Ceva, Inc. Announces Fourth Quarter and Full Year 2024 Financial Results
Rhea-AI Summary
Ceva Inc reported strong Q4 2024 financial results with total revenue of $29.2 million, up 21% year-over-year. Q4 royalty revenue reached $13.5 million, marking the fifth consecutive quarter of growth. The company achieved record shipments of 623 million Ceva-powered units, up 38% year-over-year.
For full-year 2024, total revenue increased 10% to $106.9 million, with royalty revenue up 18% to $46.9 million. Annual Ceva-powered device shipments hit a record 2 billion units. The company secured 43 license agreements, including 12 multiple-technology licenses and 9 first-time customers. GAAP loss per share was $0.37, while non-GAAP diluted earnings per share doubled to $0.36.
Notable Q4 achievements included securing major Wi-Fi architecture and cellular DSP licensing deals with global MCU leaders and U.S. mobile OEMs.
Positive
- Q4 revenue growth of 21% YoY to $29.2M
- Fifth consecutive quarter of royalty revenue growth, up 9% YoY
- Record 623M units shipped in Q4, up 38% YoY
- Full-year royalty revenue increased 18% to $46.9M
- Non-GAAP EPS doubled YoY to $0.36
- Secured 43 licensing deals in 2024, including 9 new customers
Negative
- GAAP operating loss of $7.5M for full-year 2024
- GAAP net loss of $8.8M for full-year 2024
- GAAP diluted loss per share of $0.37 in 2024
News Market Reaction
On the day this news was published, CEVA gained 10.21%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Fourth Quarter Highlights:
- Total revenue of
$29.2 million 21% year-over-year - Royalty revenue of
$13.5 million 9% year-over-year, and the fifth consecutive quarter of year-over-year royalty revenue growth - Record high 623 million Ceva-powered units shipped, up
38% year-over-year - Secured major licensing deals – Wi-Fi architecture license with global MCU leader & cellular DSP license with
U.S. mobile OEM for in-house 5G modem
Full Year 2024 Highlights:
- Total revenue of
$106.9 million 10% year-over-year - Royalty revenue of
$46.9 million 18% year-over-year - Annual Ceva-powered smart edge devices shipments reach record 2 billion units – over 60 devices sold every second
- Expanded leadership in wireless connectivity and grew customer base in edge AI and sensing – 43 license agreements signed, 12 of which licensed multiple technologies, 9 of which were first-time customers and 11 of which were with OEMs
- GAAP loss per share of
$0.37 $0.36
Amir Panush, Chief Executive of Ceva, commented: "We are pleased to finish the year with another strong quarter, with total revenues up
Mr. Panush continued: "2024 was a pivotal year for Ceva. We successfully concluded long-term licensing partnerships with key customers in our core markets and expanded our customer base and TAM with new engagements. Our market leadership is also evident in our royalty business, where our customers shipped a record 2 billion Ceva-powered smart devices in 2024. Overall, our diverse customer base, spanning multiple industries and end markets, creates a powerful foundation for driving licensing growth and generating strong, long-term royalty revenues, further enhanced by the expanding role of AI across industries and everyday life."
Fourth Quarter 2024 Review
Total revenue for the fourth quarter of 2024 was
During the quarter, twelve IP licensing agreements were concluded, targeting a wide range of end markets and applications, including 5G smartphones, Wi-Fi-enabled MCUs, edge AI for consumer IoT, sensor fusion software for mobile, and Wi-Fi, Bluetooth, and cellular IoT connectivity for a range of consumer and industrial IoT applications. Two of the deals signed were with OEMs and three were first-time customers.
GAAP gross margin for the fourth quarter of 2024 was
GAAP net income including the discontinued operation for the fourth quarter of 2023 was
Non-GAAP gross margin for the fourth quarter of 2024 was
Non-GAAP net income including the discontinued operation for the fourth quarter of 2023 was
Full Year 2024 Review
Total revenue for 2024 was
Yaniv Arieli, Chief Financial Officer of Ceva, added: "In 2024, we drove double-digit revenue growth and doubled our non-GAAP EPS, through focused execution and operating efficiency. Our strategic focus on customer engagements to achieve better deal economics and value is producing excellent results as is evident by the year-over-year growth in annual licensing revenue. As we look to the future, we are confident in our ability to continue on our organic growth trajectory and to capitalize on non-organic opportunities to accelerate our growth."
In 2024, 43 licensing deals were concluded, including 11 with OEMs and 9 with first-time customers. 12 of these customers licensed multiple technologies from Ceva. A record 2 billion Ceva-powered smart edge devices were shipped, including a record 1.1 billion Bluetooth devices, a record 179 million Wi-Fi devices, a record 170 million Cellular IoT devices, 340 million smartphones and 170 million other smart edge devices powered by Ceva DSPs, AI accelerators and sensor fusion software.
