Slide 1: AMD Financial Results Fourth Quarter and Full Year 2023
AMD FINANCIAL RESULTS Fourth Quarter and Full Year 2023 January 30, 2024
Slide 2: Cautionary Statement
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202422 CAUTIONARY STATEMENT 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; AMD bei
Slide 3: Our Journey
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202433 Expanding Customer & Partner Ecosystem Data Center and AI Growth Strong Financial Foundation Leadership Product Portfolio OUR JOURNEY
Slide 4: Our Leadership Technology
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202444 OUR LEADERSHIP TECHNOLOGY Software Enablement Open-source software optimized for performance across heterogenous solutions Data Center Leadership Delivering innovation in AI, cloud, enterprise and accelerated computing Advanced Technology
Slide 5: Our Leadership Products
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202455 OUR LEADERSHIP PRODUCTS Embedded Leadership FPGAs, Adaptive SoCs and SoMs, and embedded CPUs and GPUs for a broad set of markets Gaming Top-to-bottom desktop and notebook GPUs, game console and semi-custom SoCs Client Powerful and efficien
Slide 6: AMD Is Uniquely Positioned in AI
AMD IS UNIQUELY POSITIONED IN AI ADVANCING END-TO-END AI INFRASTRUCTURE 6 AMD Instinct™ MI300X Accelerators Leadership accelerator for generative AI, LLMs and inferencing AMD Instinct MI300 Accelerators 4th Gen AMD EPYC™ Processors Broad ecosystem of OEM and solution partners Cloud Enterprise Embedd
Slide 7: Leadership Data Center Accelerators
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 2024 AI Software Ecosystem and InnovatorsROCm™ 6 Open Software Ecosystem for AI and HPC Broad AI Solutions Ecosystem MI300X AMD Instinct™ In Volume Production Powering LLNL El Capitan MI300A AMD Instinct™ In Volume Production LEADERSHIP DATA CENT
Slide 8: Revenue FY 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20248 REVENUE FY 2023 ▪ Revenue of $22.7 billion decreased 4% y/y ▪ Growth in Embedded and Data Center segment revenue was more than offset by lower Client and Gaming segment revenue $23.6B $22.7B FY 2022 FY 2023
Slide 9: Revenue Q4 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20249 REVENUE Q4 2023 ▪ Revenue of $6.2 billion increased 10% y/y ▪ Growth in Data Center and Client segment revenue was partially offset by lower Embedded and Gaming segment revenue $5.6B $6.2B Q4 2022 Q4 2023
Slide 10: Gross Margin FY 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202410 GROSS MARGIN FY 2023 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Non-GAAP gross margin decrease primarily due to lower Client segment revenue and product mix, partially offset by higher Embedded segment revenue Non-GAAP1 45% 46
Slide 11: Gross Margin Q4 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202411 GROSS MARGIN Q4 2023 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Non-GAAP gross margin flat with higher revenue contribution from Data Center and Client segments offset by lower Embedded segment revenue Non-GAAP1 43% 47% Q4 202
Slide 12: Operating Income FY 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202412 FY 2022 FY 2023 $1.3B $0.4B OPERATING INCOME FY 2023 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 $6.3B $4.9B FY 2022 FY 2023 ▪ GAAP operating income decreased y/y primarily due to lower Client segment performance,
Slide 13: Operating Income (Loss) Q4 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202413 Q4 2022 Q4 2023 $(0.1)B $0.3B OPERATING INCOME (LOSS) Q4 2023 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 $1.3B $1.4B Q4 2022 Q4 2023 ▪ GAAP operating income driven by higher Data Center and Client segment revenue
Slide 14: Earnings Per Share FY 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202414 $3.50 $2.65 FY 2022 FY 2023 EARNINGS PER SHARE 1 FY 2023 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP ▪ GAAP net income of $854 million, down 35% y/y ▪ GAAP EPS
