NASDAQ$CEVA

Ceva Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

CEVA reported a year-over-year revenue increase driven by growth in both licensing and royalties.

CEVA announced its Q3 2022 financial results, reporting a 3% increase in total revenue compared to the same quarter last year. The company saw growth in both licensing and royalties, with royalties from 5G RAN benefiting from share gains in China and the rollout of new base stations in the U.S.

  • Total revenue reached $33.7 million, a 3% increase year-over-year.
  • Licensing, NRE, and related revenue was $22.3 million, compared to $21.6 million in the same quarter last year.
  • Royalty revenue was $11.4 million, compared to $11.2 million in the same quarter last year.
  • GAAP operating loss was $4.0 million, while non-GAAP operating income was $6.8 million, up 4% year-over-year.

Headline financials

Total Revenue

$33.7M

Previous: $32.8M+2.7%
EPS (adj)

$0.20

Previous: $0.20+0.0%
Capital Expenditures

-$2.92M

Previous: -$1.51M-94.2%
Free Cash Flow

-$25.2M

Previous: -$1.67M-1407.9%
Net Income

-$22.3M

Previous: -$167K-13255.7%
Operating Income

-$4.03M

Previous: $1.69M-338.0%
Gross Profit

$25.7M

Previous: $28M-8.0%
Cash & Equivalents

$29.1M

No prior period
Total Assets

$295M

No prior period
Stock-Based Comp

$3.69M

No prior period

Revenue & EPS history

Ceva · Revenue · Quarterly

$33.7M

Q3 2022+2.7%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Ceva · $11.4M total across 1 segment · Q3 2022

  • Royalties
    $11.4M+1.8%

Forward guidance

The company expects 5G RAN royalties to grow further next year as 5G base station rollouts in India begin.

Tailwinds

  • CEVA is well-positioned to continue delivering innovation.
  • 5G RAN royalties are expected to grow further next year.
  • Expansion in the wearable space with a major OEM launching a new device using CEVA's cellular technology.
  • Consistent royalty revenue growth from 5G RAN.
  • Share gains in China and the rollout of new base stations in the U.S. are helping to grow base station & IoT royalties.

Headwinds

  • Challenging demand environment.
  • GAAP operating loss for the third quarter of 2022 was $4.0 million.
  • GAAP net loss for the third quarter of 2022 was $22.3 million.
  • GAAP diluted loss per share for the third quarter of 2022 was $0.96.
  • One-time tax asset write-off and impairment charges totaling $21.2 million impacted GAAP results.

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 Q3 2022

Historical avgQ3 2022

-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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