NASDAQ$AIP

Arteris Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a revenue increase and positive free cash flow for the second consecutive quarter.

Arteris reported Q2 2024 financial results with a revenue of $14.6 million, up 13% sequentially. The company achieved a record $60.1 million in Annual Contract Value and Trailing-Twelve-Month Variable Royalties and reported its second consecutive quarter of positive free cash flow.

  • Revenue reached $14.6 million, a 13% sequential increase.
  • Annual Contract Value and trailing-twelve-months variable royalties reached $60.1 million, up 3% year-over-year.
  • Remaining performance obligation (RPO) reached $77.5 million, up 19% year-over-year.
  • Non-GAAP free cash flow was positive $0.3 million, representing 1.8% of revenue.

Headline financials

Total Revenue

$14.6M

Previous: $14.7M-1.1%
EPS

-$0.22

Previous: -$0.13-69.2%
ACV plus royalties

$60.1M

Previous: $58.3M+3.0%
RPO

$77.6M

Previous: $65.1M+19.1%
Non-GAAP operating loss

-$3.49M

No prior period
Non-GAAP net loss

-$4.39M

No prior period
Non-GAAP gross profit

$13.4M

No prior period
Non-GAAP gross margin

92.0%

No prior period
Free cash flow

$264K

No prior period
Capital Expenditures

-$243K

Previous: -$735K+66.9%
Net Income

-$8.34M

Previous: -$9.17M+9.0%
Operating Income

-$7.44M

Previous: -$8.68M+14.3%
Gross Profit

$13.1M

Previous: $13.5M-2.9%
R&D Expense

$10.7M

No prior period
Stock-Based Comp

$3.76M

Previous: $4.28M-12.2%

Revenue & EPS history

Arteris · Revenue · Quarterly

$14.6M

Q2 2024-1.1%vs Q2 2023
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 guidance for Q3 2024 and full year 2024.

Tailwinds

  • Q3 2024 ACV + TTM royalties are expected to be between $58.5 million and $62.5 million.
  • Full year 2024 ACV + TTM royalties are expected to be between $62.0 million and $68.0 million.
  • Q3 2024 revenue is projected to be between $14.2 million and $15.2 million.
  • Full year 2024 revenue is projected to be between $56.0 million and $58.0 million.
  • Q3 2024 Free cash flow is expected to be between $(1.4) million and $1.6 million.

Headwinds

  • Q3 2024 Non-GAAP operating loss is expected to be between $3.5 million and $5.5 million.
  • Full year 2024 Non-GAAP operating loss is expected to be between $18.0 million and $22.0 million.
  • Full year 2024 Free cash flow is expected to be between $(2.4) million and $(2.6) million.
  • Guidance are forward-looking statements and reflects Arteris' expectations as of today's date.
  • 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 Q2 2024

Historical avgQ2 2024

-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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