Slide 1: Financial results FQ3 2024
Financial results FQ3 2024 d4icron
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, the impact of new technologies such as AI, pricing, cost reductions, expected product volume production, our market position, expected product anno
Slide 3: Sanjay Mehrotra, President and CEO
Sanjay Mehrotra President and CEO June 26, 2024 3
Slide 4: Overview
Overview • Micron delivered fiscal Q3 revenue, gross margin and • Robust AI-driven demand for data center products is EPS all above the high end of guidance ranges. causing tightness on our leading-edge nodes. • Micron drove robust price increases as industry Consequently, we expect continued price
Slide 5: Technology & Operations, CHIPS
Technology & Operations CHIPS • Over 80% of our DRAM bit production is now on • Micron signed a non-binding preliminary memorandum of leading-edge 1-alpha and 1-beta nodes. Over 90% of terms, or PMT, with the U.S. government for $6.1 billion in our NAND bit production is on our two leading-edge gran
Slide 6: End markets overview, Customer Inventories
End markets overview Customer Inventories • We are in the early innings of a multi-year race to • Most data center customer inventories have normalized, enable Artificial General Intelligence, or AGI, which and demand from customers continues to strengthen. will revolutionize all aspects of life. En
Slide 7: End market highlights: Data center
End market highlights Data center • In data center, industry server unit shipments are expected to grow • 128GB Modules: We achieved full validation on our 1-beta 32 in the mid-to-high-single digits in CY24, driven by strong growth for gigabit monolithic-die based 128 gigabyte high-capacity server A
Slide 8: End market highlights: Mobile and PC, intelligent edge
End market highlights Mobile and PC intelligent edge • PC: Unit volumes remain on track to grow in the low single-digit • Mobile: Smartphone unit volumes in CY24 remain on track to range for CY24. We are optimistic that the planned Windows 10 grow in the low-to-mid single digit percentage range. Mic
Slide 9: Outlook
Outlook • Demand: We forecast CY24 bit demand growth for the industry to be in the mid-teens percentage range for both DRAM and NAND. Over the medium term, we expect industry bit demand growth CAGRs of mid-teens in DRAM and high teens in NAND. • Supply: We expect CY24 industry supply to be below dem
Slide 10: Capex plan
Capex plan • FY24 capex plan will be ~$8.0B and WFE spending will be down YoY in FY24. • We expect to increase our capital spending materially next year, with capex around mid-30s % range of revenue for FY25, which will support HBM assembly and test equipment, fab and back-end facility construction
Slide 11: Mark Murphy, Chief Financial Officer
Mark Murphy Chief Financial Officer June 26, 2024 11
Slide 12: FQ3-24 revenue $6.8B
FQ3-24 revenue $6.8B Revenue up 17% Q/Q and up 82% Y/Y June 26, 2024 12
Slide 13: Performance by technology
Performance by technology DRAM FQ3-24 NAND FQ3-24 • $4.7 billion, representing 69% of • $2.1 billion, representing 30% of total revenue total revenue • Revenue increased 13% Q/Q • Revenue increased 32% Q/Q • Bit shipments decreased by a mid-single • Bit shipments increased by a high-single digit per
Slide 14: Revenue by business unit
Revenue by business unit Q/Q % Y/Y % Amounts in millions FQ3-24 FQ2-24 Change FQ3-23 Change Compute and Networking (CNBU) $2,573 $2,185 18% $1,389 85% Mobile (MBU) $1,588 $1,598 (1%) $819 94% Embedded (EBU) $1,294 $1,111 16% $912 42% Storage (SBU) $1,353 $905 50% $627 116% June 26, 2024 14
Slide 15: FQ3-24 Non-GAAP operating results
FQ3-24 Non-GAAP operating results Revenue: $6.8 billion Gross margin: 28% Operating expenses: $976 million Operating income: $941 million Net income: $702 million Diluted earnings per share: $0.62 Cash from operations (GAAP): $2.5 billion See non-GAAP reconciliations in Appendix June 26, 2024 15
