AMD(AMD) - 2025 Q1 - Earnings Call Transcript
2025-05-06 21:00
Advanced Micro Devices (AMD) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Matt Ramsay - Corporate VP - Financial Strategy & IRLisa Su - Chair & CEOJean Hu - Executive VP, CFO & TreasurerJoshua Buchalter - Director - Equity ResearchTimothy Arcuri - Managing DirectorHarlan Sur - Executive Director - Equity ResearchThomas O'Malley - Director - Equity ResearchCJ Muse - Senior Managing Director Conference Call Participants Aaron Raikers - AnalystVivek Arya - AnalystStacy Rasgon - AnalystRo ...
AMD(AMD) - 2025 Q1 - Earnings Call Transcript
2025-05-06 21:00
Financial Data and Key Metrics Changes - First quarter revenue increased by 36% year over year to $7.4 billion, exceeding consensus estimates [5][28] - Net income rose by 55%, driven by a higher percentage of data center product sales and a richer Ryzen processor mix [6][30] - Gross margin expanded for the fifth consecutive quarter, reaching 54%, up 140 basis points from the previous year [29][30] Business Segment Data and Key Metrics Changes - Data Center segment revenue grew by 57% year over year to $3.7 billion, driven by increased server CPU share and strong demand from hyperscalers [6][31] - Client and Gaming segment revenue increased by 28% year over year to $2.9 billion, with client revenue specifically growing by 68% [19][32] - Embedded segment revenue decreased by 3% year over year to $823 million, with expectations of gradual recovery [24][33] Market Data and Key Metrics Changes - The number of EPYC powered cloud instances activated by enterprise customers more than doubled year over year [8] - Demand for AMD's latest generation AI PC processors increased by over 50% quarter on quarter [20] - The gaming revenue decreased by 30% year over year, primarily due to lower semi-custom sales, although demand signals for 2025 have strengthened [22][23] Company Strategy and Development Direction - The company is focusing on expanding investments in product and technology roadmaps, go-to-market initiatives, and AI software solutions [26][27] - The launch of the fifth generation EPYC processors is expected to drive continued share gains in the data center market [10][11] - The acquisition of ZT Systems aims to enhance the company's capabilities in providing rack-level AI solutions [16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong double-digit revenue growth in 2025 despite macroeconomic uncertainties [26][35] - The company anticipates a significant impact from new export license requirements, estimating a $1.5 billion revenue reduction for the full year [35][36] - Management highlighted the strength of their differentiated product portfolio and execution as key factors for future growth [6][26] Other Important Information - The company completed the acquisition of ZT Systems on March 31, enhancing its systems design expertise [16][34] - The first production shipments of the fifth generation EPYC processors are expected in the second half of 2025 [11][34] Q&A Session Summary Question: Drivers of upside in Q1 and guidance for Q2 growth by segment - Management noted strong performance across client, gaming, and data center businesses, with particular strength in desktop performance and ASPs [41][44] Question: Performance of the Instinct family in Q1 and outlook for the second half - Management indicated that the data center GPU business performed in line with expectations, with high customer interest in the upcoming MI350 launch [49][50] Question: Clarification on data center GPU growth expectations - Management confirmed that the data center GPU business is expected to grow strong double digits despite the headwinds from export controls [83][84] Question: Inventory increase reasons - The increase in inventory was primarily to support strong client and server ramp, as well as the upcoming data center GPU ramp [57][58] Question: Feedback on MI400 series and addressing deployment challenges - Management expressed high enthusiasm for the MI400 series and emphasized the importance of planning and collaboration with customers to address deployment challenges [61][62] Question: Client business growth expectations and market share - Management highlighted strong performance in the client business, particularly in high-end notebooks and desktops, with expectations for continued share gains [80][92]
Astronics (ATRO) - 2025 Q1 - Earnings Call Transcript
2025-05-06 20:45
