AMD Reports Fourth Quarter and Full Year 2023 Financial Results
SANTA CLARA, Calif., Jan. 30, 2024 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) today announced revenue for the fourth quarter of 2023 of $6.2 billion, gross margin of 47%, operating income of $342 million, net income of $667 million and diluted earnings per share of $0.41. On a non-GAAP((*) basis, gross margin was 51%, operating income was $1.4 billion, net income was $1.2 billion and diluted earnings per share was $0.77.
For the full year 2023, the company reported revenue of $22.7 billion, gross margin of 46%, operating income of $401 million, net income of $854 million and diluted earnings per share of $0.53. On a non-GAAP((*) basis, gross margin was 50%, operating income was $4.9 billion, net income was $4.3 billion and diluted earnings per share was $2.65.
“We finished 2023 strong, with sequential and year-over-year revenue and earnings growth driven by record quarterly AMD Instinct GPU and EPYC CPU sales and higher AMD Ryzen processor sales,” said AMD Chair and CEO Dr. Lisa Su. “Demand for our high-performance data center product portfolio continues to accelerate, positioning us well to deliver strong annual growth in what is an incredibly exciting time as AI re-shapes virtually every part of the computing market.”
“AMD executed well in 2023 despite a mixed demand environment,” said AMD EVP, CFO and Treasurer Jean Hu. “We drove year-over-year revenue growth in our Data Center and Embedded segments and successfully launched our AMD Instinct MI300 GPUs positioning us for a strong product ramp in 2024.”
GAAP Quarterly Financial Results
Q4 2023 Q4 2022 Y/Y Q3 2023 Q/Q
----------------------------- ------- ------- --------- ------- ---------
Revenue ($M) $6,168 $5,599 Up 10% $5,800 Up 6%
----------------------------- ------- ------- --------- ------- ---------
Gross profit ($M) $2,911 $2,403 Up 21% $2,747 Up 6%
----------------------------- ------- ------- --------- ------- ---------
Gross margin 47% 43% Up 4 ppts 47% Flat
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Operating expenses ($M) $2,575 $2,557 Flat $2,533 Up 2%
----------------------------- ------- ------- --------- ------- ---------
Operating income (loss)
($M) $342 $(149) Up 330% $224 Up 53%
----------------------------- ------- ------- --------- ------- ---------
Operating margin 6% (3%) Up 9 ppts 4% Up 2 ppts
----------------------------- ------- ------- --------- ------- ---------
Net income ($M) $667 $21 Up 3,076% $299 Up 123%
----------------------------- ------- ------- --------- ------- ---------
Diluted earnings per share $0.41 $0.01 Up 4,000% $0.18 Up 128%
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Non-GAAP(*) Quarterly Financial Results
Q4 2023 Q4 2022 Y/Y Q3 2023 Q/Q
----------------------------- ------- ------- ------ ------- --------
Revenue ($M) $6,168 $5,599 Up 10% $5,800 Up 6%
----------------------------- ------- ------- ------ ------- --------
Gross profit ($M) $3,133 $2,859 Up 10% $2,963 Up 6%
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Gross margin 51% 51% Flat 51% Flat
----------------------------- ------- ------- ------ ------- --------
Operating expenses ($M) $1,727 $1,602 Up 8% $1,697 Up 2%
----------------------------- ------- ------- ------ ------- --------
Operating income ($M) $1,412 $1,262 Up 12% $1,276 Up 11%
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Operating margin 23% 23% Flat 22% Up 1 ppt
----------------------------- ------- ------- ------ ------- --------
Net income ($M) $1,249 $1,113 Up 12% $1,135 Up 10%
----------------------------- ------- ------- ------ ------- --------
Diluted earnings per share $0.77 $0.69 Up 12% $0.70 Up 10%
----------------------------- ------- ------- ------ ------- --------
Annual Financial Results
GAAP Non-GAAP((*)
---------------- ----------------------------- -----------------------------
2023 2022 Y/Y 2023 2022 Y/Y
---------------- ------- ----------- ------- -----------
Revenue ($M) $22,680 $23,601 Down 4% $22,680 $23,601 Down 4%
---------------- ------- ------- ----------- ------- ------- -----------
Gross profit
($M) $10,460 $10,603 Down 1% $11,436 $12,273 Down 7%
---------------- ------- ------- ----------- ------- ------- -----------
Gross margin % 46% 45% Up 1 ppt 50% 52% Down 2 ppts
---------------- ------- ------- ----------- ------- ------- -----------
Operating
expenses
($M) $10,093 $9,441 Up 7% $6,616 $6,030 Up 10%
---------------- ------- ------- ----------- ------- ------- -----------
Operating
income ($M) $401 $1,264 Down 68% $4,854 $6,345 Down 23%
---------------- ------- ------- ----------- ------- ------- -----------
Operating
margin % 2% 5% Down 3 ppts 21% 27% Down 6 ppts
---------------- ------- ------- ----------- ------- ------- -----------
Net income
($M) $854 $1,320 Down 35% $4,302 $5,504 Down 22%
---------------- ------- ------- ----------- ------- ------- -----------
Diluted
earnings per
share $0.53 $0.84 Down 37% $2.65 $3.50 Down 24%
---------------- ------- ------- ----------- ------- ------- -----------
Segment Summary
-- Data Center segment revenue in the quarter was $2.3 billion, up 38%
year-over-year and 43% sequentially driven by strong growth in AMD
Instinct(TM) GPUs and 4th Gen AMD EPYC(TM) CPUs.
