Advanced Micro Devices Inc · NASDAQ:AMD
Advanced Micro Devices — Q1 2021 Earnings Presentation
27 slides from Advanced Micro Devices's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Financial Results
FIRST QUARTER 2021 FINANCIAL RESULTS APRIL 27, 2021
Slide 2: Cautionary Statement
2 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 CAUTIONARYSTATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s expectation for growth across the Computing and Graphics and Enterprise, Embedded and Semi- Custom segments in
Slide 3: Our Journey
3 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 OUR JOURNEY Best-in-Class Financial Performance Expanding Customer & Partner Ecosystem Best Product Portfolio in History Significant Business Acceleration
Slide 4: Driving Leadership: Our Leadership Technology
4 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 Driving Leadership PC Experiences and Gaming Solutions PC/GAMING SOLUTIONS Leadership Process, Packaging and Interconnect Technology ADVANCED TECHNOLOGY Delivering Multi-generational Leadership CPU and GPU Roadmaps INDUSTRY-LEADING IP Innovatio
Slide 5: Our Best Ever Product Portfolio
5 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 z PERFORMANCE LEADERSHIP FROM NOTEBOOK TO DESKTOP TO DATA CENTER OUR BEST EVER PRODUCT PORTFOLIO See endnotes R5K-002, R5K-050, R5K-033, CZM-11 and CZM-35 World’s Fastest Gaming, Productivity and Content Creation Processors Leadership Performan
Slide 6: Financial Summary Q1 2021
6 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 1. See Appendices for GAAP to Non-GAAP reconciliation FINANCIAL SUMMARY Q1 2021¹ ƒ Record revenue of $3.45 billion, up 93% y/y and 6% q/q ƒ Gross margin of 46%, flat y/y and up 1 percentage point q/q ƒ OpEx of $929 million; Non-GAAP OpEx of $83
Slide 7: Computing and Graphics Segment Q1 2021
7 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 COMPUTING AND GRAPHICS SEGMENT Q1 2021 ƒ Revenue of $2.10 billion ‒ Up 46% y/y and 7% q/q primarily driven by Ryzen™ processor and Radeon™ graphics product sales growth ‒ Six straight quarters of record mobile processor revenue ƒ Average Sellin
Slide 8: Enterprise, Embedded and Semi-Custom Segment Q1 2021
8 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 ENTERPRISE, EMBEDDED AND SEMI-CUSTOM SEGMENT Q1 2021 ƒ Revenue of $1.35 billion ‒ Up 286% y/y primarily driven by higher semi-custom product sales and EPYC processor revenue ‒ Up 5% q/q primarily driven by higher EPYC processor sales partially
Slide 9: Revenue Trend: Significant Y/Y Revenue Growth
9 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 $1,531 $1,801 $2,127 $1,786 $1,932 $2,801 $3,244 $3,445 1000 1500 2000 2500 3000 3500 4000 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 +93% y/y REVENUE TREND ($ IN MILLIONS) SIGNIFICANT Y/Y REVENUE GROWTH
Slide 10: Driving Gross Margin Expansion
10 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 41% 43% 45% 46% 44% 44% 45% 46% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 +1pp q/q GROSS MARGIN TREND (GAAP AND NON-GAAP)¹ 1. See Appendices for GAAP to Non-GAAP reconciliation DRIVING GROSS MARGIN EXPANSION
Slide 11: Earnings Per Share Trend (GAAP)
11 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 $0.03 $0.11 $0.15 $0.14 $0.13 $0.32 $0.39 $0.452 $1.06 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 A xi s Ti tle +$0.31 y/y (GAAP) $1.451 EARNINGS PER SHARE TREND DELIVERING SIGNIFICANT EPS GROWTH Y/Y 1. In Q4 2020, AMD released $1.3 billi
Slide 12: Earnings Per Share Trend (Non-GAAP)
12 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 $0.08 $0.18 $0.32 $0.18 $0.18 $0.41 $0.52 $0.522 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 +$0.34 y/y EARNINGS PER SHARE TREND (NON-GAAP)1 1. 1. See Appendices for GAAP to Non-GAAP reconciliation 2. 2. Includes a higher tax rate beginnin
Slide 13: Q1 2021 Summary P&L – GAAP
13 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 ($ in millions, except per share data) Q1’21 Q1’20 Y/Y Q4'20 Q/Q Revenue $3,445 $1,786 Up 93% $3,244 Up 6% Gross Profit $1,587 $818 Up 94% $1,451 Up 9% Gross Margin % 46% 46% Flat 45% Up 1pp Operating Expenses $929 $641 Up 45% $881 Up 5% Opera
Slide 14: Q1 2021 Summary P&L – Non-GAAP
