NASDAQ$PDFS

PDF Solutions Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

PDF Solutions reported record total revenues and increased GAAP and non-GAAP gross margins for Q3 2022.

PDF Solutions announced financial results for the third quarter ended September 30, 2022. Total revenues for the third quarter of 2022 were $39.9 million, up 35% compared to the third quarter of 2021. GAAP diluted earnings per share (EPS) was $0.04 and non-GAAP diluted EPS was $0.20.

  • Record total revenues of $39.9 million, up 35% over last year’s comparable quarter
  • GAAP gross margin of 69%
  • Non-GAAP gross margin of 72%
  • GAAP diluted earnings per share (EPS) of $0.04 and non-GAAP diluted EPS of $0.20

Headline financials

Total Revenue

$39.9M

Previous: $29.6M+34.9%
EPS (adj)

$0.20

Previous: $0.06+233.3%
Capital Expenditures

-$6.65M

Previous: -$2.71M-145.2%
Free Cash Flow

-$5.27M

Previous: -$5.12M-2.9%
Net Income

$1.39M

Previous: -$2.41M+157.5%
Operating Income

-$40.3M

Previous: -$32.8M-22.6%
Gross Profit

$27.3M

Previous: $18.5M+47.8%
Cash & Equivalents

$93.7M

Previous: $71.2M+31.6%
Total Assets

$266M

Previous: $275M-3.4%
Stock-Based Comp

$5.14M

Previous: $3.36M+52.7%

Revenue & EPS history

PDF Solutions · Revenue · Quarterly

$39.9M

Q3 2022+34.9%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

The Company expects full year 2022 total revenue growth to approach 30% on a year over year basis. Backlog at the end of the year is expected to be strong, in part due to strong bookings in the fourth quarter that have already exceeded $100.0 million, which will be recognized as revenue over multiple years.

Tailwinds

  • Expects full year 2022 total revenue growth to approach 30% on a year over year basis.
  • Backlog at the end of the year is expected to be strong.
  • Strong bookings in the fourth quarter that have already exceeded $100.0 million.
  • Believes they are positioned well to deliver long-term value to their stockholders.
  • Continuing to evaluate 2023 targets and will provide an update at the beginning of next year.

Headwinds

  • Challenges in the semiconductor environment.
  • Geopolitical factors.
  • No business is immune to macro and regulatory headwinds.
  • Expenses related to an arbitration proceeding over a disputed customer contract are expected to continue until the arbitration is resolved.
  • Potential for export controls that could impact sales in China.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.8%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-0.7%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+28.1%

Q3 2022

Best reaction

-19.5%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.4%+8.1%+7.9%
Q4 2025+4.9%+3.6%-1.1%
Q3 2025-3.5%-5.5%+8.2%
Q1 2025-6.0%+1.5%-1.8%
Q4 2024-18.2%-21.6%-22.8%
Q3 2024+5.7%+4.7%-3.7%
Q2 2024+8.5%+11.7%+0.3%
Q1 2024+5.7%+4.3%+5.3%
Q4 2023+3.3%+4.2%-4.1%
Q3 2023+1.1%+5.8%+9.1%
Q2 2023-14.9%-19.1%-21.6%
Q1 2023-13.0%-7.7%+13.1%
Q4 2022+11.1%+11.1%+16.5%
Q3 2022+28.1%+28.8%+28.7%
Q2 2022+4.3%+1.5%-3.4%
Q1 2022+4.3%+7.5%-2.6%
Q4 2021+1.0%-12.0%-7.9%
Q3 2021+26.3%+31.1%+23.6%
Q2 2021+14.2%+11.4%+20.6%
Q1 2021+3.2%-5.5%-7.6%
Q4 2020-14.9%-17.4%-18.6%
Q3 2020+1.7%-2.0%+13.2%
Q2 2020-12.2%-13.6%-23.4%
Q1 2020+9.0%+3.1%+15.1%
Q4 2019-3.7%-6.5%-39.9%
Q3 2019+0.1%-4.2%-3.9%
Q2 2019-4.5%-10.0%-12.3%
Q1 2019+5.8%+6.2%-6.4%
Q4 2018+14.4%+16.1%+27.1%
Q3 2018+5.1%+0.2%-0.8%
Q2 2018-6.4%-10.4%-18.1%
Q1 2018-16.2%-7.0%+7.8%
Q4 2017-11.1%-13.9%-4.7%
Q3 2017-7.9%-5.8%+13.0%
Q2 2017-14.3%-18.6%-25.7%
Q1 2017-19.5%-27.2%-30.1%
Q4 2016-1.8%-2.6%-4.8%
Q3 2016+3.4%+0.3%+23.4%
Q2 2016+2.7%+3.8%+5.9%
Q1 2016-3.9%
Q4 2015+12.6%
Q3 2015-3.3%
Q2 2015+10.8%
Q1 2015-14.0%
Q4 2014+2.9%
Q3 2014+6.2%
Q2 2014-2.6%
Q1 2014+5.0%
Q4 2013+4.6%
Q3 2013+0.4%
Q2 2013+4.5%
Q1 2013+13.7%
Q4 2012+6.0%
Q3 2012+0.7%
Q2 2012+7.5%
Q1 2011-2.1%
Q1 2012+16.1%
Q4 2009-3.1%
Q4 2011-3.1%
Q3 2011-3.0%
Q2 2011-4.0%
Q2 2010-4.0%
Q4 2010-4.0%
Q3 2010-0.2%
Q1 2010+5.3%

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