Advanced Micro Devices Inc · NASDAQ:AMD
Advanced Micro Devices — Q1 2024 Earnings Presentation
27 slides from Advanced Micro Devices's earnings presentation, Apr 30, 2024
Slide 1: AMD First Quarter 2024 Financial Results
AMD First Quarter 2024 FINANCIAL RESULTS April 30, 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 expected second quarter 2024 financial outlook, including reve
Slide 3: Our Journey
OUR JOURNEY Leadership Expanding Customer Data Center Strong Product Portfolio & Partner Ecosystem and AI Growth Financial Foundation 33 Q1 2024 FINANCIAL RESULTS – APRIL 30, 2024
Slide 4: Our Leadership Technology
OUR LEADERSHIP TECHNOLOGY Broad IP Portfolio Advanced Technology Data Center Leadership Software Enablement Executing leadership CPU, Driving leadership Delivering innovation in Open-source software GPU, DPU, FPGA, Adaptive process technology and AI, cloud, enterprise and optimized for performance S
Slide 5: Our Leadership Products
OUR LEADERSHIP PRODUCTS Data Center Client Gaming Embedded Broad portfolio of data center Powerful and efficient CPUs Top-to-bottom desktop and Leadership FPGAs, and AI solutions with server and APUs for notebook and notebook GPUs, game console Adaptive SoCs and SoMs, and CPUs, GPUs, FPGAs, DPUs des
Slide 6: AMD Is Uniquely Positioned in AI
AMD IS UNIQUELY POSITIONED IN AI Cloud HPC Enterprise PC Embedded AMD InstinctTM AMD Instinct AMD Instinct MI300 AMD RyzenTM 8040 AMD VersalTM AI MI300X MI300A Accelerators Mobile Processors Edge Adaptive SoCs Accelerators Accelerators 4th Gen AMD EPYCTM with Ryzen AI Processors Leadership accelerat
Slide 7: Revenue Q1 2024
REVENUE Q1 2024 ▪ Revenue of $5.5 billion increased 2% y/y $5.4B $5.5B ▪ Revenue growth in Data Center and Client segments was partially offset by lower revenue in Gaming and Embedded segments Q1 2023 Q1 2024 7 Q1 2024 FINANCIAL RESULTS – APRIL 30, 2024
Slide 8: Gross Margin Q1 2024
GROSS MARGIN Q1 2024 GAAP Non-GAAP1 52% 50% 47% 44% Q1 2023 Q1 2024 Q1 2023 Q1 2024 ▪ Increase driven by higher revenue contribution from ▪ Increase driven by higher revenue contribution from Data Center and Client segments, lower amortization of Data Center and Client segments, partially offset by
Slide 9: Operating Income (Loss) Q1 2024
OPERATING INCOME (LOSS) Q1 2024 GAAP Non-GAAP1 $1.10B $1.13B $(0.14)B $0.04B Q1 2023 Q1 2024 Q1 2023 Q1 2024 ▪ Increase driven by higher gross margin and lower ▪ Increase driven by higher gross margin, partially amortization of acquisition-related intangible assets, offset by increased operating exp
Slide 10: Earnings (Loss) Per Share Q1 2024
EARNINGS (LOSS) PER SHARE Q1 2024 GAAP Non-GAAP1 $0.62 $0.60 $0.07 Q1 2023 Q1 2024 $(0.09) Q1 2023 Q1 2024 ▪ GAAP net income of $123 million ▪ Non-GAAP net income of $1.0 billion ▪ GAAP EPS of $0.07 primarily driven by higher gross ▪ Non-GAAP EPS of $0.62, up 3%, primarily driven by margin and lower
Slide 11: Q1 2024 Summary P&L | GAAP
Q1 2024 SUMMARY P&L | GAAP $ in millions, except per share data and % Q1’24 Q1’23 Y/Y Q4’23 Q/Q Revenue $5,473 $5,353 Up 2% $6,168 Down 11% Gross Profit $2,560 $2,359 Up 9% $2,911 Down 12% Gross Margin 47% 44% Up 3 ppts 47% Flat Operating Expenses $2,537 $2,514 Flat $2,575 Flat Operating Expense/Rev
Slide 12: Q1 2024 Summary P&L | Non-GAAP
1 Q1 2024 SUMMARY P&L | NON-GAAP $ in millions, except per share data and % Q1’24 Q1’23 Y/Y Q4’23 Q/Q Revenue $5,473 $5,353 Up 2% $6,168 Down 11% Gross Profit $2,861 $2,675 Up 7% $3,133 Down 9% Gross Margin 52% 50% Up 2 ppts 51% Up 1 ppt Operating Expenses $1,741 $1,587 Up 10% $1,727 Flat Operating
Slide 13: Q1 2024 Summary Balance Sheet Items
Q1 2024 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q1’24 Q4’23 Q/Q Cash, Cash Equivalents and $6,035 $5,773 Up 5% Short-term Investments Accounts Receivable, Net $5,038 $5,376 Down 6% Inventories $4,652 $4,351 Up 7% Total Debt $2,468 $2,468 Flat 13 Q1 2024 FINANCIAL RESULTS – APRIL 30, 2024
Slide 14: Q1 2024 Segment Results
Q1 2024 SEGMENT RESULTS ($ in millions) Q1’24 Q1’23 Y/Y Q4’23 Q/Q Data Center Net Revenue $2,337 $1,295 Up 80% $2,282 Up 2% Operating Income $541 $148 Up 266% $666 Down 19% Client Net Revenue $1,368 $739 Up 85% $1,461 Down 6% Operating Income (Loss) $86 $(172) Up 150% $55 Up 56% Gaming Net Revenue $
