Slide 1: Financial results FQ2 2024
Financial results FQ2 2024 d4icron
Slide 2: Safe harbor statement
Safe harbor statement During the course of this meeting, we may make projections or other forward-looking statements regarding market demand and supply, pricing, cost reductions, expected product volume production, expected product announcements, future events or the future financial performance or
Slide 3: Sanjay Mehrotra, President and CEO
Sanjay Mehrotra President and CEO March 20, 2024 3
Slide 4: Overview
Overview • In fiscal Q2, Micron delivered revenue, gross margin, and • AI server demand is driving rapid growth in HBM, DDR5 EPS well above the high end of guidance. Micron has (D5) and data center SSDs, which is tightening leading- returned to profitability and delivered a positive operating edge s
Slide 5: Technology and end markets overview
Technology End markets overview • Over 3/4s of our DRAM bits are now on leading-edge • Inventories for memory and storage have improved 1-alpha and 1-beta nodes, and over 90% of our significantly in the data center, and we continue to expect NAND bits are on 176-layer and 232-layer nodes. normalizat
Slide 6: End market highlights: Data center
End market highlights Data center • In data center, total industry server unit shipments are expected • HBM (continued): Earlier this month, we sampled our 12-high to grow mid- to high-single digits in calendar 2024, driven by HBM3E product, which provides 50% increased capacity of strong growth for
Slide 7: End market highlights: PC, Mobile and intelligent edge
End market highlights PC Mobile and intelligent edge • PC: Unit volumes are expected to grow modestly in the low • Mobile: Smartphone unit volumes in calendar 2024 remain on single-digit range for calendar 2024. We expect next-gen AI PC track to grow low-to-mid single digits. We expect AI phones to
Slide 8: Outlook and Capex plan
Outlook and Capex plan Capex plan: • Demand: Calendar 2023 DRAM bit demand growth was in the low double-digit percentage • Micron’s fiscal 2024 capex plan range, and NAND bit demand growth was in the low-20s percentage range - both a few remains unchanged at a range percentage points higher than pre
Slide 9: Mark Murphy, Chief Financial Officer
Mark Murphy Chief Financial Officer March 20, 2024 9
Slide 10: FQ2-24 revenue $5.8B
FQ2-24 revenue $5.8B Revenue up 23% Q/Q and up 58% Y/Y March 20, 2024 10
Slide 11: Performance by technology
Performance by technology DRAM FQ2-24 NAND FQ2-24 • $4.2 billion, representing 71% of total revenue • $1.6 billion, representing 27% of total revenue • Revenue increased 21% Q/Q • Revenue increased 27% Q/Q • Bit shipments increased by a low-single digit • Bit shipments decreased by a low-single digi
Slide 12: Revenue by business unit
Revenue by business unit Q/Q % Y/Y % Amounts in millions FQ2-24 FQ1-24 Change FQ2-23 Change Compute and Networking (CNBU) $2,185 $1,737 26% $1,375 59% Mobile (MBU) $1,598 $1,293 24% $945 69% Embedded (EBU) $1,111 $1,037 7% $865 28% Storage (SBU) $905 $653 39% $507 79% March 20, 2024 12
Slide 13: FQ2-24 Non-GAAP operating results
FQ2-24 Non-GAAP operating results Revenue: $5.8 billion Gross margin: 20% Operating expenses: $959 million Operating income: $204 million Net income: $476 million Diluted earnings per share: $0.42 Cash from operations (GAAP): $1.2 billion See non-GAAP reconciliations in Appendix March 20, 2024 13
Slide 14: Cash flow and capital allocation
