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AMD Reports First Quarter 2022 Financial Results

AMD Reports First Quarter 2022 Financial Results

― Record quarterly revenue of $5.9 billion grew 71{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year-over-year; Gross margin grew 2 percentage points and non-GAAP gross margin grew 7 percentage points year-over-year ―

SANTA CLARA, Calif., May 03, 2022 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) today announced revenue for the first quarter of 2022 of $5.9 billion, gross margin of 48{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, operating income of $951 million, operating margin of 16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, net income of $786 million and diluted earnings per share of $0.56. On a non-GAAP(*) basis, gross margin was 53{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, operating income was $1.8 billion, net income was $1.6 billion and diluted earnings per share was $1.13. First quarter 2022 results include partial quarter financial results from the recently completed acquisition of Xilinx which closed February 14, 2022.

Excluding Xilinx, AMD had record quarterly revenue of $5.3 billion, non-GAAP gross margin of 51{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and non-GAAP operating margin of 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.
“The first quarter marked a significant inflection point in our journey to scale and transform AMD as we delivered record revenue and closed our strategic acquisition of Xilinx,” said AMD Chair and CEO Dr. Lisa Su. “Each of our businesses grew by a significant double digit percentage year-over-year, led by EPYC server processor revenue more than doubling for the third straight quarter. Demand remains strong for our leadership products, with our increased full-year guidance reflecting higher AMD organic growth and the addition of the growing Xilinx business.”

GAAP Quarterly Financial Results

Q1 2022

Q1 2021

Y/Y

Q4 2021

Q/Q

Revenue ($M)

$5,887

$3,445

Up 71{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$4,826

Up 22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Gross profit ($M)

$2,818

$1,587

Up 78{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$2,426

Up 16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Gross margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

48{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

46{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 190 bps

50{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Down 240 bps

Operating expenses ($M)

$1,950

$929

Up 110{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$1,223

Up 59{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Operating income ($M)

$951

$662

Up 44{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$1,207

Down 21{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Operating margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

19{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Down 3pp

25{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Down 9pp

Net income ($M)

$786

$555

Up 42{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$974

Down 19{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Earnings per share

$0.56

$0.45

Up 24{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$0.80

Down 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Non-GAAP(*) Quarterly Financial Results

Q1 2022

Q1 2021

Y/Y

Q4 2021

Q/Q

Revenue ($M)

$5,887

$3,445

Up 71{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$4,826

Up 22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Gross profit ($M)

$3,100

$1,588

Up 95{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$2,427

Up 28{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Gross margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

53{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

46{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 660 bps

50{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 240 bps

Operating expenses ($M)

$1,346

$830

Up 62{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$1,103

Up 22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Operating income ($M)

$1,837

$762

Up 141{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$1,328

Up 38{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Operating margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

31{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 9pp

27{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 4pp

Net income ($M)

$1,589

$642

Up 148{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$1,122

Up 42{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Earnings per share

$1.13

$0.52

Up 117{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$0.92

Up 23{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Non-GAAP(*) Quarterly Financial Results (Excluding Xilinx)

Q1 2022

Q1 2021

Y/Y

Q4 2021

Q/Q

Revenue ($M)

$5,328

$3,445

Up 55{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$4,826

Up 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Gross profit ($M)

$2,712

$1,588

Up 71{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$2,427

Up 12{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Gross margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

51{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

46{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 480 bps

50{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 60 bps

Operating income ($M)

$1,604

$762

Up 110{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$1,328

Up 21{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Operating margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 8pp

27{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Up 3pp

Q1 2022 Results

  • Revenue of $5.9 billion was up 71{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year-over-year and 22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} quarter-over-quarter driven by higher revenue in the Computing and Graphics and Enterprise, Embedded and Semi-Custom segments and the inclusion of Xilinx revenue.

  • Gross margin was 48{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, an increase of 2 percentage points year-over-year and a decrease of 2 percentage points quarter-over-quarter. The year-over-year increase was primarily driven by higher server processor revenue and high margin Xilinx revenue, partially offset by amortization of intangible assets and acquisition-related costs. The quarter-over-quarter decrease was primarily due to amortization of intangible assets and acquisition-related costs.

  • Non-GAAP gross margin was 53{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, an increase of 7 percentage points year-over-year and 3 percentage points quarter-over-quarter. The year-over-year increase was primarily driven by higher server processor revenue and high margin Xilinx revenue. The quarter-over-quarter increase was primarily driven by high margin Xilinx revenue, higher server processor revenue and richer client product mix.

  • Operating income was $951 million compared to $662 million a year ago and $1.2 billion in the prior quarter. The year-over-year increase was primarily driven by higher revenue and gross profit, partially offset by amortization of intangible assets and acquisition-related costs. The quarter-over-quarter decrease was primarily due to amortization of intangible assets and acquisition-related costs.

  • Record non-GAAP operating income was $1.8 billion compared to $762 million a year ago and $1.3 billion in the prior quarter. The year-over-year and quarter-over-quarter increases were primarily driven by higher gross profit.

  • Net income was $786 million compared to $555 million a year ago and $974 million in the prior quarter. The year-over-year increase was primarily driven by higher operating income. The quarter-over-quarter decrease was primarily due to lower operating income related to amortization of intangible assets and acquisition-related costs.

  • Record non-GAAP net income was $1.6 billion compared to $642 million a year ago and $1.1 billion in the prior quarter. The year-over-year and quarter-over-quarter increases were primarily driven by higher operating income.

  • Diluted earnings per share was $0.56 compared to $0.45 a year ago and $0.80 in the prior quarter. Record non-GAAP diluted earnings per share was $1.13 compared to $0.52 a year ago and $0.92 in the prior quarter.

  • Cash, cash equivalents and short-term investments were $6.5 billion at the end of the quarter. The company repurchased $1.9 billion of common stock during the quarter.

  • Record cash from operations was $995 million in the quarter compared to $898 million a year ago and $822 million in the prior quarter. Record free cash flow was $924 million in the quarter compared to $832 million a year ago and $736 million in the prior quarter.

  • AMD’s balance sheet reflects $49.6 billion of goodwill and acquisition-related intangible assets associated with the acquisition of Xilinx.

Quarterly Financial Segment Summary

  • Record Computing and Graphics segment revenue was $2.8 billion, up 33{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year-over-year and 8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} quarter-over-quarter. The year-over-year increase was driven by Ryzen™ and Radeon™ processor sales. The quarter-over-quarter increase was driven by Ryzen™ processor sales.

    • Client processor average selling price (ASP) increased year-over-year and quarter-over-quarter driven by a richer mix of Ryzen processor sales.

    • GPU ASP increased year-over-year driven by high end Radeon processor sales and decreased quarter-over-quarter due to a lower mix of data center GPU revenue.

    • Record operating income was $723 million compared to $485 million a year ago and $566 million in the prior quarter. Operating income improvements were primarily driven by higher revenue, partially offset by higher operating expenses.

  • Record Enterprise, Embedded and Semi-Custom segment revenue was $2.5 billion, up 88{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year-over-year and 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} quarter-over-quarter driven by higher EPYC™ processor revenue, semi-custom and embedded product sales.

