Penguin Solutions, Inc. · NASDAQ:PENG

Penguin Solutions — Q1 2025 Earnings Presentation

25 slides from Penguin Solutions's earnings presentation, Jan 8, 2025

Slide 1: First Quarter FY25 Financial Results
First Quarter FY25 Financial Results Nasdaq: PENG January 8, 2025
Slide 2: Disclaimer
Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking Any forward-looking statements that we make in this presentation speak only as of the date of this presentation. Except statements within the meaning of Section 27A of the Sec
Slide 4: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights Revenue Gross Margin EPS Balance Sheet Revenue of $341M, up 24% vs. Non-GAAP gross margin Non-GAAP Diluted EPS of Strong balance sheet with Q1 FY24; fourth consecutive of 30.8%; down vs. year-ago $0.49; up 108% vs. year-ago cash, cash equivalents quarter of sequential qu
Slide 6: Advanced Computing
Advanced Computing Revenue of $177M; up 49% vs. year-ago quarter • 52% of total company revenue Continuing to expand customer engagements • Across end markets such as hyper-scalers, cloud service providers, financial, energy, federal integrators, media/entertainment, and education Seeing market shif
Slide 7: Integrated Memory
Integrated Memory Revenue of $97M; up 13% vs. year-ago quarter • 28% of total company revenue Growth from new and existing customers across a range of end markets • Networking, telecom, servers, defense, hyper-scalers, cloud service providers, and large enterprises interested in CXL and higher relia
Slide 8: Optimized LED
Optimized LED Revenue of $67M; down 4% vs. year-ago quarter • 20% of total company revenue • Operating margins improved vs. year-ago quarter Entered into patent license agreement with Daktronics • A US-based leader in large-scale LED displays New design win activity with larger LED lighting customer
Slide 10: Our Strategic Priorities
Our Strategic Priorities Innovate relentlessly on Expand our software and Partner for growth and differentiated technology services offerings global expansion © 2025 Penguin Solutions, Inc. All rights reserved | 10
Slide 11: Driving Innovation
Driving Innovation • Expanding our OriginAI offerings to include Dell servers - helping to expand our customer TAM • Working with leaders such as Nvidia, AMD, Intel, and early-stage semiconductor companies - ensuring availability of and support for cutting- edge technologies as part of our data cent
Slide 12: Expanding Software and Services
Expanding Software and Services • New release of advanced cluster management software expected to simplify deployment and accelerate adoption • Initial work on multi-tenant capabilities to enable a single AI platform or service to be shared by multiple users or organizations, while maintaining data
Slide 13: Partnering to Accelerate Growth
Partnering to Accelerate Growth • SK Telecom • Investment closed in December • Increases our financial flexibility and strengthens our balance sheet • Future potential collaborations to differentiate offerings and drive growth: − Advanced computing with next-gen GPU offerings − High-performance memo
Slide 15: Non-GAAP Q1 FY25 Results
Non-GAAP Q1 FY25 Results Revenue Non-GAAP Non-GAAP Non-GAAP Diluted Gross Margin Operating Margin EPS $341M 30.8% 12.0% $0.49 Non-GAAP Gross Margin and Non-GAAP Diluted EPS are non-GAAP measures. For reconciliations to the most directly comparable financial measures prepared in accordance with GAAP,
Slide 16: Q1 FY25 Revenue Detail
Q1 FY25 Revenue Detail Revenue Breakdown – Total $341M Product Revenue $270M Integrated Memory 28% Revenue Mix Advanced Computing by Business 52% Services Revenue $71M Optimized LED 20% © 2025 Penguin Solutions, Inc. All rights reserved | 16
Slide 17: Q1 FY25 Non-GAAP Operating Results
Q1 FY25 Non-GAAP Operating Results 1 ($M) Q1 FY25 Q4 FY24 Q1 FY24 Revenue $341 $311 $274 Advanced Computing $177 $149 $119 Integrated Memory $97 $96 $86 Optimized LED $67 $66 $70 Non-GAAP gross profit2 $105 $96 $91 Non-GAAP operating expenses2 $64 $62 $65 Non-GAAP operating income2 $41 $34 $27 Non-G
Slide 18: Q1 FY25 Balance Sheet and Cash Flow Highlights
Q1 FY25 Balance Sheet and Cash Flow Highlights ($M) Q1 2025 Q4 2024 Q1 2024 Working Capital Net Accounts Receivable $276 $252 $171 Days Sales Outstanding 45 days 49 days 41 days Inventory $247 $151 $208 Days of Inventory 49 days 36 days 63 days Accounts Payable $244 $182 $182 Days Payable Outstandin
Slide 20: FY 2025 Outlook
FY 2025 Outlook GAAP Outlook Adjustments Non-GAAP Outlook Net Sales 15% YoY Growth +/- 5% — 15% YoY Growth +/- 5% Gross margin 30% +/- 1% 2% (A) 32% +/- 1% Operating expenses $335 million +/- $15 million $(60) million (B)(C) $275 million +/- $10 million Diluted earnings per share $0.10 +/- $0.20 $1.

Penguin Solutions — Q1 2025 Earnings Presentation on 6ix

Penguin Solutions — Q1 2025 Earnings Presentation

Slide 1: First Quarter FY25 Financial Results

Slide 2: Disclaimer

Slide 3: Speakers

Slide 4: Q1 FY25 Financial Highlights

Slide 5: Business Review

Slide 6: Advanced Computing

Slide 7: Integrated Memory

Slide 8: Optimized LED

Slide 9: Strategic Priorities

Slide 10: Our Strategic Priorities

Slide 11: Driving Innovation

Slide 12: Expanding Software and Services

Slide 13: Partnering to Accelerate Growth

Slide 14: Financial Review

Slide 15: Non-GAAP Q1 FY25 Results

Slide 16: Q1 FY25 Revenue Detail

Slide 17: Q1 FY25 Non-GAAP Operating Results

Slide 18: Q1 FY25 Balance Sheet and Cash Flow Highlights

Slide 19: Our Outlook

Slide 20: FY 2025 Outlook

Slide 21: Solving Complexity. Accelerating Results.

Slide 22: GAAP to Non-GAAP Reconciliations

Slide 23: GAAP to Non-GAAP Reconciliations

Slide 24: GAAP to Non-GAAP Reconciliations

Slide 25: GAAP to Non-GAAP Reconciliations