NASDAQ$CEVA

Ceva Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

CEVA reported a decrease in revenue and a net loss compared to the same quarter last year, but saw resilience in its licensing business and growth in cellular IoT and Wi-Fi royalties.

CEVA reported a decrease in total revenue for Q1 2023 to $28.7 million, a 16% decrease compared to Q1 2022. The company experienced a GAAP operating loss of $4.8 million and a GAAP net loss of $4.9 million. However, the licensing business showed resilience, and there was record high royalty revenue from cellular IoT and Wi-Fi customers.

  • Total revenue decreased by 16% year-over-year to $28.7 million.
  • Licensing revenue decreased by 7% year-over-year to $20.7 million.
  • Royalty revenue decreased by 33% year-over-year to $8.0 million.
  • GAAP net loss was $4.9 million, compared to a net loss of $1.7 million in the same period last year.

Headline financials

Total Revenue

$28.7M

Previous: $34.4M-16.4%
EPS (adj)

-$0.16

Previous: $0.18-188.9%
GAAP gross margin

82.0%

No prior period
Non-GAAP gross margin

84.0%

No prior period
Capital Expenditures

-$105K

Previous: -$909K+88.4%
Free Cash Flow

-$4.98M

Previous: -$2.61M-91.1%
Net Income

-$4.87M

Previous: -$1.7M-187.3%
Operating Income

-$4.79M

Previous: $468K-1124.1%
Gross Profit

$23.4M

Previous: $28M-16.3%
Cash & Equivalents

$0.00

Previous: $162M-100.0%
Total Assets

$311M

Previous: $335M-7.1%
Stock-Based Comp

$3.86M

Previous: $3.39M+13.9%

Revenue & EPS history

Ceva · Revenue · Quarterly

$28.7M

Q1 2023-16.4%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Ceva · $8M total across 1 segment · Q1 2023

  • Royalties
    $8M-33.3%

Forward guidance

The company remains well positioned to benefit from the long-term global megatrends of 5G, IoT and AI. Connectivity is at the forefront of these trends, and the company continues to build upon its unrivalled position as the leading licensor of 5G, Bluetooth, Wi-Fi and cellular IoT platforms.

Tailwinds

  • Strategic agreements concluded with leading OEMs for 5G smartphones and Wi-Fi access points.
  • Agreement with a semiconductor player developing a 5G broadband IoT modem
  • Three new Wi-Fi 6 royalty payers in the quarter, marking the beginning of the Wi-Fi 6 royalty cycle.
  • Acquisition of RealSpace® 3D Spatial Audio business from VisiSonics Corporation.
  • Connectivity is at the forefront of the 5G, IoT and AI trends.

Headwinds

  • Royalties were impacted by customer inventory adjustments.
  • Prolonged weak demand for smartphones and PCs.
  • Total revenue decreased by 16% year-over-year.
  • GAAP operating loss for the first quarter of 2023 was $4.8 million, as compared to a GAAP operating income of $0.5 million for the same period in 2022.
  • GAAP net loss for the first quarter of 2023 was $4.9 million, as compared to a GAAP net loss of $1.7 million reported for the same period in 2022.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.0%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-2.6%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+26.8%

Q2 2024

Best reaction

-20.8%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-1.3%+11.1%
Q4 2025-9.8%-14.2%-16.3%
Q3 2025-0.6%-6.1%-10.9%
Q1 2025-20.0%-18.8%-23.6%
Q4 2024+10.2%+12.8%-2.7%
Q3 2024+12.3%+11.2%+25.7%
Q2 2024+26.8%+25.1%+42.7%
Q1 2024-7.4%-5.1%-5.2%
Q4 2023+21.3%+14.2%+14.8%
Q3 2023-8.2%-2.1%+6.0%
Q2 2023-12.5%-17.4%-8.4%
Q1 2023-15.4%-13.3%-1.2%
Q4 2022-5.8%-4.7%-15.4%
Q3 2022-3.8%-4.4%-8.6%
Q2 2022-10.8%-8.9%-25.2%
Q1 2022-6.0%+1.0%+4.8%
Q4 2021+13.2%+8.4%+5.5%
Q3 2021-7.4%-2.8%-9.2%
Q2 2021-6.1%-10.8%-10.0%
Q1 2021-12.3%-18.1%-15.0%
Q4 2020+2.1%+0.6%-19.2%
Q3 2020-0.8%-4.2%-4.6%
Q2 2020+1.7%+1.8%-9.2%
Q1 2020-3.3%-5.7%+3.7%
Q4 2019+20.2%+11.4%-25.9%
Q3 2019-0.8%+0.4%-2.1%
Q2 2019+13.3%+19.4%+16.2%
Q1 2019-3.8%-4.3%-5.5%
Q4 2018-11.0%-6.9%-8.2%
Q3 2018+4.7%+0.6%-6.6%
Q2 2018-12.3%-9.1%-7.4%
Q1 2018-11.7%-7.7%-0.6%
Q4 2017-10.7%-9.7%-1.7%
Q3 2017-6.5%-3.3%-2.8%
Q2 2017-6.0%-5.4%-11.1%
Q1 2017+12.7%+20.6%+20.7%
Q4 2016-5.0%+0.6%-5.4%
Q3 2016+1.0%+2.0%-1.0%
Q2 2016+10.2%+7.5%+9.2%
Q1 2016+15.8%
Q4 2015-20.8%
Q3 2015+5.4%
Q2 2015+8.8%
Q1 2015-10.5%
Q4 2014+7.4%
Q3 2014-0.1%
Q2 2014-1.8%
Q1 2014+0.4%
Q4 2013+9.8%
Q3 2013+3.2%
Q2 2013+1.7%
Q1 2013+1.1%
Q4 2011-0.4%
Q4 2012-14.3%
Q3 2012+0.5%
Q2 2012-4.0%
Q1 2011-0.2%
Q1 2012-20.6%
Q4 2009+1.4%
Q3 2011-7.3%
Q3 2010-7.3%
Q2 2010+2.2%
Q2 2011+2.2%
Q4 2010+2.2%
Q1 2010+8.2%

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