Qualcomm Incorporated · NASDAQ:QCOM
Qualcomm — Q2 FY2019 Earnings Presentation
23 slides from Qualcomm's earnings presentation, May 1, 2019
Slide 1: Second quarter fiscal 2019 earnings
May 1, 2019 Second quarter fiscal 2019 earnings
Slide 2: Safe harbor
Safe harbor In addition to the historical information contained herein, this presentation and the conference call that accompanies it contain forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding: our 5G technology and pr
Slide 3: Qualcomm reports second quarter fiscal 2019 earnings
Qualcomm reports second quarter fiscal 2019 earnings Quarter ended March 31, 2019 • We delivered a better than expected quarter with earnings per share above the high end of our estimates, reflecting stronger QTL results and solid execution in QCT. • We are also pleased to have reached multi-year ag
Slide 4: Quarterly results and guidance
Quarterly results and guidance As of May 1, 2019 Q2 ‘19 Guidance* Q2 ‘19 Results (3) Q3 ‘19 Guidance^ GAAP Revenues $4.4B - $5.2B $5.0B $9.2B - $10.2B Non-GAAP(1) Revenues Not provided $4.9B $4.7B - $5.5B Non-GAAP(1) combined R&D and SG&A Increase 6% - 8% Increase 6% Increase 6% - 8% expenses, seque
Slide 5: Additional results and guidance
Additional results and guidance As of May 1, 2019 Segment Results and Guidance Q2 ‘19 Guidance* Q2 ‘19 Results (3) Q3 ‘19 Guidance^ MSM chip shipment 150M – 170M 155M 150M – 170M QCT EBT margin % 13% - 15% 15% 13% - 15% QTL revenues $1.0B - $1.1B $1.12B $1.225B - $1.325B QTL EBT margin % 54% - 58% 6
Slide 6: MSM chip shipments
MSMTM chip shipments Calendar year, millions 903 818 823 804 242 217 237 186 Quarter December 203 211 220 232 September June 225 201 187 199 150 – 170e* March 233 189 187 179 155 2015 2016 2017 2018 2019 MSMs are products of Qualcomm Technologies, Inc. and/or its subsidiaries. * Guidance as of May 1
Slide 7: Global 3G/4G/5G device shipment estimates
Global 3G/4G/5G device shipment* estimates Calendar year, as of May 1, 2019 ~1.80B – 1.90Be ~1.80B Up ~3% at 1.755B midpoint** Up ~3% 2017 2018 2019 * Global 3G/4G/5G device shipments represent our estimate of CDMA-based, OFDMA-based and CDMA/OFDMA multimode subscriber devices shipped globally, excl
Slide 8: Cumulative $87.2 billion returned to stockholders
Cumulative $87.2 billion returned to stockholders As of March 31, 2019 Stock Repurchases* (Billions) $22.57 $7.8 billion remained authorized for repurchase $11.25 under our stock repurchase program. $4.61 $4.55 $3.92 $3.02 $0.95 $1.50 $1.48 $1.67 $1.31 $1.34 $1.02 $0.17 $0.28 $0.14 FY’03 FY’05 FY’06
Slide 9: Financial strength
Financial strength In Billions Mar ‘18 (2) Mar ‘19 Total cash, cash equivalents & marketable securities $39.6 $10.4^ Total assets $64.1 $34.0 Stockholders’ equity $23.7 $3.9 Debt* $23.1 $16.4 EBITDA**(3) $0.8 $1.3 Adjusted EBITDA**(1)(3) $1.5 $1.4 ^ Stock repurchases and repayment of long-term debt
Slide 10: Footnotes
Footnotes 1. Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items, tax items and other items. Further discussion regarding the Company’s use of Non-GAAP financial measures and detailed reconciliations between GAAP a
Slide 11: Reconciliations
Reconciliations 11
Slide 12: Note regarding use of Non-GAAP financial measures
Note regarding use of Non-GAAP financial measures The Non-GAAP financial information presented herein should be considered in addition to, not as a substitute for or superior to, financial measures calculated in accordance with GAAP. In addition, “Non-GAAP” is not a term defined by GAAP, and as a re
Slide 13: Non-GAAP results
