Super Micro Computer (SMCI) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue reached $5.31B, up 143% year-over-year and 38% sequentially; FY24 revenue totaled $14.94B, up 110% year-over-year.

• Q4 non-GAAP EPS was $6.25, up 78% year-over-year; FY24 non-GAAP EPS was $22.09, up 87% year-over-year.

• Growth driven by record demand for AI infrastructure, especially generative AI and rapid adoption of liquid cooling solutions.

• Launched new AI and liquid-cooled cluster solutions, expanded next-gen server platforms, and manufacturing capacity in San Jose, Taiwan, Malaysia, and North America.

• Entering FY25 with record backlog, new product launches, and expanded manufacturing capacity.

Financial highlights

• Q4 non-GAAP gross margin: 11.3% (down from 15.6% in Q3); FY24 non-GAAP gross margin: 14.2% (down from 18.1% YoY).

• Q4 non-GAAP operating margin: 7.1% (down from 11.3% in Q3); FY24 non-GAAP operating margin: 10%.

• Q4 cash flow from operations: -$635M; FY24 cash used in operations: -$2.5B.

• Q4 CapEx: $27M; FY24 CapEx: $137M.

• Q4 net cash position: -$504M; FY24 cash and equivalents: $1.67B; total debt: $2.17B.

Outlook and guidance

• Q1 FY25 revenue guidance: $6.0B–$7.0B.

• FY25 revenue guidance: $26.0B–$30.0B.

• Q1 FY25 non-GAAP EPS: $6.69–$8.27; GAAP EPS: $5.97–$7.66.

• Gross margins expected to improve sequentially as manufacturing efficiency increases and product mix shifts.

• Blackwell platform volume expected mainly in March quarter 2025, with minimal impact in December quarter.