NASDAQ$CEVA

Ceva Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong Q2 2024 results with revenue growth driven by licensing and royalties.

Ceva reported strong Q2 2024 financial results, exceeding estimates with a 24% increase in total revenue compared to the same quarter last year. Licensing and royalty revenues grew by 28% and 19%, respectively. The company signed strategic deals in AI, wireless infrastructure, and Bluetooth, and achieved significant growth in the smartphone market.

  • Total revenue increased by 24% year-over-year to $28.4 million.
  • Licensing and related revenue grew by 28% year-over-year to $17.3 million.
  • Royalty revenue increased by 19% year-over-year to $11.2 million, driven by 461 million shipped units.
  • GAAP operating loss improved to $0.04 million, compared to a $5.3 million loss in the same period last year.

Headline financials

Total Revenue

$28.4M

Previous: $26.2M+8.7%
EPS

-$0.01

Previous: -$0.02+50.0%
Capital Expenditures

-$1.51M

Previous: -$1.23M-22.8%
Free Cash Flow

-$1.8M

Previous: -$7.05M+74.4%
Net Income

-$291K

Previous: -$5.82M+95.0%
Operating Income

-$35K

Previous: -$6.27M+99.4%
Gross Profit

$25.5M

Previous: $20.6M+23.8%
R&D Expense

$18.8M

No prior period
Stock-Based Comp

$3.9M

Previous: $4.21M-7.3%

Revenue & EPS history

Ceva · Revenue · Quarterly

$28.4M

Q2 2024+8.7%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Ceva · $24M total across 2 segments · Q3 2023

  • Licensing and related revenues
    $13.9M
  • Royalties
    $10.1M-11.4%

Forward guidance

The company is encouraged by the strength of its licensing pipeline and royalty growth potential from its broad and diversified customer base. They continued to buy back the company’s stock during the quarter and have $158 million in cash and cash equivalents, marketable securities and bank deposits to leverage to grow their share in edge AI and other high-growth markets.

Tailwinds

  • Customer demand for IP portfolio driven by AI adoption.
  • Signed strategic deals with leading companies.
  • Royalty business growth due to broad market strength and market share gains in IoT.
  • Strong growth in the smartphone market.
  • Excellent second quarter performance generated top line growth of 24% year-over-year.

Headwinds

  • Intense industry competition.
  • The ability of Ceva's technologies and products incorporating Ceva's technologies to achieve market acceptance.
  • Ceva's ability to meet changing needs of end-users and evolving market demands.
  • The cyclical nature of and general economic conditions in the semiconductor industry.
  • Instability and disruptions related to the ongoing Israel-Gaza conflict.

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 Q2 2024

Historical avgQ2 2024

-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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