Silvaco Reports Second Quarter 2024 Financial Results

Quarterly revenue of $15.0 million, up 19% year-over-year at the high end of guidance

Quarterly bookings of $19.5 million, up 36% year-over-year exceeding guidance

SANTA CLARA, Calif., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Silvaco Group, Inc. (Nasdaq: SVCO, “Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation, today announced its second quarter 2024 results.

“I am thrilled to announce that Silvaco reported strong financial results for its first quarter as a public company,” said Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued, “Our revenue came in at the high end of our guidance, driven by strong demand for our products across various sectors. We believe this momentum will continue into the second half of the year. Moreover, we are seeing growing customer interest in our digital twin product, which is a good sign for our future growth.”

Commenting on the financial results and outlook, Ryan Benton, Silvaco’s Chief Financial Officer, added, “Our strong bookings for the second quarter exceeded our expectations, and revenue came in at the high end of our guidance range, driven by strong demand from our customers. For quarterly bookings, we are raising guidance for the full-year and maintaining our revenue guidance for the full-year.”

Second Quarter 2024 Financial Results

GAAP Financial Results

Revenue of $15.0 million, up 19% year-over-year, seasonally down 6% quarter-over-quarter.
- TCAD revenue of $10.4 million, up 34% year-over-year.
- EDA revenue of $3.0 million, up 20% year-over-year.
- SIP revenue of $1.6 million, down 30% year-over-year.
GAAP gross profit and GAAP gross margin were $10.1 million and 68%, respectively, which includes the impact of $2.5 million stock-based compensation, down from $10.2 million and 81% year over year.
GAAP operating expenses of $47.9 million, which includes $19.3 million stock-based compensation and a $14.7 million charge for acquisition related estimated litigation claim, increased from $10.4 million in Q2 2023.
GAAP operating loss and margin of $(37.8) million and (253)%, compared to $(0.2) million and (2)% in Q2 2023, respectively.
GAAP net loss of $(38.4) million, compared to a GAAP net loss of $(0.3) million in Q2 2023.
GAAP basic and diluted net loss per share of $(1.55).
As of June 30, 2024, cash and cash equivalents and marketable securities totaled $102.3 million.

Key Operating Indicators and Non-GAAP Financial Results:

Gross bookings were $19.5 million, up 36% year-over-year.
As of June 30, 2024, remaining performance obligation ("RPO") balance of $33.2 million, 47% of which is expected to be recognized as revenue in the next 12 months, up $4.0 million and 14% sequentially from Q1 2024 due to strong bookings.
Non-GAAP gross profit and non-GAAP gross margin were $12.8 million and 86%, respectively, up from $10.2 million and 81% year over year.
Non-GAAP operating expenses of $11.2 million, up from $9.3 million in Q2 2023.
Non-GAAP operating income and non-GAAP operating margin of $1.7 million and 11%, compared to $0.8 million and 6% in Q2 2023, respectively.
Non-GAAP net income of $1.8 million, compared to $0.8 million in Q2 2023.
Non-GAAP diluted net income per share of $0.07.

For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric for Silvaco's second quarter 2024, first quarter 2024 and second quarter 2023 results, see “Discussion of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

Second Quarter 2024 Business Highlights

Introduced and monetized artificial intelligence-based platform for digital twin modeling named Fab Technology Co-Optimization (FTCO™) used at wafer-level fabrication facilities. Announced enhanced partnership with Micron Technology, which included expanding the FTCO™ partnership and securing a $5.0 million investment.

Strong TCAD and EDA quarterly revenues with a key FTCO™ digital-twin modeling product sale to memory customer and ten new customer wins, partially offset by lower SIP revenue. Additionally, we have extended a SIP licensing agreement for an additional five years starting April 1, 2024.

Completed initial public offering in May, raising $106 million net of underwriters' fees.

Supplementary materials to this press release, including our second quarter 2024 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

Third Quarter and Full Year 2024 Financial Outlook

As of August 7, 2024, Silvaco is providing guidance for its third quarter of 2024 and its full-year 2024, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin and non-GAAP operating income. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin, and GAAP operating income is the most comparable GAAP measure to non-GAAP operating income. Non-GAAP operating income differs from GAAP operating income in that it excludes items such as certain transaction-related costs, IPO preparation costs, estimated acquisition-related litigation claims and costs, stock-based compensation, amortization of acquired intangible assets, impairment charges and executive severance costs. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin or GAAP operating income or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income guidance to GAAP gross margin or GAAP operating income, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

Based on current business trends and conditions, the Company expects for third quarter 2024 the following:

Gross bookings in the range of $16.0 million to $18.0 million, which would represent a 28% to 44% increase from the third quarter of 2023.

Revenue in the range of $15.5 million to $16.5 million, which would represent a 4% to 10% increase from the third quarter of 2023.

Non-GAAP gross margin to be in the range of 85% to 88%.

Non-GAAP operating income in the range of $1.8 million to $2.8 million, which would represent a 34% decrease to 2% increase from the third quarter of 2023.

For full year 2024, the Company expects:

Gross bookings of $67.0 million to $71.0 million, which would represent a 15% to 22% increase from 2023.

Revenue of $63.0 million to $66.0 million, which would represent a 16% to 22% increase from 2023.

Non-GAAP gross margin to be in the range of 85% to 89%.

Non-GAAP operating income of $8.0 million to $11.0 million, which would represent an 82% to 150% increase from 2023.

About Silvaco

Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

Safe Harbor Statement

This press release contains forward-looking statements based on Silvaco's current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

1 | 2 | 3 | 4 | 5 | 6 | 7 Next Page »