[ Back ]   [ More News ]   [ Home ]
AMD Reports Fourth Quarter and Full Year 2022 Financial Results

― Record full year revenue of $23.6 Billion up 44% year-over-year ―

SANTA CLARA, Calif., Jan. 31, 2023 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the fourth quarter of 2022 of $5.6 billion, gross margin of 43%, operating loss of $149 million, net income of $21 million and diluted earnings per share of $0.01. On a non-GAAP(*) basis, gross margin was 51%, operating income was $1.3 billion, net income was $1.1 billion and diluted earnings per share was $0.69.

For full year 2022, the company reported revenue of $23.6 billion, gross margin of 45%, operating income of $1.3 billion, net income of $1.3 billion and diluted earnings per share of $0.84. On a non-GAAP(*) basis, gross margin was 52%, operating income was $6.3 billion, net income was $5.5 billion and diluted earnings per share was $3.50.

GAAP Quarterly Financial Results

 Q4 2022Q4 2021Y/Y
Revenue ($M)$5,599$4,826Up 16%
Gross profit ($M)$2,403$2,426Flat
Gross margin %43%50%Down 740 bps
Operating expenses ($M)$2,557$1,223Up 109%
Operating income (loss) ($M)$(149)$1,207Down 112%
Operating margin %(3)%25%Down 28pp
Net income ($M)$21$974Down 98%
Earnings per share$0.01$0.80Down 99%

Non-GAAP(*) Quarterly Financial Results

 Q4 2022Q4 2021Y/Y
Revenue ($M)$5,599$4,826Up 16%
Gross profit ($M)$2,859$2,427Up 18%
Gross margin %51%50%Up 70 bps
Operating expenses ($M)$1,602$1,103Up 45%
Operating income ($M)$1,262$1,328Down 5%
Operating margin %23%27%Down 4pp
Net income ($M)$1,113$1,122Flat
Earnings per share
$0.69$0.92Down 25%

Annual Financial Results

 GAAPNon-GAAP(*)
 20222021Y/Y20222021Y/Y
Revenue ($M)$23,601$16,434Up 44%$23,601$16,434Up 44%
Gross profit ($M)$10,603$7,929Up 34%$12,273$7,934Up 55%
Gross margin %45%48%Down 330bps52%48%Up 370bps
Operating expenses ($M)$9,441$4,293Up 120%$6,030$3,877Up 56%
Operating income ($M)$1,264$3,648Down 65%$6,345$4,069Up 56%
Operating margin %5%22%Down 17pp27%25%Up 2pp
Net income ($M)$1,320$3,162Down 58%$5,504$3,435Up 60%
Earnings per share$0.84$2.57Down 67%$3.50$2.79Up 25%

“2022 was a strong year for AMD as we delivered best-in-class growth and record revenue despite the weak PC environment in the second half of the year," said AMD Chair and CEO Dr. Lisa Su. "We accelerated our data center momentum and closed our strategic acquisition of Xilinx, significantly diversifying our business and strengthening our financial model. Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio.”

Q4 2022 Results

Quarterly Financial Segment Summary

2022 Annual Results

Recent PR Highlights

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 first quarter of 2023, AMD expects revenue to be approximately $5.3 billion, plus or minus $300 million, a decrease of approximately 10% year-over-year. Year-over-year the Client and Gaming segments are expected to decline, partially offset by Embedded and Data Center segment growth. AMD expects non-GAAP gross margin to be approximately 50% in the first quarter of 2023.

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 fourth quarter and full-year 2022 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.

    
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data) (Unaudited)
  Three Months Ended Year Ended
  December 31,
2022
 December 25,
2021
 December 31,
2022
 December 25,
2021
GAAP gross profit $2,403  $2,426  $10,603  $7,929 
GAAP gross margin %  43%  50%  45%  48%
Stock-based compensation  9   1   29   5 
Acquisition-related costs(1)  4      193    
Amortization of acquired intangible assets  443      1,448    
Non-GAAP gross profit $2,859  $2,427  $12,273  $7,934 
Non-GAAP gross margin %  51%  50%  52%  48%
         
