AMD Reports Third Quarter 2024 Financial Results
SANTA CLARA, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the third quarter of 2024 of $6.8 billion, gross margin of 50%, operating income of $724 million, net income of $771 million and diluted earnings per share of $0.47. On a non-GAAP(*) basis, gross margin was 54%, operating income was $1.7 billion, net income was $1.5 billion and diluted earnings per share was $0.92.
"We delivered strong third quarter financial results with record revenue led by higher sales of EPYC and Instinct data center products and robust demand for our Ryzen PC processors," said AMD Chair and CEO Dr. Lisa Su. "Looking forward, we see significant growth opportunities across our data center, client and embedded businesses driven by the insatiable demand for more compute."
"We are pleased with our execution in the third quarter, delivering strong year-over-year expansion in gross margin and earnings per share," said AMD EVP, CFO and Treasurer Jean Hu. "We are on-track to deliver record annual revenue for 2024 based on significant growth in our Data Center and Client segments."
GAAP Quarterly Financial Results
Q3 2024
Q3 2023
Y/Y
Q2 2024
Q/Q
Revenue ($M)
$6,819
$5,800
Up 18%
$5,835
Up 17%
Gross profit ($M)
$3,419
$2,747
Up 24%
$2,864
Up 19%
Gross margin
50%
47%
Up 3 ppts
49%
Up 1 ppt
Operating expenses ($M)
$2,709
$2,533
Up 7%
$2,605
Up 4%
Operating income ($M)
$724
$224
Up 223%
$269
Up 169%
Operating margin
11%
4%
Up 7 ppts
5%
Up 6 ppts
Net income ($M)
$771
$299
Up 158%
$265
Up 191%
Diluted earnings per share
$0.47
$0.18
Up 161%
$0.16
Up 194%
Non-GAAP(*) Quarterly Financial Results
Q3 2024
Q3 2023
Y/Y
Q2 2024
Q/Q
Revenue ($M)
$6,819
$5,800
Up 18%
$5,835
Up 17%
Gross profit ($M)
$3,657
$2,963
Up 23%
$3,101
Up 18%
Gross margin
54%
51%
Up 3 ppts
53%
Up 1 ppt
Operating expenses ($M)
$1,956
$1,697
Up 15%
$1,847
Up 6%
Operating income ($M)
$1,715
$1,276
Up 34%
$1,264
Up 36%
Operating margin
25%
22%
Up 3 ppts
22%
Up 3 ppts
Net income ($M)
$1,504
$1,135
Up 33%
$1,126
Up 34%
Diluted earnings per share
$0.92
$0.70
Up 31%
$0.69
Up 33%
Segment Summary
Record Data Center segment revenue of $3.5 billion was up 122% year-over-year and 25% sequentially primarily driven by the strong ramp of AMD Instinct™ GPU shipments and growth in AMD EPYC™ CPU sales.
Client segment revenue was $1.9 billion, up 29% year-over-year and 26% sequentially primarily driven by strong demand for "Zen 5" AMD Ryzen™ processors.
Gaming segment revenue was $462 million, down 69% year-over-year and 29% sequentially primarily due to a decrease in semi-custom revenue.
Embedded segment revenue was $927 million, down 25% year-over-year as customers normalized their inventory levels. On a sequential basis, revenue increased 8% as demand improved in several end markets.
Recent PR Highlights
At the Advancing AI 2024 event this month, AMD and strategic partners including Dell, Google Cloud, HPE, Lenovo, Meta, Microsoft, Oracle Cloud Infrastructure, Supermicro and AI leaders Databricks, Essential AI, Fireworks AI, Luma AI and Reka AI unveiled a broad portfolio of solutions delivering enterprise AI at scale based on the latest AMD Instinct accelerators, EPYC CPUs, AMD networking solutions and Ryzen PRO CPUs:
New AMD EPYC 9005 Series processors, with record-breaking performance and energy efficiency for diverse data center needs, available in a wide range of platforms from leading OEMs and ODMs.
