CAMPBELL, Calif., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced financial results for the second quarter ended June 30, 2023 as well as estimated third quarter and full year 2023 guidance.
“In the second quarter we continued our momentum, with Annual Contract Value plus Trailing-Twelve-Month Royalties of $58.2 million, up 21% year-over-year when adjusted to exclude DJI and up 6% sequentially,” said K. Charles Janac, President and CEO of Arteris. “Also noteworthy in the second quarter, five of the top 10 largest technology companies engaged with Arteris, demonstrating the accelerating shift to commercial system IP products across a multitude of end markets including automotive, AI and data center applications. As the complexities of SoCs continues to increase, companies who historically utilized in-house solutions are increasingly looking to outsource system IP connectivity needs which we expect to benefit Arteris."
Second Quarter 2023 Financial Highlights:
- Annual Contract Value (ACV) and Trailing-twelve-month (TTM) royalties of $58.2 million, up 13% year-over-year
- Revenue of $14.7 million, exceeding the top end of our guidance
- Remaining performance obligation (RPO) of $65.1 million, up $7.8 million sequentially
- Operating loss of $8.7 million or 59% of revenue
- Non-GAAP operating loss of $4.2 million or 29% of revenue, compared to a loss of $1.9 million in the year-ago period
- Net loss of $9.2 million or $0.26 per share
- Non-GAAP net loss of $4.7 million or $0.13 per share
- Non-GAAP free cash flow of $(2.2) million or (15)% of revenue
Second Quarter 2023 Business Highlights:
- 22 confirmed designs starts in the second quarter, including 12 that enable AI technologies;
- Added 12 Active Customers in the second quarter across key verticals, including Enterprise Computing, Automotive, Industrial, and Consumer Electronics;
- Closed deals with three of the top 10 global semiconductor companies which historically used internal System IP solutions;
- Continued success in the automotive industry with numerous deals in the space, including direct license deals with five OEMs, and a new automotive Tier 1 customer;
- BOS Semiconductor selected Arteris interconnect and SoC integration automation technology for use in its next-generation automotive chips; and
- Due to certain changes in deal structures and contract terms, we expect a significant majority of revenue contracts to be recognized ratably going forward.
Estimated Third Quarter and Full Year 2023 Guidance:
| Q3 2023 | FY 2023 | |
| (in millions, except %) | ||
| ACV + TTM royalties | $57.0 - $61.0 | $60.4 - $65.4 |
| Revenue | $12.5 - $13.5 | $54.0 - $56.0 |
| Non-GAAP operating loss (%) | 42.0% - 62.0% | 34.5% - 49.5% |
| Free cash flow (%) | (35.6)% - (10.6)% | (20.5)% - (10.5)% |
The guidance provided above are forward-looking statements and reflect Arteris' expectations as of today's date. Actual results may differ materially. Refer to the section titled "Forward-Looking Statements" below for information on the factors, among others, that could cause our actual results to differ materially from these forward-looking statements.
Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP net loss, Non-GAAP net loss per share, free cash flow and free cash flow margin are Non-GAAP financial measures. Additional information on Arteris’ historic reported results, including a reconciliation of these Non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of Non-GAAP guidance measures reported above to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Arteris' results computed in accordance with GAAP.
Definitions of the other business metrics used in this press release including ACV, active customers, confirmed design starts and RPO are included below under the heading “Other Business Metrics.”
Conference Call
Arteris will host a conference call today, August 3, 2023, to review its second quarter 2023 financial results and discuss its financial outlook.
| Time: | 4:30 PM ET | ||
| United States/Canada Toll Free: | 1-888-886-7786 | ||
| International Toll: | 1-416-764-8658 |
A live webcast will also be available in the Investor Relations section of Arteris’ website at: https://ir.arteris.com/events-and-presentations
A replay of the webcast will be available in the Investor Relations section of Arteris' website approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.
About Arteris
Arteris is a leading provider of system IP for the acceleration of system-on-chip (SoC) development across today’s electronic systems. Arteris network-on-chip (NoC) interconnect IP and SoC integration automation technology enable higher product performance with lower power consumption and faster time to market, delivering better SoC economics so its customers can focus on dreaming up what comes next. Learn more at arteris.com.
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