SUPER MICRO COMPUTER, INC. 
Fiscal Q3 2024 Results
April 30, 2024
Better Faster Greener | © 2024 Supermicro |
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 forward looking statements may relate to, among other things, the fourth quarter of fiscal year 2024 and full year fiscal 2024 guidance, the ability to execute on the company strategy, the ability to timely develop and deliver next generation products, the ability to achieve revenue targets, the ability to commercialize liquid cooling solutions, the ability to implement expansion plans, and TCO savings, fossil fuel reduction and trees saved through the Company's resource savings servers. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, which could cause rapid declines in our stock price, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may be less predictable, (iii) if we fail to meet publicly announced financial guidance or other expectations about our business, our stock could decline in value, (iv) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (v) adverse economic conditions may harm our business. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2023, and Quarterly Reports on Form 10-Q filed thereafter.
Use of Non-GAAP Financial Measures
Each of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margins, and non-GAAP diluted net income per common share adds back and excludes various items that are discussed in the accompanying reconciliation table herein. Management presents non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. A reconciliation from GAAP gross margin to non-GAAP gross margin, from GAAP operating expenses to non-GAAP operating expenses, from GAAP operating margins to non-GAAP operating margins, from GAAP diluted net income per common share to non-GAAP diluted net income per common share, and various other non-GAAP financial measures are included in the tables at the back of this presentation.
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CEO TAKEAWAYS
- Q3 FY24 Revenue
- Q3 FY24 revenue: $3.85B, +200% YoY and +5% QoQ
- Record demand for AI rack scale DLC systems: NVIDIA H100, Intel Gaudi 2/3, AMD MI300A/X
- First to market development on NVIDIA GH200 (Grace Hopper) and GB200 (Blackwell) solutions
- Early seeding on X14 and H14 systems based on Intel Xeon 6 and AMD Turin
- Rack-scaleDLC-readiness as next-genAI-solutions require liquid cooling - shipping 1000+ racks this quarter
- Executing on Our Strategy
- Total IT Rack Solutions are being released for emerging CPU/GPU/DPU offerings using Building Block Architecture
- Liquid cooling infrastructure solutions, supporting Data Center, Racks, and Management nearing commercialization
- Focused on scaling, optimizing, and expanding manufacturing capacity across San Jose, Taiwan, Malaysia, and beyond
- Q4 FY24 revenue guidance: $5.1B to $5.5B, 133% to 152% YoY growth
- FY24 revenue guidance: $14.7B to $15.1B, 107% to 112% YoY growth
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SMCI vs INDUSTRY GROWTH RATE (FY)
250
200
Total IT Solutions @ Rack-Scale
Green IT w/ Software, Service, Global Operations Large Scale w/ Multi CPU, GPU, DPU Platforms More Technology Partnerships
Subsystems and Systems | Supermicro | ||||||
150 | Small Business Scale | ||||||
Main Operation In High-Cost Silicon Valley | |||||||
100 | |||||||
50 | |||||||
Industry Avg | |||||||
0 | COVID19 | Global 2023 | |||||
2019 | 2020 | 2021 | 2022 | 2024 | |||
Shortage | Economic | ||||||
-50 | Headwinds | Today | |||||
Supermicro | Industry Avg* |
*Industry Avg based on Gartner, IDC & Supermicro estimates
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TOTAL IT SOLUTIONS - OUR PATH TO $25B+
Annual Revenue
$20B
SMCI 3.0
Total IT
Solutions
$10B
SMCI 2.0 | |||
Servers & | |||
SMCI 1.0 | Storage Systems | ||
Components & | |||
Subsystems | |||
1993 | Today | ||
Subsystems | Complete Systems | Total Solutions | 5S |
- 5S: Software, Service, Switch, Storage, Security & More
- Total IT Solutions: Enterprise, OEM Appliance / Cloud
- Complete Systems
- Subsystems & Components
Our Momentum:
~5X+ Faster growth vs. industry avg. over
the past 12+ months
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OPTIMIZED RACK-SCALE TOTAL SOLUTIONS
5,000 Racks capacity per month expected by the end of FY 24 of which….