  • Xilinx partial quarter revenue was $559 million with operating income of $233 million. On a pro-forma basis for the full quarter, Xilinx generated over $1 billion of revenue, up 22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year-over-year, driven by growth across all Xilinx major end market categories.

  • All Other operating loss was $886 million as compared to operating losses of $100 million a year ago and $121 million in the prior quarter. Higher operating loss was primarily due to amortization of intangible assets and acquisition-related costs.

Recent PR Highlights

  • AMD completed the largest acquisition in the history of the semiconductor industry by acquiring Xilinx to create the industry’s high-performance and adaptive computing leader with significantly expanded scale and the strongest portfolio of leadership computing, graphics and adaptive SoC products.

  • AMD announced a definitive agreement to acquire Pensando for approximately $1.9 billion before working capital and other adjustments. Pensando’s distributed services platform will expand AMD’s data center product portfolio with a high-performance data center processing unit (DPU) and software stack that are already deployed at scale across cloud and enterprise customers including Goldman Sachs, IBM Cloud, Microsoft Azure and Oracle Cloud.

  • AMD announced the general availability of 3rd Gen AMD EPYC processors with AMD 3D V-Cache™ technology, delivering leadership performance in technical computing workloads, the industry’s largest L3 cache and modern security features.

  • Cloud customers continued to expand their AMD EPYC processor-powered offerings, with 465 cloud instances now delivering powerful performance for today’s most important workloads.

  • AMD expanded its lineup of high-performance AMD Ryzen desktop processors for gamers and creators.

    • AMD announced the Ryzen 7 5800X3D processor, the first Ryzen processor to feature AMD 3D V-Cache technology and the industry’s first x86 PC processor with 3D stacked chiplets. The Ryzen 7 5800X3D processor delivers leadership gaming performance in select titles compared to the competitive processor without stacked cache technology.

    • Lenovo expanded its line of ThinkStation P620 workstations with the new Ryzen Threadripper™ PRO 5000 WX-Series processors, which bring dominant, full-spectrum performance leadership for the most demanding professional workloads.

    • AMD also expanded the Ryzen desktop processor portfolio with six new “Zen 3” and “Zen 2” processors, giving PC enthusiasts even more options to create a customized gaming experience.

  • AMD expanded the Versal product lineup with first customer shipments of the flagship Versal HBM adaptive SoC with integrated HBM2e memory and Versal Premium product series with AI Engines optimized for signal processing-intensive applications like next-generation radar and wireless system and device testing.

  • AMD announced that its board of directors approved a new $8 billion share repurchase program. This program is in addition to the $4 billion share repurchase program announced last year.

  • AMD entered into a $3 billion sustainability-linked credit facility to replace its existing $500 million revolving credit facility and reinforces commitment to the company’s environmental, social and governance (ESG) goals.

  • AMD announced that its board of directors elected President and CEO Dr. Lisa Su as the chair of the board and John E. Caldwell as lead independent director. Former Xilinx board members Jon Olson and Elizabeth Vanderslice also joined the AMD board in conjunction with the acquisition of Xilinx.

Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.
For the second quarter of 2022, AMD expects revenue to be approximately $6.5 billion, plus or minus $200 million, an increase of approximately 69{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year-over-year and approximately 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} quarter-over-quarter. The year-over-year increase is expected to be driven by the addition of Xilinx and higher server, semi-custom and client revenue. The quarter-over-quarter increase is expected to be primarily driven by Xilinx and higher server revenue. AMD expects non-GAAP gross margin to be approximately 54{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in the second quarter of 2022.

For the full year 2022, AMD now expects revenue to be approximately $26.3 billion, an increase of approximately 60{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} over 2021, up from prior guidance of approximately 31{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, driven by the addition of Xilinx and higher server and semi-custom revenue. AMD expects non-GAAP gross margin to be approximately 54{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for 2022, up from prior guidance of approximately 51{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

AMD Teleconference
AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its first quarter 2022 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in millions, except per share data) (Unaudited)

Three Months Ended

March 26,
2022

December 25,
2021

March 27,
2021

GAAP gross profit

$

2,818

$

2,426

$

1,587

GAAP gross margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

48

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

50

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

46

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Stock-based compensation

4

1

1

Acquisition-related costs (1)

92

—

—

Amortization of acquired intangible assets

186

—

—

Non-GAAP gross profit

$

3,100

$

2,427

$

1,588

Non-GAAP gross margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

53

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

50

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

46

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

GAAP operating expenses

$

1,950

$

1,223

$

929

GAAP operating expenses/revenue {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

33

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

25

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

27

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Stock-based compensation

170

111

84

Acquisition-related costs (1)

141

9

15

Amortization of acquired intangible assets

293

—

—

Non-GAAP operating expenses

$

1,346

$

1,103

$

830

Non-GAAP operating expenses/revenue {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

23

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

23

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

24

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

GAAP operating income

$

951

$

1,207

$

662

GAAP operating margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

16

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

25

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

19

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Stock-based compensation

174

112

85

Acquisition-related costs (1)

233

9

15

Amortization of acquired intangible assets

479

—

—

Non-GAAP operating income

$

1,837

$

1,328

$

762

Non-GAAP operating margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

31

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

27

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

22

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Three Months Ended

March 26,
2022

December 25,
2021

March 27,
2021

GAAP net income / earnings per share

$

786

$

0.56

$

974

$

0.80

$

555

$

0.45

Loss on debt redemption/conversion

—

—

—

—

6

0.01

(Gains) losses on equity investments, net

44

0.03

(4

)

—

8

0.01

Stock-based compensation

174

0.12

112

0.09

85

0.07

Equity income in investee

(3

)

—

—

—

(2

)

—

Acquisition-related costs (1)

233

0.17

9

—

15

0.01

Amortization of acquired intangible assets

479

0.34

—

—

—

—

Income tax provision

(124

)

(0.09

)

31

0.03

(25

)

(0.03

)

Non-GAAP net income / earnings per share

$

1,589

$

1.13

$

1,122

$

0.92

$

642

$

0.52

(1

)

Acquisition-related costs primarily comprised of transaction costs, purchase price adjustments for inventory and certain compensation charges

RECONCILIATION OF AMD GAAP TO AMD NON-GAAP EXCLUDING XILINX
(in millions) (Unaudited)

Three Months Ended March 26, 2022

Revenue

Gross
Profit

Gross
Margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Operating
Income

Operating
Margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

AMD GAAP

$

5,887

$

2,818

48{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$

951

16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Stock-based compensation

—

4

174

Acquisition-related costs (1)

—

92

233

Amortization of acquired intangible assets

—

186

479

AMD Non-GAAP

5,887

3,100

53{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

1,837

31{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Xilinx segment

559

388

233

AMD Non-GAAP Excluding Xilinx

$

5,328

$

2,712

51{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

$

1,604

30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

(1

)

Acquisition-related costs primarily comprised of transaction costs, purchase price adjustments for inventory and certain compensation charges

RECONCILIATION OF XILINX SEGMENT REVENUE TO XILINX PRO FORMA REVENUE
(in millions) (Unaudited)

Three Months Ended
March 26, 2022

Revenue

Xilinx Segment (1)

$

559

Xilinx Pre-Acquisition (2)

477

Xilinx Pro Forma (3)

$

1,036

(1

)

Represents unaudited Xilinx revenue from the date of acquisition, February 14, 2022, through March 26, 2022

(2

)

Represents unaudited Xilinx revenue from January 2, 2022 to February 13, 2022

(3

)

The unaudited Xilinx pro forma revenue represents the three-month period beginning January 2, 2022 through March 26, 2022. The pro forma revenue is presented for informational purposes only.

