Advanced Micro Devices Inc · NASDAQ:AMD
Advanced Micro Devices — Q4 2020 Earnings Presentation
32 slides from Advanced Micro Devices's earnings presentation, Jan 26, 2021
Slide 1: Fourth Quarter and Full Year 2020 Financial Results
FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS JANUARY 26, 2021
Slide 2: Cautionary Statement
2 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 CAUTIONARYSTATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as the features, functionality, performance, availability, timing and expected benefits of AMD products
Slide 3: Our Journey
3 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 OUR JOURNEY Best-in-Class Growth Franchise Disruptive Solutions Combining CPUs and GPUs High-Performance Computing Leadership Strong and Predictable Execution
Slide 4: Our Leadership Technology
4 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 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-LEADI
Slide 5: Our Best Ever Product Portfolio
5 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 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 Leade
Slide 6: Financial Accomplishments FY 2020
6 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 FINANCIAL ACCOMPLISHMENTS FY 2020 ▪ Record revenue of $9.76 billion, up 45% from 2019 ▪ Gross margin of 45% increased for the 5th straight year ▪ Net Income and EPS more than doubled from prior year • Operating income of $1.37 bi
Slide 7: Quarterly Summary Q4 2020
7 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 1. See Appendices for GAAP to Non-GAAP reconciliation QUARTERLY SUMMARY Q4 2020¹ ▪ Record revenue of $3.24 billion, up 53% y/y and 16% q/q ▪ Gross margin of 45%, flat y/y and up 1 percentage point q/q ▪ OpEx of $881 million; Non-
Slide 8: Tax Updates and Information Q4 2020 and FY 2021
8 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 ▪ In Q4 2020, AMD released $1.3 billion of its $2.9 billion income tax valuation allowance. The release was driven by AMD’s strong financial results and outlook ▪ The valuation allowance release had a $1.3 billion benefit to Net
Slide 9: Computing and Graphics Segment Q4 2020
9 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 COMPUTING AND GRAPHICS SEGMENT Q4 2020 ▪ Revenue of $1.96 billion ‒ Up 18% y/y and q/q primarily driven by strong sales of Ryzen™ processors ▪ Average Selling Price (ASP) ‒ Client processor ASP was lower y/y due to a higher mix o
Slide 10: Enterprise, Embedded and Semi-Custom Segment Q4 2020
10 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 ENTERPRISE, EMBEDDED AND SEMI-CUSTOM SEGMENT Q4 2020 ▪ Revenue of $1.28 billion ‒ Up 176% y/y and 13% q/q driven by higher semi-custom and EPYC™ processor sales ‒ Record quarterly Server revenue as both Cloud and Enterprise sale
Slide 11: Revenue Trend
11 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 $1,272 $1,531 $1,801 $2,127 $1,786 $1,932 $2,801 $3,244 1000 1500 2000 2500 3000 3500 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 +53% y/y REVENUE TREND ($ IN MILLIONS) SIGNIFICANT Y/Y REVENUE GROWTH
Slide 12: Gross Margin Trend
12 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 41% 41% 43% 45% 46% 44% 44% 45% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 +1pp q/q GROSS MARGIN TREND (GAAP AND NON-GAAP)¹ 1. See Appendices for GAAP to Non-GAAP reconciliation CONTINUED MARGIN EXPANSION
Slide 13: Earnings Per Share Trend (GAAP)
13 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 $0.01 $0.03 $0.11 $0.15 $0.14 $0.13 $0.32 $0.39 $1.06 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 A x is T it le (GAAP) $1.45 1 EARNINGS PER SHARE TREND SIGNIFICANT EPS GROWTH Y/Y AND Q/Q 1. In Q4 2020, AMD released $1.3 bil
Slide 14: Earnings Per Share Trend (Non-GAAP)
14 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 $0.06 $0.08 $0.18 $0.32 $0.18 $0.18 $0.41 $0.52 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 +$0.20 y/y EARNINGS PER SHARE TREND (NON-GAAP)¹ 1. See Appendices for GAAP to Non-GAAP reconciliation SIGNIFICANT EPS GROWTH Y/Y AND
Slide 15: FY 2020 Summary P&L - GAAP
15 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 2020 2019 Y/Y Revenue $9,763M $6,731M Up 45% Gross Profit $4,347M $2,868M Up 52% Gross Margin % 45% 43% Up 2pp Operating Expenses $2,978M $2,297M Up 30% Operating Expenses/Revenue % 31% 34% Down 3pp Operating Income $1,369M $631
Slide 16: FY 2020 Summary P&L - Non-GAAP
16 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 2020 2019 Y/Y Revenue $9,763M $6,731M Up 45% Gross Profit $4,353M $2,874M Up 51% Gross Margin % 45% 43% Up 2pp Operating Expenses $2,696M $2,094M Up 29% Operating Expenses/Revenue % 28% 31% Down 3pp Operating Income $1,657M $840
