Q324 SMCI earnings

Revenue: For Fiscal Q3 2024, Super Micro Computer (SMCI) reported revenue of $3.85 billion, marking a 20% increase year-over-year.
Non-GAAP Earnings Per Share: Increased by more than 308% year-on-year to $6.65.
Gross Margin: Reported non-GAAP gross margin for Q3 was 15.6%, slightly up from 15.5% in the previous quarter.
Operating Expenses: On a GAAP basis, operating expenses were $219 million, a rise of 72% year-over-year. Non-GAAP operating expenses were $166 million, up 43% year-over-year.
Net Profit Contribution: There was a significant increase in the economies of scale contributing to a better net profit margin.

Q4 Fiscal Year 2024 Revenue Guidance: Estimates range from $5.1 billion to $5.5 billion.
Full Fiscal Year 2024 Revenue Guidance: Revised to a new range of $14.7 billion to $15.1 billion, up from the prior guidance of $14.3 billion to $14.7 billion.
Q4 Earnings Per Share: Projected GAAP diluted EPS ranges from $7.20 to $8.05, and non-GAAP diluted EPS from $7.62 to $8.42.
Capital Expenditures: Expected to be in the range of $55 million to $65 million for Q4.
Operating Expenses: Anticipated GAAP operating expenses for Q4 around $226 million.

AI Revolution: Supermicro is capitalizing on the current AI boom, citing strong demand for its total AI solutions.
Supply Chain Challenges: Despite facing some supply chain issues, particularly with new product key components, the situation is expected to gradually improve.
Investments: Significant investments are being made in production, operations management software, and customer service to support rapid growth.
S&P 500 Inclusion: Supermicro’s addition to the prestigious S&P 500 index last quarter underscores its booming business and market recognition.
Cooling Solutions: Emphasis on high-quality optimized Direct Liquid Cooling (DLC) solutions in response to the AI industry’s increasing cooling needs, with claims of significant energy cost savings for customers.
GPU and AI Focus: A strong focus on delivering AI solutions leveraging Nvidia and AMD technologies underscores the company’s strategic alignment with major tech trends.

Charles Liang on AI and Growth: “Supermicro is at the forefront of the current AI revolution…I remain optimistic that AI growth will continue for many quarters, if not many years to come.”
On Green Computing: “With our DLC technology liquid cooling technology, customers can reduce their expense on cooling experience…which aligns with our green computing DNA.”
On Market Positioning: “Supermicro is uniquely capable of delivering new technologies to market faster…With a robust pipeline of new products in calendar year 2024, we are confident.”
David Weigand on Financials: “Fiscal Q3 2024 revenues were $3.85 billion, up 200% year-over-year…We’re raising our guidance for revenues…establishing guidance for GAAP net income per diluted share of $21.61 to $22.46.”