About AMD
For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, Facebook and Twitter pages.

Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s expectations regarding demand for its products, AMD organic growth and Xilinx business growth; the features, functionality, performance, availability, timing and expected benefits of AMD products; AMD’s planned acquisition of Pensando Systems Inc. and the anticipated benefits from the acquisition; AMD’s expected second quarter 2022 and fiscal 2022 financial outlook, including revenue and non-GAAP gross margin and expected drivers based on current expectations; and expected growth in 2022, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; global economic uncertainty; loss of a significant customer; impact of the COVID-19 pandemic on AMD’s business, financial condition and results of operations; competitive markets in which AMD’s products are sold; market conditions of the industries in which AMD products are sold; cyclical nature of the semiconductor industry; quarterly and seasonal sales patterns; AMD’s ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD’s products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD’s ability to introduce products on a timely basis with expected features and performance levels; AMD’s ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyber-attacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products in a timely manner; AMD’s reliance on third-party companies for design, manufacture and supply of motherboards, software and other computer platform components; AMD’s reliance on Microsoft and other software vendors’ support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD’s supply chain; AMD’s ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of government actions and regulations such as export administration regulations, tariffs and trade protection measures; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals-related provisions and other laws or regulations; impact of acquisitions, joint ventures and/or investments on AMD’s business, and ability of AMD to integrate acquired businesses, such as Xilinx; impact of any impairment of the combined company’s assets on the combined company’s financial position and results of operation; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit facility; AMD’s indebtedness; AMD’s ability to generate sufficient cash to meet its working capital requirements or generate sufficient revenue and operating cash flow to make all of its planned R&D or strategic investments; political, legal, economic risks and natural disasters; future impairments of goodwill and technology license purchases; AMD’s ability to attract and retain qualified personnel; AMD’s stock price volatility; and worldwide political conditions. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.

(*)

In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2022, AMD uses a projected non-GAAP tax rate of 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, which excludes the tax impact of pre-tax non-GAAP adjustments, reflecting currently available information. AMD also provided adjusted EBITDA and free cash flow as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. In addition, AMD provided non-GAAP financial measures excluding Xilinx, including revenue, gross profit and operating income, and Xilinx pro forma revenue for the three months ended March 26, 2022 as supplemental information. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables at the end of this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of May 3, 2022 and assumptions and beliefs that involve numerous risks and uncertainties. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law.

AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Threadripper, Versal and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owner.

ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages) (Unaudited)

Three Months Ended

March 26,
2022

December 25,
2021

March 27,
2021

Net revenue

$

5,887

$

4,826

$

3,445

Cost of sales

2,883

2,400

1,858

Amortization of acquisition-related intangibles

186

—

—

Total cost of sales

3,069

2,400

1,858

Gross profit

2,818

2,426

1,587

Gross margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

48

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

50

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

46

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Research and development

1,060

811

610

Marketing, general and administrative

597

412

319

Amortization of acquisition-related intangibles

293

—

—

Licensing gain

(83

)

(4

)

(4

)

Operating income

951

1,207

662

Interest expense

(13

)

(8

)

(9

)

Other income (expense), net

(42

)

4

(11

)

Income before income taxes and equity income

896

1,203

642

Income tax provision

113

229

89

Equity income in investee

3

—

2

Net income

$

786

$

974

$

555

Earnings per share

Basic

$

0.56

$

0.81

$

0.46

Diluted

$

0.56

$

0.80

$

0.45

Shares used in per share calculation

Basic

1,393

1,208

1,213

Diluted

1,410

1,222

1,231


ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)

March 26,
2022

December 25,
2021

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

4,740

$

2,535

Short-term investments

1,792

1,073

Accounts receivable, net

3,677

2,706

Inventories

2,431

1,955

Receivables from related parties

4

2

Prepaid expenses and other current assets

725

312

Total current assets

13,369

8,583

Property and equipment, net

1,406

702

Operating lease right-of use assets

416

367

Goodwill

23,083

289

Acquisition-related intangibles, net

26,832

—

Investment: equity method

72

69

Deferred tax assets

32

931

Other non-current assets

1,705

1,478

Total Assets

$

66,915

$

12,419

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

1,476

$

1,321

Payables to related parties

205

85

Accrued liabilities

3,070

2,424

Short-term debt

312

312

Other current liabilities

518

98

Total current liabilities

5,581

4,240

Long-term debt, net

1,475

1

Long-term operating lease liabilities

370

348

Deferred tax liabilities

3,109

—

Other long-term liabilities

1,047

333

Stockholders’ equity:

Capital stock:

Common stock, par value

16

12

Additional paid-in capital

56,925

11,069

Treasury stock, at cost

(941

)

(2,130

)

Accumulated deficit (1)

(665

)

(1,451

)

Accumulated other comprehensive income

(2

)

(3

)

Total stockholders’ equity

$

55,333

$

7,497

Total Liabilities and Stockholders’ Equity

$

66,915

$

12,419

(1)

During the first quarter of 2021, the Company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, using the modified retrospective adoption method, which resulted in $8 million of deferred tax liability associated with book-tax differences in a foreign equity method investment recognized in Accumulated deficit.

ADVANCED MICRO DEVICES, INC.
SELECTED CASH FLOW INFORMATION
(Millions) (Unaudited)

Three Months Ended

March 26,
2022

December 25,
2021

March 27,
2021

Net cash provided by (used in)

Operating activities

$

995

$

822

$

898

Investing activities

$

3,158

$

—

$

(722

)

Financing activities

$

(1,948

)

$

(727

)

$

(8

)


SELECTED CORPORATE DATA
(Millions) (Unaudited)

Three Months Ended

March 26,
2022

December 25,
2021

March 27,
2021

Segment and Category Information (1)

Computing and Graphics

Net revenue

$

2,802

$

2,584

$

2,100

Operating income

$

723

$

566

$

485

Enterprise, Embedded and Semi-Custom

Net revenue

$

2,526

$

2,242

$

1,345

Operating income

$

881

$

762

$

277

Xilinx

Net revenue

$

559

$

—

$

—

Operating income

$

233

$

—

$

—

All Other

Net revenue

$

—

$

—

$

—

Operating loss

$

(886

)

$

(121

)

$

(100

)

Total

Net revenue

$

5,887

$

4,826

$

3,445

Operating income

$

951

$

1,207

$

662

Other Data

Capital expenditures

$

71

$

86

$

66

Adjusted EBITDA (2)

$

1,967

$

1,446

$

857

Cash, cash equivalents and short-term investments

$

6,532

$

3,608

$

3,116

Free cash flow (3)

$

924

$

736

$

832

Total assets

$

66,915

$

12,419

$

10,047

Total debt

$

1,787

$

313

$

313

(1)

The Computing and Graphics segment primarily includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs and development services.

The Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles.

The Xilinx segment primarily includes Field Programmable Gate Arrays (FPGAs), adaptive System-on-Chips (SoCs), and Adaptive Compute Acceleration Platform (ACAP) products.

From time to time, the Company may also sell or license portions of its IP portfolio.

All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments. Also included in this category are acquisition-related intangible asset amortization expense, stock-based compensation expense and acquisition-related costs.

(2)

Reconciliation of GAAP Net Income to Adjusted EBITDA

Three Months Ended

March 26,
2022

December 25,
2021

March 27,
2021

GAAP net income

$

786

$

974

$

555

Interest expense

13

8

9

Other (income) expense, net

42

(4

)

11

Income tax provision

113

229

89

Equity income in investee

(3

)

—

(2

)

Stock-based compensation

174

112

85

Depreciation and amortization

130

118

95

Amortization of acquired intangible assets

479

—

—

Acquisition-related costs

233

9

15

Adjusted EBITDA

$

1,967

$

1,446

$

857

The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other income (expense), net, income tax provision, equity income in investee, stock-based compensation, depreciation and amortization expense and acquisition-related costs. The Company also included amortization of acquired intangible assets for the three months ended March 26, 2022. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows. The Company has provided reconciliations within the earnings press release of these Non-GAAP financial measures to the most directly comparable GAAP financial measures.

(3)

Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow

Three Months Ended

March 26,
2022

December 25,
2021

March 27,
2021

GAAP net cash provided by operating activities

$

995

$

822

$

898

Operating cash flow margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

17

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

17

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

26

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Purchases of property and equipment

(71

)

(86

)

(66

)

Free cash flow

$

924

$

736

$

832

Free cash flow margin {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

16

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

15

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

24

{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities for capital expenditures. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities. The Company has provided reconciliations within the earnings press release of these Non-GAAP financial measures to the most directly comparable GAAP financial measures.

 

Media Contact:
Drew Prairie
AMD Communications
512-602-4425
drew.prairie@amd.com

Investor Contact:
Laura Graves
AMD Investor Relations
408-749-5467
laura.graves@amd.com

Posted on

Live news and results on Feb. 17 2022

Live news and results on Feb. 17 2022
Kamila Valieva competes in the women's free skate on February 17.
Kamila Valieva competes in the women’s free of charge skate on February 17. (Peter Kneffel/Picture Alliance/Getty Photos)

Kamila Valieva’s fourth-area complete in the women’s singles skating has penned the future chapter in a story that is certain to rumble on significantly over and above the Beijing Game titles.

The Russian figure skater has been at the heart of a doping scandal that can be traced back again to December 2021, when the 15-year-aged examined optimistic for the banned heart drug trimetazidine.

Having said that, the exam was only analyzed and noted to Russia’s Anti-Doping Company (RUSADA) in February, resulting in Valieva’s suspension on Feb. 8.

The suspension arrived a day following she had assisted the ROC to a gold medal victory in the figure skating group event.

Valieva was reinstated right after an charm, and the Court docket of Arbitration for Sport (CAS) allowed her to contend in the Olympics, citing distinct provisions linked to her safeguarded position as a minimal, while investigations into any doping violations by Valieva and the adults liable for her coaching go on.

The skater’s ongoing involvement in the Game titles led US sprinter Sha’Carri Richardson to concern the choice — citing a optimistic examination for hashish that derailed her personal Olympic dream in Tokyo previous summer.

“Can we get a reliable reply on the change of (Valieva’s) scenario and mines (sic)?” Richardson wrote on Twitter.

“My mom died and I won’t be able to operate and was also favored to put top rated 3. The only difference I see is I’m a Black youthful woman,” she added.

On Tuesday, an Intercontinental Olympic Committee (IOC) official claimed that Valieva was blaming the doping violation — in which she analyzed optimistic for a heart treatment that gurus say can improve stamina — on contamination from her grandfather’s medicine.

Her coach, Eteri Tutberidze, told Russian point out information agency Tass they are “absolutely confident” she is innocent.

The medication’s results of elevated endurance could probably show influential pursuing a rule adjust in 2004 which benefits athletes for accomplishing jumps towards the stop of their routines.

Under the present-day scoring method, jumps done in the 2nd 50 percent of the free skate can get a 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} reward for the reason that it is really extra hard to accomplish them on weary legs.

Subsequent popular criticism of the rule in 2018 — with critics alleging that skaters had been cramming in jumps towards the back again conclude of performances — the Global Skating Union designed a new rule expressing skaters will only get 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} bonuses for up to 3 jumping passes in the second 50 percent of their totally free skate.

It was beneath this context and unprecedented stress that Valieva competed in the individual party, but the 15-yr-outdated posted the maximum score in the short system on Tuesday to get there at Thursday’s deciding free skate in pole placement.

More controversy adopted when it was introduced by an IOC spokesperson that any consequence involving Valieva in the women’s particular person occasion would have an “asterisk” until finally her case has been concluded, and as these, there would be no flower or medal ceremony.

Nonetheless soon after a number of falls in her absolutely free skate plan, Valieva’s fourth positioned complete still left her just outdoors the podium areas. Subsequently, the medal ceremony is established to go in advance on Friday, Feb. 18, in accordance to the formal Olympics media website.

Nonetheless, in spite of Valieva falling out of the specific medal positions, the fallout from the scandal is sure to taint the Video games as the investigation carries on on.

Examine the total report listed here.

Posted on

COVID-19 human challenge trial: First results are in

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The results of a United Kingdom-based human challenge trial offer new insights into COVID-19. Dominika Zarzycka/NurPhoto via Getty Images
  • In just-published results, a COVID-19 human challenge trial conducted in the United Kingdom has given unique insights into the progress of SARS-CoV-2 infection.
  • The mean time between exposure to SARS-CoV-2 and development of first COVID-19 symptoms is much shorter than previously thought.
  • Viral load peaked at 5 days after exposure, but active virus was still detectable in some people after 12 days.
  • Peak levels were highest in the nose, reinforcing the importance of wearing a face covering over both nose and mouth.

Imperial College London (ICL) has announced the results of the first COVID-19 human challenge trial. A human challenge trial is a carefully controlled study in which researchers deliberately infect participants with a pathogen to study the effects of that infection.

Prof. Christopher Chiu of ICL led this trial, which researchers carried out in a unit at the Royal Free Hospital in London. The results have not yet undergone peer review and appear on the preprint server Research Square.

Participants in the trial were young, healthy people who had not received a COVID-19 vaccination or had a previous SARS-CoV-2 infection. All those included were 18–30 years old.

Researchers gave all 36 participants a low dose of the original variant of SARS-CoV-2 as a droplet into the nose. They then monitored them for 14 days.

Half of the participants developed a SARS-CoV-2 infection. Two of these participants were asymptomatic. The remaining 16 developed mild symptoms, including a runny nose, sneezing, and sore throat. Some also reported tiredness, headache, slight fever, and muscle aches.

Half of those in the trial did not develop COVID-19 following exposure to SARS-CoV-2. No participants developed serious symptoms.