14 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 ($ in millions, except per share data) Q1’21 Q1’20 Y/Y Q4’20 Q/Q Revenue $3,445 $1,786 Up 93% $3,244 Up 6% Gross Profit $1,588 $820 Up 94% $1,452 Up 9% Gross Margin % 46% 46% Flat 45% Up 1pp Operating Expenses $830 $584 Up 42% $789 Up 5% Opera
Slide 15: Q1 2021 Segment Results
15 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 Q1 2021 SEGMENT RESULTS ($ in millions) Q1’21 Q1’20 Y/Y Q4’20 Q/Q Computing and Graphics Net Revenue $2,100 $1,438 Up 46% $1,960 Up 7% Operating Income $485 $262 Up 85% $420 Up 15% Enterprise, Embedded and Semi-Custom Net Revenue $1,345 $348 U
Slide 16: Q1 2021 Summary Balance Sheet Items
16 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 Q1 2021 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q1’21 Q1’20 Y/Y Q4’20 Q/Q Cash, Cash Equivalents and Short-term Investments $3,116 $1,385 Up $1,731 $2,290 Up $826 Accounts Receivable, Net $2,178 $1,691 Up $487 $2,066 Up $112 Inventories $1
Slide 17: Outlook
17 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 1. See Cautionary Statement on Slide 2. These forward-looking outlook statements and non-GAAP measures are based on current expectations as of April 27, 2021 and assumptions and beliefs that involve numerous risks and uncertainties. AMD undert
Slide 18: Q1 2021 Summary
18 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 Q1 2021 SUMMARY Significant Y/Y Growth in Profitability and EPS Growth Driven by Ryzen, EPYC and Semi-Custom Strong Quarterly Revenue Up 93% Y/Y, 6% Q/Q Record Quarterly Free Cash Flow
Slide 19: AMD's Commitment to ESG
19 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 AMD’S COMMITMENT TO ESG GREATER TECHNOLOGY FOR THE GREATER GOOD
Slide 20: Building the Best
20 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 BUILDING THE BEST Strong Shareholder Returns Execution Excellence Leadership Roadmaps Revenue Market Share Gains
Slide 21: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
21 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Millions) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1’21 GAAP gross profit $ 621 $ 777 $ 949 $ 818 $ 848 $ 1,230 $ 1,451 $ 1,587 GAAP gross margin % 41% 43% 45% 46%
Slide 22: Reconciliation of GAAP to Non-GAAP Operating Income
22 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 APPENDICES Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Millions) Q1’21 Q1’20 Q4'20 GAAP operating income $ 662 $ 177 $ 570 GAAP operating margin % 19% 10% 18% Stock-based compensation 85 59 79 Acquisition-related cost
Slide 23: Reconciliation of GAAP to Non-GAAP Net Income / EPS
23 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share (1) Q2’19 and Q3’19 GAAP diluted EPS calculation did not include shares related to the assumed conversion of the Company's 2026 Convertible Notes and the associated
Slide 24: Share Count Overview
24 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 APPENDICES Share Count Overview Shares (millions) (1) Q4'20 Q1’21 Q2’21 2021 Actual Actual Estimate Estimate Basic Shares 1,205 1,213 1,216 1,219 Dilutive impact from: Employee Equity Grants (2) 18 18 18 16 Diluted Shares (without 2026 Convert
Slide 25: Total Debt (Net) and Free Cash Flow Reconciliation
25 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 APPENDICES Total Debt (Net) (Millions) Q1’21 Q1’20 Q4’20 7.50% Senior Notes due 2022 $ 312 $ 312 $ 312 2.125% Convertible Senior Notes due 2026 2 251 26 Total Debt (principal amount) $ 314 $ 563 $ 338 Unamortized debt discount associated with
Slide 26: Endnotes
26 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 ENDNOTES R5K-002: Testing by AMD performance labs as of 9/2/2020 based on the average FPS of 40 PC games at 1920x1080 with the High image quality preset using an AMD Ryzen™ 9 5900X processor vs. Core i9-10900K. Results may vary. R5K-002 R5K-05
Slide 27: Disclaimers and Attributions
27 FIRST QUARTER 2021 FINANCIAL RESULTS | APRIL 27, 2021 DISCLAIMERS AND ATTRIBUTIONS The information contained herein is for informational purposes only and is subject to change without notice. Timelines, roadmaps, and/or product release dates shown in these slides are plans only and subject to cha
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