Supermicro Announces Fourth Quarter and Full Fiscal Year 2024 Financial Results
Fourth Quarter of Fiscal Year 2024 Highlights
-
Net sales of
$5.31 billion versus$3.85 billion in the third quarter of fiscal year 2024 and$2.18 billion in the same quarter of last year.
- Gross margin of 11.2% versus 15.5% in the third quarter of fiscal year 2024 and 17.0% in the same quarter of last year.
-
Net income of
$353 million versus$402 million in the third quarter of fiscal year 2024 and$194 million in the same quarter of last year.
-
Diluted net income per common share of
$5.51 versus$6.56 in the third quarter of fiscal year 2024 and$3.43 in the same quarter of last year.
-
Non-GAAP diluted net income per common share of
$6.25 versus$6.65 in the third quarter of fiscal year 2024 and$3.51 in the same quarter of last year.
-
Cash flow used in operations for the fourth quarter of fiscal year 2024 of
$635 million and capital expenditures of$27 million .
-
The Company’s Board of Directors has authorized a 10-for-1 forward split of its common stock and we expect trading to commence on a split-adjusted basis on
October 1, 2024 .
Non-GAAP gross margin for the fourth quarter of fiscal year 2024 was 11.3%, which adds back stock-based compensation expense of
As of
“Supermicro continues to experience record demand of new AI infrastructures propelling fiscal 2024 revenue up 110% year over year to
Fiscal Year 2024 Summary
Net sales for the fiscal year ended
Business Outlook and Management Commentary
For the first quarter of fiscal year 2025 ending
For fiscal year 2025 ending
Conference Call and Webcast Information
Supermicro will present a live audio webcast of a conference call to review its fourth quarter of fiscal year 2024 on
The webcast will be available at https://ir.supermicro.com.
A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.
Cautionary Statement Regarding Forward-Looking Statements
Statements contained in this press release 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 first quarter of fiscal year 2025 and full year fiscal 2025 guidance, the ability to continue to see record demand for new AI infrastructure, the ability to become a dominant IT infrastructure Company, and the ability of investments in certain expansions to strengthen the supply chain, security, and economies of scale for growth. 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
Use of Non-GAAP Financial Measures
Non-GAAP gross margin discussed in this press release adds back stock-based compensation expenses. Non-GAAP diluted net income per common share discussed in this press release adds back stock-based compensation expenses and litigation expense recovery adjusted for the related tax effects. 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 of GAAP gross margin to non-GAAP gross margin and from GAAP diluted net income per common share to non-GAAP diluted net income per common share is included in the tables below.
About
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in
Supermicro, Server
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||
|
|
|
|
||
|
2024 |
|
2023 |
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