None of those who acquired an infection developed lung changes, but 12 people experienced anosmia — a loss of sense of smell. All but three people fully regained their sense of smell within 3 months. Researchers continued monitoring participants for 12 months.

This SARS-CoV-2 human challenge trial has revealed new information about the course of the infection.

People develop COVID-19 soon after exposure to SARS-CoV-2. On average, participants who got COVID-19 tested positive for the active virus after only 42 hours. This is contrary to the previous belief that people develop symptoms 5–6 days after exposure. CDC advice has been to test 5 days after suspected contact with SARS-CoV-2.

Viral load increased rapidly following infection, peaking at 5 days after exposure. Those who got the infection still had high levels of active virus 10 days, and some had active virus 12 days following inoculation.

During the course of infection, the virus moved. At around 40 hours after exposure, people had the highest amount of active virus in their throats. The viral load then became higher in the nose.

An important finding of the trial was that lateral flow tests (LFTs) were a good indicator of whether a person has viable virus, even in those without symptoms of COVID-19.

The trial’s insights into the course of SARS-CoV-2 infections could help with the management of COVID-19.

“Our study reveals some very interesting clinical insights, particularly around the short incubation period of the virus, extremely high viral shedding from the nose, as well as the utility of lateral flow tests, with potential implications for public health.”

– Prof. Christopher Chiu, chief investigator on the trial

LFTs can detect even asymptomatic infection with SARS-CoV-2. However, they are less effective at detecting low levels of the virus in only the nose.

People should therefore swab the throat as well as the nose if performing an LFT soon after suspected exposure.

“[O]verall, lateral flow tests correlate very well with the presence of infectious virus,” says Prof. Chiu. “Even though in the first day or two they may be less sensitive, if you use them correctly and repeatedly, and act on them if they read positive, this will have a major impact on interrupting viral spread.”

The researchers found the highest levels of virus in the nose, so they advise that there is a greater risk of viral shedding from the nose. They stress the importance of wearing face coverings correctly to cover the nose and the mouth.

People should also isolate if they contract the infection, as most still have active virus 9 days after exposure to SARS-CoV-2.

“This innovative, careful and ethical human challenge study provides new insights into the brief incubation period of COVID-19 virus infections, helping to explain how the virus is so extraordinarily contagious. The utility of rapid tests in diagnosing infection was confirmed, as well as the importance of mask-wearing as a means of curtailing transmission.”

– Dr. William Schaffner, professor of infectious diseases at the Vanderbilt University Medical Center, Nashville, TN, speaking to MNT

Researchers performed this trial using an early variant of the virus from before the Alpha variant was detected. Investigators are keen to continue human challenge trials using later variants, including Delta.

Dr. Schaffner would like to see further trials. “The study used an early COVID-19 virus strain, and we look forward to results of further studies of the Omicron variant, which [is now] the dominant virus strain worldwide,” he said.

In this trial, only 50{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of those exposed to SARS-CoV-2 contracted the infection. The researchers now plan to investigate why some people appear to be resistant to SARS-CoV-2 infection.

For live updates on the latest developments regarding the novel coronavirus and COVID-19, click here.

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49ers vs. Rams final score, results: LA headed to Super Bowl, Kupp finishes with 2 TDs

The Los Angeles Rams are headed to Super Bowl 56 after defeating the 49ers 20-17 in the NFC Championship on Sunday night. 

The Rams defied the odds by making a second half comeback after trailing by 10 points heading into the half. The Rams shut the 49ers out in the second half, scoring 13 unanswered points. A pick off Jimmy Garoppolo sealed the deal for the Rams with just over a minute remaining in the game.

Cooper Kupp (142) and Odell Beckham Jr. (113) both finished with over 100 receiving yards. This is the first time two Rams players have finished with at least 100 receiving yards this season. The last time the Rams did this in the playoffs was during the 2004 wild-card game (Torry Holt and Kevin Curtis), when they were the St. Louis Rams, according to ESPN Stats & Info .

Kupp scored the Rams’ only two touchdowns of the night. Deebo Samuel scored the longest touchdown of the night, though, with a 44-yard scoring play in the second quarter. Samuel finishes his season with an average of 10 yards per catch, which leads wide receivers in the league this season. George Kittle scored the 49ers’ other touchdown of the game.

The Rams won’t have to travel for the Super Bowl on Feb. 13 as their home stadium, SoFi Stadium, will be hosting the biggest game of the year. The Rams will face the AFC champions, the Bengals.

Sporting News tracked live scoring updates and highlights from 49ers vs. Rams on Sunday. Read below for complete results from the 2022 NFC Championship game.

MORE: Watch NFL games live with fuboTV (free trial)

49ers vs. Rams score

  Q1 Q2 Q3 Q4 F
49ers 0 10 7 0 17
Rams 0 7 0 13 20

49ers vs. Rams live updates, highlights from NFC championship

(All times Eastern.)

End of fourth quarter: Rams 20, 49ers 17

9:35 p.m. — INTERCEPTION, RAMS. Travin Howard intercepts the pass intended for Hasty after the ball jumped into the air from an Aaron Donald block. Howard ran to the 13-yard line with just over a minute remaining.

9:34 p.m. — Not a great start to the 49ers’ drive after Gaines knocks away Garoppolo’s pass intended for JaMycal Hasty.

9:32 p.m. — FIELD GOAL, RAMS. The Rams take the lead after Gay makes a 30-yard field goal. They have now scored 13 unanswered points. 1:46 remains in the NFC Championship. Rams 20, 49ers 17.

9:30 p.m. —  Samson Ebukam and Bosa take down Stafford for a loss of seven yards on second down. This moves the Rams to a 3rd-&-18 attempt with under two minutes to play.

9:25 p.m. — Kupp makes another huge play, this time for 25 yards. This is his sixth converted third down of the game. The Rams are on the 49ers’ 12-yard line.

9:24 p.m. — Blanton continues to step up after Higbee was ruled out of the game this half. Blanton completes an 8-yard first down for the Rams.

9:21 p.m. — The 49ers go three-and-out thanks to a delay of game.

9:14 p.m. — FIELD GOAL, RAMS. Fred Warner takes down Sony Michel on third down to force the Rams to settle for a field goal. Gay makes the 40-yard field goal to tie the game. Rams 17, 49ers 17.

9:12 p.m. — Kupp continues to keep the Rams alive after he advances 16 yards to the 49ers’ 25-yard line.

9:09 p.m. —  Jaquiski Tartt almost picks off Stafford, but he drops the ball. The pass is ruled as incomplete.

9:02 p.m. — The Rams force the 49ers to a fourth down after Gaines and A’Shawn Robinson take down Kyle Juszczyk. Sean McVay uses his last challenge to review this play. The play stands as the runner being down on contact ruling.

8:59 p.m. — The 49ers open their drive with a 21-yard gain from Elijah Mitchell. 

8:55 p.m. — TOUCHDOWN, RAMS. Kupp catches an 11-yard touchdown pass from Stafford to make it a three-point game. 49ers 17, Rams 14.

End of third quarter: 49ers 17, Rams 7

8:50 p.m. — Kendall Blanton advances 20 yards to the 49ers’ 20-yard line to finish out the third quarter.

