Ceva, Inc. Announces First Quarter 2024 Financial Results
Rhea-AI Summary
Ceva, Inc. reported strong financial results for Q1 2024 with royalty revenue of $10.7 million, up 33% YoY, and total revenue of $22.1 million. Licensing revenue was $11.4 million, with 11 license agreements concluded, including deals for next-generation Wi-Fi 7 and Bluetooth 6 IPs. The company introduced new products, expanded partnerships, and announced collaborations to drive growth. GAAP gross margin was 89%, operating loss was $5.0 million, and net loss was $5.4 million. Non-GAAP gross margin was 90%, operating loss was $0.8 million, and net loss was $1.3 million. Ceva remains well-positioned with approximately $159 million in cash and equivalents.
Positive
Strong royalty revenue growth of 33% YoY, reaching $10.7 million in Q1 2024.
Total revenue of $22.1 million, showcasing a solid performance despite lower licensing revenue compared to the previous year.
Introduction of new products such as the Wi-Fi 7 platform and UWB IP for consumer and industrial IoT to drive future growth.
Expansion of partnerships in the AI ecosystem, including collaborations for automotive and edge AI, indicating strategic growth initiatives.
Strategic deals concluded for next-generation Wi-Fi 7 and Bluetooth 6 IPs, highlighting continued innovation and market relevance.
Negative
Licensing and related revenue decreased to $11.4 million in Q1 2024, down from $18.2 million in the same period last year.
GAAP operating loss of $5.0 million and GAAP net loss of $5.4 million in Q1 2024, reflecting a decrease compared to the previous year.
Non-GAAP operating loss of $0.8 million and non-GAAP net loss of $1.3 million in Q1 2024, marking a decline from the same period in 2023.
A shortfall in licensing revenue impacted the first quarter performance, with delays in deal closures affecting overall results.
Ceva continues to face challenges in improving operating efficiency and managing expenses to drive profitability.
News Market Reaction
On the day this news was published, CEVA declined 4.35%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Royalty revenue of
- 11 license agreements concluded in the quarter, across all key target markets, including strategic deals for next-generation Wi-Fi 7 and Bluetooth 6 IPs
Operational Highlights:
- Introduced new Wi-Fi 7 platform for high-end consumer and industrial IoT
- Introduced new low power Ultra-Wideband (UWB) IP for consumer and industrial IoT
- Expanded Ceva-NeuPro-M NPU AI ecosystem with new partnerships for automotive and edge AI
- Announced strategic partnership with
India's No. 1 audio and wearable brand, boAt for wireless audio - Partnered with THX to bring premium spatial audio to hearables, consumer and mobile products
- Collaborated with Arm through Arm Total Design to accelerate development of end-to-end 5G SoCs for Infrastructure and NTN Satellites
Total revenue for the first quarter of 2024 was
Amir Panush, Chief Executive Officer of Ceva, commented: "Our first quarter results reflect solid trends across our business. We achieved year-over-year growth of
During the quarter, eleven IP licensing agreements were concluded, targeting a wide range of end markets and applications, including Bluetooth 5 connectivity for wearables and industrial IoT, Bluetooth 6 for wireless audio, Wi-Fi 6, Wi-Fi 7 and UWB for smart edge consumer devices, 5G RedCap for consumer and industrial devices, 5G V2X modems for automotive, and audio for smartphones. Two of the deals signed were with first-time customers.
GAAP gross margin for the first quarter of 2024 was
GAAP net loss with the discontinued operation for the first quarter of 2023 was
Non-GAAP gross margin for the first quarter of 2024 was
Non-GAAP net income including the discontinued operation for the first quarter of 2023 was
Yaniv Arieli, Chief Financial Officer of Ceva, stated: "While we saw a shortfall in licensing revenue in the first quarter, we have managed to build a healthy backlog which will benefit us in the second quarter. We continue to monitor our expenses closely and look for ways to further improve our operating efficiency. At the end of the quarter, our cash and cash equivalent balances, marketable securities and bank deposits were approximately
Ceva Conference Call
On May 9, 2024, Ceva management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter.
The conference call will be available via the following dial in numbers:
U.S. Participants : Dial 1-844-435-0316 (Access Code : Ceva)- International Participants: Dial +1-412-317-6365 (Access Code: Ceva)
The conference call will also be available live via webcast at the following link: https://app.webinar.net/L8QP0XRjm5A. Please go to the web site at least fifteen minutes prior to the call to register.
