PDF Solutions (PDFS) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly and annual revenues in 2024, with Q4 revenue of $50.1M, up 22% year-over-year, and full-year revenue of $179.5M, up 8% from 2023.

• Analytics revenue reached $47.9M in Q4 2024, up 22% year-over-year, and $169.3M for the year, up 11% year-over-year.

• Growth in the second half of 2024 was driven by advanced packaging investments and strong sales of Exensio Process Control and eProbe systems.

• Customer base diversified across equipment makers, foundries, IDMs, fabless, and system companies, reducing reliance on any single segment.

• Backlog stood at $221.4M as of December 31, 2024.

Financial highlights

• Q4 analytics revenue grew 22% year-over-year; full-year analytics revenue up 11%.

• Q4 2024 GAAP gross margin was 68%; non-GAAP gross margin was 72%. Full year 2024 GAAP gross margin was 70%; non-GAAP gross margin was 74%.

• Full-year non-GAAP EPS was $0.84, a 15% increase over the prior year.

• Operating cash flow was approximately $10M; CapEx was $18M, mainly for DFI eProbe systems; $7M spent on share buybacks.

• Ended 2024 with $115M in cash and equivalents, down from $136M due to investments and buybacks.

Outlook and guidance

• 2025 revenue growth expected to approach 15% year-over-year, with some quarterly lumpiness due to eProbe sales.

• Anticipates shipping over four eProbe machines in 2025, with a mix of new and existing customers.

• Long-term targets remain 20% annual revenue growth, 75% gross margin, and 20% operating margin.

• Management highlights strong customer progress, new deals, and growth in connectivity business.