Slide 15: Data Center Segment Q1 2024
DATA CENTER SEGMENT Q1 2024 Revenue Operating Margin $2.3B 23% Strategic Highlights ▪ Record data center GPU sales with MI300 surpassing $1B in cumulative sales since Q4’23 $1.3B launch 11% ▪ Nearly 900 public cloud instances powered by AMD EPYC processors now available from AWS, Google, Oracle Clou
Slide 16: Client Segment Q1 2024
CLIENT SEGMENT Q1 2024 Revenue Operating Margin $1.4B 6% Strategic Highlights $0.7B ▪ HP and Lenovo announced new high-performance Q1 2023 Q1 2024 laptops powered by the latest Ryzen PRO 8040 Series CPUs (23)% ▪ Launched Ryzen PRO 8000 Series desktop CPUs, the first processors with dedicated, on-chi
Slide 17: Gaming Segment Q1 2024
GAMING SEGMENT Q1 2024 Revenue Operating Margin $1.8B 18% Strategic Highlights ▪ Global availability of the RadeonTM RX 7900 $0.9B 16% GRE graphics card providing 1440p/4K performance ▪ Released FidelityFX Super Resolution 3.1 offering significant image quality improvements for gamers Q1 2023 Q1 202
Slide 18: Embedded Segment Q1 2024
EMBEDDED SEGMENT Q1 2024 Revenue Operating Margin $1.6B 51% Strategic Highlights 41% ▪ Launched Versal AI Edge Series Gen 2 SoCs that combine multiple compute engines on a single chip $0.8B for AI-driven embedded systems ▪ Subaru adopted Versal AI Edge Series Gen 2 devices to power their next-gen Ey
Slide 19: Financial Outlook – Non-GAAP
FINANCIAL OUTLOOK – NON-GAAP 1 ($ in millions) Q2’24 ~$5.7 Billion, Revenue +/- $300 Million Gross Margin ~53% Operating Expenses ~$1.8 Billion Effective Tax Rate ~13% of pre-tax income Diluted Share Count² ~1.64 Billion shares 1. 1. See Cautionary Statement on Slide 2. These forward-looking outlook
Slide 20: Q1 2024 Summary
1 Q1 2024 SUMMARY Revenue Data Center Segment Gross Margin 47% EPS $0.07 $5.5B Revenue $2.3B Non-GAAP Non-GAAP EPS $0.62 Up 2% y/y Up 80% y/y Gross Margin 52% RECORD DATA CENTER SEGMENT REVENUE DRIVEN BY STRONG AMD INSTINCT GPU RAMP 20 20 Q1 2024 FINANCIAL RESULTS – APRIL 30, 2024 1. See Appendices
Slide 21: Corporate Responsibility at AMD
CORPORATE RESPONSIBILITY AT AMD Environmental Social Governance Advancing environmental solutions in our Fostering a culture of diversity, belonging Integrating corporate responsibility and products, supply chain and operations, while and inclusion, partnering with suppliers and governance across pr
Slide 22: Our Momentum
OUR MOMENTUM Large and Expanding World-Class Technology Strong Compelling Data Center and Execution Leadership Balance Sheet TAM AI Leadership and Focus DRIVING LONG-TERM SHAREHOLDER RETURNS 22 22 Q1 2024 FINANCIAL RESULTS – APRIL 30, 2024
Slide 23: Appendices: Reconciliation of Gross Profit and Operating Expenses
APPENDICES RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN ($ in millions, except %) (Unaudited) Q1’24 Q1’23 Q4’23 GAAP gross profit $2,560 $ 2,359 $ 2,911 GAAP gross margin 47% 44% 47% Stock-based compensation 6 8 6 Amortization of acquisition-related intangibles 230 305 215 Acquis
Slide 24: Appendices: Reconciliation of Operating Income
APPENDICES RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME ($ in millions, except %) (Unaudited) Q1’24 Q1’23 Q4’23 GAAP operating income (loss) $ 36 $ (145) $ 342 GAAP operating margin 1% (3%) 6% Stock-based compensation 371 305 374 Amortization of acquisition-related int
Slide 25: Appendices: Reconciliation of Net Income and EPS
APPENDICES RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) / EARNINGS (LOSS) PER SHARE (Millions, except per share data) (Unaudited) Q1’24 Q1’23 Q4’23 GAAP net income (loss) / earnings (loss) per share $ 123 $ 0.07 $ (139) $ (0.09) $ 667 $ 0.41 (Gains) losses on equity investments, net 3 – (1)
Slide 26: Appendices: Share Count Overview
APPENDICES SHARE COUNT OVERVIEW (1) Q1’24 Q2’24 Shares (millions) Actual Estimate Basic shares 1,617 1,619 Dilutive impact from employee equity grants (2) 22 22 Diluted shares 1,639 1,641 The table above provides actual share count for Q1’24 and an estimate of share count to use when calculating GAA
Slide 27: AMD together we advance
AMD«¢\ together we advance_
Advanced Micro Devices — Q1 2024 Earnings Presentation on 6ix