NASDAQ$AIP

Arteris Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Arteris reported a 12% increase in revenue year-over-year, reaching $12.5 million, and highlighted design activity and customer growth.

Arteris announced strong Q4 2023 results with a 12% increase in revenue year-over-year, driven by growth in design activity and customer acquisition. The company's annual contract value and trailing-twelve-month variable royalties reached $56.1 million, exceeding guidance. However, the company reported an operating loss of $9.2 million and a net loss of $10.5 million, or $0.29 per share.

  • Revenue increased by 12% year-over-year, reaching $12.5 million.
  • Annual Contract Value (ACV) and trailing twelve months (TTM) variable royalties increased by 7% year-over-year to $56.1 million.
  • Remaining performance obligation (RPO) increased by 26% year-over-year to $72.7 million.
  • The company saw the highest level of quarterly design activity with 29 confirmed design starts.

Headline financials

Total Revenue

$12.5M

Previous: $11.2M+11.6%
EPS (adj)

-$0.18

Previous: -$0.12-50.0%
ACV plus royalties

$56.1M

No prior period
RPO

$72.5M

No prior period
Non-GAAP operating loss

-$5.5M

No prior period
Non-GAAP net loss

-$6.8M

No prior period
Capital Expenditures

-$428K

Previous: $396K-208.1%
Net Income

-$10.5M

Previous: -$7.22M-46.1%
Operating Income

-$9.25M

Previous: -$9.06M-2.1%
Gross Profit

$10.4M

Previous: $10.1M+3.1%
R&D Expense

$10.7M

No prior period
Stock-Based Comp

$3.55M

Previous: $2.61M+36.2%

Revenue & EPS history

Arteris · Revenue · Quarterly

$12.5M

Q4 2023+11.6%vs Q4 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 Q1 2024 revenue guidance of $12.1 million to $13.1 million and FY 2024 revenue guidance of $54.5 million to $57.5 million.

Tailwinds

  • Q1 2024 ACV + TTM royalties guidance: $55.0 - $59.0 million
  • FY 2024 ACV + TTM royalties guidance: $62.0 - $68.0 million
  • Q1 2024 Revenue guidance: $12.1 - $13.1 million
  • FY 2024 Revenue guidance: $54.5 - $57.5 million
  • Q1 2024 Non-GAAP operating loss (%): 40.8% - 60.8%

Headwinds

  • Q1 2024 Free cash flow (%): (9.2)% - 10.8%
  • FY 2024 Non-GAAP operating loss (%): 33.2% - 43.2%
  • FY 2024 Free cash flow (%): (4.8)% - 5.2%
  • Non-GAAP operating loss is expected
  • Free cash flow is expected to be negative

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 Q4 2023

Historical avgQ4 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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