Slide 15: Earnings Per Share Q4 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202415 $0.69 $0.77 Q4 2022 Q4 2023 EARNINGS PER SHARE 1 Q4 2023 1. Earnings Per Share (EPS) = Diluted earnings per share; see Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP ▪ GAAP net income of $667 million ▪ GAAP EPS of $0.41 drive
Slide 16: FY 2023 Summary P&L | GAAP
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202416 ($ in millions, except per share data) 2023 2022 Y/Y Revenue $22,680 $23,601 Down 4% Gross Profit $10,460 $10,603 Down 1% Gross Margin 46% 45% Up 1 ppt Operating Expenses $10,093 $9,441 Up 7% Operating Expense/Revenue % 45% 40% Up 5 ppts O
Slide 17: FY 2023 Summary P&L | Non-GAAP
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202417 ($ in millions, except per share data) 2023 2022 Y/Y Revenue $22,680 $23,601 Down 4% Gross Profit $11,436 $12,273 Down 7% Gross Margin 50% 52% Down 2 ppts Operating Expenses $6,616 $6,030 Up 10% Operating Expense/Revenue % 29% 26% Up 3 ppt
Slide 18: Q4 2023 Summary P&L | GAAP
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202418 ($ in millions, except per share data) Q4’23 Q4’22 Y/Y Q3’23 Q/Q Revenue $6,168 $5,599 Up 10% $5,800 Up 6% Gross Profit $2,911 $2,403 Up 21% $2,747 Up 6% Gross Margin 47% 43% Up 4 ppts 47% Flat Operating Expenses $2,575 $2,557 Flat $2,533
Slide 19: Q4 2023 Summary P&L | Non-GAAP
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202419 ($ in millions, except per share data) Q4’23 Q4’22 Y/Y Q3’23 Q/Q Revenue $6,168 $5,599 Up 10% $5,800 Up 6% Gross Profit $3,133 $2,859 Up 10% $2,963 Up 6% Gross Margin 51% 51% Flat 51% Flat Operating Expenses $1,727 $1,602 Up 8% $1,697 Up 2
Slide 20: Revenue
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202420 $5.6 $5.4 $5.4 $5.8 $6.2 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 REVENUE ($ in Billions)
Slide 21: Gross Margin (GAAP)
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202421 43% 44% 46% 47% 47% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GROSS MARGIN (GAAP)
Slide 22: Gross Margin (Non-GAAP)
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202422 51% 50% 50% 51% 51% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GROSS MARGIN (Non-GAAP)1 1. See Appendices for GAAP to Non-GAAP reconciliation.
Slide 23: Earnings (Loss) Per Share (GAAP)
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202423 $0.01 $(0.09) $0.02 $0.18 $0.41 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 EARNINGS (LOSS) PER SHARE 1 (GAAP) 1. Earnings Per Share (EPS) = Diluted earnings per share except for Q1’23 for which basic shares were used
Slide 24: Earnings Per Share (Non-GAAP)
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202424 $0.69 $0.60 $0.58 $0.70 $0.77 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 EARNINGS PER SHARE (Non-GAAP)1 1. See Appendices for GAAP to Non-GAAP reconciliation; Earnings Per Share (EPS) = Diluted earnings per share
Slide 25: Q4 2023 Summary Balance Sheet Items
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202425 Q4 2023 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q4’23 Q3’23 Q/Q Cash, Cash Equivalents and Short-term Investments $5,773 $5,785 Flat Accounts Receivable, Net $5,376 $5,054 Up 6% Inventories $4,351 $4,445 Down 2% Total Debt $2,468 $2,46
Slide 26: FY 2023 Segment Results
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202426 FY 2023 SEGMENT RESULTS ($ in millions) 2023 2022 Y/Y Data Center Net Revenue $6,496 $6,043 Up 7% Operating Income $1,267 $1,848 Down 31% Client Net Revenue $4,651 $6,201 Down 25% Operating Income (Loss) ($46) $1,190 Down 104% Gaming Net R
Slide 27: Q4 2023 Segment Results
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202427 Q4 2023 SEGMENT RESULTS ($ in millions) Q4’23 Q4’22 Y/Y Q3’23 Q/Q Data Center Net Revenue $2,282 $1,655 Up 38% $1,598 Up 43% Operating Income $666 $444 Up 50% $306 Up 118% Client Net Revenue $1,461 $903 Up 62% $1,453 Flat Operating Income
Slide 28: Data Center Segment Q4 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202428 DATA CENTER SEGMENT Q4 2023 ▪ Announced availability of AMD Instinct MI300X GPU with leadership generative AI performance and AMD Instinct MI300A APU for HPC ▪ Microsoft, Meta, Oracle, and other cloud providers announced MI300X deployments
