Intel Corporation (NASDAQ:INTC) Q2 2024 Earnings Conference Call August 1, 2024 5:00 PM ET

Company Participants

John Pitzer - Corporate Vice President of Investor Relations
Patrick Gelsinger - Chief Executive Officer
David Zinsner - Executive Vice President and Chief Financial Officer

Conference Call Participants

Vivek Arya - Bank of America Securities
Ross Seymore - Deutsche Bank
CJ Muse - Cantor Fitzgerald
Joseph Moore - Morgan Stanley
Timothy Arcuri - UBS
Srini Pajjuri - Raymond James
Matthew Ramsay - TD Cowen

Operator

Thank you for standing by, and welcome to Intel Corporation's Second Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

And now, I'd like to introduce your host for today's program, Mr. John Pitzer, Corporate Vice President of Investor Relations.

John Pitzer

Thank you, Jonathan. By now you should have received a copy of the Q2 earnings release and earnings presentation, both of which are available on our Investor Relations website, intc.com. For those joining us online today, the earnings presentation is also available in our webcast window. I am joined today by our CEO, Pat Gelsinger, and our CFO, David Zinsner. In a moment, we will hear brief comments from both followed by a Q&A session.

Before we begin, please note that today's discussion contains forward-looking statements based on the environment as we currently see it and as such are subject to various risks and uncertainties. It also contains reference to non-GAAP financial measures that we believe provide useful information to our investors. Our earnings release, most recent Annual Report on Form 10-K, and other filings with the SEC provide more information on specific risk factors that could cause actual results to differ materially from our expectations. They also provide additional information on non-GAAP financial measures, including reconciliations where appropriate to our corresponding GAAP financial measures.

With that, let me turn things over to Pat.

Patrick Gelsinger

Thank you, John, and good afternoon, everyone. Q2 profitability was disappointing despite continued progress on product and process roadmaps. With our new operating model firmly in place, we are accelerating actions to improve profitability and capital efficiency by more than $10 billion in 2025, which I will discuss shortly.

For the quarter, we delivered sequential revenue growth in line with our forecast despite the unexpected timing of new export control restrictions announced in May. Q2 profitability was below our expectations due in part by our decision to more quickly ramp core Ultra AI CPUs as well as other selective actions we took to better position ourselves for future quarters, which Dave will address fully in his comments.