AMD(AMD) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter revenue reached a record $7.7 billion, up 24% year-over-year, with a gross margin of 51%[6] - For the full year 2024, AMD reported record revenue of $25.8 billion, a 14% increase compared to 2023, with a gross margin of 49%[2] - Data Center segment revenue for Q4 2024 was a record $3.9 billion, up 69% year-over-year, contributing to a full year revenue of $12.6 billion, an increase of 94%[12] - Client segment revenue in Q4 2024 was a record $2.3 billion, up 58% year-over-year, leading to a full year revenue of $7.1 billion, up 52%[13] - GAAP gross profit for Q4 2024 was $3,882 million, up from $2,911 million in Q4 2023, representing a 33.2% year-over-year increase[19] - Non-GAAP gross profit for Q4 2024 reached $4,140 million, compared to $3,133 million in Q4 2023, reflecting a 32.2% increase[19] - GAAP operating income for the year ended December 28, 2024, was $1,900 million, significantly higher than $401 million for the year ended December 30, 2023[19] - Non-GAAP operating income for the year ended December 28, 2024, was $6,138 million, compared to $4,854 million for the previous year, marking a 26.4% increase[19] - GAAP net income for Q4 2024 was $482 million, or $0.29 per share, compared to $667 million, or $0.41 per share, in Q4 2023[19] - Non-GAAP net income for Q4 2024 was $1,777 million, or $1.09 per share, up from $1,249 million, or $0.77 per share, in Q4 2023[19] - Operating income for the year ended December 28, 2024, was $1,900 million, significantly up from $401 million in the previous year[25] - The diluted earnings per share for Q4 2024 was $0.29, compared to $0.47 in Q3 2024 and $0.41 in Q4 2023[25] Future Outlook - AMD expects Q1 2025 revenue to be approximately $7.1 billion, representing year-over-year growth of approximately 30%[17] - The company expects continued growth driven by its product portfolio and increasing demand for high-performance computing[21] Research and Development - AMD's investments in AI and innovation are expected to drive long-term growth and value creation, with significant partnerships announced for AI infrastructure[14] - The company launched new AMD Ryzen AI processors, enhancing its consumer and commercial AI PC portfolio[15] - AMD's supercomputing capabilities were highlighted with the El Capitan supercomputer surpassing the exascale barrier, showcasing leadership in high-performance computing[15] - AMD's strategic collaborations with companies like IBM and Vodafone aim to enhance AI and digital services capabilities[14] Cash Flow and Expenses - Free cash flow for the quarter was $1,091 million, compared to $496 million in the previous quarter and $242 million year-over-year, reflecting a free cash flow margin of 14%[34] - Research and development expenses for Q4 2024 totaled $1,712 million, up from $1,636 million in Q3 2024 and $1,511 million in Q4 2023[25] - Capital expenditures for the quarter totaled $208 million, an increase from $132 million in the previous quarter and $139 million year-over-year[29] Assets and Equity - Total assets increased to $69,226 million as of December 28, 2024, compared to $67,885 million as of December 30, 2023[26] - The company reported a total stockholders' equity of $57,568 million as of December 28, 2024, up from $55,892 million a year earlier[26] - Total debt was reported at $1,721 million, consistent with $1,720 million in the previous quarter and down from $2,468 million year-over-year[29] Segment Performance - Data Center segment net revenue reached $3,859 million, a 15% increase from $3,549 million in the previous quarter and a 69% increase from $2,282 million year-over-year[29] - Client segment net revenue was $2,313 million, up 23% from $1,881 million quarter-over-quarter and up 58% from $1,461 million year-over-year[29] - Total net revenue for the company was $7,658 million, representing a 12% increase from $6,819 million in the previous quarter and a 24% increase from $6,168 million year-over-year[29] Operating Expenses - GAAP operating expenses for Q4 2024 were $3,022 million, an increase from $2,575 million in Q4 2023, reflecting a 17.3% rise[19] - The company incurred restructuring charges of $186 million during the year ended December 28, 2024[25]