-- For 2023, Data Center segment revenue was $6.5 billion, an
increase of 7% compared to the prior year, driven by strong growth
in AMD Instinct GPUs and 4th Gen AMD EPYC CPUs.
-- Client segment revenue was $1.5 billion, up 62% year-over-year driven
primarily by an increase in AMD Ryzen(TM) 7000 Series CPU sales.
-- For 2023, Client segment revenue was $4.7 billion, down 25%
compared to the prior year, due to a decline in the PC market.
-- Gaming segment revenue was $1.4 billion, down 17% year-over-year and 9%
sequentially, due to a decrease in semi-custom revenue, partially offset
by an increase in AMD Radeon(TM) GPU sales.
-- For 2023, Gaming segment revenue was $6.2 billion, down 9%
compared to the prior year primarily due to lower semi-custom
sales.
-- Embedded segment revenue was $1.1 billion, down 24% year-over-year and
15% sequentially primarily due to customers reducing their inventory
levels.
-- For 2023, Embedded segment revenue was $5.3 billion, up 17%
compared to the prior year, primarily due to the inclusion of a
full year of revenue related to the acquisition of Xilinx
completed in February 2022.
Recent PR Highlights
-- AMD showcased growing momentum for advanced AMD technology-powered AI
solutions from the data center to PCs:
-- AMD announced the general availability of AMD Instinct MI300X
accelerators -- with industry leading memory bandwidth performance
for generative AI -- as well as the AMD Instinct MI300A APU that
combines AMD CDNA(TM) 3 and "Zen 4" chiplets to deliver
breakthrough performance for HPC and AI workloads.
-- At the "Advancing AI" event, Microsoft, Meta, Oracle, Dell
Technologies, HPE, Lenovo, Supermicro, Arista, Broadcom and Cisco
showcased how they are leveraging AMD Instinct MI300X accelerators
to power cloud and enterprise AI infrastructure.
-- AMD made significant progress expanding its AI software ecosystem,
including unveiling the latest version of its open-source ROCm(TM)
6, software stack optimized for generative AI. AI ecosystem
leaders including Databricks, Essential AI, Lamini and OpenAI are
leveraging AMD Instinct accelerators to deliver differentiated AI
solutions. AMD also extended support for ROCm software to include
the AMD Radeon RX 7900 XT GPU, providing even more options for AI
developers and researchers to use AMD hardware for their AI work.
-- AMD announced AMD Ryzen 8040 Series mobile processors with an
integrated neural processing unit (NPU) on select models for AI.
In 2022, AMD was the first company to introduce an x86 processor
with an on-chip NPU to accelerate AI workloads with the AMD Ryzen
7040 series mobile processors. The updated NPU in the AMD Ryzen
8040 series delivers up to 1.6x more AI processing performance
compared to AMD Ryzen 7040 Series mobile processors. Acer, ASUS,
Lenovo, Razer and other PC OEMs introduced new laptops featuring
AMD Ryzen 8040 Series processors, with the first systems on-track
to go on sale this quarter.
-- At CES 2024, AMD announced the AMD Ryzen 8000G Series desktop