Slide 17: Q4 2020 Summary P&L - GAAP
17 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 Q4'20 Q4'19 Y/Y Q3'20 Q/Q Revenue $3,244M $2,127M Up 53% $2,801M Up 16% Gross Profit $1,451M $949M Up 53% $1,230M Up 18% Gross Margin % 45% 45% Flat 44% Up 1pp Operating Expenses $881M $601M Up 47% $781M Up 13% Operating Expense
Slide 18: Q4 2020 Summary P&L - Non-GAAP
18 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 Q4'20 Q4'19 Y/Y Q3'20 Q/Q Revenue $3,244M $2,127M Up 53% $2,801M Up 16% Gross Profit $1,452M $950M Up 53% $1,231M Up 18% Gross Margin % 45% 45% Flat 44% Up 1pp Operating Expenses $789M $545M Up 45% $706M Up 12% Operating Expense
Slide 19: Q4 and FY 2020 Segment Results
19 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 Q4 AND FY 2020 SEGMENT RESULTS Q4'20 Q4'19 Y/Y Q3'20 Q/Q 2020 2019 Y/Y Computing and Graphics Net Revenue $1,960M $1,662M Up 18% $1,667M Up 18% $6,432M $4,709M Up 37% Operating Income $420M $360M Up 17% $384M Up 9% $1,266M $577M
Slide 20: Strong Balance Sheet
20 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 Q4 AND FY 2020 SUMMARY BALANCE SHEET ITEMS Q4'20 Q4'19 Y/Y Q3'20 Q/Q Cash, Cash Equivalents and Short-term Investments $2,290M $1,503M Up $787M $1,771M Up $519M Accounts Receivable, Net $2,066M $1,859M Up $207M $2,134M Down $68M
Slide 21: Outlook
21 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 1. See Cautionary Statement on Slide 2. These forward-looking outlook statements and non-GAAP measures are based on current expectations as of January 26, 2021 and assumptions and beliefs that involve numerous risks and uncertai
Slide 22: Q4 2020 Summary
22 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 Q4 2020 SUMMARY Profitability & EPS Grew Significantly Y/Y and Q/Q Growth Driven by Ryzen, EPYC and Semi-Custom Record Quarterly Revenue Up 53% Y/Y, 16% Q/Q Record Quarterly Free Cash Flow
Slide 23: FY 2020 Summary
23 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 FY 2020 SUMMARY Net Income and EPS More Than Doubled Announced the proposed acquisition of Xilinx Record Annual Revenue Up 45% Y/Y Gross Margin Expanded to 45% up 190 bps Y/Y
Slide 24: Building the Best
24 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 BUILDING THE BEST Strong Shareholder Returns Execution Excellence Leadership Roadmaps Sustained Market Share Gains
Slide 25: Appendices: Reconciliation of GAAP to Non-GAAP Gross Profit
25 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Millions) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 2019 2020 GAAP gross profit $ 521 $ 621 $ 777 $ 949 $ 818 $ 848 $ 1,230 $ 1,451 $ 2,868 $ 4,3
Slide 26: Reconciliation of GAAP to Non-GAAP Operating Income
26 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 APPENDICES Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Millions) Q4'20 Q4'19 Q3'20 2020 2019 GAAP operating income $ 570 $ 348 $ 449 $ 1,369 $ 631 GAAP operating margin % 18% 16% 16% 14% 9% Stock-based
Slide 27: Reconciliation of GAAP to Non-GAAP Net Income / EPS
27 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share (1) Q1’19, Q2’19 and Q3’19 GAAP diluted EPS calculation did not include shares related to the assumed conversion of the Company's 2026 Convertible Not
Slide 28: Reconciliation of GAAP to Non-GAAP Net Income / EPS
28 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share (1) FY’20 GAAP diluted EPS calculation includes 3 million shares related to the assumed conversion of the Company's 2026 Convertible Notes and the ass
Slide 29: Share Count Overview
29 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 APPENDICES Share Count Overview Shares (millions) (1) Q1’20 Q2’20 Q3’20 Q4'20 2020 Q1’21 2021 Actual Actual Actual Actual Actual Estimate Estimate Basic Shares 1,170 1,174 1,184 1,205 1,184 1,213 1,217 Dilutive impacts from: Emp
Slide 30: Total Debt (Net) and Free Cash Flow Reconciliation
30 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 2021 APPENDICES Total Debt (Net) (Millions) Q4'20 Q4'19 Q3'20 7.50% Senior Notes due 2022 $ 312 $ 312 $ 312 2.125% Convertible Senior Notes due 2026 26 251 86 Total Debt (principal amount) $ 338 $ 563 $ 398 Unamortized debt discount
Slide 31: Endnotes
31 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 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.
Slide 32: Disclaimers and Attributions
32 FOURTH QUARTER & FULL YEAR 2020 FINANCIAL RESULTS | JANUARY 26, 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
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