Slide 1: Fiscal Q3 2024 Results
Fiscal Q3 2024 Results April 30, 2024 Better Faster Greener © 2024 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 • Q3 FY24 Revenue • Q3 FY24 revenue: $3.85B, +200% YoY and +5% QoQ • Record demand for AI rack scale DLC systems: NVIDIA H100, Intel Gaudi 2/3, AMD MI300A/X • First to market development on NVIDIA GH200 (Grace Hopper) and GB200 (Blackwell) solutions • Early seeding on X14 and H14 syste
Slide 4: SMCI vs Industry Growth Rate (FY)
SMCI vs INDUSTRY GROWTH RATE (FY) 250 Total IT Solutions @ Rack-Scale Green IT w/ Software, Service, Global Operations Large Scale w/ Multi CPU, GPU, DPU Platforms 200 More Technology Partnerships Subsystems and Systems 150 Small Business Scale Supermicro Main Operation In High-Cost Silicon Valley 1
Slide 5: Total IT Solutions - Our Path to $25B+
TOTAL IT SOLUTIONS - OUR PATH TO $25B+ Annual Revenue ▪ 5S: Software, Service, Switch, Storage, Security & More ▪ Total IT Solutions: Enterprise, $20B OEM Appliance / Cloud ▪ Complete Systems SMCI 3.0 ▪ Subsystems & Components Total IT Solutions $10B Our Momentum: SMCI 2.0 Servers & SMCI 1.0 Compone
Slide 6: Optimized Rack-Scale Total Solutions
OPTIMIZED RACK-SCALE TOTAL SOLUTIONS 5,000 Racks capacity per month expected by the end of FY 24 of which…. • 2,000+ Racks will be Direct Liquid Cooled • 100KW+ Racks now ready to deploy Total IT Solutions for Better Customer Value Hardware + Software + Services • Rack-scale plug-and-play solutions
Slide 7: Innovation Through Teamwork
INNOVATION THROUGH TEAMWORK Services Software Accessories Power Supplies Chassis / Cooling / Architecture Motherboard SMCI Meeting Building Block Solutions Silicon Valley Advantages Under the Same Roof Optimized Total Solution • System optimization for • Early and quick access to • Operations in thr
Slide 8: Operations: Addressing $25B+
OPERATIONS: ADDRESSING $25B+ Production scale and cost optimization Economies of Scale and Cost • Silicon Valley Green Computing Park • Rack-Scale Integration (Liquid Cooling) • Command Center • B2B/C Programs • Cloud Services • APAC Science and Tech Center • Increase 2X-3X APAC capacity • Supermicr
Slide 9: Green Computing for the Planet
GREEN COMPUTING FOR THE PLANET • Improve Industry PUE (Target 1.05) • Adopting More Efficient Data Center Cooling • Optimal Free-Air Cooling PUE @ 1.06 • Optimal Liquid or Submerged PUE @ 1.05 Intel® Case Study • >$10B TCO Savings across industry 300,000+ Supermicro Resource-Saving Blade Servers: •
Slide 10: Q3 FY2024 Highlights
Q3 FY2024 HIGHLIGHTS Q3FY24 QoQ YoY Revenue $3,850M +5% +200% Gross Margin (non-GAAP) 15.6% +10bps -210bps Earnings Per Share (non-GAAP) $6.65 +$1.06 +$5.02 Cash Flow from Operations -$1,520M -$925M -$1,718M Mix Server and Storage Systems $3,698M (96%) +8% +218% Subsystems & Accessories $152M (4%) -
Slide 11: Revenue
REVENUE • Q3FY24 Revenue: $3,850M Guide: • +200% YoY, +5% QoQ 3,850 3,700M to 3,665 4,100M Q3FY24 Revenue Mix By Geography 3% 2,185 2,120 20% 1,283 7% 70% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 USA Europe Asia Other *China: 1% of Total Revenue 11 Better Faster Greener © 2024 Supermicro
Slide 12: Revenue Mix
REVENUE MIX Server and Storage Systems & Subsystems Vertical Markets 7% 7% 6% 4% 3% 2% 2% 1% 1% 9% 47% 53% 50% 55% 59% 93% 93% 94% 96% 91% 50% 45% 49% 43% 40% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Subsystems & Accessories 5G,Telco & Edge/IOT Server and Storage Systems
Slide 13: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 17.7% 17.1% 17.0% 15.5% 15.6% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 • Down 210bps YoY, due to product/customer mix and focus on market share gains A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. 13 Better Faster Greener © 2024 Super
Slide 14: Non-GAAP Operating Expenses & Margins
NON-GAAP OPERATING EXPENSES & MARGINS Operating Expenses Operating Margins 166 11.0% 11.3% 11.3% 153 10.8% 133 130 8.7% 116 Million $ Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 • Operating expenses increased due to higher compensation expenses • Operating margins stable on
Slide 15: Non-GAAP EPS
NON-GAAP EPS $6.65 $5.59 Guide: $5.20 to $6.01 $3.51 $3.43 $1.63 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 • Q3FY24 Non-GAAP EPS of $6.65, above high end of guide: $5.20 to $6.01, with a tax rate benefit A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation. 15 Bet
Slide 16: Cash Flow & Net Cash
CASH FLOW & NET CASH Net Cash 397 Cash Flow From Operations 350 198 271 252 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 -9 176 Million $ 150 Million $ -595 -1,520 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY24 Operating Cash Flow: -$1,520M, Free Cash Flow: -$1,613M Total Cash: $2,115M, Total Debt: $1,863M, Net Ca
Slide 17: Revenue & EPS Outlook
REVENUE & EPS OUTLOOK REVENUE EPS Q4 FY2024* $5.1B to $5.5B NON-GAAP: $7.62 to $8.42 GAAP: $7.20 to $8.05 Full Year FY2024** $14.7B to $15.1B NON-GAAP: $23.29 to $24.09 GAAP: $21.61 to $22.46 *The outlook for Q4 of fiscal year 2024 GAAP diluted net income per common share includes approximately $30
Slide 18: Appendix
APPENDIX Better Faster Greener © 2024 Supermicro
Slide 19: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) 19 Better Faster Greener © 2024 Supermicro
Slide 20: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) 20 Better Faster Greener © 2023 Supermicro
Slide 21: www.supermicro.com
Wwww.supermicro.com