Cash flow and capital allocation From FY-21 to FQ2-24: Cash flow FQ2-24: $1.2B (21% of revenue) from operations $5.3 billion returned to shareholders from share FQ2-24: CapEx of $1.2B repurchases and dividends, including $4.1 billion Net CapEx1 FY-24: CapEx guidance between $7.5B and $8.0B used to r
Slide 15: FQ3-24 guidance Non-GAAP
FQ3-24 guidance Non-GAAP Revenue $6.60 billion ± $200 million Gross margin 26.5% ± 1.5% Operating expenses $990 million ± $15 million Diluted earnings per share* $0.45 ± $0.07 *Based on ~1.14 billion diluted shares. See non-GAAP reconciliations in Appendix. March 20, 2024 15
Slide 16: Appendix
Appendix March 20, 2024 16
Slide 17: Financial summary Non-GAAP
Financial summary Non-GAAP Amounts in millions, except per share % of % of % of FQ2-24 Revenue FQ1-24 Revenue FQ2-23 Revenue Revenue $5,824 100% $4,726 100% $3,693 100% Gross margin 1,163 20% 37 1% (1,161) (31%) Operating income (loss) 204 4% (955) (20%) (2,077) (56%) Income tax (provision) benefit
Slide 18: Non-GAAP financial data and guidance
Non-GAAP financial data and guidance % of Revenue FQ2-24 FQ2-24 Non-GAAP FQ3-24 (amounts in millions, DRAM 71% Non-GAAP Guidance except per share) NAND 27% Revenue $ 5,824 $6.60 billion ± $200 million Gross margin 20% 26.5% ± 1.5% % Sales Volume Change FQ2-24 Q/Q Operating expenses $ 959 $990 millio
Slide 19: Revenue by technology
Revenue by technology Amounts in millions % of % of % of FQ2-24 Revenue FQ1-24 Revenue FQ2-23 Revenue DRAM $ 4,158 71% $ 3,427 73% $ 2,722 74% NAND 1,567 27% 1,230 26% 885 24% Other (primarily NOR) 99 2% 69 1% 86 2% Total $ 5,824 100% $ 4,726 100% $ 3,693 100% Percentages of total revenue may not to
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations March 20, 2024 20
Slide 21: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ2-24 FQ1-24 FQ2-23 GAAP gross margin $ 1,079 $ (35) $ (1,206) Stock-based compensation 80 67 41 Other 4 5 4 Non-GAAP gross margin $ 1,163 $ 37 $ (1,161) GAAP operating expenses $ 888 $ 1,093 $ 1,097 Stock-based compensation (129) (1
Slide 22: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ2-24 FQ1-24 FQ2-23 GAAP cost of goods sold $ 4,745 $ 4,761 $ 4,899 Stock-based compensation (80) (67) (41) Other (4) (5) (4) Non-GAAP cost of goods sold $ 4,661 $ 4,689 $ 4,854 GAAP research and development $ 832 $ 845 $ 788 Stock-b
Slide 23: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions FQ2-24 FQ1-24 FQ2-23 GAAP net income (loss) $ 793 $ (1,234) $ (2,312) Stock-based compensation 209 182 136 Restructure and asset impairments — — 86 Patent cross-license agreement gain (200) — — Other 2 (10) 8 Estimated tax effects of
Slide 24: Consolidated results Non-GAAP reconciliations
Consolidated results Non-GAAP reconciliations Amounts in millions, except per share FQ2-24 FQ1-24 FQ2-23 GAAP shares used in diluted EPS calculation 1,114 1,100 1,091 Adjustment for stock-based compensation 20 — — Non-GAAP shares used in diluted EPS calculation 1,134 1,100 1,091 GAAP diluted earning
Slide 25: FQ3-24 guidance Non-GAAP reconciliations
FQ3-24 guidance Non-GAAP reconciliations GAAP Adjustments Non-GAAP Revenue $6.60 billion ± $200 million — $6.60 billion ± $200 million Gross margin 25.5% ± 1.5% 1.0% A 26.5% ± 1.5% Operating expenses $1.11 billion ± $15 million $123 million B $990 million ± $15 million Diluted earnings per share* $0
Slide 26: on an “AS IS” basis without warranties of any kind. Statements regarding products, including
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