Intel Reports First-Quarter 2024 Financial Results
NEWS SUMMARY
-- First-quarter revenue of $12.7 billion, up 9% year over year (YoY).
-- First-quarter GAAP earnings (loss) per share (EPS) attributable to
Intel was $(0.09); non-GAAP EPS attributable to Intel was $0.18.
-- Forecasting second-quarter 2024 revenue of $12.5 billion to $13.5
billion; expecting second-quarter EPS of $(0.05); non-GAAP EPS of $0.10.
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 25, 2024--
Intel Corporation today reported first-quarter 2024 financial results.
“We are making steady progress against our priorities and delivered a solid quarter,” said Pat Gelsinger, Intel CEO. “Strong innovation across our client, edge and data center portfolios drove double-digit revenue growth in Intel Products. With Intel 3 in high-volume production, leading-edge semiconductors are being manufactured in the U.S. for the first time in almost a decade and we are on track to regain process leadership next year as we grow Intel Foundry. We are confident in our plans to drive sequential growth throughout the year as we accelerate our AI solutions and maintain our relentless focus on execution, operational discipline and shareholder value creation in a dynamic market.”
“Q1 revenue was in line with our expectations and we delivered non-GAAP EPS above our guidance, driven by better-than-expected gross margins and strong expense discipline,” said David Zinsner, Intel CFO. “Our new foundry operating model, which provides greater transparency and accountability, is already driving better decision-making across the business. Looking ahead, we expect to deliver year-over-year revenue and non-GAAP EPS growth in fiscal year 2024, including roughly 200 basis points of full-year gross margin improvement.”
Q1 2024 Financial Highlights
GAAP Non-GAAP
----------------------------- -------------------------------
vs.
Q1 vs. Q1
Q1 2024 Q1 2023 2023 Q1 2024 Q1 2023 2023
---------- ----------- ---- --------- ---------- --------
up
Revenue ($B) $ 12.7 $ 11.7 9%
up
6.8 up 6.7
Gross Margin 41.0% 34.2% ppts 45.1% 38.4% ppts
R&D and MG&A up
($B) $ 5.9 $ 5.4 10% $ 5.0 $ 4.8 up 5%
up
Operating 4.1 up 8.2
Margin (8.4)% (12.5)% ppts 5.7% (2.5)% ppts
Tax Rate 39.2% (139.0)% n/m* 13.0% 13.0% --
Net Income
(loss)
Attributable
to Intel up
($B) $ (0.4) $ (2.8) 86% $ 0.8 $ (0.2) n/m*
Earnings
(loss) Per
Share
Attributable up
to Intel $(0.09) $ (0.66) 86% $0.18 $(0.04) n/m*
In the first quarter, the company used $1.2 billion in cash from operations and paid dividends of $0.5 billion.
*Not meaningful
Business Unit Summary
Intel previously announced the implementation of an internal foundry operating model, which took effect in the first quarter of 2024 and created a foundry relationship between its Intel Products business (collectively CCG, DCAI, and NEX) and its Intel Foundry business (including Foundry Technology Development, Foundry Manufacturing and Supply Chain, and Foundry Services (formerly IFS)). The foundry operating model is a key component of the company’s strategy and is designed to reshape operational dynamics and drive greater transparency, accountability, and focus on costs and efficiency. The company also previously announced its intent to operate Altera(R) , an Intel Company (previously Intel’s Programmable Solutions Group), as a standalone business beginning in the first quarter of 2024. Altera was previously included in DCAI’s segment results. As a result of these changes, the company modified its segment reporting in the first quarter of 2024 to align to this new operating model. All prior-period segment data has been retrospectively adjusted to reflect the way the company internally receives information and manages and monitors its operating segment performance starting in fiscal year 2024. There are no changes to Intel’s consolidated financial statements for any prior periods.