AMD Instinct MI325X accelerators, delivering leadership performance and memory capabilities for the most demanding AI workloads. AMD also shared new details on next-gen AMD Instinct accelerators planned to launch in 2025 and 2026.
An expanded high performance networking portfolio to maximize performance, scalability and efficiency for AI systems, with the new AMD Pensando™ Salina DPU and AMD Pensando Pollara 400 NIC.
New Ryzen AI PRO 300 Series mobile processors, powering next-gen AI PCs for the enterprise with 50+ AI TOPS and leadership performance, battery life, security and manageability features.
AMD continues to extend leadership AI performance, optimizations and customer adoption for AMD Instinct accelerators and AMD ROCm™ open software:
Oracle Cloud Infrastructure selected AMD Instinct MI300X accelerators with AMD ROCm open software to power its latest OCI Compute Supercluster designed for demanding AI workloads.
AMD unveiled its first results on leading AI benchmark MLPerf, revealing excellent performance for AMD Instinct MI300X accelerators advanced by the AMD ROCm software platform, on-par with NVIDIA H100.
AMD highlighted support for the latest Llama 3.2 release from Meta, enabling developers to build new agentic applications and personalized AI experiences on AMD accelerators and processors from cloud to edge and AI PCs.
AMD and ecosystem partners are enabling new AI PC platforms and capabilities:
In partnership with Microsoft, AMD announced that Copilot+ will be enabled on AMD CPU-powered AI PCs via a free upgrade planned to be available starting in November 2024.
OEM partners including Acer, HP, Lenovo and Asus announced new systems powered by AMD Ryzen AI 300 Series mobile processors, leveraging the leadership gaming, content creation and everyday performance of the new "Zen 5" architecture.
AMD expanded its embedded portfolio for a range of applications, including:
New AMD EPYC Embedded 8004 Series processors, designed to deliver outstanding performance and power efficiency for demanding workloads.
The smaller form factor, cost-optimized AMD Alveo™ UL3422 Accelerator Card, a fintech accelerator for ultra-low latency electronic trading applications.
The AMD Artix™ UltraScale+™ XA AU7P, a cost-optimized, automotive-qualified FPGA for ADAS sensor applications and in-vehicle infotainment.
AMD announced an agreement to acquire ZT Systems, a leading provider of AI and general purpose compute infrastructure for the world's largest hyperscale providers, to expand the company's data center AI systems capabilities and accelerate deployment of AMD AI rack scale systems with cloud and enterprise customers. The acquisition is subject to regulatory clearance and other customary closing conditions and is expected to close in the first half of 2025.
AMD completed the acquisition of Silo AI to accelerate development and deployment of AI models on AMD hardware.
AMD and Intel announced the creation of an x86 ecosystem advisory group with Broadcom, Dell, Google, HPE, HP, Lenovo, Meta, Microsoft, Oracle, Red Hat and industry luminaries Linus Torvalds and Tim Sweeney to collaborate on architectural interoperability and simplify software development.
Current Outlook
AMD's outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.
For the fourth quarter of 2024, AMD expects revenue to be approximately $7.5 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 22% and sequential growth of approximately 10%. Non-GAAP gross margin is expected to be approximately 54%.
AMD Teleconference
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its third quarter 2024 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.