Financial Data and Key Metrics Changes - Revenue for the first quarter was $206 million, an increase of 11% year over year, and at the high end of the company's range [5] - Adjusted net income rose to $17 million from $2 million last year, while adjusted EBITDA increased to $30.7 million from $17.6 million, representing about 15% of sales [5][12] - Gross profit increased by 28% year over year to $60.8 million, with gross margin expanding to 29.5% from 25.7% [12] - Adjusted operating income was $22.6 million, or 11% of sales, compared to $5.5 million and 3% in the prior year [13] Business Line Data and Key Metrics Changes - The Aerospace segment achieved record revenue of $191.4 million, up 17% year over year, with adjusted operating profit of $31 million and an operating margin of 16.2% [8][15] - The Test segment reported sales of $14.6 million, down from the previous year, with an adjusted operating loss of $1.5 million due to a $1.9 million adjustment related to a long-term contract [16][17] Market Data and Key Metrics Changes - First quarter bookings were strong at $280 million, yielding a book-to-bill ratio of 1.36, with a significant order of $57 million for the FLRAA development effort [6][7] - The backlog reached an all-time high, indicating strong future demand [6] Company Strategy and Development Direction - The company remains focused on margin expansion, free cash flow generation, and continuous improvement, with plans for capital expenditures between $35 million and $50 million for the year [21][22] - The company is evaluating its financing structure and considering value-creating initiatives, including acquisitions and share repurchases [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, particularly concerning potential tariff impacts, estimating obligations between $10 million and $20 million [24][25] - The company is maintaining its revenue forecast for 2025 at $820 million to $860 million, reflecting a 6% increase from 2024, while acknowledging both upside potential and downside risks [23][24] Other Important Information - Operating cash flow improved significantly to $20.6 million from $2 million in the prior year, driven by stronger cash earnings and efficient working capital management [18][19] - Long-term debt net of cash was reduced to $134.2 million, with total liquidity at approximately $194 million [20] Q&A Session Summary Question: How much mitigation can be done to offset the tariff impact? - Management indicated it is difficult to quantify timing without knowing the exact tariffs, but they are considering various alternatives [28][30] Question: Does the review of each business indicate restructuring or strategic changes? - Management stated it could involve any of those aspects, emphasizing the need to evaluate product lines and initiatives [32][33] Question: What are the expectations regarding Boeing's production needs? - Management has not heard of major changes from Boeing and is encouraged by their production rate progression [35] Question: Can more detail be provided on demand growth from airlines versus OEMs? - Demand has been strong from both sides, with commercial transport sales being roughly 50% line fit and 50% aftermarket [43] Question: Is the $1.9 million charge contained? - Management acknowledged potential risks and is conducting a review to assess the situation [46] Question: What is the worst-case scenario for the UK legal fees? - Management believes the worst-case scenario for legal fees is around $7.2 million, with the overall situation being better than initially feared [51][52]
Wynn Resorts(WYNN) - 2025 Q1 - Earnings Call Transcript
2025-05-06 20:30
Financial Data and Key Metrics Changes - The company reported adjusted property EBITDA of $223.4 million at Wynn Las Vegas on operating revenue of $625.3 million, resulting in an EBITDA margin of 35.7% [17] - Total casino revenues increased by 4% year-over-year, despite the absence of the Super Bowl in 2025 [12] - Adjusted property EBITDA for Macau operations was $252.1 million on operating revenue of $865.9 million, yielding an EBITDA margin of 29.1% [19] Business Line Data and Key Metrics Changes - In Las Vegas, adjusted EBITDA was down approximately $11 million when adjusting for hold, with slot business showing strong performance [12][18] - Encore Boston Harbor generated $57.5 million of adjusted property EBITDA on revenue of $209.2 million, with an EBITDA margin of 27.5% [19] - Macau's mass drop was up year-over-year, while VIP turnover increased significantly, although lower VIP hold impacted EBITDA by over $38 million [14][20] Market Data and Key Metrics Changes - In Las Vegas, RevPAR was slightly up from 2024, with slot handle also increasing [10] - Macau's mass drop during Golden Week was up from the previous year, with full hotel occupancy reported [11] - The company noted that international visitation to Las Vegas is currently at 9% of room nights, which can be backfilled easily [32] Company Strategy and Development Direction - The company is focused on maximizing EBITDA and maintaining a healthy margin profile amidst competitive pressures in Macau [14] - The opening of the Gourmet Pavilion Food Hall at Wynn Palace has driven incremental visitation and revenue [15] - The company is committed to stock buybacks, having repurchased $200 million in Q1 and an additional $100 million in Q2 [16][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the operating environment due to tariffs but noted that the business in Vegas and Macau is holding up well [11] - The company is prepared for various scenarios and has a playbook ready to address potential impacts on demand [11] - Management expressed confidence in the future, highlighting the upcoming property opening and the strength