"This fantastic quarterly result was driven by strong demand and improving supply conditions for GPU and related key system components." - Charles Liang, CEO
— Charles Liang
03Detailed Report
SMCI
Super Micro Computer Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 29, 2026
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Executive Summary
In Q2 2024, Super Micro Computer Inc achieved record revenues of $3.66 billion, marking a 133% year-over-year growth and a staggering 73% increase from Q1 2024. The impressive performance reflects robust demand for AI-driven products and solutions, bolstered by improving supply chain conditions. The company's earnings per share (EPS) also soared to $5.59, exceeding guidance and highlighting the operating leverage afforded by its growing scale. However, management notes a challenging cash flow environment due to rising working capital tied to strategic growth initiatives. Looking ahead, management increased its full-year revenue guidance to between $14.3 billion and $14.7 billion, driven by a strong pipeline of AI products and customer demand across multiple verticals.
Key Performance Indicators
Revenue
Increasing
3.66B
QoQ: 72.90% | YoY: 103.25%
Gross Profit
Increasing
564.32M
15.40% margin
QoQ: 59.55% | YoY: 67.25%
Operating Income
Increasing
371.46M
QoQ: 115.33% | YoY: 72.63%
Net Income
Increasing
295.97M
QoQ: 88.52% | YoY: 68.00%
EPS
Increasing
0.55
QoQ: 83.33% | YoY: 66.67%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Metrics
- Revenue: $3.66 billion (QoQ: +73%, YoY: +133%)
- Gross Profit: $564.32 million (Gross Margin: 15.5%)
- Operating Income: $371.46 million (Operating Margin: 10.2%)
- Net Income: $295.97 million (Net Margin: 8.1%)
- EPS: $5.59 (Adjusted: +70% YoY)
Cash Flow & Balance Sheet Metrics
- Free Cash Flow: -$609.81 million (reflecting increased inventory and capital expenditures)
- Total Assets: $5.41 billion
- Total Liabilities: $2.33 billion
- Cash and Cash Equivalents: $726.17 million
- Current Ratio: 2.43 (indicating strong liquidity)
Operational Metrics
- Cash Conversion Cycle: 61 days
- Days Inventory Outstanding: 67 days
- Revenue Breakdown by Geography: US (71%), Asia (18%), Europe (8%), Rest of the World (3%)
Management's commentary emphasized the strong operational leverage and a focus on expanding their footprint in AI and rack-scale IT solutions, with expectations for cash flow improvements in upcoming quarters as supply stabilizes.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.66B
103.25%
72.90%
Gross Profit
564.32M
67.25%
59.55%
Operating Income
371.46M
72.63%
115.33%
Net Income
295.97M
68.00%
88.52%
EPS
0.55
66.67%
83.33%
Key Financial Ratios
Gross Profit Margin
Weak
15.40%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
10.10%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
8.08%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
5.48%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
9.62%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
2.43
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.13
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
13.00x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Premium
5.00x
Trading at premium to book value, reflects strong intangibles or growth
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