8:47 p.m. — On the first play of the Rams drive, Azeez Al-Shaair was flagged for unsportsmanlike conduct for something he said to Kupp after the play. This penalty moves the Rams up 15 yards.

8:42 p.m. — TOUCHDOWN, 49ERS. Kittle catches a 16-yard touchdown pass for Garoppolo. This was Kittle’s first touchdown in six games. 49ers 17, Rams 7.

8:40 p.m. — Jauan Jennings makes his biggest play of the game, fighting for an 11-yard first down. 

8:38 p.m. — Samuel runs 14 yards to put the 49ers on the Rams’ 26-yard line.

8:37 p.m. — Aiyuk catches a 13-yard pass on third down to keep the 49ers’ drive alive.

8:30 p.m. — On 4th-&-1, Stafford attempts to get the first down but was ruled short. The Rams challenged the call, but the call stands.

8:27 p.m. — Beckham Jr. catches two first down passes in a row, one for 13 yards and another for 26 yards.

8:21 p.m. — Garoppolo has two incomplete passes in a row to force the 49ers to punt.

8:18 p.m. — Another Rams penalty gives the 49ers a new set of downs after Ramsey was flagged for illegal contact.

8:15 p.m. — The 49ers get a first down thanks to a neutral zone infraction penalty on Greg Gaines.

8:13 p.m. — Garoppolo is nearly picked by Jalen Ramsey on his first throw of the second half.

End of second quarter: 49ers 10, Rams 7

7:58 p.m. — FIELD GOAL, 49ERS. Robbie Gould makes the 38-yard field goal attempt to end the first half. The 49ers head into the locker room on top, and they will receive the ball in the second half. 49ers 10, Rams 7.

7:56 p.m. — Aiyuk continues to make big plays, this time for 13 yards. The 49ers stop the clock with 20 seconds left of the half on the Rams’ 24-yard line.

7:54 p.m. — Kittle makes his first catch of the game for 11 yards. The 49ers make it to Rams territory on this play.

7:47 p.m. — Matt Gay’s 54-yard field goal attempt finishes wide right, so the Rams end their drive with no points.

7:43 p.m. — Stafford throws a big pass to Ben Skowronek in the end zone, but the pass is incomplete. The Rams remain on the 49ers’ 38-yard line.

7:38 p.m. — Beckham Jr. grabs a 13-yard pass from Stafford on third down. The Rams are on their own 37-yard line.

7:33 p.m. — TOUCHDOWN, 49ERS. Deebo Samuel scores a 44-yard touchdown to tie the game. Unlike the Rams’ drive, the 49ers only took five plays to score. 49ers 7, Rams 7.

7:31 p.m. — Aiyuk nearly made a long touchdown run, but he stepped out of bounds after 31 yards on the Rams’ 42-yard line. Regardless, a huge first down for the 49ers.

7:25 p.m. — TOUCHDOWN, RAMS. Kupp catches a 16-yard pass from Stafford for a Rams touchdown. The Rams’ drive took up 18 plays in 97 yards, which is statistically their best drive of the year. The extra point is good, too. Rams 7, 49ers 0.

7:24 p.m. — Nick Bosa sacks Stafford for a loss of five yards on first down.

7:23 p.m. — Kupp catches a 15-yard pass from Stafford on the Rams’ 15th play of the drive. They are on the 49ers’ 13-yard line.

7:20 p.m. — Tyler Higbee and Cam Akers are both questionable to return to the game.

7:18 p.m. — Stafford runs 14 yards for a big Rams first down. 

7:14 p.m. — Beckham Jr. gets the Rams a much needed first down to keep their drive alive. They are on their own 43-yard line.

End of first quarter: Rams 0, 49ers 0

7:02 p.m. — The 49ers made it to the Rams’ 40-yard line, but decided not to attempt a field goal. They punt back to the Rams on fourth down.

6:59 p.m. — Brandon Aiyuk advances 13 yards for a 49ers first down, their first of the game.

6:56 p.m. — INTERCEPTION, 49ERS. Matthew Stafford’s pass to Kupp was tipped off and caught by Jimmie Ward in the end zone. Ward ran to the 23-yard line.

6:53 p.m. — Tyler Higbee, Odell Beckham Jr. and Cam Akers complete consecutive first downs to put the Rams in 1st-&-Goal territory on the 8-yard line.

6:51 p.m. — Cooper Kupp delivers the first first down of the game after advancing 17 yards.

6:46 p.m. — The 49ers also go three-and-out after Jimmy Garoppolo’s pass to George Kittle is incomplete.

6:44 p.m. — The Rams quickly go three-and-out to start the game.

6:42 p.m. — Michael Buffer starts off the game with his iconic “Let’s get ready to rumble!” phrase as the Rams receive the kickoff.

49ers vs. Rams start time 

  • Date: Sunday, Jan. 30
  • Time: 6:30 p.m. ET, 3:30 p.m. PT

The 49ers vs. Rams game will kick off at 6:30 p.m. ET at SoFi Stadium in Inglewood, Cali. 

What channel is 49ers vs. Rams on today? 

The 49ers vs. Rams matchup will be broadcast nationally on Fox with announcers Joe Buck and Troy Aikman on the call and Erin Andrews on the sidelines.

You can stream NFL games live online with fuboTV, which offers a free trial .

In Canada, viewers can watch 49ers vs. Rams with a subscription to DAZN,  which includes every NFL game .

NFL playoff schedule 2022

Conference championships

Sunday, Jan. 30

Matchup Start time TV channel Live stream
Bengals vs. Chiefs 3:05 p.m. ET CBS Paramount+, fuboTV
49ers vs. Rams 6:40 p.m. ET Fox Fox Sports app, fuboTV

Super Bowl 56

Sunday, Feb. 13

Matchup Start time TV channel Live stream
Super Bowl 56 6:30 p.m. ET NBC NBC Sports app, fuboTV

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Bills vs. Chiefs final score, results: KC wins OT thriller, reaches fourth consecutive AFC championship

The Chiefs are headed to the 2022 AFC championship game after a thrilling 42-36 overtime win over the Bills in the divisional round Sunday night in Kansas City, Mo. 

All four divisional games this weekend were determined on the final play of the game, but the Chiefs were the only home team to win and the only team to win with a touchdown rather than a field goal. 

The last four drives of regulation produced 25 total points in final two minutes: Bills touchdown and 2-point conversion, Chiefs touchdown, Bills touchdown, Chiefs field goal. The Bills took a three-point lead with 13 seconds remaining, but the Chiefs quickly got into field goal range as Patrick Mahomes connected with Tyreek Hill for a 19-yard completion and Travis Kelce for a 25-yard pass play. Harrison Butker’s 49-yard field goal sent the game into overtime. This was redemption for Butker, who missed a 50-yard field goal attempt and an extra point kick earlier in the game.

Mahomes’ and Josh Allen’s stat lines Sunday were extremely similar. Mahomes finished with 378 yards and three touchdowns passing, while Allen finished with 329 yards and four touchdowns. Mahomes rushed for 69 yards and one touchdown, while Allen had 68 rushing yards. 

Bills wide receiver Gabriel Davis set an NFL single-game playoff record with four receiving touchdowns. He scored all four of the Bills’ touchdowns and finished with 201 receiving yards.

