AMD Q4 2019 Earnings Report
Key Takeaways
AMD reported strong Q4 2019 results with record revenue of $2.13 billion, a 50% increase year-over-year, driven by the Computing and Graphics segment. Gross margin expanded to 45%, and operating income reached $348 million. The company's success was attributed to the ramp of 7nm products and strong sales of Ryzen and EPYC processors.
Revenue increased by 50% year-over-year to $2.13 billion, driven by Computing and Graphics segment.
Gross margin reached 45%, up from 38% year-over-year, benefiting from 7nm product ramp.
Operating income was $348 million, a significant increase from $28 million in the prior year.
Free cash flow was $400 million, compared to $79 million in the previous year.
AMD
AMD
AMD Revenue by Segment
Forward Guidance
For Q1 2020, AMD expects revenue to be approximately $1.8 billion, plus or minus $50 million, an increase of approximately 42 percent year-over-year. For the full year 2020, AMD expects revenue growth of approximately 28 to 30 percent over 2019.
Positive Outlook
- Strong growth of Ryzen product sales
- Strong growth of EPYC product sales
- Strong growth of Radeon product sales
- Non-GAAP gross margin to be approximately 46 percent in Q1 2020
- Revenue growth of approximately 28 to 30 percent over 2019
Challenges Ahead
- Sequential decrease driven primarily by negligible semi-custom revenue
- Semi-custom revenue continues to soften in advance of the ramp of next generation products
- Seasonality
- Market conditions
- Factors set forth under Cautionary Statement
Revenue & Expenses
Visualization of income flow from segment revenue to net income