• 2,000+ Racks will be Direct Liquid Cooled
• 100KW+ Racks now ready to deploy
Total IT Solutions for Better Customer Value
Hardware + Software + Services
• Rack-scaleplug-and-play solutions with Building Block Architecture
• Scalable optimized AI (Generative AI) & general compute, storage, switch, infrastructure cooling, software & service
• Free-air,liquid-cooling and traditional air-cooling technologies provide customers the optimized datacenter solution
• Leading energy efficiency and lower TCO
• One-stop shop
Server software management solutions drive optimization and higher infrastructure security
4/30/2024 | 6 | Better Faster Greener | © 2024 Supermicro |
INNOVATION THROUGH TEAMWORK
Services
Software
Accessories
Power Supplies
Chassis / Cooling / Architecture
Motherboard
Building Block Solutions
- System optimization for different business verticals & workloads
- Broad product portfolio
- Service cost reduction
- Faster time-to-market
Silicon Valley Advantages
- Early and quick access to R&D resources and new technologies
- 50% of our employees in the Bay Area are engineers
- Close to leading technology partners
- First-to-market
SMCI Meeting
Under the Same Roof
- Operations in three time zones (US/TW/NL)
- From partnership, design, to production and service
- All collaboration and business base on Building Block Methodology
- Secure solutions
Optimized Total Solution
- Rack-scaleto speed up customer deployment
- Firmware, software, and global onsite service
- Application-optimized,greener, lower TCO and TCE
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OPERATIONS: ADDRESSING $25B+
Production scale and cost optimization
Economies of Scale and Cost
• Silicon Valley Green Computing Park
• Rack-Scale Integration (Liquid Cooling)
• Command Center
• B2B/C Programs
• Cloud Services
• APAC Science and Tech Center
• Increase 2X-3X APAC capacity
• Supermicro Malaysia Campus
• High Volume Subsystem and Rack-Scale Production in 2024
• Future Site Plans
• Additional North American sites in progress
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GREEN COMPUTING FOR THE PLANET
- Improve Industry PUE (Target 1.05)
- Adopting More Efficient Data Center Cooling
- Optimal Free-Air Cooling PUE @ 1.06
- Optimal Liquid or Submerged PUE @ 1.05
- >$10B TCO Savings across industry
- >8B Trees Saved
- >30 Fossil Fuel Power Plants Reduction
Worldwide Green Computing Adoption
8+ Billion Trees Saved
Green Computing Data Reference:
https://www.statista.com/statistics/1229367/data-center-average-annual-pue-worldwide/https://www.statista.com/statistics/219596/worldwide-server-shipments-by-vendor/#:~:text=In%202020%2C%2012.15%20million%20server,figure%20recorded%20in%202018%20too. https://www.electricrate.com/data-center/electricity-prices-by-country/#:~:text=If%20we%20averaged%20out%20the,the%20global%20average%20electricity%20price. 500MW Coal Power Plant. https://www.mcginley.co.uk/news/how-much-of-each-energy-source-does-it-take-to-power-your-home/bp254/https://www.energy.gov/fecm/science-innovation/office-clean-coal-and-carbon-management/advanced-energy-systems/transformativehttps://www.eia.gov/tools/faqs/faq.php?id=74&t=11https://www.co2meter.com/blogs/news/could-global-co2-levels-be-reduced-by-planting-trees
Intel® Case Study
300,000+ Supermicro Resource-Saving Blade Servers:
- $20M in operating expense savings annually
- Cut refresh costs by >44%
• Achieved a record PUE of 1.06 | Source: Intel, Supermicro |
Preferred Networks® Case Study
Leadership in Green500 - A Supermicro/PFN collaboration:
- Peak performance (theoretical): 3.92 Pflops
-
Performance for every watt of power consumed: 21.11
Gflops/W
Source: PFN, Green500.org, Supermicro
9 | Better Faster Greener | © 2024 Supermicro |
Q3 FY2024 HIGHLIGHTS
Q3FY24 | QoQ | YoY | |
Revenue | $3,850M | +5% | +200% |
Gross Margin (non-GAAP) | 15.6% | +10bps | -210bps |
Earnings Per Share (non-GAAP) | $6.65 | +$1.06 | +$5.02 |
Cash Flow from Operations | -$1,520M | -$925M | -$1,718M |
Mix | |||
Server and Storage Systems | $3,698M (96%) | +8% | +218% |
Subsystems & Accessories | $152M (4%) | -34% | +27% |
A reconciliation of GAAP to non-GAAP measures can be found in the appendix of this presentation.
10 | Better Faster Greener | © 2024 Supermicro |
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Disclaimer
Super Micro Computer Inc. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 09:09:23 UTC.
