Slide 1: Fiscal Q2 2024 Results
Fiscal Q2 2024 Results January 29th, 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 • Q2 FY24 Revenue • Q2 FY24 revenue: $3.66B, +103% YoY and +73% QoQ • Continued record demand for AI systems at rack scale – NVIDIA H100/A100/L40S, Intel Gaudi 2/PVC, AMD MI200/250 • Key component supply gradually improved throughout the quarter • Continued development with NVIDIA GH20
Slide 4: SMCI vs Industry Growth Rate (FY)
SMCI vs INDUSTRY GROWTH RATE (FY) 120 Total IT Solutions @ Rack-Scale Green IT w/ Software, Service, Global Operations 100 Large Scale w/ Multi CPU, GPU, DPU Platforms More Technology Partnerships 80 Sub System and System Small Business Scale Main Operation In High-Cost Silicon Valley Supermicro 60
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: Enabling Total IT Solutions
ENABLING TOTAL IT SOLUTIONS 4,000 Racks per month production capacity as of Q2 CY24, with a path to significantly increase liquid cooling rack capacity over the next few quarters Total IT Solutions for Better Customer Value Hardware + Software + Services • Rack-scale plug-and-play solution with Buil
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: Q2 FY2024 Highlights
Q2 FY2024 HIGHLIGHTS Q2FY24 QoQ YoY Revenue $3,665M +73% +103% Gross Margin (non-GAAP) 15.5% -150bps -330bps Earnings Per Share (non-GAAP) $5.59 +$2.16 +$2.33 Cash Flow from Operations -$595M -$866M -$756M Mix Server and Storage Systems $3,436M (94%) +75% +107% Subsystems & Accessories $229M (6%) +5
Slide 11: Revenue
REVENUE • Q2FY24 Revenue: $3,665M 3,665 • +103 YoY, +73% QoQ Guide: 2,700M to Q2FY24 Revenue Mix By Geography 2,900M 3% 2,185 2,120 18% 1,803 1,283 8% 71% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 USA Europe Asia Other *China < 2% of Total Revenue 11 Better Faster Greener © 2024 Supermicro
Slide 12: Revenue Mix
REVENUE MIX Server and Storage Systems & Subsystems Vertical Markets 8% 7% 7% 6% 4% 3% 2% 2% 1% 9% 43% 47% 53% 55% 59% 92% 91% 93% 93% 94% 53% 50% 45% 43% 40% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Subsystems & Accessories 5G,Telco & Edge/IOT Server and Storage Systems
Slide 13: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 18.8% 17.7% 17.1% 17.0% 15.5% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 • -150bps QoQ, -330bps YoY, due to 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 Supermicro
Slide 14: Non-GAAP Operating Expenses & Margins
NON-GAAP OPERATING EXPENSES & MARGINS Operating Expenses Operating Margins 12.8% 153 11.3% 11.0% 10.8% 133 130 116 8.7% 109 Million $ Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 • Operating expenses increased due to higher compensation expenses • Operating margins higher du
Slide 15: Non-GAAP EPS
NON-GAAP EPS $5.59 Guide: $4.40 to $4.88 $3.51 $3.43 $3.26 $1.63 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 • Q2FY24 Non-GAAP EPS of $5.59, above high end of guidance: $4.40 to $4.88 • EPS higher due to higher revenues A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presen
Slide 16: Cash Flow & Net Cash
CASH FLOW & NET CASH 397 Cash Flow From Operations Net Cash 350 271 161 198 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 176 Million $ -9 150 Million $ 135 -595 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY24 Operating Cash Flow: -$595M, Free Cash Flow: -$610M Total Cash: $726M, Total Debt up by $229M, Net Cash: $3
Slide 17: Revenue & EPS Outlook
REVENUE & EPS OUTLOOK REVENUE EPS Q3 FY2024* $3.7B to $4.1B NON-GAAP: $5.20 to $6.01 GAAP: $4.79 to $5.64 Full Year FY2024 $14.3B to $14.7B *The outlook for Q3 of fiscal year 2024 GAAP diluted net income per common share includes approximately $28 million in expected stock-based compensation expense
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 © 2023 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