1,669,766 |
|
$ |
440,459 |
Accounts receivable, net of allowance for credit losses |
|
2,668,415 |
|
|
1,148,259 |
Inventories |
|
4,407,972 |
|
|
1,445,564 |
Prepaid expenses and other current assets |
|
308,471 |
|
|
145,144 |
Total current assets |
|
9,054,624 |
|
|
3,179,426 |
Property, plant and equipment, net |
|
414,008 |
|
|
290,240 |
Deferred income taxes, net |
|
359,656 |
|
|
162,654 |
Other assets |
|
114,952 |
|
|
42,409 |
Total assets |
$ |
9,943,240 |
|
$ |
3,674,729 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
1,545,050 |
|
$ |
776,831 |
Accrued liabilities |
|
237,921 |
|
|
163,865 |
Income taxes payable |
|
18,268 |
|
|
129,166 |
Lines of credit and current portion of term loans |
|
402,346 |
|
|
170,123 |
Deferred revenue |
|
200,360 |
|
|
134,667 |
Total current liabilities |
|
2,403,945 |
|
|
1,374,652 |
Deferred revenue, non-current |
|
226,493 |
|
|
169,781 |
Term loans |
|
74,083 |
|
|
120,179 |
Convertible notes |
|
1,697,716 |
|
|
— |
Other long-term liabilities |
|
71,343 |
|
|
37,947 |
Total liabilities |
|
4,473,580 |
|
|
1,702,559 |
Stockholders’ equity: |
|
|
|
||
Common stock and additional paid in capital |
|
2,827,627 |
|
|
538,352 |
Accumulated other comprehensive income |
|
706 |
|
|
639 |
Retained earnings |
|
2,641,163 |
|
|
1,433,014 |
|
|
5,469,496 |
|
|
1,972,005 |
Noncontrolling interest |
|
164 |
|
|
165 |
Total stockholders’ equity |
|
5,469,660 |
|
|
1,972,170 |
Total liabilities and stockholders’ equity |
$ |
9,943,240 |
|
$ |
3,674,729 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
5,308,192 |
|
|
$ |
2,184,861 |
|
|
$ |
14,942,854 |
|
|
$ |
7,123,482 |
|
Cost of sales |
|
4,711,844 |
|
|
|
1,813,165 |
|
|
|
12,831,125 |
|
|
|
5,840,470 |
|
Gross profit |
|
596,348 |
|
|
|
371,696 |
|
|
|
2,111,729 |
|
|
|
1,283,012 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
126,849 |
|
|
|
84,802 |
|
|
|
462,926 |
|
|
|
307,260 |
|
Sales and marketing |
|
55,740 |
|
|
|
31,905 |
|
|
|
189,515 |
|
|
|
115,025 |
|
General and administrative |
|
70,355 |
|
|
|
28,234 |
|
|
|
193,596 |
|
|
|
99,585 |
|
Total operating expenses |
|
252,944 |
|
|
|
144,941 |
|
|
|
846,037 |
|
|
|
521,870 |
|
Income from operations |
|
343,404 |
|
|
|
226,755 |
|
|
|
1,265,692 |
|
|
|
761,142 |
|
Other income, net |
|
13,955 |
|
|
|
2,005 |
|
|
|
22,717 |
|
|
|
3,646 |
|
Interest expense |
|
(3,112 |
) |
|
|
(3,509 |
) |
|
|
(19,352 |
) |
|
|
(10,491 |
) |
Income before income tax provision |
|
354,247 |
|
|
|
225,251 |
|
|
|
1,269,057 |
|
|
|
754,297 |
|
Income tax provision |
|
(994 |
) |
|
|
(31,302 |
) |
|
|
(62,729 |
) |
|
|
(110,666 |
) |
Share of (loss) income from equity investee, net of taxes |
|
(526 |
) |
|
|
(380 |
) |
|
|
1,821 |
|
|
|
(3,633 |
) |
Net income(1) |
$ |
352,727 |
|
|
$ |
193,569 |
|
|
$ |
1,208,149 |
|
|
$ |
639,998 |
|
Net income per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
6.01 |
|
|
$ |
3.67 |
|
|
$ |
21.73 |
|
|
$ |
12.09 |
|
Diluted |
$ |
5.51 |
|
|
$ |
3.43 |
|
|
$ |
20.09 |
|
|
$ |
11.43 |
|
Weighted-average shares used in calculation of net income per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
