design engineers and ~1,500 design validation deploying compute infrastructure
Slide 8: Revenue Q3 2024
REVENUE Q3 2024 $6.8B ▪ Revenue of $6.8 billion increased 18% y/y ▪ Revenue growth in Data Center and Client segments partially offset by lower $5.8B revenue in Gaming and Embedded segments Q3 2023 Q3 2024 8 Q3 2024 FINANCIAL RESULTS – OCTOBER 29, 2024
Slide 9: Gross Margin Q3 2024
GROSS MARGIN Q3 2024 GAAP Non-GAAP1 54% 50% 51% 47% Q3 2023 Q3 2024 Q3 2023 Q3 2024 Increase in both GAAP and non-GAAP gross margin primarily driven by higher Data Center revenue 1. See Appendices for GAAP to Non-GAAP reconciliation 9 Q3 2024 FINANCIAL RESULTS – OCTOBER 29, 2024
Slide 10: Operating Income Q3 2024
OPERATING INCOME Q3 2024 GAAP Non-GAAP1 $1.72B $1.28B $0.72B $0.22B Q3 2023 Q3 2024 Q3 2023 Q3 2024 ▪ Increase driven by higher revenue and gross margin and ▪ Increase driven by higher revenue and gross margin, lower amortization of acquisition-related intangible partially offset by higher operating
Slide 11: Earnings Per Share Q3 2024
EARNINGS PER SHARE Q3 2024 GAAP Non-GAAP1 $0.92 $0.70 $0.47 $0.18 Q3 2023 Q3 2024 Q3 2023 Q3 2024 ▪ GAAP net income of $771 million ▪ Non-GAAP net income of $1.5 billion ▪ GAAP EPS up 161%, primarily driven by higher ▪ Non-GAAP EPS up 31%, primarily driven by higher revenue and gross margin and lowe
Slide 12: Q3 2024 Summary P&L | GAAP
Q3 2024 SUMMARY P&L | GAAP $ in millions, except per share data and % Q3’24 Q3’23 Y/Y Q2’24 Q/Q Revenue $6,819 $5,800 Up 18% $5,835 Up 17% Gross Profit $3,419 $2,747 Up 24% $2,864 Up 19% Gross Margin 50% 47% Up 3 ppts 49% Up 1 ppt Operating Expenses $2,709 $2,533 Up 7% $2,605 Up 4% Operating Expense
Slide 13: Q3 2024 Summary P&L | Non-GAAP
1 Q3 2024 SUMMARY P&L | NON-GAAP $ in millions, except per share data and % Q3’24 Q3’23 Y/Y Q2’24 Q/Q Revenue $6,819 $5,800 Up 18% $5,835 Up 17% Gross Profit $3,657 $2,963 Up 23% $3,101 Up 18% Gross Margin 54% 51% Up 3 ppts 53% Up 1 ppt Operating Expenses $1,956 $1,697 Up 15% $1,847 Up 6% Operating
Slide 14: Q3 2024 Summary Balance Sheet Items
Q3 2024 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q3’24 Q2’24 Q/Q Cash, Cash Equivalents and $4,544 $5,340 Down 15% Short-term Investments Accounts Receivable, Net $7,241 $5,749 Up 26% Inventories $5,374 $4,991 Up 8% Total Debt $1,720 $1,719 Flat 14 Q3 2024 FINANCIAL RESULTS – OCTOBER 29, 2024
Slide 15: Q3 2024 Segment Results
Q3 2024 SEGMENT RESULTS ($ in millions) Q3’24 Q3’23 Y/Y Q2’24 Q/Q Data Center Net Revenue $3,549 $1,598 Up 122% $2,834 Up 25% Operating Income $1,041 $306 Up 240% $743 Up 40% Client Net Revenue $1,881 $1,453 Up 29% $1,492 Up 26% Operating Income $276 $140 Up 97% $89 Up 210% Gaming Net Revenue $462 $
Slide 16: Data Center Segment Q3 2024
DATA CENTER SEGMENT Q3 2024 Revenue Operating Margin $3.5B 29% Strategic Highlights 19% ▪ Launched AMD EPYC 9005 Series (“Turin”) processors with record-breaking performance and $1.6B energy efficiency ▪ Unveiled AMD Instinct MI325X accelerators delivering leadership performance and memory capabilit
Slide 17: Client Segment Q3 2024
CLIENT SEGMENT Q3 2024 Revenue Operating Margin $1.9B 15% $1.5B 10% Strategic Highlights ▪ Introduced new Ryzen AI PRO 300 Series mobile processors, powering next-gen AI PCs for the enterprise with 50+ AI TOPS and delivering extended battery life ▪ Acer, HP, Lenovo and Asus announced new consumer an
Slide 18: Gaming Segment Q3 2024
GAMING SEGMENT Q3 2024 Revenue Operating Margin $1.5B 14% Strategic Highlights ▪ Sony launched PS5 Pro with an updated AMD semi-custom SoC for significantly increased visual fidelity and 4k ray tracing gameplay $0.5B ▪ Released latest AMD Software: Adrenaline 2% Edition update, delivering new featur
