Slide 1: Fiscal Q1 2024 Results
FISCAL Q1 2024 RESULTS November 1, 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 Q1 FY24 Revenue • Q1 FY24 revenue: $2.12B, +14% YoY and -3% QoQ • Continued record demand for AI related systems at rack scale – H100/A100/L40S, Gaudi 2/PVC, MI200/250 • First to market with NVIDIA GH200 Grace Hopper™ and Grace™ Superchips with early shipments • Announced Support and E
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 More Technology Partnerships 80 Sub System and System Supermicro Small Business Scale 60 Main Operation In High-Cost Silicon Valley 40 I
Slide 5: Total IT Solutions - Our Path to $20B+
TOTAL IT SOLUTIONS - OUR PATH TO $20B+ ▪ 5S: Software, Service, Switch, Storage, Security & More ▪ Total IT Solutions: Enterprise, OEM Appliance / Cloud SMCI 3.0 Total IT ▪ Complete Systems Solutions $10B ▪ Subsystems & Components SMCI 2.0 Servers & Storage Systems Our Momentum: SMCI 1.0 Components
Slide 6: Enabling Total IT Solutions
ENABLING TOTAL IT SOLUTIONS Total IT Solutions = Higher Value • Rack-scale Plug & Play (L10, L11, L12) w/ optimized Building Block Architecture • Scalable Optimized compute, storage, software & service • Cloud composer, Cloud orchestrator, IT & Cloud security, Cloud subscription • Addressing key ver
Slide 7: Expanded GPU/AI Product Offerings
EXPANDED GPU/AI PRODUCT OFFERINGS • The Most Extensive GPU System Product Lines WW • Key wins with TTM and Optimized Features • Close-Strategic Partnership with NVIDIA, Intel, AMD • Liquid Cooling Shipping : • 700W+ GPU & 350W/400W+ CPU Support • DC Infrastructure, System & Rack Level Liquid Cooling
Slide 8: Operations: Addressing $20B+
OPERATIONS: ADDRESSING $20B+ • Optimizing Global Operations with Production Economy of Scale and Cost • Green Computing Park: • B23 (Command Center, B2B/C, and Rack-Scale Services) • APAC Science and Tech Center • Taiwan B62: 2X-3X APAC capacity in FY24 4000+ Racks per Month • Supermicro Malaysia Ca
Slide 9: Green Computing for the Planet
GREEN COMPUTING FOR THE PLANET • Improve Industry PUE (Target 1.05) • Adopting More Efficient Data Center 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: Q1 FY2024 Highlights
Q1 FY2024 HIGHLIGHTS Q1FY24 QoQ YoY Revenue $2,120M -3% +14% Gross Margin (non-GAAP) 17.0% -10bps -180bps Earnings Per Share (non-GAAP) $3.43 -$0.08 +$0.01 Cash Flow from Operations +$271M +$280M -$43M Mix Server and Storage Systems $1,967M (93%) -3% +15% Subsystems & Accessories $153M (7%) +0.2% +1
Slide 11: Revenue
REVENUE • Q1FY24 Revenue: $2,120M 2,185 • +14% YoY, -3% QoQ 2,120 Guide: 1,900M 1,852 1,803 2,200M Q1FY24 Revenue Mix By Geography 4% 1,283 11% 9% 76% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 USA Europe Asia Other *China 2% of Total Revenue 11 Better Faster Greener™ © 2023 Supermicro
Slide 12: Revenue Mix
REVENUE MIX Server and Storage Systems & Subsystems Vertical Markets 8% 8% 7% 7% 5% 4% 3% 2% 2% 9% 43% 47% 50% 53% 55% 92% 92% 91% 93% 93% 53% 50% 45% 45% 43% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Subsystems & Accessories 5G,Telco & Edge/IOT Server and Storage Systems
Slide 13: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 18.8% 18.8% 17.7% 17.1% 17.0% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 • -10bps QoQ, -180bps YoY, due to focus on market share gains A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. 13 Better Faster Greener™ © 2023 Supermicro
Slide 14: Non-GAAP Operating Expenses & Margins
NON-GAAP OPERATING EXPENSES & MARGINS Operating Expenses Operating Margins 133 130 12.5% 12.8% 117 116 11.0% 109 10.8% 8.7% Million $ Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 • Operating expenses decreased sequentially in Q1 due to lower compensation expenses • Operating
Slide 15: Non-GAAP EPS
NON-GAAP EPS $3.42 $3.51 $3.43 $3.26 Guide: $2.75-$3.50 $1.63 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 • Q1FY24 Non-GAAP EPS of $3.43, at high end of guidance: $2.75 to $3.50 • EPS slightly lower QoQ due to supply and seasonality A reconciliation of GAAP to non-GAAP measures can be found in the appendix o
Slide 16: Cash Flow & Net Cash
CASH FLOW & NET CASH 397 Cash Flow From Operations Net Cash 314 271 198 176 161 150 Million $ Million $ 135 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 -9 -12 Q1FY24 Operating Cash Flow: $271M, Free Cash Flow: $268M Total Cash: $543M, Total Debt down by $144M, Net Cash: $39
Slide 17: Revenue & EPS Outlook
REVENUE & EPS OUTLOOK REVENUE EPS Q2 FY2024* $2.7B to $2.9B NON-GAAP: $4.40 to $4.88 GAAP: $3.75 to $4.24 Full Year FY2024 $10B to $11B *The outlook for Q2 of fiscal year 2024 GAAP diluted net income per common share includes approximately $40 million in expected stock-based compensation expense, ne
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