of the business [16] Other Important Information - The company plans to spend between $250 million to $300 million on CapEx in 2025, including concession-related commitments [21] - The liquidity position remains strong with $3.2 billion in global cash and revolver availability as of March 31 [21] - The company is focused on returning capital to shareholders, with a proposed increase in dividends and ongoing share repurchases [22][23] Q&A Session Summary Question: Changes in promotions and discounts in Las Vegas - Management confirmed that promotions correlate strongly with ADR, and the Super Bowl comparison influenced the observed changes [26] Question: CapEx deployment cadence - Management indicated that CapEx will follow the usual construction curve, deploying funds over the remainder of the year and into next year [27] Question: International visitation impact on Las Vegas - Management noted that high-end visitation remains stable, while international visitation is currently at 9% of room nights, which can be easily backfilled [32] Question: Competitive environment in Macau - Management described the competitive landscape as stable but noted the importance of service quality and product offerings to remain competitive [42][46] Question: Development opportunities in New York and Japan - Management is prepared to submit proposals for New York and is open to opportunities in Japan, provided the conditions are favorable [53][67] Question: CapEx projects on hold - The majority of the delayed CapEx is related to the Encore Tower remodel, with management emphasizing that the project is not canceled but rescheduled [58][75] Question: OpEx management with new openings - Management stated that OpEx per day remained flat year-over-year, attributing this to careful management and economies in other areas [20][82]
Wynn Resorts(WYNN) - 2025 Q1 - Earnings Call Transcript
2025-05-06 20:30
Financial Data and Key Metrics Changes - The company reported adjusted property EBITDA of $223.4 million for Wynn Las Vegas on operating revenue of $625.3 million, resulting in an EBITDA margin of 35.7% [16] - Total casino revenues increased by 4% year-over-year, excluding the Super Bowl impact [11] - Adjusted property EBITDA for Macau operations was $252.1 million on operating revenue of $865.9 million, with an EBITDA margin of 29.1% [17] Business Line Data and Key Metrics Changes - In Las Vegas, slot volumes increased by approximately 3%, contributing to overall revenue growth [12] - Encore Boston Harbor generated $57.5 million in adjusted property EBITDA on revenue of $209.2 million, with an EBITDA margin of 27.5% [17] - Macau's mass drop was up year-over-year, while VIP turnover increased significantly, although lower VIP hold impacted EBITDA by about $38 million [13][18] Market Data and Key Metrics Changes - In Las Vegas, RevPAR for April was slightly up from 2024, with healthy group activity and slot handle [9] - Macau's mass drop during Golden Week showed improvement compared to the previous year, with full hotel occupancy [10] - The company noted that international visitation to Las Vegas is currently at 9% of room nights, which can be backfilled easily [32] Company Strategy and Development Direction - The company is focused on maximizing EBITDA and maintaining a healthy margin profile despite competitive pressures in Macau [13] - The opening of the Gourmet Pavilion Food Hall at Wynn Palace has driven increased visitation, with 2,400 additional daily restaurant covers [14] - The company is committed to returning capital to shareholders, having repurchased $200 million in stock during Q1 and an additional $100 million in Q2 [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the operating environment due to tariffs but noted that the business in Vegas and Macau is holding up well [10] - The company remains optimistic about future demand, particularly in group and convention business, despite short booking windows [9][34] - Management expressed confidence in the upcoming Wynn on Marjan Islands project, viewing it as a compelling development opportunity [15] Other Important Information - The company expects total CapEx spend in 2025 to range between $250 million to $300 million, with a significant portion related to concession commitments [20] - The company has a strong liquidity position with $3.2 billion in global cash and revolver availability as of March 31 [20] Q&A Session Summary Question: Changes in promotions and discounts in Las Vegas - Management indicated that the observed changes correlate strongly with ADR, particularly influenced by the Super Bowl comparison [25] Question: Thoughts on international inbound and VIP exposure - Management noted that high-end visitation remains stable, while international visitation has decreased but does not significantly impact the business [32] Question: Competitive environment in Macau - Management described the competitive landscape as stable but emphasized the importance of service quality and product offerings to remain competitive [44][108] Question: CapEx projects on hold due to tariffs - The majority of the delayed CapEx is related to the Encore Tower remodel, with a total of $375 million impacted [59] Question: Group business outlook for 2026 - Management reported strong demand for group bookings in 2026, attributing it to large events scheduled for that year [62]