Non-GAAP results In millions, except per share data Share-based Non-GAAP Results QSI Other Items (1)(2) GAAP Results Compensation Revenues $4,884 $98 $— $— $4,982 Net income (loss) $932 $21 ($191) ($99) $663 Q2 ‘19 Diluted EPS $0.77 $0.02 ($0.16) ($0.08) $0.55 Diluted shares 1,217 1,217 1,217 1,217
Slide 14: EBITDA
EBITDA(1) In millions Q2 ‘18 Q2 ‘19 Net income $330 $663 Plus income tax expense (benefit) (13) 143 Plus depreciation and amortization expense 388 345 Plus interest expense 179 162 Less investment and other income, net 96 28 EBITDA $788 $1,285 Adjustments Less QSI operating income (2) $10 $88 Less s
Slide 15: Combined R&D and SG&A expenses
Combined R&D and SG&A expenses In millions Q1 ‘19 Results Q2 ‘19 Results % Increase (Decrease) Non-GAAP combined R&D and SG&A expenses $1,562 $1,656 6% Plus amounts attributable to QSI 3 3 Plus amounts attributable to other items (1) 8 8 Total combined R&D and SG&A expenses excluding certain shared-
Slide 16: Tax rates
Tax rates In millions Non-GAAP Results QSI (1) Share-based Other Items (1)(2)(3) GAAP Results Compensation (1) Income (loss) before income taxes $1,091 $17 ($221) ($81) $806 Income tax (expense) (159) 4 30 (18) (143) Q2 ‘19 benefit Net income (loss) $932 $21 ($191) ($99) $663 Tax rate 15% (1%) 1% 3%
Slide 17: Business outlook
Business outlook As of May 1, 2019 Q3 ‘18 Results (1) Q3 ‘19 Estimates (2)(3) GAAP Revenues $5.6B $9.2B - $10.2B Year-over-year change increase 65% - 83% Less revenue attributable to QSI $20M $0B Less revenue attributable to other items ($50M) $4.5B - $4.7B Non-GAAP Revenues $5.6B $4.7B - $5.5B Year
Slide 18: Combined R&D and SG&A expenses guidance
Combined R&D and SG&A expenses guidance In millions Q2 ‘19 Results Q3 ‘19 Estimates* Non-GAAP combined R&D and SG&A expenses $1,656 6% - 8% increase Plus amounts attributable to QSI 3 Not provided Plus amounts attributable to other items (1) 8 Not provided Total combined R&D and SG&A expenses exclud
Slide 19: Previous business outlook
Previous business outlook As of January 30, 2019 Q2 ‘19 Previous Guidance Estimate (2) Revenues $4.4B - $5.2B GAAP diluted EPS $0.40 - $0.50 Less diluted EPS attributable to QSI ($0.01) Less diluted EPS attributable to share-based compensation ($0.16) Less diluted EPS attributable to other items (1)
Slide 20: Previous combined R&D and SG&A expenses guidance
Previous combined R&D and SG&A expenses guidance As of January 30, 2019 Q2 ‘19 Previous Guidance Estimate Non-GAAP combined R&D and SG&A expenses 6% - 8% increase Plus amounts attributable to QSI Not provided Plus amounts attributable to other items (1) Not provided Total combined R&D and SG&A expen
Slide 21: Tax rates Q2 '19 Previous Guidance
Tax rates Q2 ‘19 Previous Guidance As of January 30, 2019 Non-GAAP QSI (1) Share-based Other Items (1)(2) GAAP Results Compensation (1) Results Estimated Q2 ‘19 tax rate 12% —% —% —% 12% Q2 ‘19 Estimated annual tax rate —% —% (4%) (3%) (7%) (1) The incremental effect of our adjustments to the Non-GA
Slide 22: Tax rates FY 2018
Tax rates FY 2018 In millions Non-GAAP Results QSI (1) Share-based Other Items (1) GAAP Results Compensation (1) Income (loss) before income taxes $5,383 $24 ($883) ($4,132) $392 Income tax (expense) benefit (40) (2) 140 (5,454) (5,356) FY 2018 Net income (loss) $5,343 $22 ($743) ($9,586) ($4,964) T
Slide 23: Thank you
Thank you Follow us on: For more information, visit us at: www.qualcomm.com & www.qualcomm.com/blog Nothing in these materials is an offer to sell any of the References in this presentation to “Qualcomm” may mean Qualcomm components or devices referenced herein. Incorporated, Qualcomm Technologies,