Slide 16: Cash flow and capital allocation
Cash flow and capital allocation From FY-21 to FQ3-24: Cash flow FQ3-24: $2.5B (36% of revenue) from operations $5.5 billion returned to shareholders from share FQ3-24: CapEx of $2.1B repurchases and dividends, including $4.1 billion Net CapEx1 FY-24: CapEx guidance of approximately $8.0B used to re
Slide 17: FQ4-24 guidance Non-GAAP
FQ4-24 guidance Non-GAAP Revenue $7.60 billion ± $200 million Gross margin 34.5% ± 1.0% Operating expenses $1.06 billion ± $15 million Diluted earnings per share* $1.08 ± $0.08 *Based on ~1.14 billion diluted shares. See non-GAAP reconciliations in Appendix. June 26, 2024 17
Slide 18: Appendix
Appendix June 26, 2024 18
Slide 19: Financial summary Non-GAAP
Financial summary Non-GAAP Amounts in millions, except per share FQ3-24 % of FQ2-24 % of FQ3-23 % of Revenue Revenue Revenue Revenue $6,811 100% $5,824 100% $3,752 100% Gross margin 1,917 28% 1,163 20% (603) (16%) Operating income (loss) 941 14% 204 4% (1,469) (39%) Income tax (provision) benefit (2
Slide 20: Non-GAAP financial data and guidance
Non-GAAP financial data and guidance % of Revenue FQ3-24 FQ3-24 Non-GAAP FQ4-24 (amounts in millions, Non-GAAP Guidance DRAM 69 % except per share) NAND 30 % Revenue $ 6,811 $7.60 billion ± $200 million Gross margin 28% 34.5% ± 1.0% % Sales Volume Change FQ3-24 Q/Q Operating expenses $ 976 $1.06 bil
Slide 21: Revenue by technology
Revenue by technology Amounts in millions FQ3-24 % of FQ2-24 % of FQ3-23 % of Revenue Revenue Revenue DRAM $ 4,692 69% $ 4,158 71% $ 2,672 71% NAND 2,065 30% 1,567 27% 1,013 27% Other (primarily NOR) 54 1% 99 2% 67 2% Total $ 6,811 100% $ 5,824 100% $ 3,752 100% Percentages of total revenue may not
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations June 26, 2024 22
Slide 23: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ3-24 FQ2-24 FQ3-23 GAAP gross margin $ 1,832 $ 1,079 $ (668) Stock-based compensation 80 80 60 Other 5 4 5 Non-GAAP gross margin $ 1,917 $ 1,163 $ (603) GAAP operating expenses $ 1,113 $ 888 $ 1,093 Stock-based compensation (137) (1
Slide 24: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ3-24 FQ2-24 FQ3-23 GAAP cost of goods sold $ 4,979 $ 4,745 $ 4,420 Stock-based compensation (80) (80) (60) Other (5) (4) (5) Non-GAAP cost of goods sold $ 4,894 $ 4,661 $ 4,355 GAAP research and development $ 850 $ 832 $ 758 Stock-b
Slide 25: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ3-24 FQ2-24 FQ3-23 GAAP net income (loss) $ 332 $ 793 $ (1,896) Stock-based compensation 217 209 151 Restructure and asset impairments — — 68 Patent cross-license agreement gain — (200) — Litigation Settlement — — 68 Other 3 2 7 Est
Slide 26: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ3-24 FQ2-24 FQ3-23 GAAP net income (loss) $ 332 $ 793 $ (1,896) Interest (income) expense, net 14 14 (8) Income tax provision (benefit) 377 (622) 139 Depreciation expense and amortization of intangible assets 1,955 1,924 1,956 Non-G
Slide 27: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions, except per share FQ3-24 FQ2-24 FQ3-23 GAAP shares used in diluted EPS calculation 1,123 1,114 1,094 Adjustment for stock-based compensation 13 20 — Non-GAAP shares used in diluted EPS calculation 1,136 1,134 1,094 GAAP diluted earnin
Slide 28: FQ4-24 guidance Non-GAAP reconciliations
FQ4-24 guidance Non-GAAP reconciliations GAAP Adjustments Non-GAAP Revenue $7.60 billion ± $200 million — $7.60 billion ± $200 million Gross margin 33.5% ± 1.0% 1.0% A 34.5% ± 1.0% Operating expenses $1.19 billion ± $15 million $125 million B $1.06 billion ± $15 million Diluted earnings per share* $
Slide 29: on an “AS IS” basis without warranties of any kind. Statements regarding products, including
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