Slide 1: AMD Financial Results Third Quarter 2023
AMD FINANCIAL RESULTS Third Quarter 2023 October 31, 2023
Slide 2: Cautionary Statement
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202322 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 fourth
Slide 3: Our Journey
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202333 Expanding Customer & Partner Ecosystem Data Center and AI Growth Strong Financial Foundation Leadership Product Portfolio OUR JOURNEY
Slide 4: Our Leadership Technology
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202344 OUR LEADERSHIP TECHNOLOGY Software Enablement Open-source software optimized for performance across heterogenous solutions Data Center Leadership Delivering innovation in cloud, enterprise, AI and accelerated computing Advanced Technology Driving leader
Slide 5: Our Leadership Products
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202355 OUR LEADERSHIP PRODUCTS Embedded Leadership FPGAs, Adaptive SoCs and SoMs, and embedded CPUs and GPUs for a broad set of markets Gaming Top-to-bottom desktop and notebook GPUs, game console and semi-custom SoCs Client Leadership CPUs and APUs for notebo
Slide 6: AMD Is Uniquely Positioned in AI
AMD IS UNIQUELY POSITIONED IN AI RyzenTM 7040 Mobile processors with AI accelerator First x86 CPU with Integrated AI accelerator Embedded VersalTM AI Edge ZynqTM MPSoC Adaptive SoC + AI for Embedded AMD AlveoTM Accelerators AI Inference Optimized Solutions DELIVERING A COMPREHENSIVE AI COMPUTE PORTF
Slide 7: Revenue Q3 2023
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 20237 REVENUE Q3 2023 ▪ Revenue of $5.8 billion increased 4% y/y as growth in Client segment revenue was partially offset by lower Gaming and Embedded segment revenue $5.6B $5.8B Q3 2022 Q3 2023
Slide 8: Gross Margin Q3 2023
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 20238 GROSS MARGIN Q3 2023 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Non-GAAP gross margin increase primarily driven by stronger Client segment revenue and product mix Non-GAAP1 42% 47% Q3 2022 Q3 2023 GAAP ▪ GAAP gross margin increase driven by
Slide 9: Operating Income (Loss) Q3 2023
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 20239 Q3 2022 Q3 2023 $(0.1)B $0.2B OPERATING INCOME (LOSS) Q3 2023 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 $1.3B $1.3B Q3 2022 Q3 2023 ▪ GAAP operating income driven by lower amortization of acquisition-related intangible assets,
Slide 10: Earnings Per Share Q3 2023
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202310 $0.67 $0.70 Q3 2022 Q3 2023 EARNINGS PER SHARE 1 Q3 2023 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP ▪ GAAP net income of $299 million, up 353% y/y ▪ GAAP EPS of $0.18, up 35
Slide 11: Q3 2023 Summary P&L | GAAP
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202311 ($ in millions, except per share data) Q3’23 Q3’22 Y/Y Q2’23 Q/Q Revenue $5,800 $5,565 Up 4% $5,359 Up 8% Gross Profit $2,747 $2,354 Up 17% $2,443 Up 12% Gross Margin 47% 42% Up 5 ppts 46% Up 1 ppt Operating Expenses $2,533 $2,426 Up 4% $2,471 Up 3% Ope
Slide 12: Q3 2023 Summary P&L | Non-GAAP
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202312 ($ in millions, except per share data) Q3’23 Q3’22 Y/Y Q2’23 Q/Q Revenue $5,800 $5,565 Up 4% $5,359 Up 8% Gross Profit $2,963 $2,776 Up 7% $2,665 Up 11% Gross Margin 51% 50% Up 1 ppt 50% Up 1 ppt Operating Expenses $1,697 $1,520 Up 12% $1,605 Up 6% Oper
Slide 13: Revenue ($ in Billions)
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202313 $5.6 $5.6 $5.4 $5.4 $5.8 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 REVENUE ($ in Billions)
Slide 14: Gross Margin (GAAP)
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202314 42% 43% 44% 46% 47% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 GROSS MARGIN (GAAP)
Slide 15: Gross Margin (Non-GAAP)
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202315 50% 51% 50% 50% 51% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 GROSS MARGIN (Non-GAAP)1 1. See Appendices for GAAP to Non-GAAP reconciliation.
