NASDAQ$AIP

Arteris Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Arteris reported strong financial results for the fourth quarter of 2024, driven by record Annual Contract Value plus royalties and increased demand for its commercial system IP products.

Arteris, Inc. announced robust financial results for the fourth quarter of 2024, with revenue increasing by 24% year-over-year and Annual Contract Value (ACV) plus royalties reaching a record high of $65.1 million. The company also reported a significant improvement in operating loss and net loss compared to the previous year.

  • Revenue for Q4 2024 was $15.5 million, a 24% increase year-over-year.
  • Annual Contract Value (ACV) plus royalties reached a record $65.1 million, up 16% year-over-year.
  • Operating loss improved to $7.1 million from $9.2 million in Q4 2023.
  • Non-GAAP net loss was $3.9 million, or $0.10 per share, a significant improvement from $6.8 million in Q4 2023.

Headline financials

Total Revenue

$15.5M

Previous: $12.5M+23.9%
EPS (adj)

-$0.10

Previous: -$0.18+44.4%
ACV plus royalties

$65.3M

Previous: $56.1M+16.4%
RPO

$88.5M

Previous: $72.5M+22.0%
Non-GAAP operating loss

-$2.76M

Previous: -$5.5M+49.9%
Non-GAAP net loss

-$3.86M

Previous: -$6.8M+43.2%
Non-GAAP gross profit

$14.2M

No prior period
Non-GAAP gross margin

91.0%

No prior period
Free cash flow

-$2.68M

No prior period
Capital Expenditures

-$50K

Previous: -$428K+88.3%
Net Income

-$8.2M

Previous: -$10.5M+22.2%
Operating Income

-$7.1M

Previous: -$9.25M+23.2%
Gross Profit

$13.9M

Previous: $10.4M+33.4%
R&D Expense

$11.4M

Previous: $10.7M+7.1%

Revenue & EPS history

Arteris · Revenue · Quarterly

$15.5M

Q4 2024+23.9%vs Q4 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 Q1 2025 and full year 2025, anticipating continued growth in ACV plus royalties and revenue, alongside an expected increase in non-GAAP operating loss and free cash flow.

Tailwinds

  • Q1 2025 ACV plus royalties expected to be between $65.5 million and $67.5 million.
  • FY 2025 ACV plus royalties expected to be between $73.0 million and $77.0 million.
  • Q1 2025 revenue expected to be between $15.7 million and $16.1 million.
  • FY 2025 revenue expected to be between $66.0 million and $70.0 million.
  • FY 2025 free cash flow expected to be between $1.0 million and $7.0 million.

Headwinds

  • Q1 2025 Non-GAAP operating loss expected to be between $3.0 million and $4.0 million.
  • FY 2025 Non-GAAP operating loss expected to be between $8.5 million and $12.5 million.
  • Q1 2025 free cash flow expected to be between $(2.0) million and $2.0 million.
  • Uncertainty of expenses may be incurred in the future, which could materially impact GAAP results.
  • Forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to 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 Q4 2024

Historical avgQ4 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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