AMD Q4 2021 Earnings

Call Details

• Call Title: Advanced Micro Devices Q4 2021 Earnings Call
• Date: February 1, 2022 10:00 PM UTC
• Management Team:
  • Lisa Su (Chief Executive Officer)
  • Devinder Kumar (Executive Vice President, Chief Financial Officer, and Treasurer)
  • Laura Graves (Vice President, Investor Relations)
  • Dan McNamara (Senior Vice President and General Manager of Server)

Call Summary

Financial Performance

• Fourth quarter revenue was $4.8B, up 49% year-over-year and a quarterly record.
• Full year 2021 revenue was $16.4B, up 68% year-over-year and a record annual result.
• Fourth quarter non-GAAP gross margin was 50%, up 560 basis points year-over-year.
• Full year 2021 non-GAAP gross margin was 48%, up 370 basis points year-over-year.
• Fourth quarter operating income was $1.3B, which doubled year-over-year and increased by $665M.
• Diluted EPS was $0.92 in Q4 compared to $0.52 a year ago, and full year net income was $3.4B, up 118% year-over-year.
• Computing and Graphics revenue was $2.6B in Q4, up 32% year-over-year, and Enterprise, Embedded and Semi-Custom revenue was $2.2B in Q4, up 75% year-over-year.
• Quarterly free cash flow was $736M and full year free cash flow was $3.2B, representing a 20% free cash flow margin for 2021.

Guidance

• Q1 2022 revenue is expected to be approximately $5.0B plus or minus $0.1B and increase approximately 45% year-over-year and approximately 4% quarter-over-quarter.
• Q1 2022 non-GAAP gross margin is expected to be approximately 50.5%.
• Q1 2022 non-GAAP operating expenses are expected to be approximately $1.2B.
• Q1 2022 non-GAAP interest, taxes and other are expected to be approximately $207M based on a 15% effective tax rate, with diluted share count of approximately 1.22B shares.
• Full year 2022 revenue is expected to be approximately $21.5B, an increase of approximately 31% year-over-year.
• Full year 2022 non-GAAP gross margin is expected to be approximately 51%.
• Full year 2022 non-GAAP operating expenses are expected to be approximately 24% of revenue.
• Full year 2022 non-GAAP effective tax rate is expected to be 15% with a non-GAAP cash tax rate of approximately 9% due primarily to U.S. R&D capitalization and utilization of U.S. NOLs and tax credits.
• The outlook explicitly does not contemplate the addition of Xilinx because the transaction had not closed at the time of the call.