The Chiefs will host the Bengals next Sunday afternoon in the AFC championship game. This will be Kansas City’s fourth consecutive AFC championship appearance.

Sporting News tracked live scoring updates and highlights from Bills vs. Chiefs on Sunday. Read below for complete results from the 2022 NFL divisional playoff game.

MORE: Watch NFL games live with fuboTV (free trial)

Bills vs. Chiefs score

  Q1 Q2 Q3 Q4 F
Bills 7 7 7 15 36
Chiefs 7 7 9 13 42

Bills vs. Chiefs live updates, highlights from NFL playoffs

(All times Eastern.)

End of game: Chiefs 42, Bills 36

9:55 p.m. — TOUCHDOWN, CHIEFS. Kelce catches an eight-yard pass for touchdown and for the win. Chiefs 42, Bills 36.

9:54 p.m. — Hardman rushes 26 yards to the Bills’ 8-yard line. The Chiefs are now set up for 1st-&-Goal.

9:53 p.m. — The Chiefs make it into Bills territory after Hardman advances 16 yards. The Chiefs need a touchdown to win the game.

9:51 p.m. — The Chiefs won the coin toss and get the ball first. Kelce gives the Chiefs a first down, putting them on their own 44-yard line.

End of regulation: Chiefs 36, Bills 36

9:45 p.m. — FIELD GOAL, CHIEFS. Butker makes a 49-yard field goal to tie up the game as regulation ends. The game is headed to overtime. Chiefs 36, Bills 36.

9:44 p.m. — Kelce advances 25 yards to put the Chiefs in field goal range.

9:42 p.m. — Hill advances 19 yards to put the Chiefs closer to field goal range. They are on their own 44-yard line with eight seconds remaining.

9:39 p.m. — TOUCHDOWN, BILLS. Davis scores his fourth touchdown, this time with a 19-yard catch. Davis becomes the first player in playoff history to have four touchdown receptions. The Chiefs will get the ball with 13 seconds left. Bills 36, Chiefs 33.

9:38 p.m. — Emmanuel Sanders catches a 16-yard pass to put the Bills on the 19-yard line with 17 seconds left.

9:35 p.m. — Allen throws a long pass to Davis, who then advances for a total of 28 yards. The Bills are on the Chiefs’ 47-yard line with 49 seconds to go.

9:32 p.m. — TOUCHDOWN, CHIEFS. Hill scores a 64-yard touchdown to put the Chiefs back on top with a minute left of the game. Chiefs 33, Bills 29.

9:31 p.m. — Kelce catches an 11-yard pass for a Chiefs first down.

9:26 p.m. — TOUCHDOWN, BILLS. Davis was wide open to catch a 27-yard touchdown pass from Allen. The two-point conversion is good, caught by Stefon Diggs. Bills 29, Chiefs 26.

9:22 p.m. — Singletary is brought down for a loss of seven yards. The Bills are now on the 27-yard line on 4th-&-13 with two minutes left of the game.

9:19 p.m. — The Bills convert on fourth down after Allen runs six yards. The Chiefs defenders couldn’t stop him. The Bills are on the Chiefs’ 24-yard line.

9:12 p.m. — Allen runs nine yards to keep the Bills’ drive alive with 5:23 left of the game. He now has 53 rushing yards. The Bills are on the Chiefs’ 48-yard line.

9:05 p.m. — FIELD GOAL, CHIEFS. The Chiefs go three-and-out despite starting close to the end zone. Butker makes the 38-yard field goal. Chiefs 26, Bills 21.

9:01 p.m. — On the punt return, Hill runs 45 yards to the Bills’ 16 yard line. Hill was ultimately taken down by the punter, Matt Haack.

8:58 p.m. — Allen is sacked by Jarren Reed on third down for a loss of five yards. The Bills punt the ball.

8:55 p.m. — Davis catches a 17-yard pass from Allen to open up their drive.

8:52 p.m. — The Chiefs punt the ball after not reaching field goal range.

End of third quarter: Chiefs 23, Bills 21

8:45 p.m. — Mahomes rushes six yards. This is his first running play after he broke his single-game record for rushing yards with 63. He now has 69 after this play.

8:40 p.m. — TOUCHDOWN, BILLS. On the first play of the Bills drive, Allen throws a long pass to Davis for a 75-yard touchdown. It took the Bills 10 seconds to score this touchdown. Chiefs 23, Bills 21. 

8:36 p.m. — TOUCHDOWN, CHIEFS. Mecole Hardman runs 25 yards for a touchdown. The extra point is no good, though. Chiefs 23, Bills 14.

8:35 p.m. — Edwards-Helaire runs 20 yards to put the Chiefs on the Bills’ 25-yard line.

8:29 p.m. — On 4th-&-1, the Bills decide to punt instead of going for the conversion. It’s their third punt of the night.

8:23 p.m. — FIELD GOAL, CHIEFS. Butker just barely makes a 39-yard field goal to put the Chiefs on top. Chiefs 17, Bills 14.

8:19 p.m. — McKinnon advances 20 yards to the Bills’ 20-yard line. He leads the Chiefs for most total yards so far with 57.

8:16 p.m. — McKinnon gets the first first down of the half after rushing three yards on third down. 

End of second quarter: Bills 14, Chiefs 14

8:00 p.m. — Harrison Butker misses a 50-yard field goal attempt as time expires. 

7:56 p.m. — Kelce catches an eight-yard pass to put the Chiefs in field goal range on the Bills’ 32-yard line. 

7:54 p.m. — Hill advances 26 yards to put the Chiefs on the Bills’ 44-yard line. The Chiefs are about six yards short of field goal range.

7:50 p.m. — TOUCHDOWN, BILLS. Gabriel Davis catches an 18-yard pass from Allen and pushes into the end zone. The game is tied with 37 seconds left of the half. Bills 14, Chiefs 14.

7:46 p.m. — Cole Beasley completes the longest Bills play of the game for 24 yards. The Bills are on their own 49-yard line with a minute and a half left of the half.

7:42 p.m. — TOUCHDOWN, CHIEFS. Bryon Pringle catches a two-yard pass from Mahomes for the touchdown, giving the Chiefs their first lead of the game. Chiefs 14, Bills 7.

7:36 p.m. — Mahomes is sacked by Ed Oliver for a loss of seven yards. The Chiefs are still in spot for 2nd-&-Goal.

7:32 p.m. — Clyde Edwards-Helaire is back and gets the Chiefs their fourth consecutive first down. He ran 22 yards to the Bills’ 21-yard line.

7:31 p.m. — Mahomes throws a big first down pass to Travis Kelce for 21 yards. 

7:28 p.m. — The Bills also go three-and-out.

7:20 p.m. — The Chiefs go three-and-out.

7:15 p.m. — The BIlls punt for the first time all post season after Allen was sacked. Last week, the Bills went the entire game without punting.

7:12 p.m. — Allen adds to his rushing yards total after running 14 yards for a first down.

End of first quarter: Chiefs 7, Bills 7

7:08 p.m. — On third down, Stefon Diggs catches a five-yard pass to keep the Bills’ drive alive. 

