AMD Q3 2022 Earnings

Call Details

• Call Title: Advanced Micro Devices Q3 2022 Earnings Call
• Date: November 1, 2022 at 9:00 PM UTC
• Management Team:
  • Lisa Su (Chair and Chief Executive Officer)
  • Devinder Kumar (Executive Vice President and Chief Financial Officer and Treasurer)
  • Mark Papermaster (Chief Technology Officer and Executive Vice President, Technology and Engineering)

Call Summary

Financial Performance

• Revenue was $5.6B, an increase of 29% year-over-year.
• Non-GAAP gross margin was 50%, up 150 basis points year-over-year and included $160M of inventory pricing and related charges in graphics and client businesses.
• Operating expenses were $1.5B compared to $1.0B a year ago, reflecting continued scaling of the business.
• Operating income was $1.3B, up 20% year-over-year, and operating margin was 23% compared to 24% a year ago.
• Net income was $1.1B, up $202M year-over-year, and diluted EPS was $0.67 compared to $0.73 a year ago.
• Cash, cash equivalents, and short-term investments were $5.6B at quarter end and free cash flow was $842M compared to $764M a year ago.

Guidance

• Q4 2022 revenue was guided to approximately $5.5B plus or minus $300B, described as flat sequentially and up about 14% year-over-year, and this stated range contains an apparent magnitude inconsistency versus typical guidance ranges.
• Q4 2022 non-GAAP gross margin was guided to approximately 51%.
• Q4 2022 non-GAAP operating expenses were guided to approximately $1.55B or about 28% of revenue.
• Q4 2022 non-GAAP interest, taxes, and other were guided to about $175M based on a 13% effective tax rate.
• Q4 2022 diluted share count was guided to approximately 1.62B shares.
• Full-year 2022 revenue was guided to approximately $23.5B plus or minus $300M, an increase of approximately 43%, with full-year non-GAAP gross margin expected to be about 52%.