NASDAQ$AIP

Arteris Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a solid start to the year with revenue up 12% year-over-year and secured four new OEM design wins.

Arteris announced its Q1 2023 financial results, with revenue of $13.2 million, up 12% year-over-year. The company also reported Annual Contract Value plus Trailing-Twelve-Month Royalties of $54.8 million, up 20% year-over-year when adjusted to exclude HiSilicon and DJI.

  • Annual Contract Value (ACV) and Trailing-twelve-month (TTM) royalties of $54.8 million, up 4% year-over-year.
  • Revenue of $13.2 million, up 12% year-over-year.
  • Remaining performance obligation (RPO) of $57.3 million.
  • Added six Active Customers in the first quarter across key verticals.

Headline financials

Total Revenue

$13.2M

Previous: $11.8M+11.9%
EPS (adj)

-$0.17

Previous: -$0.14-21.4%
Capital Expenditures

-$120K

Previous: -$92K-30.4%
Free Cash Flow

-$9.13M

Previous: -$6.91M-32.1%
Net Income

-$9.01M

Previous: -$6.82M-32.1%
Operating Income

-$8.76M

Previous: -$6.62M-32.4%
Gross Profit

$12M

Previous: $10.8M+11.6%
Cash & Equivalents

$28.5M

Previous: $82.2M-65.3%
Total Assets

$107M

Previous: $112M-4.5%
Stock-Based Comp

$2.99M

Previous: $2.31M+29.3%

Revenue & EPS history

Arteris · Revenue · Quarterly

$13.2M

Q1 2023+11.9%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Arteris · $12.6M total across 2 segments · Q3 2022

  • Licensing, support and maintenance
    $11.1M+36.9%
  • Variable royalties and other
    $1.46M+77.8%

Forward guidance

Arteris provided estimated second quarter and full year 2023 guidance.

Tailwinds

  • Q2 2023 ACV + TTM royalties are expected to be between $53.5 million and $57.5 million.
  • Full Year 2023 ACV + TTM royalties are expected to be between $60.4 million and $65.4 million.
  • Q2 2023 Revenue is expected to be between $13.0 million and $14.0 million.
  • Full Year 2023 Revenue is expected to be between $56.0 million and $60.0 million.
  • The guidance reflects the company's expectations as of May 4, 2023.

Headwinds

  • Q2 2023 Non-GAAP operating loss is expected to be between 37.0% and 57.0%.
  • Full Year 2023 Non-GAAP operating loss is expected to be between 28.5% and 43.5%.
  • Q2 2023 Free cash flow is expected to be between (51.8)% and (26.8)%.
  • Full Year 2023 Free cash flow is expected to be between (19.7)% and (9.7)%.
  • Actual results may differ materially.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.5%

Avg return

Earnings day

-2.0%

Avg return

5 days after

+0.6%

Avg return

30 days after

27%

6 / 22 earnings

Positive

+31.4%

Q1 2024

Best reaction

-25.1%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.4%+2.7%+26.6%
Q4 2025-2.0%-3.6%-1.9%
Q3 2025+26.0%+21.3%+42.5%
Q1 2025-10.2%-10.1%-4.9%
Q4 2024-1.5%-8.1%-22.4%
Q3 2024+25.6%+22.7%+31.0%
Q2 2024-8.7%-18.2%+4.8%
Q1 2024+31.4%+41.1%+30.7%
Q4 2023-7.5%-11.2%-1.8%
Q3 2023-25.1%-31.8%-12.4%
Q2 2023+0.1%-1.3%-0.1%
Q1 2023+17.5%+17.0%+77.9%
Q4 2022-16.9%-21.5%-37.7%
Q3 2022-7.4%+9.0%-18.6%
Q2 2022-2.5%-5.8%-17.4%
Q1 2021-3.6%+2.1%-2.0%
Q1 2022-3.6%+2.1%-2.0%
Q2 2021-8.4%-6.1%-3.6%
Q4 2021-8.3%-16.0%-10.9%
Q3 2020-12.1%-10.1%-22.3%
Q4 2020-12.1%-10.1%-22.3%
Q3 2021-13.7%-7.4%-20.1%
Q2 2020
Q1 2020

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