"Our robust growth is driven by our technology and product leadership in the AI infrastructure market, especially with Generative AI training and inferencing."
— Charles Liang
03Detailed Report
SMCI
Super Micro Computer Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 29, 2026
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Executive Summary
In Q4 2024, Super Micro Computer Inc achieved a significant revenue milestone of $5.31 billion, reflecting an impressive 143% year-over-year growth driven by a robust demand for AI infrastructure solutions. This quarter also marks the company's continued leadership in the direct liquid cooling (DLC) technology segment, underscoring its strategic positioning in the growing AI market. Despite challenges including component shortages that delayed $800 million in shipments, management forecasts strong revenue growth for fiscal year 2025, projecting total revenue between $26 billion to $30 billion. The company also anticipates an easing of short-term margin pressures, primarily related to upfront costs associated with ramping production of DLC systems, which are expected to generate higher margins as production stabilizes.
Key Performance Indicators
Revenue
Increasing
5.35B
QoQ: 39.08% | YoY: 145.08%
Gross Profit
Increasing
546.03M
11.23% margin
QoQ: -8.59% | YoY: 46.90%
Operating Income
Increasing
288.49M
QoQ: -23.74% | YoY: 27.22%
Net Income
Increasing
297.24M
QoQ: -26.14% | YoY: 53.56%
EPS
Increasing
0.60
QoQ: -15.49% | YoY: 62.16%
Revenue Trend
Margin Analysis
Financial Highlights
- Q4 Revenue: $5.31 billion, up 143% YoY, 38% QoQ.
- Gross Profit: $546 million, gross margin at 11.3%, a decrease from 15.6% in Q3, due to product mix and initial costs of new DLC technologies.
- Operating Income: $288 million; operating margin fell to 7.1% from 11.3% QoQ.
- Net Income: $297 million, net margin of 5.55%.
- EPS: Non-GAAP EPS of $6.25, below expectations of $7.62 - $8.42.
- Cash Flow: Operating cash flow used was $635 million, with a free cash flow of negative $662 million due to inventory builds anticipated for future growth.
- Current Ratio: 3.77, indicating strong liquidity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.35B
145.08%
39.08%
Gross Profit
546.03M
46.90%
-8.59%
Operating Income
288.49M
27.22%
-23.74%
Net Income
297.24M
53.56%
-26.14%
EPS
0.60
62.16%
-15.49%
Key Financial Ratios
Gross Profit Margin
Weak
10.20%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
5.39%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
5.55%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
2.99%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.43%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
3.77
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.40
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
High Growth
40.10x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
8.72x
Very high premium suggests asset-light business model or lofty expectations
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