For those who cannot access the live broadcast, a replay will be available by dialing +1-877-344-7529 or +1-412-317-0088 (access code: 9691632) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on May 16, 2024. The replay will also be available at Ceva's web site www.ceva-ip.com.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of Ceva to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include statements regarding the benefits of Ceva's deal backlog for the second quarter and potential execution of license deals later in the year, Ceva's ability to reach total revenue target for the remainder of the year, and Ceva's positioning to pursue opportunities to enhance our product offerings, expand our addressable markets and accelerate our growth. The risks, uncertainties and assumptions that could cause differing Ceva results include: the effect of intense industry competition; the ability of Ceva's technologies and products incorporating Ceva's technologies to achieve market acceptance; Ceva's ability to meet changing needs of end-users and evolving market demands; the cyclical nature of and general economic conditions in the semiconductor industry; Ceva's ability to diversify its royalty streams and license revenues; Ceva's ability to continue to generate significant revenues from the handset baseband market and to penetrate new markets; instability and disruptions related to the ongoing
Non-GAAP Financial Measures
Non-GAAP gross margin for the first quarter of 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP operating loss for the first quarter of 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP net loss and diluted loss per share for the first quarter of 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP net loss including the discontinued operation and diluted earnings per share including the discontinued operation for the first quarter of 2023 excluded: (a) equity-based compensation expenses of
About Ceva, Inc.
At Ceva, we are passionate about bringing new levels of innovation to the smart edge. Our wireless communications, sensing and Edge AI technologies are at the heart of some of today's most advanced smart edge products. From Bluetooth connectivity, Wi-Fi, UWB and 5G platform IP for ubiquitous, robust communications, to scalable Edge AI NPU IPs, sensor fusion processors and embedded application software that make devices smarter, we have the broadest portfolio of IP to connect, sense and infer data more reliably and efficiently. We deliver differentiated solutions that combine outstanding performance at ultra-low power within a very small silicon footprint. Our goal is simple – to deliver the silicon and software IP to enable a smarter, safer, and more interconnected world. This philosophy is in practice today, with Ceva powering more than 17 billion of the world's most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles and 5G mobile networks.
Our headquarters are in
Ceva is a sustainability- and environmentally-conscious company, adhering to our Code of Business Conduct and Ethics. As such, we emphasize and focus on environmental preservation, recycling, the welfare of our employees and privacy – which we promote on a corporate level. At Ceva, we are committed to social responsibility, values of preservation and consciousness towards these purposes.
Ceva: Powering the Smart Edge™
Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram.
Ceva, Inc. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS – | ||
Three months ended | ||
March 31, | ||
2024 | 2023 | |
Unaudited | Unaudited | |
Revenues: | ||
Licensing and related revenues | $ 11,414 | $ 18,248 |
Royalties | 10,658 | 8,014 |
Total revenues | 22,072 | 26,262 |
Cost of revenues | 2,503 | 3,508 |
Gross profit | 19,569 | 22,754 |
Operating expenses: | ||
Research and development, net | 17,991 | 18,674 |
Sales and marketing | 2,816 | 2,719 |
General and administrative | 3,572 | 3,827 |
Amortization of intangible assets | 150 | 154 |
Total operating expenses | 24,529 | 25,374 |
Operating loss | (4,960) | (2,620) |
Financial income, net | 1,257 | 1,455 |
Remeasurement of marketable equity securities | (60) | (117) |
Loss before taxes on income | (3,763) | (1,282) |
Taxes on Income | 1,685 | 1,417 |
Net loss from continuing operation | (5,448) | (2,699) |
Discontinued operation
| - | (2,173) |
Net loss | $ (5,448) | $ )4,872) |
Basic and diluted net loss per share: | ||
Continuing operation | (0.23) | (0.12) |
Discontinued operation | - | (0.09) |
Basic and diluted net loss per share | $ (0.23) | $ (0.21) |
Weighted-average shares used to compute net loss per share (in thousands): | ||
Basic | 23,508 | 23,334 |
Diluted | 23,508 | 23,334 |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||
Three months ended | ||
March 31, | ||
2024 | 2023 | |
Unaudited | Unaudited | |
GAAP net loss | $ (5,448) | $ (4,872) |
Equity-based compensation expense included in cost of revenues | 203 | 206 |
Equity-based compensation expense included in research and development expenses | 2,007 | 2,102 |
Equity-based compensation expense included in sales and marketing expenses | 365 | 378 |
Equity-based compensation expense included in general and administrative expenses | 996 | 866 |
