Slide 1: Fiscal Q2 2023 Results
FISCAL Q2 2023 RESULTS January 31, 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 Strong Revenue • Q2 FY23 revenue: $1.8B, +54% YoY and -3% QoQ growth • Diversified customer contribution with robust adoption of rack scale Total IT Solutions • Balanced results from all verticals and across all geographies • First to market with launch of new X13, H13, and H100 SKUs,
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 80 More Technology Partnerships 60 Sub System and System Supermicro Small Business Scale Main Operation In High-Cost Silicon Valley 40 2
Slide 5: Total IT Solutions - Our Path to $10B+
TOTAL IT SOLUTIONS - OUR PATH TO $10B+ ▪ 5S: Software, Service, SMCI 3.0 Total IT Switch, Storage, Security Solutions & More SMCI 2.0 ▪ Total IT Solutions Servers & SMCI 1.0 Storage Systems Enterprise, OEM – Components & Subsystems Appliance / Cloud ▪ Complete Systems ▪ Sub-systems & Components Our
Slide 6: Enabling Total IT Solutions
ENABLING TOTAL IT SOLUTIONS • Total IT Solutions = Higher Value • Rack-scale Plug & Play (L10, L11, L12) w/ optimized BBA Solutions • Scalable Optimized compute, storage, software & service • Cloud composer, Cloud orchestrator, IT & Cloud security, Cloud subscription • Addressing key verticals: AI,
Slide 7: Rack Scale Liquid Cooling
RACK SCALE LIQUID COOLING • Optimized for new high wattage (400W) CPUs & (700W) GPUs • Reduced lead-time for liquid-cooling rack solutions down to 2 weeks • Liquid Cooling can be free with big BONUS on OPEX AI in a box 26dB/liquid cooling 1/31/2023 7 Better Faster Greener™ © 2023 Supermicro
Slide 8: Operations: Addressing $20B
OPERATIONS: ADDRESSING $20B • Optimizing Global Operations with Scale and Cost • Green Computing Park: • B23 (Command Center, B2B/C, and Cloud Services) • Taiwan B62: 2X-3X APAC capacity in FY23+ • Supermicro Malaysia Campus and Partners • High Volume Production by Dec. 2023 Worldwide Capacity Targe
Slide 9: Green Computing for the Planet
GREEN COMPUTING FOR THE PLANET • Improve Industry PUE (Target 1.05) • Adopting More Efficient Datacenter 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: Q2 FY2023 Highlights
Q2 FY2023 HIGHLIGHTS Server and Storage Systems Revenue +68% YoY Q2FY23 QoQ YoY Revenue $1,803M -3% +54% Gross Margin (non-GAAP) 18.8% No Change +480bps Earnings Per Share (non-GAAP) $3.26 -$0.16 +$2.38 Cash Flow from Operations +$161M -$153M +$214M Mix Server and Storage Systems $1,661M (92%) -3% +
Slide 11: Revenue
REVENUE • Q2FY23 Revenue: $1,803M 1,852 1,803 • 8th Quarter of YoY Growth 1,636 Guide: 1,700M-1,800M • +54% YoY, -3% QoQ 1,355 Revenue Mix By Geography 1,172 4% 18% 17% 61% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 USA Europe Asia Other *China 3% of Total Revenue 11 Better Faster Greener™ © 2023 Supermicro
Slide 12: Revenue Mix
REVENUE MIX Server and Storage Systems & Subsystems Vertical Markets 9% 8% 8% 6% 5% 5% 4% 16% 15% 12% 24% 32% 44% 42% 50% 91% 92% 92% 84% 85% 64% 62% 51% 54% 45% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 5G,Telco & Edge/IOT Subsystems & Accessories OEM Appliance & Large D
Slide 13: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 18.8% 18.8% 17.6% 15.6% 14.0% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 • No Change QoQ, +480bps YoY • Gross margin stable due to price discipline, good factory efficiency, and lower freight costs A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this prese
Slide 14: Non-GAAP Operating Expenses & Margins
NON-GAAP OPERATING EXPENSES & MARGINS Operating Expenses Operating Margins 12.5% 12.8% 114 117 110 109 10.7% 103 7.5% Million $ 5.2% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 • Operating margins benefiting due to leverage • Operating expenses lower QoQ due to NRE & Market
Slide 15: Non-GAAP EPS
NON-GAAP EPS $3.42 $3.26 $2.62 Guide: $2.64-$2.90 $1.55 $0.88 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 • Q2FY23 Non-GAAP EPS of $3.26, exceeded initial guide of $2.64 to $2.90 • EPS driven by better-than-expected Gross Margin and lower Operating Expenses A reconciliation of GAAP to non-GAAP measures can b
Slide 16: Cash Flow & Net Cash
CASH FLOW & NET CASH Cash Flow From Operations Net Cash 135 314 161 Million $ Million $ Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 -12 -69 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 -53 -25 -228 -300 -329 • Q2FY23 Operating Cash Flow +$161M, Free Cash Flow +$151M • Total Cash $305M, Debt reduced by $80M to $170M •
Slide 17: Revenue & EPS Outlook
REVENUE & EPS OUTLOOK REVENUE EPS Q3 FY2023* $1.42B to $1.52B NON-GAAP: $1.88 to $2.14 GAAP: $1.75 to $2.02 Full Year FY2023** $6.5B to $7.5B NON-GAAP: $9.00 to $11.30 GAAP: $8.50 to $11.00 *The outlook for Q3 of fiscal year 2023 GAAP diluted net income per common share includes approximately $9 mil
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) FY2022 FY2023 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 In Thousands (except per share amounts and percentages) Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Consolidated Statement of Operations Net Sales $ 1,172,419 $ 1,355,490 $ 1,635,460 $ 1,852,130 $ 1,803,195 GAAP GROSS PROFIT
Slide 20: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) FY2022 FY2023 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 In Thousands (except per share amounts and percentages) Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 GAAP INCOME FROM OPERATIONS $ 51,049 $ 89,777 $ 165,213 $ 220,123 $ 215,182 Stock-based compensation 9,176 7,741 8,884 11,01
Slide 21: www.supermicro.com
www.supermicro.com