Slide 29: Client Segment Q4 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202429 CLIENT SEGMENT Q4 2023 ▪ Announced Ryzen 8040 Series mobile processors with an AI NPU delivering up to 60% more AI performance than Ryzen 7040 ▪ Millions of Ryzen AI-enabled PCs have shipped from all the leading PC OEMs with Ryzen CPUs now
Slide 30: Gaming Segment Q4 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202430 16% 16% Q4 2022 Q4 2023 GAMING SEGMENT Q4 2023 ▪ Introduced Radeon RX 7600 XT GPU, a high-performance graphics card for immersive 1080P gaming experiences ▪ Launched new open source FidelityFX Super Resolution 3 software that delivers sign
Slide 31: Embedded Segment Q4 2023
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202431 EMBEDDED SEGMENT Q4 2023 ▪ Launched Versal Prime Adaptive SoCs with industry-first support for DDR5 memory and increased DSP capability compared to prior generation ▪ Launched new Versal SoC solutions bringing industry-leading AI compute c
Slide 32: Financial Outlook – Non-GAAP
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202432 ($ in millions) Q1’24 Revenue ~$5.4 Billion, +/- $300 Million Gross Margin ~52% Operating Expenses ~$1.73 Billion Effective Tax Rate ~13% of pre-tax income Diluted Share Count² ~1.63 Billion shares FINANCIAL OUTLOOK – NON-GAAP1 1. 1. See C
Slide 33: FY 2023 Summary
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 2024333 Data Center Segment Revenue Up 7% y/y, Embedded Up 17% y/y Gross Margin 46% Non-GAAP Gross Margin 50% EPS $0.53 Non-GAAP EPS $2.65 Revenue $22.7B Down 4% y/y FY 2023 SUMMARY 1 RECORD 2023 DATA CENTER AND EMBEDDED SEGMENT REVENUE 1. See Ap
Slide 34: Q4 2023 Summary
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20243434 Data Center Segment Revenue $2.3B Up 38% y/y Gross Margin 47% Non-GAAP Gross Margin 51% EPS $0.41 Non-GAAP EPS $0.77 Revenue $6.2B Up 10% y/y Q4 2023 SUMMARY 1 LAUNCHED AMD INSTINCT GPUS POSITIONED FOR STRONG 2024 RAMP IN THE AI MARKET 1
Slide 35: AMD Commitment to ESG
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20243535 AMD COMMITMENT TO ESG Governance Integrating corporate responsibility and governance across product design, supply chain, operations and external engagement Social Fostering a culture of diversity, belonging and inclusion, partnering wit
Slide 36: Our Momentum Driving Long-Term Shareholder Returns
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 20243636 Large and Compelling TAM World-Class Execution and Focus Technology Leadership Expanding Data Center and AI Leadership Strong Balance Sheet OUR MOMENTUM DRIVING LONG-TERM SHAREHOLDER RETURNS
Slide 37: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202437 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN (Millions) (Unaudited) Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2023 2022 GAAP gross profit $ 2,403 $ 2,359 $ 2,443 $ 2,747 $ 2,911 $ 10,460 $ 10,603 GAAP gross margin 43% 44% 46% 47% 4
Slide 38: Reconciliation of GAAP Operating Income to Non-GAAP
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202438 APPENDICES RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (Millions) (Unaudited) Q4’23 Q4’22 Q3’23 2023 2022 GAAP operating income (loss) $ 342 $ (149) $ 224 $ 401 $ 1,264 GAAP operating margin 6% (3%) 4% 2% 5%
Slide 39: Reconciliation of GAAP to Non-GAAP Net Income and EPS
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202439 RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) / EARNINGS (LOSS) PER SHARE(2) (1) Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, c
Slide 40: Share Count Overview
Q4 AND FULL YEAR 2023 FINANCIAL RESULTS – JANUARY 30, 202440 Shares (millions) (1) Q4’23 Q1’24 Actual Estimate Basic shares 1,616 1,617 Dilutive impact from employee equity grants (2) 12 14 Diluted shares 1,628 1,631 APPENDICES SHARE COUNT OVERVIEW The table above provides actual share count for Q4’
Slide 41: Together We Advance
AMD«¢l together we advance_