Slide 16: Earnings (Loss) Per Share (GAAP)
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202316 $0.04 $0.01 $(0.09) $0.02 $0.18 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 EARNINGS (LOSS) PER SHARE 1 (GAAP) 1. Earnings Per Share (EPS) = Diluted earnings per share except for Q1’23 for which basic shares were used
Slide 17: Earnings Per Share (Non-GAAP)
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202317 $0.67 $0.69 $0.60 $0.58 $0.70 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 EARNINGS PER SHARE (Non-GAAP)1 1. See Appendices for GAAP to Non-GAAP reconciliation; Earnings Per Share (EPS) = Diluted earnings per share
Slide 18: Q3 2023 Summary Balance Sheet Items
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202318 Q3 2023 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q3’23 Q2’23 Q/Q Cash, Cash Equivalents and Short-term Investments $5,785 $6,285 Down 8% Accounts Receivable, Net $5,054 $4,312 Up 17% Inventories $4,445 $4,567 Down 3% Total Debt $2,467 $2,467 Flat
Slide 19: Q3 2023 Segment Results
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202319 Q3 2023 SEGMENT RESULTS ($ in millions) Q3’23 Q3’22 Y/Y Q2’23 Q/Q Data Center Net Revenue $1,598 $1,609 Flat $1,321 Up 21% Operating Income $306 $505 Down 39% $147 Up 108% Client Net Revenue $1,453 $1,022 Up 42% $998 Up 46% Operating Income (Loss) $140
Slide 20: Data Center Segment Q3 2023
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202320 DATA CENTER SEGMENT Q3 2023 ▪ Almost 100 new AMD processor-powered cloud instances launched from Amazon, Google, Microsoft, Oracle, Tencent and others ▪ Enterprise wins in automotive, aerospace, financial services, pharmaceutical and technology ▪ Launch
Slide 21: Client Segment Q3 2023
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202321 CLIENT SEGMENT Q3 2023 ▪ Growth driven by strong demand for RyzenTM 7000 series desktop and notebook processors ▪ More than 50 notebook designs powered by Ryzen AI in market ▪ Launched first ThreadripperTM PRO workstation CPUs based on “Zen 4” core with
Slide 22: Gaming Segment Q3 2023
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202322 9% 14% Q3 2022 Q3 2023 GAMING SEGMENT Q3 2023 ▪ Launched new RadeonTM RX 7000 enthusiast desktop GPUs offering leadership price/performance for 1440P gamers ▪ Launched first AMD RDNA 3 architecture- based mobile GPU enabling desktop-level performance in
Slide 23: Embedded Segment Q3 2023
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202323 EMBEDDED SEGMENT Q3 2023 ▪ Launched first AMD adaptive SoCs with on- chip HBM memory delivering significant performance and efficiency for data center, network, test and aerospace applications ▪ Announced next-generation space-grade Versal SoC integrati
Slide 24: Financial Outlook – Non-GAAP
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202324 ($ in millions) Q4’23 Revenue ~$6.1 Billion +/- $300 Million Increase of ~9% y/y and ~5% q/q Gross Margin ~51.5% Operating Expenses ~$1.74 Billion Effective Tax Rate ~13% of pre-tax income Diluted Share Count² ~1.63 Billion shares FINANCIAL OUTLOOK – NO
Slide 25: Q3 2023 Summary
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 20232525 Client Segment Revenue $1.5B Up 42% y/y Gross Margin 47% Non-GAAP Gross Margin 51% EPS $0.18 Non-GAAP EPS $0.70 Revenue $5.8B Up 4% y/y Q3 2023 SUMMARY 1 Y/Y GROWTH IN REVENUE, GROSS MARGIN AND EPS STRONG DEMAND FOR 4TH GEN EPYC AND RYZEN 7000 PROCESS
Slide 26: AMD Commitment to ESG
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 20232626 AMD COMMITMENT TO ESG Governance Integrating corporate responsibility and governance across product design, supply chain, operations and external engagement Social Fostering a culture of diversity, belonging and inclusion, partnering with suppliers an
Slide 27: Our Momentum Driving Long-Term Shareholder Returns
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 20232727 Large and Compelling TAM World-Class Execution and Focus Technology Leadership Expanding Data Center and AI Leadership Strong Balance Sheet OUR MOMENTUM DRIVING LONG-TERM SHAREHOLDER RETURNS
Slide 28: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202328 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN (Millions) (Unaudited) Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 GAAP gross profit $ 2,354 $ 2,403 $ 2,359 $ 2,443 $ 2,747 GAAP gross margin 42% 43% 44% 46% 47% Stock-based compensation 8 9 8 10 6 Amo
Slide 29: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202329 APPENDICES RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (Millions) (Unaudited) Q3’23 Q3’22 Q2’23 GAAP operating income (loss) $ 224 $ (64) $ (20) GAAP operating margin 4% (1%) 0% Stock-based compensation 353 269 348 Amorti
Slide 30: Reconciliation of GAAP to Non-GAAP Net Income / EPS
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202330 RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) / EARNINGS (LOSS) PER SHARE(3) (1) Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termin
Slide 31: Share Count Overview
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202331 Shares (millions) (1) Q3’23 Q4’23 Actual Estimate Basic shares 1,616 1,617 Dilutive impact from employee equity grants (2) 13 10 Diluted shares 1,629 1,627 APPENDICES SHARE COUNT OVERVIEW The table above provides actual share count for Q3’23 and an esti
Slide 32: Endnotes
Q3 2023 FINANCIAL RESULTS – OCTOBER 31, 202332 ENDNOTES ALV-10: Testing conducted by AMD Performance Labs as of 8/16/23 on the Alveo UL3524 accelerator card, using Vivado™ Design Suite 2023.1 and running on Vivado Lab (Hardware Manager) 2023.1. Based on the GTF Latency Benchmark Design configured to
Slide 33: AMD – Together We Advance
AMD«¢l together we advance_