Amortization of intangible assets | 278 | 224 |
Costs associated with business acquisition | 280 | - |
loss associated with the remeasurement of marketable equity securities. | 60 | 117 |
Non-GAAP from discontinued operation | - | 1,086 |
Non-GAAP net income (loss) | $ (1,259) | $ 107 |
GAAP weighted-average number of Common Stock used in computation of diluted net loss and loss per share (in thousands) | 23,508 | 23,334 |
Weighted-average number of shares related to outstanding stock-based awards (in thousands) | - | 1,021 |
Weighted-average number of Common Stock used in computation of diluted net income (loss) per share, excluding the above (in thousands) | 23,508 | 24,355 |
GAAP diluted loss per share | $ (0.23) | $ (0.21) |
Equity-based compensation expense | $ 0.15 | $ 0.15 |
Amortization of intangible assets | $ 0.01 | $ 0.01 |
Costs associated with business acquisition | $ 0.01 | - |
Income associated with the remeasurement of marketable equity securities. | $ 0.01 | $ 0.01 |
Non-GAAP from discontinued operation | - | $ 0.04 |
Non-GAAP diluted income (loss) per share | $ (0.05) | $ 0.00 |
Three months ended | ||
March 31, | ||
2024 | 2023 | |
Unaudited | Unaudited | |
GAAP Operating loss | $ (4,960) | $ (2,620) |
Equity-based compensation expense included in cost of revenues | 203 | 206 |
Equity-based compensation expense included in research and development expenses | 2,007 | 2,102 |
Equity-based compensation expense included in sales and marketing expenses | 365 | 378 |
Equity-based compensation expense included in general and administrative expenses | 996 | 866 |
Amortization of intangible assets | 278 | 224 |
Costs associated with business acquisition | 280 | - |
Total non-GAAP Operating Income (loss) | $ (831) | $ 1,156 |
Three months ended | ||
March 31, | ||
2024 | 2023 | |
Unaudited | Unaudited | |
GAAP Gross Profit | $ 19,569 | $ 22,754 |
GAAP Gross Margin | 89 % | 87 % |
Equity-based compensation expense included in cost of revenues | 203 | 206 |
Amortization of intangible assets | 128 | 70 |
Total Non-GAAP Gross profit | 19,900 | 23,030 |
Non-GAAP Gross Margin | 90 % | 88 % |
Ceva, Inc. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS ( | ||||||
March 31, | December 31, | |||||
2024 | 2023 (*) | |||||
Unaudited | Unaudited | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 21,222 | $ 23,287 | ||||
Marketable securities and short-term bank deposits | 137,532 | 143,251 | ||||
Trade receivables, net | 14,052 | 8,433 | ||||
Unbilled receivables | 19,583 | 21,874 | ||||
Prepaid expenses and other current assets | 13,378 | 12,526 | ||||
Total current assets | 205,767 | 209,371 | ||||
Long-term assets: | ||||||
Severance pay fund | 6,897 | 7,070 | ||||
Deferred tax assets, net | 1,239 | 1,609 | ||||
Property and equipment, net | 7,157 | 6,732 | ||||
Operating lease right-of-use assets | 6,704 | 6,978 | ||||
Investment in marketable equity securities | 346 | 406 | ||||
Goodwill | 58,308 | 58,308 | ||||
Intangible assets, net | 2,689 | 2,967 | ||||
Other long-term assets | 12,332 | 10,644 | ||||
Total assets | $ 301,439 | $ 304,085 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Trade payables | $ 1,804 | $ 1,154 | ||||
Deferred revenues | 2,479 | 3,018 | ||||
Accrued expenses and other payables | 19,838 | 20,202 | ||||
Operating lease liabilities | 2,634 | 2,513 | ||||
Total current liabilities | 26,755 | 26,887 | ||||
Long-term liabilities: | ||||||
Accrued severance pay | 7,339 | 7,524 | ||||
Operating lease liabilities | 3,525 | 3,943 | ||||
Other accrued liabilities | 1,471 | 1,390 | ||||
Total liabilities | 39,090 | 39,744 | ||||
Stockholders' equity: | ||||||
Common stock | 24 | 23 | ||||
Additional paid in-capital | 252,927 | 252,100 | ||||
Treasury stock | (2,528) | (5,620) | ||||
Accumulated other comprehensive loss | (2,720) | (2,329) | ||||
Retained earnings | 14,646 | 20,167 | ||||
Total stockholders' equity | 262,349 | 264,341 | ||||
Total liabilities and stockholders' equity | $ 301,439 | $ 304,085 | ||||
(*) Derived from audited financial statements. | ||||||
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SOURCE Ceva, Inc.
FAQ
What was Ceva, Inc.'s royalty revenue for Q1 2024?
Ceva reported royalty revenue of $10.7 million in Q1 2024, showing a growth of 33% year-over-year.
How did Ceva's total revenue compare between Q1 2024 and Q1 2023?
In Q1 2024, Ceva's total revenue was $22.1 million, while it was $26.3 million in Q1 2023, showcasing a slight decrease.
What new products did Ceva introduce in Q1 2024?
In Q1 2024, Ceva introduced new products such as the Wi-Fi 7 platform for high-end consumer and industrial IoT and low power Ultra-Wideband (UWB) IP for consumer and industrial IoT.
How did Ceva expand its partnerships in Q1 2024?
In Q1 2024, Ceva expanded its partnerships in the AI ecosystem with new collaborations for automotive and edge AI, including a strategic partnership with India's No. 1 audio and wearable brand, boAt.
What were the financial highlights of Ceva's performance in Q1 2024?
In Q1 2024, Ceva reported a GAAP gross margin of 89%, operating loss of $5.0 million, and net loss of $5.4 million. Non-GAAP gross margin was 90%, operating loss was $0.8 million, and net loss was $1.3 million.