GAAP operating loss for 2024 was
GAAP net loss including the discontinued operation for 2023 was
Non-GAAP operating income for 2024 was
In the fourth quarter of 2024, Ceva repurchased approximately 32,000 shares for approximately
Ceva Conference Call
On February 13, 2025, Ceva management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter and review the full year.
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/LolQE7BawV9. 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: 5632639) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on February 20, 2025. 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 Ceva's ability to reinforce long-term relationships with key customers, to drive licensing growth and long-term royalty streams, to deliver long-term shareholder value, and to continue on Ceva's organic growth trajectory and to capitalize on non-organic opportunities to accelerate 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 fourth quarter of 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP operating income for the fourth quarter of 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP net income and diluted income per share for the fourth quarter of 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP gross margin for 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP operating income for 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP net income and diluted earnings per share for 2024 excluded: (a) equity-based compensation expenses of
Non-GAAP net income and diluted earnings per share for 2023 excluded: (a) equity-based compensation expenses of
Non-GAAP net income with the discontinued operations for 2023 was
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 wireless connectivity IPs (Bluetooth, Wi-Fi, UWB and 5G platform IP), to scalable Edge AI NPU IPs and sensor fusion solutions, 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 19 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 | ||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) – | ||||
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
Revenues: | ||||
Licensing and related revenues | $ 15,733 | $ 11,816 | $ 59,999 | $ 57,555 |
Royalties | 13,490 | 12,346 | 46,940 | 39,864 |
Total revenues | 29,223 | 24,162 | 106,939 | 97,419 |
Cost of revenues | 3,371 | 2,259 | 12,768 | 11,648 |
Gross profit | 25,852 | 21,903 | 94,171 | 85,771 |
Operating expenses: | ||||
Research and development, net | 16,877 | 18,145 | 71,616 | 72,689 |
Sales and marketing | 3,625 | 2,829 | 12,624 | 11,042 |
General and administrative | 5,126 | 3,567 | 16,877 | 14,913 |
Amortization of intangible assets | 150 | 149 | 599 | 594 |
Total operating expenses | 25,778 | 24,690 | 101,716 | 99,238 |
Operating income (loss) | 74 | (2,787) | (7,545) | (13,467) |
Financial income (loss), net | (78) | 1,767 | 4,884 | 5,264 |
Remeasurement of marketable equity securities | 3 | 74 | (94) | (2) |
Loss before taxes on income | (1) | (946) | (2,755) | (8,205) |
Taxes on Income | 1,735 | 7,152 | 6,031 | 10,232 |
Net loss from continuing operations | (1,736) | (8,098) | (8,786) | (18,437) |
Net income from discontinued operation | — | 11,867 | — | 6,559 |
Net Income (loss) | $ (1,736) | $ 3,769 | $ (8,786) | $ (11,878) |
Basic and diluted net income (loss) per share: | ||||
Continuing operations | (0.07) | (0.34) | (0.37) | (0.79) |
Discontinued operation | — | 0.50 | — | 0.28 |
Basic and diluted net income (loss) per share | $ (0.07) | $ 0.16 | $ (0.37) | $ (0.51) |
Weighted-average shares used to compute net income | ||||
Basic | 23,637 | 23,518 | 23,613 | 23,484 |
Diluted | 23,637 | 23,946 | 23,613 | 23,484 |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||||
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
GAAP net income (loss) | $ (1,736) | $ 3,769 | $ (8,786) | $ (11,878) |
Equity-based compensation expense included in cost of | 143 | 190 | 713 | 826 |
Equity-based compensation expense included in research and | 2,432 | 2,430 | 9,298 | 9,133 |
Equity-based compensation expense included in sales and | 494 | 471 | 1,801 | 1,776 |
Equity-based compensation expense included in general and | 827 | 1,008 | 3,763 | 3,795 |
Amortization of intangible assets | 255 | 278 | 1,090 | 1,031 |