Slide 19: Embedded Segment Q3 2024
EMBEDDED SEGMENT Q3 2024 Revenue Operating Margin $1.2B 49% Strategic Highlights $0.9B 40% ▪ Adoption of AMD Versal grew across aerospace, emulation and other markets; Versal Premium VP1902 powering multiple platforms from three largest EDA vendors ▪ Introduced AMD Artix UltraScale+ XA AU7P, an auto
Slide 20: Financial Outlook – Non-GAAP
FINANCIAL OUTLOOK – NON-GAAP 1 ($ in millions) Q4’24 ~$7.5 Billion, Revenue +/- $300 Million Gross Margin ~54.0% Operating Expenses ~$2.05 Billion Interest Expense/Other Income (Expense), net ~$17 Million Effective Tax Rate ~13% of pre-tax income Diluted Share Count² ~1.64 Billion shares 1. 1. See C
Slide 21: Q3 2024 Summary
1 Q3 2024 SUMMARY Revenue Data Center Segment Gross Margin 50% EPS $0.47 $6.8B Revenue $3.5B Non-GAAP Non-GAAP EPS $0.92 Up 18% y/y Up 122% y/y Gross Margin 54% RECORD DATA CENTER SEGMENT REVENUE DRIVEN BY AMD INSTINCT GPU AND AMD EPYC CPU PORTFOLIOS 21 21 Q3 2024 FINANCIAL RESULTS – OCTOBER 29, 202
Slide 22: Corporate Responsibility at AMD
CORPORATE RESPONSIBILITY AT AMD Environmental Social Governance Advancing environmental solutions in our Fostering a culture of diversity, belonging Integrating corporate responsibility and products, supply chain and operations, while and inclusion, partnering with suppliers and governance across pr
Slide 23: Our Momentum
OUR MOMENTUM Large and Expanding World-Class Technology Strong Compelling Data Center and Execution Leadership Balance Sheet TAM AI Leadership and Focus DRIVING LONG-TERM SHAREHOLDER RETURNS 23 23 Q3 2024 FINANCIAL RESULTS – OCTOBER 29, 2024
Slide 24: Appendices: Gross Profit and Operating Expenses Reconciliation
APPENDICES RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN ($ in millions, except %) (Unaudited) Q3’24 Q3’23 Q2’24 GAAP gross profit $3,419 $2,747 $2,864 GAAP gross margin 50% 47% 49% Stock-based compensation 5 6 5 Amortization of acquisition-related intangibles 233 210 231 Acquisit
Slide 25: Appendices: Operating Income Reconciliation
APPENDICES RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME ($ in millions, except %) (Unaudited) Q3’24 Q3’23 Q2’24 GAAP operating income $ 724 $ 224 $ 269 GAAP operating margin 11% 4% 5% Stock-based compensation 351 353 346 Amortization of acquisition-related intangibles 585 660
Slide 26: Appendices: Net Income and EPS Reconciliation
APPENDICES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME / EARNINGS PER SHARE (Millions, except per share data) (Unaudited) Q3’24 Q3’23 Q2’24 GAAP net income / earnings per share $ 771 $ 0.47 $ 299 $ 0.18 $ 265 $ 0.16 (Gains) losses on equity investments, net (1) – (4) – – – Stock-based compensation
Slide 27: Appendices: Share Count Overview
APPENDICES SHARE COUNT OVERVIEW (1) Q3’24 Q4’24 Shares (millions) Actual Estimate Basic shares 1,620 1,624 Dilutive impact from employee equity grants (2) 16 13 Diluted shares 1,636 1,637 The table above provides actual share count for Q3’24 and an estimate of share count to use when calculating GAA
Slide 28: Endnotes
ENDNOTES STX-04: Based on AMD product specifications and competitive products announced as of May 2024. AMD Ryzen AI 300 Series processors’ NPU offer up to 50 peak TOPS. AI PC is defined as a laptop PC with a processor that includes a neural processing unit (NPU). STX-04. GD-220c: Ryzen AI is define
Slide 29: Q3 2024 FINANCIAL RESULTS – OCTOBER 29, 2024
29 Q3 2024 FINANCIAL RESULTS – OCTOBER 29, 2024