Slide 1: Fourth Quarter & Full Year FY24 Financial Results
Fourth Quarter & Full Year FY24 Financial Results Nasdaq: PENG October 15, 2024
Slide 2: Disclaimer
Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking Any forward-looking statements that we make in this presentation speak only as of the date of this presentation. Except statements within the meaning of Section 27A of the Sec
Slide 3: Speakers
Speakers Mark Adams President and CEO Nate Olmstead SVP and CFO © 2024 Penguin Solutions, Inc. All rights reserved | 3
Slide 4: FY24 Highlights
FY24 Highlights Continuing Our Transformation Completed Majority Divestiture Announced Pete Manca as President of SMART Brazil of Intelligent Platform Solutions Sharpening our strategic focus on Bringing a wealth of experience to lead our AI enterprise solutions and enterprise-focused business Debut
Slide 5: Q4 FY24 Highlights
Q4 FY24 Highlights Continued to grow customer engagements, advance software and service offerings, and drive operational efficiency. Revenue Gross Margin EPS Balance Sheet Revenue of $311M, up 4% Non-GAAP gross margin Non-GAAP EPS of $0.37, in Strong balance sheet with vs. Q3 FY24; third of 30.9%, w
Slide 6: Our Business Segments
Our Business Segments © 2024 Penguin Solutions, Inc. All rights reserved | 6
Slide 7: Intelligent Platform Solutions
Intelligent Platform Solutions Revenue of $149M; up 3% vs. Q3 FY24 • 48% of total company revenue New Customer Wins • Hardware, software and services engagement at one of the world’s largest gaming companies • Pilot program at a leading financial institution Expanded Intelligent Software Offerings •
Slide 8: Memory Solutions
Memory Solutions Revenue of $96M; up 5% vs. Q3 FY24 • 31% of total company revenue Achieved key product development and customer engagement milestones • Significant DDR5 design-in activity, especially for VLP DIMMs and ECC SODIMM • Introduced Cfexpress product line, leveraging PCIe Gen 4.0 technolog
Slide 9: LED Solutions
Option 1 LED Solutions Revenue of $66M; up 3% vs. Q3 FY24 • 21% of total company revenue Cree LED remains a technology and brand leader • IP protection activities ongoing across LED applications to facilitate growth and collaboration and safeguard Cree LED’s 1,500+ patents Design win activity improv
Slide 10: FY25 Key Initiatives
FY25 Key Initiatives 1 2 3 4 Solve Our Customers’ Most Partner for Growth and Expand Our Software and Innovate Complex AI Challenges Global Expansion Services Offerings Relentlessly Focus on AI and HPC, in alignment Accelerate growth and global reach, Invest in AI software solutions and Commit to on
Slide 11: Financial Review
Financial Review © 2024 Penguin Solutions, Inc. All rights reserved | 11
Slide 12: Non-GAAP Q4 FY24 Results
Non-GAAP Q4 FY24 Results Key financial metrics within guidance range Revenue Non-GAAP Gross Margin Non-GAAP EPS $311M 30.9% $0.37 Guidance: $325M +/- $25M Guidance: 31.5% +/- 1.5% Guidance: $0.40 +/- $0.15 • Guidance provided on Q3 FY24 earnings call, which took place on July 9, 2024 • Non-GAAP Gros
Slide 13: Q4 FY24 Revenue Detail
Q4 FY24 Revenue Detail Revenue Breakdown – Total $311M LED Product Revenue 21% $251M IPS Revenue Mix 48% by Business Segment Memory 31% Services Revenue $60M © 2024 Penguin Solutions, Inc. All rights reserved | 13
Slide 14: FY 2024 Revenue Detail
FY 2024 Revenue Detail Revenue Breakdown – Total $1.2B Product Revenue LED 22% $926M IPS Revenue Mix 47% by Business Segment Memory Services Revenue 30% $245M Note: Summations for numbers and percentages may not compute precisely due to rounding. © 2024 Penguin Solutions, Inc. All rights reserved |
Slide 15: Q4 FY24 Non-GAAP Operating Results
Q4 FY24 Non-GAAP Operating Results 1 ($M) Q4 FY24 Q3 FY24 Q4 FY23 Revenue $311 $301 $317 Intelligent Platform Solutions $149 $145 $145 Memory Solutions $96 $92 $105 LED Solutions $66 $64 $66 Non-GAAP gross profit2 $96 $97 $100 Non-GAAP operating expenses2 $62 $64 $70 Non-GAAP operating income2 $34 $
Slide 16: FY24 Non-GAAP Operating Results
FY24 Non-GAAP Operating Results 1 ($M) FY24 FY23 Revenue $1,171 $1,441 Intelligent Platform Solutions $555 $750 Memory Solutions $356 $443 LED Solutions $260 $248 Non-GAAP gross profit2 $374 $457 Non-GAAP operating expenses2 $254 $277 Non-GAAP operating income2 $120 $180 Non-GAAP net income2 $67 $12
Slide 17: Q4 2024 Balance Sheet and Cash Flow Highlights
Q4 2024 Balance Sheet and Cash Flow Highlights ($M) Q4 2024 Q3 2024 Q4 2023 Working Capital Net Accounts Receivable $252 $212 $219 Days Sales Outstanding 49 days 42 days 48 days Inventory $151 $177 $175 Days of Inventory 36 days 44 days 49 days Accounts Payable $182 $192 $135 Days Payable Outstandin
Slide 18: Penguin Solutions and SK Telecom
Penguin Solutions and SK Telecom Planned $200M Strategic Investment to Advance End-to-End AI Infrastructure Solutions Potential Areas Advancing End-to-End Broadening AI Software of Collaboration AI solutions Solutions Portfolio Increasing Penguin Solutions’ Developing Innovative Accelerating Develop
Slide 19: Our Outlook
Our Outlook © 2024 Penguin Solutions, Inc. All rights reserved | 19
Slide 20: FY 2025 Outlook
FY 2025 Outlook GAAP Outlook Adjustments Non-GAAP Outlook Net Sales 15% YoY Growth +/- 5% — 15% YoY Growth +/- 5% Gross margin 30% +/- 1% 2% (A) 32% +/- 1% Operating expenses $335 million +/- $15 million $(60) million (B)(C) $275 million +/- $15 million Diluted earnings per share $0.30 +/- $0.20 $1.
Slide 21: Solving complexity. Accelerating results.
Solving complexity. Accelerating results. • Contact information goes here
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 1. The original version of this presentation posted on Penguin Solutions' website on October 15, 2024 inadvertently omitted this line item. © 2024 Penguin Solutions, Inc. All rights reserved | 22
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2024 Penguin Solutions, Inc. All rights reserved | 23
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2024 Penguin Solutions, Inc. All rights reserved | 24
Slide 25: Convertible Dilution
Convertible Dilution Note: Dilution in thousands of shares © 2024 Penguin Solutions, Inc. All rights reserved | 25