Advanced Energy Industries, Inc. (NASDAQ:AEIS) Q2 2024 Earnings Conference Call July 30, 2024 4:30 PM ET

Company Participants

Edwin Mok - Vice President of Strategic Marketing and Investor Relations
Steve Kelley - President and Chief Executive Officer
Paul Oldham - Chief Financial Officer

Conference Call Participants

Joe Quatrochi - Wells Fargo Securities, LLC
James Ricchiuti - Needham & Company, LLC
Krish Sankar - TD Cowen
Steve Barger - KeyBanc Capital Markets
Mehdi Hosseini - Susquehanna International Group, LLP
Scott Graham - Seaport Research Partners
Mark Miller - The Benchmark Company, LLC

Operator

Greetings. Welcome to Advanced Energy’s Second Quarter 2024 Earnings Call. At this time, all participants will be in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

I’ll now turn the conference over to Edwin Mok, Vice President of Strategic Marketing and Investor Relations. Mr. Mok, you may now begin.

Edwin Mok

Thank you, operator. Good afternoon, everyone. Welcome to Advanced Energy’s second quarter 2024 earnings conference call. With me today are Steve Kelley, our President and CEO; and Paul Oldham, our Executive Vice President and CFO. You can find our earnings press release and presentation on our website at ir.advancedenergy.com.

Let me remind you that today’s call contains forward-looking statements. They are subjects to risks and uncertainties that could cause actual results to differ materially and are not guarantees of future performance. Information concerning these risks can be found in our SEC filings. All forward-looking statements are based on management’s estimates as of today, July 30, 2024, and the company assumed no obligation to update them.

Any targets beyond the current quarter presented today should not be interpreted as guidance. On today’s call, our financial results are presented on a non-GAAP financial basis unless otherwise specified. Excluded from our non-GAAP results are stock compensation, amortization, acquisition-related costs, facility expansion and related costs, restructuring and asset impairment charges, and unrealized foreign exchange gains or losses. A detailed reconciliation between GAAP and non-GAAP measures can be found in today’s press release.

With that, let me pass the call to our President and CEO, Steve Kelley.

Steve Kelley

Thanks, Edwin. Good afternoon, everyone, and thanks for joining the call. Second quarter revenue and earnings per share exceeded our guidance. Strong demand in the data center market, as well as a pull-in of demand in the semiconductor market, drove sequential revenue growth of 11%. Data center revenue grew 74% sequentially, as we benefited from strong investments in AI. Our high-efficiency, high-power density products are well-suited for AI servers, which require significantly more power than conventional servers.