Slide 1: Second Quarter Fiscal 2023 Earnings
Second Quarter Fiscal 2023 Earnings May 3, 2023
Slide 2: Note Regarding Forward-Looking Statements
Note Regarding Forward-Looking Statements In addition to historical information, this document and the conference call that it accompanies contain forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to: statements regarding our growth opportun
Slide 3: Q2FY23 Highlights
Q2FY23 Highlights 3
Slide 4: Second Quarter Fiscal 2023 Results
Second Quarter Fiscal 2023 Results Revenues Exceeded Midpoint of Guidance Range (1) Revenues GAAP EPS(2) Non-GAAP(3) EPS $9.3B $1.52 $2.15 QCT QTL Other Revenues of EBT(4) of Revenues of Returned Increased $7.9B annualized dividend $2.1B $1.3B $1.7B payout to within guidance $3.20 ↑7% at high end of
Slide 5: Q2FY23 QCT Highlights
Revenues Q2FY23 QCT Highlights Handsets • Snapdragon® 8 Gen 2 Mobile Platform is the standard for Android flagship devices $6.1B globally, with launches across leading OEMs, including Samsung, Xiaomi, Vivo, Oppo, OnePlus, Honor, Motorola, ASUS and ZTE. YoY Growth in Auto • Partnering with Mercedes-B
Slide 6: Financial Results and Guidance
Financial Results and Guidance As of May 3, 2023 Quarterly Results and Guidance Q2FY23 Guidance(1) Q2FY23 Results Q3FY23 Guidance(2) Revenues $8.7B - $9.5B $9.3B $8.1B - $8.9B Non-GAAP diluted EPS $2.05 - $2.25 $2.15 $1.70 - $1.90 Non-GAAP operating expenses(3) ~$2.25B $2.17B ~Flat GAAP interest and
Slide 7: Q2FY23 Non-GAAP Results
Q2FY23 Non-GAAP Revenues EBT EPS Results -17% -33% -33% In-line with prior expectations(1) $11.2B $9.3B $4.3B $3.21 $2.9B $2.15 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 1.) As of February 2, 2023. 7
Slide 8: Q2FY23 Segment Results
Q2FY23 QCT QTL Segment Results Revenues EBT Revenues EBT Results impacted by -17% -37% -18% -25% broader macroeconomic environment and $9.5B elevated channel $7.9B inventory $1.6B $3.3B $1.3B $1.2B $2.1B $0.9B Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 8
Slide 9: Q2FY23 QCT Revenue Streams
Q2FY23 QCT Revenue Handsets Automotive IoT Streams -17% +20% -24% $7.3B $6.1B $1.8B $1.4B $447M $371M Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Note: Beginning in the first quarter of fiscal 2023, QCT RFFE (radio frequency front-end) revenues, which were previously presented as a separate revenue st
Slide 10: Key Announcements
Key Announcements 10
Slide 11: QCT 5G Modem-RF Product Leadership: World's First 5G Advanced-Ready Modem-RF System
Key Announcement QCT 5G Modem-RF Product Leadership: World’s First 5G Advanced-Ready Modem-RF System • Qualcomm Sparks the Next Phase of 5G With the World’s First 5G Advanced-Ready Modem-RF System – link 1st 5G Advanced-ready 1st Tensor accelerator for 5G, 1st Converged mmWave-sub6 architecture 2.5X
Slide 12: QCT AI Leadership: Industry-leading on-device AI performance
Key Announcement QCT AI Leadership: Industry-leading on-device AI performance • World’s First On-Device Demonstration of Stable Diffusion on an Android Phone – link 1B+ parameter generative AI model runs efficiently and interactively on the Android smartphone Enhanced privacy, security, reliability,
Slide 13: QCT Handsets: Snapdragon 7+ Gen 2 Mobile Platform
Key Announcement QCT Handsets: Our most powerful Snapdragon® 7-Series ever – the brand-new Snapdragon 7+ Gen 2 Mobile Platform • Qualcomm Unveils Game-Changing Snapdragon 7-Series Mobile Platform to Bring Latest Premium Experiences to More Consumers – link Qualcomm® FastConnect™ Mobile Connectivity