WOW(WOW) - 2025 Q1 - Earnings Call Transcript
2025-05-06 20:30
Financial Data and Key Metrics Changes - High-speed data (HSD) revenue decreased by 0.8% year over year to $105.4 million [6][11] - Total revenue for the quarter decreased by 7.1% to $150 million, primarily due to declines in video and telephony revenue [11] - Adjusted EBITDA increased by 13.8% year over year to $76.7 million, with a record adjusted EBITDA margin of 51.1% [6][11] - Total cash at the end of the quarter was $28.8 million, with total outstanding debt of $1.03 billion and a leverage ratio of 3.4 times [12] Business Line Data and Key Metrics Changes - The company passed an additional 13,700 homes in greenfield markets, bringing the total to 75,600 homes passed [5][7] - Penetration rates in greenfield markets remained strong at 16.3% [7] - The traditional video business saw a 38% decrease in subscribers, now at 48,900 [9] Market Data and Key Metrics Changes - The 2025 Edge Out Vintage passed 1,500 new homes with a penetration rate close to 27% [8] - The 2024 Edge Out Vintage increased its penetration rate to 44.6%, while the 2023 vintage increased to 31.4% [8] Company Strategy and Development Direction - The company is focusing on fiber to the home expansion initiatives while maintaining cost discipline [10] - The strategy includes migrating customers off the video platform and aligning with YouTube TV, which has seen significant growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in greenfield markets and emphasized the importance of cost management [5][10] - The company anticipates continued challenges in the traditional video business but expects growth in greenfield areas [10][27] Other Important Information - The company plans to spend between $60 million to $70 million on greenfield initiatives in 2025, despite a slower start due to weather issues [13][22] - Unlevered adjusted free cash flow for the first quarter was $37.8 million, an increase from the previous quarter [14] Q&A Session Summary Question: Capital spending pace and new Greenfield homes passed - The company plans to spend $60 million to $70 million for the year, with more spending expected in the latter half [22] Question: Competitive landscape and net adds - Competition remains similar, with low churn aided by simplified pricing, and penetration rates in greenfield markets outperforming expectations [24][26] Question: Mobile products and their impact - Mobile offerings are not significant drivers for acquisition or churn reduction, with a focus on core broadband and YouTube TV services [28]
VTEX(VTEX) - 2025 Q1 - Earnings Call Transcript
2025-05-06 20:30
VTEX (VTEX) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Speaker0 Hello, everyone, and welcome to Vitek's earnings conference call for the first quarter of twenty twenty five. I'm Giulio Vater Fernandez, VP of Investor Relations. Joining me today are Gerardo Tova Junior, our Co Founder and Co CEO and Ricardo Camata Sodre, our Chief Financial Officer. Also joining us for the Q and A session are Mariano Javier de Haria, Co Founder and Co CEO and Andres Polidoro, Chief Strategy Officer. Before we begin, plea ...
Varonis(VRNS) - 2025 Q1 - Earnings Call Transcript
2025-05-06 20:30
Varonis Systems (VRNS) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Speaker0 As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tim Pearce. Thank you. You may begin. Speaker1 Thank you, operator. Good afternoon. Thank you for joining us today to review Varonis' first quarter financial results. With me on the call today are Yaki Feitelson, Chief Executive Officer and Guy Melleman, Chief Financial Officer and Chief Operating Officer of Varonis. After preliminary ...
Upstart(UPST) - 2025 Q1 - Earnings Call Transcript
2025-05-06 20:30
Upstart (UPST) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Company Participants Sonya Banerjee - VP & Head of Investor RelationsDave Girouard - Co-Founder & CEOSanjay Datta - CFORamsey El-Assal - Managing DirectorSimon Clinch - PartnerKyle Peterson - Managing Director, Equity ResearchPeter Christiansen - DirectorMichael Infante - Vice President - Equity ResearchJohn Hecht - Managing DirectorReggie Smith - Executive Director - Equity ResearchGiuliano Bologna - Managing DirectorMatthew O'Neill - Managing D ...
Upstart(UPST) - 2025 Q1 - Earnings Call Transcript
2025-05-06 20:30
Upstart (UPST) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Speaker0 Good afternoon, and welcome to the Upstart First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode to prevent any background noise. Later, we will conduct a question and answer session and instructions will be given at that time. As a reminder, this conference call is being recorded. I will now turn the conference over to Sonya Banerjee, Head of Investor Relations. Sonya, please go ahead. ...