Media Contact:Drew PrairieAMD
Investor Contact:Mitch HawsAMD Investor
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(in millions, except per share data) (Unaudited)
Three Months Ended
September 28,2024
June 29,2024
September 30,2023
GAAP gross profit
$
3,419
$
2,864
$
2,747
GAAP gross margin
50
%
49
%
47
%
Stock-based compensation
5
5
6
Amortization of acquisition-related intangibles
233
231
210
Acquisition-related and other costs(1)
—
1
—
Non-GAAP gross profit
$
3,657
$
3,101
$
2,963
Non-GAAP gross margin
54
%
53
%
51
%
GAAP operating expenses
$
2,709
$
2,605
$
2,533
GAAP operating expenses/revenue %
40
%
45
%
44
%
Stock-based compensation
346
341
347
Amortization of acquisition-related intangibles
352
372
450
Acquisition-related and other costs(1)
55
45
39
Non-GAAP operating expenses
$
1,956
$
1,847
$
1,697
Non-GAAP operating expenses/revenue %
29
%
32
%
29
%
GAAP operating income
$
724
$
269
$
224
GAAP operating margin
11
%
5
%
4
%
Stock-based compensation
351
346
353
Amortization of acquisition-related intangibles
585
603
660
Acquisition-related and other costs(1)
55
46
39
Non-GAAP operating income
$
1,715
$
1,264
$
1,276
Non-GAAP operating margin
25
%
22
%
22
%
Three Months Ended
September 28, 2024
June 29, 2024
September 30, 2023
GAAP net income / earnings per share
$
771
$
0.47
$
265
$
0.16
$
299
$
0.18
(Gains) losses on equity investments, net
(1
)
—
—
—
(4
)
—
Stock-based compensation
351
0.21
346
0.21
353
0.22
Equity income in investee
(7
)
—
(7
)
—
(3
)
—
Amortization of acquisition-related intangibles
585
0.36
603
0.37
660
0.41
Acquisition-related and other costs(1)
56
0.03
46
0.03
39
0.02
Income tax provision
(251
)
(0.15
)
(127
)
(0.08
)
(209
)
(0.13
)
Non-GAAP net income / earnings per share
$
1,504
$
0.92
$
1,126
$
0.69
$
1,135
$
0.70
(1)
Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges.
About AMD
For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ:AMD) website, blog, LinkedIn and X pages.
Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD's expectations for future growth in data center, client and embedded businesses; AMD being on track to deliver record annual revenue growth for 2024 based on significant growth in AMD's Data Center and Client segments; AMD's expectations about the demand for more compute; the features, functionality, performance, availability, timing and expected benefits of future AMD products; AMD's anticipated acquisition of ZT Systems and the expected timing of the transaction; and AMD's expected fourth quarter 2024 financial outlook, including revenue and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation's dominance of the microprocessor market and its aggressive business practices; Nvidia's dominance in the graphics processing unit market and its aggressive business practices; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; loss of a significant customer; competitive markets in which AMD's products are sold; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD's products; AMD's ability to introduce products on a timely basis with expected features and performance levels; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD's products; AMD's reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD's products; AMD's reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD's internal business processes and information systems; compatibility of AMD's products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD's supply chain; AMD's ability to rely on third party supply-chain logistics functions; AMD's ability to effectively control sales of its products on the gray market; long-term impact of climate change on AMD's business; impact of government actions and regulations such as export regulations, tariffs and trade protection measures; AMD's ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD's notes, the guarantees of Xilinx's notes and the revolving credit agreement; the ability to obtain applicable regulatory approvals for the acquisition of ZT Systems in a timely manner or otherwise and to satisfy other closing conditions to the transaction; impact of acquisitions, joint ventures and/or investments on AMD's business and AMD's ability to integrate acquired businesses; impact of any impairment of the combined company's assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD's ability to attract and retain qualified personnel; and AMD's stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to AMD's most recent reports on Forms 10-K and 10-Q.
(*)
In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating expenses/revenue%, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2024, AMD uses a projected non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments, reflecting currently available information. AMD also provided adjusted EBITDA, free cash flow and free cash flow margin as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD's reported results prepared in accordance with GAAP and should be read only in conjunction with AMD's Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD's financial outlook, which is based on current expectations as of October 29, 2024 and assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD's control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law.
©2024 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, 3D V-Cache, Alveo, EPYC, FidelityFX, Instinct, Kria, Radeon, Ryzen, Threadripper, Ultrascale+, Versal, Zynq, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.
ADVANCED MICRO DEVICES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Millions except per share amounts and percentages) (Unaudited)
Three Months Ended
Nine Months Ended
September 28,2024
June 29,2024
September 30,2023
September 28,2024
September 30,2023
Net revenue
$
6,819
$
5,835
$
5,800
$
18,127
$
16,512
Cost of sales