Slide 14: QCT Automotive: Snapdragon Auto 5G Modem-RF Gen 2
Key Announcement QCT Automotive: Our most advanced automotive modem-RF system available – Snapdragon® Auto 5G Modem-RF Gen 2 • Qualcomm Raises the Bar for Connected Car Technologies with Next Generation Snapdragon Automotive 5G Platform – link • Snapdragon Auto 5G Modem-RF Gen 2 platform provides 50
Slide 15: QCT Industrial IoT: Qualcomm Aware
Key Announcement QCT Industrial IoT: Qualcomm Aware – Cloud-based IoT services platform to enable the digital transformation of industries • Qualcomm Expands Offering to Simplify and Accelerate IoT Across Multiple Industries – link • Drives innovation across edge devices and cloud by offering silico
Slide 16: QCT Industrial IoT: Integrated connected processors for IoT and Robotics
Key Announcement QCT Industrial IoT: Integrated connected processors for IoT and Robotics • Qualcomm Expands Connected Intelligent Edge Ecosystem Through Groundbreaking IoT and Robotics Products – link Global 5G and Wi-Fi 6E Integrated multi-mode 5G and support for Wi-Fi 6E, with a robust set of fea
Slide 17: Key Announcements
Key Announcements • Qualcomm and Samsung Partner to Bring the Fastest Snapdragon Ever to Galaxy S23 Series Globally – • Qualcomm Drives Proliferation of 5G Across Industries with Globally Certified Module Reference Designs link – link • Qualcomm Unveils AI Powered Video Conferencing Solution for Acc
Slide 18: Key Announcements
Key Announcements • Arrow Electronics and Qualcomm Collaborate to Accelerate Edge and AI Adoption – link • Qualcomm Expands Connected Intelligent Edge Ecosystem Through Groundbreaking IoT and Robotics Products – link • Qualcomm announces winners of Qualcomm® Design in India Challenge 2022 – link • Q
Slide 19: Financial Strength & Reconciliations
Financial Strength & Reconciliations 19
Slide 20: Financial Strength
Financial Strength March 26, 2023 March 27, 2022 Total cash, cash equivalents and marketable securities $6.7B $11.5B Total assets $48.4B $44.3B Stockholders' equity $19.7B $13.3B Debt(1) $16.0B $15.7B 20 1.) Includes short-term and long-term debt.
Slide 21: Note Regarding Use of Non-GAAP Financial Measures
Note Regarding Use of Non-GAAP Financial Measures The Non-GAAP financial measures presented herein should be considered in addition to, not as a substitute for or superior to, financial measures calculated in accordance with GAAP. In addition, “Non- GAAP” is not a term defined by GAAP, and as a resu
Slide 22: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Financial Measures Second Quarter Fiscal 2023 Results Less Share- GAAP Based Less Other Non-GAAP (in millions, except per share data) Results Less QSI Compensation Items(1) Results Revenues $9,275 $7 $— $— $9,268 EBT $1,895 ($53) ($629) ($280) $2,857 Net income (l
Slide 23: Business Outlook
Business Outlook Q2FY23 Q3FY23 Guidance(1) Guidance(2)(3) Revenues $8.7B - $9.5B $8.1B - $8.9B GAAP diluted EPS $1.53 - $1.73 $1.24 - $1.44 Less diluted EPS attributable to QSI $— $— Less diluted EPS attributable to share-based compensation ($0.46) ($0.45) Less diluted EPS attributable to other item
Slide 24: Operating Expenses and Effective Tax Rates
Operating Expenses Q4FY22 FY23 Target Q3FY23 (in millions, except percentages) Results(1) Reduction(1)(2) Q2FY23 Guidance(3) Q2FY23 Results Guidance(2) Decrease 1% GAAP combined R&D and SG&A expenses $2,862 ~Flat year-over-year $2,900 $2,824 sequentially Less QSI 3 N/P N/P 4 N/P Less share-based com