GAAP operating expenses $2,557  $1,223  $9,441  $4,293 
GAAP operating expenses/revenue %  46%  25%  40%  26%
Stock-based compensation  301   111   983   374 
Acquisition-related costs(1)  53   9   328   42 
Amortization of acquired intangible assets  601      2,100    
Non-GAAP operating expenses $1,602  $1,103  $6,030  $3,877 
Non-GAAP operating expenses/revenue %  29%  23%  26%  24%
         
GAAP operating income (loss) $(149) $1,207  $1,264  $3,648 
GAAP operating margin % (3)%  25%  5%  22%
Stock-based compensation  310   112   1,012   379 
Acquisition-related costs(1)  57   9   521   42 
Amortization of acquired intangible assets  1,044      3,548    
Non-GAAP operating income $1,262  $1,328  $6,345  $4,069 
Non-GAAP operating margin %  23%  27%  27%  25%


  Three Months EndedYear Ended
  December 31,
2022
 December 25,
2021
 December 31,
2022
 December 25,
2021
GAAP net income / earnings per share $21  $0.01  $974  $0.80  $1,320  $0.84  $3,162  $2.57 
Loss on debt redemption/conversion                    7    
(Gains) losses on equity investments, net  5      (4)     62   0.04   (56)  (0.04)
Stock-based compensation  310   0.19   112   0.09   1,012   0.64   379   0.31 
Equity income in investee  (3)           (14)  (0.01)  (6)   
Acquisition-related costs(1)  57   0.04   9      521   0.33   42   0.03 
Amortization of acquired intangible assets  1,044   0.65         3,548   2.26       
Income tax provision  (321)  (0.20)  31   0.03   (945)  (0.60)  (93)  (0.08)
Non-GAAP net income / earnings per share $1,113  $0.69  $1,122  $0.92  $5,504  $3.50  $3,435  $2.79 


(1) Acquisition-related costs primarily comprised of transaction costs, purchase price adjustments for inventory and certain compensation charges
   


 
RECONCILIATION OF AMD AS-REPORTED REVENUE TO PRO FORMA REVENUE
(in billions) (Unaudited)
  
 Year Ended
 December 31,
2022
 December 25,
2021
AMD Net Revenue - As reported23.6  16.4 
Pre-Acquisition Revenue(1)0.5  3.7 
AMD Net Revenue - Pro forma(2)24.1  20.1 


(1) Pre-acquisition revenue for the year ended December 31, 2022 includes unaudited Xilinx revenue from January 2, 2022 to February 13, 2022. Pre-acquisition revenue for the year ended December 25, 2021 includes unaudited Xilinx revenue for the twelve months ended January 1, 2022.
   
(2) The unaudited AMD net revenue prepared on a pro forma basis represents the Company's consolidated revenue for the year ended December 31, 2022 and December 25, 2021, as if the acquisitions had been consummated as of the beginning of the fiscal year 2021 (i.e., December 27, 2020). The unaudited pro forma revenue is presented on the basis of the Company’s fiscal year and combines the historical results of the fiscal periods of the Company with the following historical results of Xilinx: the year ended December 31, 2022 includes Xilinx revenue for the twelve-month period beginning January 2, 2022 through December 31, 2022; and the year ended December 25, 2021 includes Xilinx revenue for the twelve months ended January 1, 2022.

The unaudited pro forma financial revenue presented is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the Xilinx acquisitions were completed at the beginning of fiscal year 2021 and are not indicative of the future operating results of the combined company.
   

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, Facebook and Twitter pages.

Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s ability to gain market share in 2023 and deliver long-term growth based on its differentiated product portfolio; the features, functionality, performance, availability, timing and expected benefits of AMD products; and AMD’s expected first quarter of 2023 financial outlook, including revenue and non-GAAP gross margin and expected drivers based on current expectations, 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; global economic uncertainty; cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; loss of a significant customer; impact of the COVID-19 pandemic on AMD’s business, financial condition and results of operations; competitive markets in which AMD’s products are sold; 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 cyber-attacks; potential difficulties in upgrading and operating AMD’s new enterprise resource planning system; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products in a timely manner; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software 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; impact of government actions and regulations such as export administration 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; impact of acquisitions, joint ventures and/or investments, including acquisitions of Xilinx and Pensando, on AMD’s business and AMD’s ability to integrate acquired businesses;  impact of any impairment of the combined company’s assets on the combined company’s financial position and results of operation; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit facility; AMD's indebtedness; AMD's ability to generate sufficient cash to meet its working capital requirements or generate sufficient revenue and operating cash flow to make all of its planned R&D or strategic investments; political, legal, economic risks and natural disasters; future impairments of goodwill and technology license purchases; AMD’s ability to attract and retain qualified personnel; AMD’s stock price volatility; and worldwide political conditions. 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 operating expenses, non-GAAP operating income, non-GAAP net income, 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 2022, AMD uses a non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD also provided adjusted EBITDA and free cash flow 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. In addition, AMD provided pro forma revenue for the year ended December 31, 2022 and December 25, 2021 which include unaudited Xilinx pre-acquisition revenue from January 2, 2022 to February 13, 2022 and for the twelve months ended January 1, 2022, respectively, as supplemental information. 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 January 31, 2023 and assumptions and beliefs that involve numerous risks and uncertainties. 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.

AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Threadripper, Versal and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.


 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages) (Unaudited)
     
  Three Months Ended Year Ended
  December 31,
2022
 December 25,
2021
 December 31,
2022
 December 25,
2021
Net revenue $5,599  $4,826  $23,601  $16,434 
Cost of sales  2,753   2,400   11,550   8,505 
Amortization of acquisition-related intangibles  443      1,448    
Total cost of sales  3,196   2,400   12,998   8,505 
Gross profit  2,403   2,426   10,603   7,929 
Gross margin %  43%  50%  45%  48%
Research and development  1,366   811   5,005   2,845 
Marketing, general and administrative  590   412   2,336   1,448 
Amortization of acquisition-related intangibles  601      2,100    
Licensing gain  (5)  (4)  (102)  (12)
Operating income (loss)  (149)  1,207   1,264   3,648 
Interest expense  (19)  (8)  (88)  (34)
Other income (expense), net  32   4   8   55 
Income (loss) before income taxes and equity income  (136)  1,203   1,184   3,669 
Income tax provision (benefit)  (154)  229   (122)  513 
Equity income in investee  3      14   6 
Net income $21  $974  $1,320  $3,162 
Earnings per share        
Basic $0.01  $0.81  $0.85  $2.61 
Diluted $0.01  $0.80  $0.84  $2.57 
Shares used in per share calculation        
Basic  1,613   1,208   1,561   1,213 
Diluted  1,618   1,222   1,571   1,229 
                 


 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
     
  December 31,
2022
 December 25,
2021
  (Unaudited)  
ASSETS    
Current assets:    
Cash and cash equivalents $4,835  $2,535 
Short-term investments  1,020   1,073 
Accounts receivable, net  4,126   2,706 
Inventories  3,771   1,955 
Receivables from related parties  2   2 
Prepaid expenses and other current assets  1,265   312 
Total current assets  15,019   8,583 
Property and equipment, net  1,513   702 
Operating lease right-of use assets  460   367 
Goodwill  24,177   289 
Acquisition-related intangibles, net  24,118    
Investment: equity method  83   69 
Deferred tax assets  58   931 
Other non-current assets  2,152   1,478 
Total Assets $67,580  $12,419 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $2,493  $1,321 
Payables to related parties  463   85 
Accrued liabilities  3,077   2,424 
Current portion of long-term debt, net     312 
Other current liabilities  336   98 
Total current liabilities  6,369   4,240 
Long-term debt, net of current portion  2,467   1 
Long-term operating lease liabilities  396   348 
Deferred tax liabilities  1,934   12 
Other long-term liabilities  1,664   321 
     
Stockholders' equity:    
Capital stock:    
Common stock, par value  16   12 
Additional paid-in capital  58,005   11,069 
Treasury stock, at cost  (3,099)  (2,130)
Accumulated deficit  (131)  (1,451)
Accumulated other comprehensive loss  (41)  (3)
Total stockholders' equity $54,750  $7,497 
Total Liabilities and Stockholders' Equity $67,580  $12,419 
         


 
ADVANCED MICRO DEVICES, INC.
SELECTED CASH FLOW INFORMATION
(Millions) (Unaudited)
     