Business Unit Revenue and Trends Q1 2024 vs. Q1 2023
--------------------------------- -------------- -------------
Intel Products:
Client Computing Group (CCG) $7.5 billion up 31%
Data Center and AI (DCAI) $3.0 billion up 5%
Network and Edge (NEX) $1.4 billion down 8%
--------------
Total Intel Products revenue $11.9 billion up 17%
Intel Foundry $4.4 billion down 10%
All other:
Altera $342 million down 58%
Mobileye $239 million down 48%
Other $194 million up 17%
--------------
Total all other revenue $775 million down 46%
Intersegment eliminations $(4.4) billion
--------------
Total net revenue $12.7 billion up 9%
==============
Intel Products Highlights
-- CCG: Intel continues to advance its mission to bring AI everywhere. As
of the end of the first quarter, more than 5 million AI PCs have shipped
since the December 2023 launch of Intel(R) Core(TM) Ultra processors,
supported by more than 100 software vendors. Intel expects to exceed its
prior forecast of 40 million AI PCs by the end of 2024.
-- DCAI: At Intel Vision, the company introduced the Intel(R) Gaudi(R) 3
AI accelerator, projected to deliver on-average 50% faster inference and
40% greater inference power efficiency than Nvidia H1001 on leading
generative AI (GenAI) models. Intel also announced new Intel Gaudi
accelerator customers and partners, including NAVER, Dell Technologies,
Bosch, Supermicro and many others. Additionally, the next-generation
E-core Intel(R) Xeon(R), code-named Sierra Forest, achieved product
release this week, and Intel expects Granite Rapids to be released in the
third quarter.
-- NEX: At Mobile World Congress in Barcelona, Intel introduced the new
Intel Edge Platform -- a modular, open software platform enabling
enterprises to develop, deploy, and manage edge and AI applications at
scale. The Intel Edge Platform has broad ecosystem support from Amazon
Web Services, Lenovo, Red Hat, SAP and Wipro. Intel also announced the
Open Platform for Enterprise AI, which aims to accelerate secure,
cost-effective GenAI deployments for businesses by driving
interoperability across a diverse and heterogeneous ecosystem, starting
with retrieval-augmented generation (RAG).
(1) NV H100 comparison based on NVIDIA-published data as of March 28, 2024. Reported numbers are per GPU. Vs Intel(R) Gaudi(R) 3 projections for LLAMA2-7B, LLAMA2-70B & Falcon 180B. Power efficiency for both Nvidia and Gaudi 3 based on internal estimates. Results may vary.
Intel Foundry Highlights
-- At its inaugural Direct Connect event in February, Intel launched Intel
Foundry, the world's first systems foundry for the AI era, supported by
nearly 300 ecosystem partners in attendance. At Direct Connect, Intel
Foundry announced an increased expected lifetime deal value for external
customers of more than $15 billion.
-- Intel continues to drive customer adoption of Intel 18A, with a major
U.S. aerospace and defense customer committing to Intel 18A, bringing
Intel Foundry's external customer commitments on Intel 18A to six. This
quarter, Microsoft also announced its plans to design a chip on Intel
18A.
-- Intel unveiled its process technology roadmap beyond its
five-nodes-in-four-years process goal, adding Intel 14A to its
leading-edge node lineup following Intel 18A and announcing several
specialized node evolutions for Intel 3, Intel 18A and Intel 14A to
enable customers to develop and deliver products tailored to their
specific needs.
-- Intel Foundry has a strong pipeline of nearly 50 customer test chips,
and has engagements with almost every foundry customer in the industry on
advanced packaging, including five design awards.
Also during the quarter, Intel convened more than 140 organizations across the industry at its inaugural Sustainability Summit. Advancing sustainability efforts across the semiconductor ecosystem is a critical step as Intel works to become the industry’s most sustainable foundry. The company shared notable progress as of the end of 2023, including preliminary estimates showing that Intel used 99% renewable electricity in its factories worldwide and achieved net positive water in the United States, Costa Rica, Mexico and India.
Q2 2024 Dividend
The company announced that its board of directors has declared a quarterly dividend of $0.125 per share on the company’s common stock, which will be payable June 1, 2024, to shareholders of record as of May 7, 2024.