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Jun 30, 2023

Supermicro Q4 2023 Earnings Report

Supermicro's Q4 2023 financial results were announced, revealing record revenue and significant year-over-year growth.

Key Takeaways

Supermicro reported record revenue of $2.18 billion for Q4 2023, a 37% year-over-year increase. Net income was $194 million, or $3.43 per diluted share, while non-GAAP diluted net income per share was $3.51. The company's FY23 revenue reached $7.12 billion, driven by strong demand for AI and advanced applications.

Net sales reached $2.18 billion, compared to $1.64 billion in the same quarter last year.

Net income was $194 million, or $3.43 per diluted share, versus $141 million, or $2.60 per diluted share, in the same quarter last year.

Non-GAAP diluted net income per common share was $3.51, compared to $2.62 in the same quarter of last year.

Cash and cash equivalents totaled $440 million as of June 30, 2023.

Total Revenue
$2.18B
Previous year: $1.64B
+33.6%
EPS
$0.351
Previous year: $0.262
+34.0%
Gross Profit
$372M
Previous year: $287M
+29.4%
Cash and Equivalents
$440M
Previous year: $267M
+64.7%
Free Cash Flow
-$17.5M
Previous year: -$36.2M
-51.6%
Total Assets
$3.67B
Previous year: $3.21B
+14.7%

Supermicro

Supermicro

Forward Guidance

For the first quarter of fiscal year 2024, Supermicro expects net sales of $1.90 billion to $2.20 billion, GAAP net income per diluted share of $2.02 to $2.80, and non-GAAP net income per diluted share of $2.75 to $3.50. For fiscal year 2024, the company expects net sales of $9.5 billion to $10.5 billion.

Positive Outlook

  • Expected net sales of $1.90 billion to $2.20 billion for Q1 2024.
  • Projected GAAP net income per diluted share of $2.02 to $2.80 for Q1 2024.
  • Anticipated non-GAAP net income per diluted share of $2.75 to $3.50 for Q1 2024.
  • Forecasted net sales of $9.5 billion to $10.5 billion for fiscal year 2024.
  • Assumed tax rate of approximately 14.7% for GAAP and 15.4% for non-GAAP in projections.

Challenges Ahead

  • Q1 2024 GAAP net income per diluted share includes approximately $44 million in expected stock-based compensation expense and other expenses.
  • Projections are subject to risks and uncertainties.
  • Potential fluctuations in quarterly operating results.
  • Possible concentration of customer base.
  • Risk of declining stock value if financial guidance is not met.