58,688 |
|
|
|
52,679 |
|
|
|
55,588 |
|
|
|
52,925 |
|
Diluted |
|
64,208 |
|
|
|
56,505 |
|
|
|
60,215 |
|
|
|
55,970 |
|
(1) Net income for diluted net income per share calculation includes the add-backs of convertible notes interest charge, net of tax of |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) |
|||||||||||
Stock-based compensation is included in the following cost and expense categories by period (in thousands): |
|||||||||||
|
Three Months Ended |
|
Years Ended |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Cost of sales |
$ |
3,185 |
|
$ |
989 |
|
$ |
15,865 |
|
$ |
4,574 |
Research and development |
|
28,890 |
|
|
7,187 |
|
|
114,895 |
|
|
30,736 |
Sales and marketing |
|
6,197 |
|
|
1,128 |
|
|
21,195 |
|
|
4,599 |
General and administrative |
|
33,380 |
|
|
3,482 |
|
|
76,244 |
|
|
14,524 |
Stock-based compensation expense |
$ |
71,652 |
|
$ |
12,786 |
|
$ |
228,199 |
|
$ |
54,433 |
SELECTED CASH FLOW INFORMATION (in thousands) (unaudited) |
|||||||
|
Years Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash (used in) provided by operating activities |
$ |
(2,479,437 |
) |
|
$ |
663,580 |
|
Net cash used in investing activities |
|
(200,783 |
) |
|
|
(39,486 |
) |
Net cash provided by (used in) financing activities |
|
3,911,724 |
|
|
|
(448,293 |
) |
Effect of exchange rate fluctuations on cash |
|
(2,191 |
) |
|
|
(3,400 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
1,229,313 |
|
|
|
172,401 |
|
Cash, cash equivalents and restricted cash at the beginning of the year |
|
440,960 |
|
|
|
268,559 |
|
Cash, cash equivalents and restricted cash at the end of the year |
$ |
1,670,273 |
|
|
$ |
440,960 |
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP GROSS PROFIT |
$ |
596,348 |
|
|
$ |
371,696 |
|
|
$ |
2,111,729 |
|
|
$ |
1,283,012 |
|
Stock-based compensation |
|
3,185 |
|
|
|
989 |
|
|
|
15,865 |
|
|
|
4,574 |
|
NON-GAAP GROSS PROFIT |
$ |
599,533 |
|
|
$ |
372,685 |
|
|
$ |
2,127,594 |
|
|
$ |
1,287,586 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP GROSS MARGIN |
|
11.2 |
% |
|
|
17.0 |
% |
|
|
14.1 |
% |
|
|
18.0 |
% |
Stock-based compensation |
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
NON-GAAP GROSS MARGIN |
|
11.3 |
% |
|
|
17.1 |
% |
|
|
14.2 |
% |
|
|
18.1 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP OPERATING EXPENSES |
$ |
252,944 |
|
|
$ |
144,941 |
|
|
$ |
846,037 |
|
|
$ |
521,870 |
|
Stock-based compensation |
|
(68,467 |
) |
|
|
(11,797 |
) |
|
|
(212,334 |
) |
|
|
(49,859 |
) |
Litigation expense recovery |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,770 |
|
NON-GAAP OPERATING EXPENSES |
$ |
184,477 |
|
|
$ |
133,144 |
|
|
$ |
633,703 |
|
|
$ |
475,781 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP INCOME FROM OPERATIONS |
$ |
343,404 |
|
|
$ |
226,755 |
|
|
$ |
1,265,692 |
|
|
$ |
761,142 |
|
Stock-based compensation |
|
71,652 |
|
|
|
12,786 |
|
|
|
228,199 |
|
|
|
54,433 |
|
Litigation expense recovery |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,770 |
) |
NON-GAAP INCOME FROM OPERATIONS |
$ |
415,056 |
|
|
$ |
239,541 |
|
|
$ |
1,493,891 |
|
|
$ |