Costs associated with business and asset acquisitions | 250 | 356 | 1,033 | 551 |
(Income) loss associated with the remeasurement of | (3) | (74) | 94 | 2 |
Income tax expenses, an impact as a result of the completion | — | 1,302 | — | 1,302 |
Adjustment related to US tax reform rule 174 | — | 4,460 | — | 4,460 |
Non-GAAP from discontinued operation | — | (11,812) | — | (8,579) |
Non-GAAP net income | $ 9,006 | $ 2,419 | ||
GAAP weighted-average number of Common Stock used in | 23,637 | 23,518 | 23,613 | 23,484 |
Weighted-average number of shares related to outstanding | 1,579 | 1,271 | 1,491 | 1,197 |
Weighted-average number of Common Stock used in | 25,216 | 24,789 | 25,104 | 24,681 |
GAAP diluted income (loss) per share | ($ 0.07) | $ 0.16 | $ (0.37) | $ (0.51) |
Equity-based compensation expense | $ 0.16 | $ 0.17 | $ 0.65 | $ 0.66 |
Amortization of intangible assets | $ 0.01 | $ 0.01 | $ 0.04 | $ 0.04 |
Costs associated with business and asset acquisitions | $ 0.01 | $ 0.02 | $ 0.04 | $ 0.02 |
Adjustment related to income tax expenses | $ — | $ 0.24 | $ — | $ 0.25 |
Non-GAAP from discontinued operation | $ — | ($ 0.50) | $ — | ($ 0.36) |
Non-GAAP diluted earnings per share | $ 0.11 | $ 0.10 | $ 0.36 | $ 0.10 |
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
GAAP Operating Income (loss) | $ 74 | $ (2,787) | $ (7,545) | $ (13,467) |
Equity-based compensation expense included in cost of | 143 | 190 | 713 | 826 |
Equity-based compensation expense included in | 2,432 | 2,430 | 9,298 | 9,133 |
Equity-based compensation expense included in sales | 494 | 471 | 1,801 | 1,776 |
Equity-based compensation expense included in | 827 | 1,008 | 3,763 | 3,795 |
Amortization of intangible assets | 255 | 278 | 1,090 | 1,031 |
Costs associated with the Business and asset | 250 | 356 | 1,033 | 551 |
Total non-GAAP Operating Income | $ 4,475 | $ 1,946 | $ 10,153 | $ 3,645 |
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
GAAP Gross Profit | $ 25,852 | $ 21,903 | $ 94,171 | $ 85,771 |
GAAP Gross Margin | 88 % | 91 % | 88 % | 88 % |
Equity-based compensation expense included in cost of revenues | 143 | 190 | 713 | 826 |
Amortization of intangible assets | 105 | 129 | 491 | 437 |
Total Non-GAAP Gross profit | 26,100 | 22,222 | 95,375 | 87,034 |
Non-GAAP Gross Margin | 89 % | 92 % | 89 % | 89 % |
Ceva, Inc. AND ITS SUBSIDIARIES | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
( | |||
December 31, | December 31, | ||
2024 | 2023 (*) | ||
Unaudited | Unaudited | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 18,498 | $ 23,287 | |
Marketable securities and short-term bank deposits | 145,146 | 143,251 | |
Trade receivables, net | 15,969 | 8,433 | |
Unbilled receivables | 21,240 | 21,874 | |
Prepaid expenses and other current assets | 15,488 | 12,526 | |
Total current assets | 216,341 | 209,371 | |
Long-term assets: | |||
Severance pay fund | 7,161 | 7,070 | |
Deferred tax assets, net | 1,456 | 1,609 | |
Property and equipment, net | 6,877 | 6,732 | |
Operating lease right-of-use assets | 5,811 | 6,978 | |
Investment in marketable equity securities | 312 | 406 | |
Goodwill | 58,308 | 58,308 | |
Intangible assets, net | 1,877 | 2,967 | |
Other long-term assets | 10,805 | 10,644 | |
Total assets | $ 308,948 | $ 304,085 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Trade payables | $ 1,125 | $ 1,154 | |
Deferred revenues | 3,599 | 3,018 | |
Accrued expenses and other payables | 23,207 | 20,202 | |
Operating lease liabilities | 2,598 | 2,513 | |
Total current liabilities | 30,529 | 26,887 | |
Long-term liabilities: | |||
Accrued severance pay | 7,365 | 7,524 | |
Operating lease liabilities | 2,963 | 3,943 | |
Other accrued liabilities | 1,535 | 1,390 | |
Total liabilities | 42,392 | 39,744 | |
Stockholders' equity: | |||
Common stock | 24 | 23 | |
Additional paid in-capital | 259,891 | 252,100 | |
Treasury stock | (3,222) | (5,620) | |
Accumulated other comprehensive loss | (1,330) | (2,329) | |
Retained earnings | 11,193 | 20,167 | |
Total stockholders' equity | 266,556 | 264,341 | |
Total liabilities and stockholders' equity | $ 308,948 | $ 304,085 | |
(*) Derived from audited financial statements. |
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SOURCE Ceva, Inc.
FAQ
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