7:01 p.m. — TOUCHDOWN, CHIEFS. Mahomes has a spectacular first drive, finishing it off with a touchdown. He ran eight yards for the touchdown. He finished the drive with 49 rushing yards, which is his most in a single drive in his career.  Chiefs 7, Bills 7.

6:59 p.m. — Mahomes runs for another first down, this time for seven yards. The Chiefs are on the Bills’ 13-yard line.

6:57 p.m. — Mahomes runs 34 yards for a huge first down. This is the biggest play of the game so far.

6:56 p.m. — Jerick McKinnon helps the Chiefs get their first first down after Patrick Mahomes escaped being sacked. 

6:49 p.m. — TOUCHDOWN, BILLS. Singletary seals the deal for the Bills’ opening drive, scoring a touchdown on fourth down. The drive lasted almost seven minutes with 13 plays. Bills 7, Chiefs. 0.

6:46 p.m. — Singletary runs for his third first down of the drive, this time for 15 yards.

6:43 p.m. — Josh Allen converts on fourth down after running 10 yards. 

6:40 p.m. — The Bills receive the ball first in the final divisional game in this year’s playoffs. The Bills’ first play results in a first down after Devin Singletary runs 13 yards.

Bills vs. Chiefs start time 

  • Date: Sunday, Jan. 23
  • Time: 6:30 p.m. ET

The Bills vs. Chiefs game will kick off at 6:30 p.m. ET at Arrowhead Stadium in Kansas City, Mo.

What channel is Bills vs. Chiefs on today? 

  • TV channels: CBS
  • Live streams: Paramount+, fuboTV

The Bills vs. Chiefs matchup will be broadcast nationally on CBS with announcers Jim Nantz and Tony Romo on the call and Tracy Wolfson on the sidelines.

For those hoping to stream the matchup, CBS will carry the game on its streaming platform, Paramount+. You can also stream NFL games live online with fuboTV, which offers a free trial.

In Canada, viewers can watch Bills vs. Chiefs with a subscription to DAZN,  which includes every NFL game .

NFL playoff schedule 2022

Divisional round

Saturday, Jan. 22

Matchup Start time TV channel Live stream
Bengals 19, Titans 16 4:30 p.m. ET CBS Paramount+,  fuboTV
49ers 13, Packers 10 8:15 p.m. ET Fox fuboTV

Sunday, Jan. 23

Matchup Start time TV channel Live stream
Rams 30, Buccaneers 27 3 p.m. ET NBC Peacock,  fuboTV
Chiefs 42, Bills 36 (OT) 6:30 p.m. ET CBS Paramount+,  fuboTV

Conference championships

Sunday, Jan. 30

Matchup Start time TV channel Live stream
Bengals vs. Chiefs 3:05 p.m. ET CBS Paramount+, fuboTV
49ers vs. Rams 6:40 p.m. ET Fox Fox Sports app, fuboTV

Super Bowl 56

Sunday, Feb. 13

Matchup Start time TV channel Live stream
Super Bowl 56 6:30 p.m. ET NBC NBC Sports app, fuboTV

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Zillow (Z) says it’s closing home-buying business, reports Q3 results

Zillow, the electronic authentic estate enterprise, mentioned on Tuesday that it’s exiting Gives, its business that buys and flips properties, and reducing 25{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of its workforce.

The announcement was attached to Zillow’s 3rd-quarter earnings report. The company’s income and earnings skipped analysts’ estimates.

“We’ve established the unpredictability in forecasting house charges significantly exceeds what we expected,” Zillow CEO Loaded Barton said in the release. “Continuing to scale Zillow Provides would result in too considerably earnings and harmony-sheet volatility.”

The inventory dropped about 7.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in prolonged investing pursuing a 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} plunge during regular marketplace hours. The shares are now down about 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for the calendar year as of Tuesday’s shut.

Right here are the vital numbers from earnings:

  • Earnings per share: loss of 95 cents altered vs. gain of 16 cents per share expected in a Refinitiv survey of analysts
  • Earnings: $1.74 billion vs. $2.01 billion expected by Refinitiv

Earnings in Zillow’s Presents business, which competes with Opendoor, climbed to $1.17 billion in the quarter. That is way up from $186 million a calendar year earlier, which was in the middle of the pandemic and in a dry period for transactions. Having said that, the houses section, which is largely Offers, lost $422 million in the quarter, making an all round web decline at the company.

Shares of Opendoor rose 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in extended investing. The inventory plunged alongside Zillow earlier in the working day, dropping 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} at the close.

Zillow introduced Features in December 2019, starting with Southern California markets. The iBuying, or prompt getting, item allowed home owners to sell their residence to Zillow for cash, removing a prolonged bidding, gross sales and closing approach. They also did not have to fret about pricey repairs in advance of putting their property on the market place.

“After closing on a property, Zillow will acquire treatment of needed repairs, working with community contractors to total projects like a refreshing coat of paint, servicing HVAC units and other do the job a regular homeowner would do to get their dwelling prepared for sale,” Zillow mentioned in a push launch at the time.

But the home-flipping marketplace proved to be a drag for a company that had created its brand name on listing households across the region and serving to purchasers and sellers link through a market. Prior to shuttering the company, the business said on Monday that it would prevent obtaining houses by the close of the yr, citing restricted labor and source markets.

“We are functioning in just a labor- and supply-constrained economy inside a competitive serious estate sector, particularly in the design, renovation and closing spaces,” stated Jeremy Wacksman, Zillow’s operating chief, in a assertion this week. “We have not been exempt from these industry and ability difficulties and we now have an operational backlog for renovations and closings.”

Barton informed CNBC’s “Closing Bell” soon after the report that Zillow’s greatest failure was its lack of ability to forecast housing rates properly. At the get started of the Covid-19 pandemic, the industry dried up. It then bounced back significantly, and costs in lots of markets have climbed to record levels.

For the property-flipping organization to be rewarding, a enterprise has to be equipped to promote a property for far more than the acquire selling price and have ample margin remaining to go over all the other expenditures, these types of as servicing and gross sales and advertising bills. Barton said the business understood that it is not in a placement to properly forecast exactly where residence selling prices will be in six months “inside a slim margin of mistake.”

Additionally, Barton said the Delivers solution reaches only a compact sliver of the company’s general viewers, which is properly the whole marketplace of homebuyers and sellers across the place.

Zillow’s web, media and technologies organization grew profits 16{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in the quarter to $480 million, with gross income of just around $130 million.

“We just established that remaining an iBuyer was far too risky, far too unstable and in the long run tackled much too several consumers,” Barton explained. He additional that, in closing the company, “the logic is distinct, the emotion is difficult” simply because of the layoffs.

Bloomberg described on Monday that Zillow was searching to offer 7,000 residences for $2.8 billion to institutional investors, as it seemed to unload its portfolio of houses. Some of those people sales would be for under the invest in price tag, Bloomberg reported.

Barton did not validate or deny the numbers in the Bloomberg report. He told CNBC that the firm has always offered to these types of potential buyers since moving into the sector, and he acknowledged that Zillow does have qualities that it requirements to provide. The corporation bought 3,805 residences in the 2nd quarter and offered 2,086 in that period.

“We are not in any variety of fireplace sale,” he claimed. “We’ll wind down the inventory in an orderly way.”

View: Zillow misses on earnings