Slide 1: Third Quarter Fiscal 2023 Earnings
Third Quarter Fiscal 2023 Earnings August 2, 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: Q3FY23 Highlights
Q3FY23 Highlights 3
Slide 4: Third Quarter Fiscal 2023 Results
Third Quarter Fiscal 2023 Results EPS (1) Exceeded Midpoint of Guidance Range (2) GAAP Revenues GAAP EPS Non-GAAP(3) EPS $8.5B $1.60 $1.87 QCT QTL Other Revenues of EBT(4) of Revenues of Returned Sale of Veoneer’s $7.2B Active Safety business $1.7B $1.2B $1.3B to Magna was completed for within guida
Slide 5: Q3FY23 QCT Highlights
Revenues Q3FY23 QCT Highlights Handsets • Our Snapdragon® 8 Series Mobile Platforms continue to set the benchmark for premium $5.3B tier mobile experiences. Smartphones powered by our Snapdragon 8 Gen 2 represent the top devices according to AnTuTu benchmarks and Android Authority. YoY Growth in Aut
Slide 6: Q3FY23 Earnings Commentary
Q3FY23 Earnings • We continue to estimate that calendar 2023 handset units will be down at least a high single-digit percentage relative to calendar 2022, reflecting the macroeconomic environment and a slower recovery in China. Commentary Global • This forecast contemplates growth in handset units g
Slide 7: Financial Results and Guidance
Financial Results and Guidance As of August 2, 2023 Quarterly Results and Guidance Q3FY23 Guidance(1) Q3FY23 Results Q4FY23 Guidance(2) GAAP Revenues $8.1B - $8.9B $8.5B $8.1B - $8.9B Non-GAAP diluted EPS $1.70 - $1.90 $1.87 $1.80 - $2.00 Non-GAAP operating expenses(3) ~Flat ~Flat ($2.2B) ~Flat GAAP
Slide 8: Q3FY23 Non-GAAP Results
Q3FY23 Non-GAAP Revenues EBT EPS Results -23% -38% -37% $10.9B $8.4B $2.96 $3.9B $2.4B $1.87 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 8
Slide 9: Q3FY23 Segment Results
Q3FY23 QCT QTL Segment Revenues EBT Revenues EBT Results -24% -42% -19% -25% $9.4B $7.2B $1.5B $3.0B $1.2B $1.1B $1.7B $0.8B Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 9
Slide 10: Q3FY23 QCT Revenue Streams
Q3FY23 QCT Revenue Handsets Automotive IoT Streams -25% +13% -24% $7.0B $5.3B $1.9B $1.5B $385M $434M Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 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 11: Key Announcements
Key Announcements 11
Slide 12: QCT AI Leadership: Windows PC on-device AI: Stable Diffusion example
QCT AI Leadership: Key Announcement Windows PC on-device AI: Stable Diffusion example Collaborating with Microsoft to enable on-device generative AI productivity applications • Qualcomm and Microsoft Align Efforts to Scale On-Device AI at Build – link • On-device generative AI solutions allow develo
Slide 13: QCT AI Leadership: Llama 2 on Snapdragon-based OEM devices
QCT AI Leadership: Key Announcement Supporting generative AI models like Llama 2 to run on Snapdragon-based OEM devices • Qualcomm Works with Meta to Enable On-device AI Applications Using Llama 2 – link Key Advantages of On-device AI RELIABILITY & PERFORMANCE PERSONALIZATION No congested cloud serv
Slide 14: QCT Handsets: Extending Snapdragon 5G experiences to value tier smartphones
QCT Handsets: Key Announcement Extending Snapdragon 5G experiences to value tier smartphones • Qualcomm Delivers Unprecedented Accessibility to Mobile Experiences in the Value Tier with New Snapdragon® 4 Gen 2 Mobile Platform – link • The first 4nm platform in the 4-series, Snapdragon 4 Gen 2 is pac
Slide 15: QCT Edge Networking IoT: Ultra-low power connectivity for IoT devices
QCT Edge Networking IoT: Key Announcement Enabling ultra-low power connectivity for IoT devices across both cellular and satellite networks • Qualcomm Launches New Satellite IoT Solutions to Provide Uninterrupted Remote Monitoring and Asset Tracking – link • The new modems, launched in collaboration
Slide 16: QCT Industrial IoT: Immersive, connected virtual meeting experiences
QCT Industrial IoT: Key Announcement Transforming virtual meetings and meet-ups into immersive, connected experiences • Qualcomm Unveils Cutting-edge Video Collaboration Platform Suite, To Enable Digital Transformation of the Home and Enterprise – link • With a tiered set of features, each platform
Slide 17: QCT Handsets and Consumer IoT: Snapdragon powering Samsung Galaxy products
Key Announcement QCT Handsets and Consumer IoT: Snapdragon powering new Samsung Galaxy premium products globally • Snapdragon Powers Samsung’s New Galaxy Lineup Globally – link + • Snapdragon® 8 Gen 2 for Galaxy powers Samsung’s newest flagship device lineup, Galaxy Z Flip5, Galaxy Z Fold5, and Gala
Slide 18: Key Announcements
Key Announcements • Qualcomm Announces Shortlisted Teams for the Inaugural Qualcomm® Make in Africa • Outstanding researchers in the fields of AI and cybersecurity are recognized and Mentorship Program – link rewarded by Qualcomm Innovation Fellowship Europe – link • Qualcomm to Acquire Autotalks –
Slide 19: Financial Strength & Reconciliations
Financial Strength & Reconciliations 19
Slide 20: Financial Strength
Financial Strength June 25, 2023 June 26, 2022 Total cash, cash equivalents and marketable securities $8.6B $6.8B Total assets $49.0B $47.0B Stockholders' equity $20.7B $16.0B Debt(1) $15.4B $15.5B 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 Third 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 $8,451 $9 $— $— $8,442 EBT $1,757 ($21) ($613) ($39) $2,430 Net income (los
Slide 23: Business Outlook
Business Outlook Q3FY23 Q4FY23 Guidance(1) Guidance(2)(3) Revenues $8.1B - $8.9B $8.1B - $8.9B GAAP diluted EPS $1.24 - $1.44 $1.37 - $1.57 Less diluted EPS attributable to QSI $— $— Less diluted EPS attributable to share-based compensation ($0.45) ($0.45) Less diluted EPS attributable to other item
Slide 24: Operating Expenses and Effective Tax Rates
Operating Expenses Q4FY22 FY23 Target Q2FY23 Q3FY23 Q3FY23 Sequential % Q3FY23 Q4FY23 (in millions, except percentages) Results(1) Reduction(1)(2) Results Results Increase Guidance(3) Guidance(2) ~Flat year-over- Decrease 1% Decrease 1% GAAP combined R&D and SG&A expenses $2,862 year $2,824 $2,840 1