811,805 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP OPERATING MARGIN |
|
6.5 |
% |
|
|
10.4 |
% |
|
|
8.5 |
% |
|
|
10.7 |
% |
Stock-based compensation |
|
1.3 |
% |
|
|
0.6 |
% |
|
|
1.5 |
% |
|
|
0.8 |
% |
Litigation expense recovery |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
(0.1 |
)% |
NON-GAAP OPERATING MARGIN |
|
7.8 |
% |
|
|
11.0 |
% |
|
|
10.0 |
% |
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP TAX EXPENSE |
$ |
994 |
|
|
$ |
31,302 |
|
|
$ |
62,729 |
|
|
$ |
110,666 |
|
Adjustments to tax provision |
|
20,167 |
|
|
|
5,304 |
|
|
|
92,808 |
|
|
|
17,267 |
|
NON-GAAP TAX EXPENSE |
$ |
21,161 |
|
|
$ |
36,606 |
|
|
$ |
155,537 |
|
|
$ |
127,933 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP NET INCOME |
$ |
352,727 |
|
|
$ |
193,569 |
|
|
$ |
1,208,149 |
|
|
$ |
639,998 |
|
Stock-based compensation |
|
71,652 |
|
|
|
12,786 |
|
|
|
228,199 |
|
|
|
54,433 |
|
Litigation expense recovery |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,770 |
) |
Adjustments to tax provision |
|
(20,167 |
) |
|
|
(5,304 |
) |
|
|
(92,808 |
) |
|
|
(17,267 |
) |
NON-GAAP NET INCOME |
$ |
404,212 |
|
|
$ |
201,051 |
|
|
$ |
1,343,540 |
|
|
$ |
673,394 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP NET INCOME - BASIC |
$ |
352,727 |
|
|
$ |
193,569 |
|
|
$ |
1,208,149 |
|
|
$ |
639,998 |
|
Convertible notes interest charge, net of tax |
|
1,095 |
|
|
|
— |
|
|
|
1,480 |
|
|
|
— |
|
GAAP NET INCOME - DILUTED |
$ |
353,822 |
|
|
$ |
193,569 |
|
|
$ |
1,209,629 |
|
|
$ |
639,998 |
|
|
|
|
|
|
|
|
|
||||||||
NON-GAAP NET INCOME - BASIC |
$ |
404,212 |
|
|
$ |
201,051 |
|
|
$ |
1,343,540 |
|
|
$ |
673,394 |
|
Convertible notes interest charge, net of tax |
|
1,095 |
|
|
|
— |
|
|
|
1,480 |
|
|
|
— |
|
NON-GAAP NET INCOME - DILUTED |
$ |
405,307 |
|
|
$ |
201,051 |
|
|
$ |
1,345,020 |
|
|
$ |
673,394 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP NET INCOME PER COMMON SHARE – BASIC |
$ |
6.01 |
|
|
$ |
3.67 |
|
|
$ |
21.73 |
|
|
$ |
12.09 |
|
Impact of NON-GAAP adjustments |
|
0.88 |
|
|
|
0.15 |
|
|
|
2.44 |
|
|
|
0.63 |
|
NON-GAAP NET INCOME PER COMMON SHARE – BASIC |
$ |
6.89 |
|
|
$ |
3.82 |
|
|
$ |
24.17 |
|
|
$ |
12.72 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP NET INCOME PER COMMON SHARE – DILUTED |
$ |
5.51 |
|
|
$ |
3.43 |
|
|
$ |
20.09 |
|
|
$ |
11.43 |
|
Impact of Non-GAAP adjustments |
|
0.74 |
|
|
|
0.08 |
|
|
|
2.00 |
|
|
|
0.38 |
|
NON-GAAP NET INCOME PER COMMON SHARE – DILUTED |
$ |
6.25 |
|
|
$ |
3.51 |
|
|
$ |
22.09 |
|
|
$ |
11.81 |
|
|
|
|
|
|
|
|
|
||||||||
WEIGHTED-AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
BASIC – GAAP |
|
58,688 |
|
|
|
52,679 |
|
|
|
55,588 |
|
|
|
52,925 |
|
BASIC – NON-GAAP |
|
58,688 |
|
|
|
52,679 |
|
|
|
55,588 |
|
|
|
52,925 |
|
|
|
|
|
|
|
|
|
||||||||
DILUTED – GAAP |
|
64,208 |
|
|
|
56,505 |
|
|
|
60,215 |
|
|
|
55,970 |
|
DILUTED – NON-GAAP |
|
64,827 |
|
|
|
57,222 |
|
|
|
60,886 |
|
|
|
57,027 |
|
Non-GAAP diluted net income per common share for the third quarter of fiscal year 2024 was |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806847881/en/
Investor Relations Contact:
email: ir@supermicro.com
Source: