Slide 1: Fiscal Q4 2022 Results
FISCAL Q4 2022 RESULTS August 9, 2022 Better Faster Greener™ © 2022 Supermicro
Slide 2: Disclosures
DISCLOSURES Cautionary Statement Regarding Forward Looking Statements Statements contained in this presentation that are not historical fact may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such
Slide 3: CEO Takeaways
CEO TAKEAWAYS Record Revenue • Q4 FY22 revenue: $1.64B, +53% YoY and +21% QoQ growth • FY22 revenue: $5.2B, +46% YoY growth • Favorable product mix with increased shipments of rack scale Total IT Solutions • Strength in leading edge vertical solutions and OEM/Appliance & Large DC segments • Increase
Slide 4: Transforming to Total IT Solutions
TRANSFORMING TO TOTAL IT SOLUTIONS ▪ 5S: Software, SMCI 3.0 Total IT Services, Switch, Solutions Storage, Security SMCI 2.0 Servers & and more SMCI 1.0 Components & Storage Systems ▪ Total Solutions Subsystems Enterprise, OEM – Appliance / Cloud ▪ Complete Systems ▪ Sub-systems and Components 1993 T
Slide 5: Enabling Total IT Solutions
ENABLING TOTAL IT SOLUTIONS Value of Supermicro Total IT Solutions ✓ Rack-scale Plug & Play (L10, L11, L12) w/ Building Block Solutions ✓ Optimized compute, storage, software & service ✓ Lowest TCO w/ free-air & liquid cooling technologies ✓ Single vendor solution: direct engineering resource ✓ Capa
Slide 6: Green Computing for the Planet
GREEN COMPUTING FOR THE PLANET • Green Computing (Reduces Industry PUE ~ 50%) • Average Data Center PUE is ~1.57 • Adopting Free Air cooling → 1.06, Liquid→1.05 • >$10B TCO Savings across industry Intel® Case Study • >8B Trees Saved 500,000+ Supermicro Resource-Saving Blade Servers: $20M in operatin
Slide 7: Campus Expansion Update
CAMPUS EXPANSION UPDATE • Increase manufacturing capacity to match growth trend • Manage and lower cost with optimal operations arrangement • Taiwan Building 62: 2X-3X APAC capacity in FY22 • US Building 23 (Command Center, B2B/C, and Cloud Service) • US 2nd Campus and Global 3rd Campus under consid
Slide 8: Q4 FY2022 Highlights
Q4 FY2022 HIGHLIGHTS Server and Storage Systems Revenue +77% YoY Q4 QoQ YoY Revenue $1,636M +21% +53% Gross Margin (non-GAAP) 17.6% +200bps +390bps Earnings Per Share (non-GAAP) $2.62 +$1.07 +$1.81 Cash Flow from Operations -$25M +$203M -$89M Mix Server and Storage Systems $1,483M (91%) +29% +77% Su
Slide 9: Revenue
REVENUE • Q4FY22 revenue of $1,636M 1,636 • Exceeded guidance: $1,400M to $1,480M 1,355 Guidance: $1,400M - $1,480M • +53% YoY, +21% QoQ 1,172 Revenue Mix By Geography 1,069 1,033 3% 17% Million $ 14% 66% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 USA Europe Asia Other 9 Better Faster Greener™ © 2022 Superm
Slide 10: Revenue Mix
REVENUE MIX Server and Storage Systems & Subsystems Vertical Markets 9% 3% 6% 6% 5% 18% 16% 15% 12% 22% 34% 24% 24% 32% 44% 91% 82% 84% 85% 78% 70% 63% 64% 62% 51% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Subsystems & Accessories 5G,Telco & Edge/IOT Server and Storage Sy
Slide 11: Non-GAAP Gross Margin
NON-GAAP GROSS MARGIN 17.6% 15.6% 13.7% 13.4% 14.0% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 • +200bps QoQ, +390bps YoY • Higher revenues and better product/customer mix with more rack-scale Total IT Solutions • Freight and supply chain costs down QoQ A reconciliation of GAAP to non-GAAP measures can be f
Slide 12: Non-GAAP Operating Expenses & Margins
NON-GAAP OPERATING EXPENSES & MARGINS Operating Expenses Operating Margins 10.7% 110 114 101 103 99 7.5% Million $ 5.2% 4.4% 3.7% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 • Operating Margins improved with scale • Sound expense discipline despite increased headcount A rec
Slide 13: Non-GAAP EPS
NON-GAAP EPS $2.62 $1.55 Guidance: $1.51-$1.69 $0.81 $0.88 $0.58 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 • Q4FY22 Non-GAAP EPS of $2.62 • Exceeds prior guidance range: $1.51 to $1.69 • Good operating leverage as new design wins ramp production, and favorable customer/product mix A reconciliation of GAAP
Slide 14: Cash Flow & Net Cash
CASH FLOW & NET CASH Cash Flow From Operations Net Cash 134 64 Million $ Million $ Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 -25 -53 -9 -69 -135 -300 -329 -228 • Q4 Operating Cash Flow -$25M, Free Cash Flow -$36M • Total Cash $267M, Total Debt $597M • Improving cash flow
Slide 15: Revenue & EPS Outlook
REVENUE & EPS OUTLOOK REVENUE EPS Q1 FY2023* $1.52B to $1.62B NON-GAAP: $2.07 to $2.32 GAAP: $2.01 to $2.27 Full Year FY2023** $6.2B to $7.0B NON-GAAP: At least $7.50 GAAP: At least $7.27 *The outlook for Q1 of fiscal year 2023 GAAP diluted net income per common share includes approximately $8.6 mil
Slide 16: Appendix
APPENDIX 16 Better Faster Greener™ © 2022 Supermicro
Slide 17: GAAP to Non-GAAP Reconciliation (1 of 2)
GAAP TO NON-GAAP RECONCILIATION (1 OF 2) Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 FY21 FY22 In Thousands (except per share amounts) Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-21 Jun-22 Consolidated Statement of Operations Net Sales $ 1,068,985 $ 1,032,730 $ 1,172,419 $ 1,355,490 $ 1,635,460 3,557,422 5,196,099 GAA
Slide 18: GAAP to Non-GAAP Reconciliation (2 of 2)
GAAP TO NON-GAAP RECONCILIATION (2 OF 2) Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 FY21 FY22 In Thousands (except per share amounts) Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-21 Jun-22 GAAP INCOME FROM OPERATIONS $ 39,081 $ 29,128 $ 51,049 $ 89,777 $ 165,213 123,947 $ 335,167 Stock-based compensation 7,432 7,015 9