  Three Months Ended Year Ended
  December 31,
2022
 December 25,
2021
 December 31,
2022
 December 25,
2021
Net cash provided by (used in)        
Operating activities $567  $822  $3,565  $3,521 
Investing activities $1,067  $  $1,999  $(686)
Financing activities $(197) $(727) $(3,264) $(1,895)
                 


 
SELECTED CORPORATE DATA
(Millions) (Unaudited)
     
  Three Months Ended Year Ended
  December 31,
2022
 December 25,
2021
 December 31,
2022
 December 25,
2021
Segment and Category Information(1)        
Data Center        
Net revenue $1,655  $1,163  $6,043  $3,694 
Operating income $444  $369  $1,848  $991 
Client        
Net revenue $903  $1,829  $6,201  $6,887 
Operating income (loss) $(152) $530  $1,190  $2,088 
Gaming        
Net revenue $1,644  $1,763  $6,805  $5,607 
Operating income $266  $407  $953  $934 
Embedded        
Net revenue $1,397  $71  $4,552  $246 
Operating income $699  $18  $2,252  $44 
All Other        
Net revenue $  $  $  $ 
Operating loss $(1,406) $(117) $(4,979) $(409)
Total        
Net revenue $5,599  $4,826  $23,601  $16,434 
Operating income (loss) $(149) $1,207  $1,264  $3,648 
         
Other Data        
Capital expenditures $124  $86  $450  $301 
Adjusted EBITDA(2) $1,438  $1,446  $6,971  $4,476 
Cash, cash equivalents and short-term investments $5,855  $3,608  $5,855  $3,608 
Free cash flow(3) $443  $736  $3,115  $3,220 
Total assets $67,580  $12,419  $67,580  $12,419 
Total debt $2,467  $313  $2,467  $313 


(1) The Data Center segment primarily includes server microprocessors (CPUs) and graphics processing units (GPUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs) and Adaptive System-on-Chip (SoC) products for data centers.
   
  The Client segment primarily includes CPUs, accelerated processing units that integrate microprocessors and GPUs (APUs), and chipsets for desktop and notebook personal computers.
   
  The Gaming segment primarily includes discrete GPUs, semi-custom SoC products and development services.
   
  The Embedded segment primarily includes embedded CPUs and GPUs, FPGAs, and Adaptive SoC products.
   
  From time to time, the Company may also sell or license portions of its IP portfolio.
   
  All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as acquisition-related intangible asset amortization expense, employee stock-based compensation expense, acquisition-related costs and licensing gain.


(2) Reconciliation of GAAP Net Income to Adjusted EBITDA


  Three Months Ended Year Ended
  December 31,
2022
 December 25,
2021
 December 31,
2022
 December 25,
2021
GAAP net income $21  $974  $1,320  $3,162 
Interest expense  19   8   88   34 
Other (income) expense, net  (32)  (4)  (8)  (55)
Income tax provision (benefit)  (154)  229   (122)  513 
Equity income in investee  (3)     (14)  (6)
Stock-based compensation  310   112   1,012   379 
Depreciation and amortization  176   118   626   407 
Amortization of acquired intangible assets  1,044      3,548    
Acquisition-related costs  57   9   521   42 
Adjusted EBITDA $1,438  $1,446  $6,971  $4,476 

The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other income (expense), net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization expense and acquisition-related costs. The Company also included amortization of acquired intangible assets for the three months and year ended December 31, 2022. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.

(3) Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow


  Three Months Ended Year Ended
  December 31,
2022
 December 25,
2021
 December 31,
2022
 December 25,
2021
GAAP net cash provided by operating activities $567  $822  $3,565  $3,521 
Operating cash flow margin %  10%  17%  15%  21%
Purchases of property and equipment $(124) $(86) $(450) $(301)
Free cash flow $443  $736  $3,115  $3,220 
Free cash flow margin %  8%  15%  13%  20%

The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company's net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.

Media Contact:
Drew Prairie
AMD Communications
512-602-4425
Email Contact

Investor Contact:
Suresh Bhaskaran
AMD Investor Relations
408-749-2845
Email Contact


Primary Logo