NASDAQ$RMBS

Rambus Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Delivered solid Q1 results with strategic focus on data center and AI, expanded market opportunity with new leadership products, and returned value to stockholders.

Rambus reported solid first quarter results, driven by strong execution and strategic focus on data center and AI. The company's GAAP revenue was $117.9 million and net income was $32.9 million.

  • Delivered solid Q1 results and expanded leadership offerings for the data center
  • Completed $50.0 million accelerated share repurchase program
  • Launched industry-leading family of DDR5 PMICs for AI and traditional servers
  • Generated $39.1 million in cash provided by operating activities

Headline financials

Total Revenue

$118M

Previous: $114M+3.6%
EPS (adj)

$0.45

Previous: $0.03+1400.0%
Capital Expenditures

-$3.01M

Previous: -$7.74M+61.1%
Free Cash Flow

$29.9M

Previous: -$4.46M+770.6%
Net Income

$32.9M

Previous: $3.28M+902.7%
Operating Income

$30.1M

Previous: $1.94M+1451.5%
Gross Profit

$94.2M

Previous: $82.1M+14.8%
R&D Expense

$37.4M

No prior period
Stock-Based Comp

$9.5M

Previous: $13.1M-27.3%

Revenue & EPS history

Rambus · Revenue · Quarterly

$118M

Q1 2024+3.6%vs Q1 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Rambus · $105M total across 3 segments · Q3 2023

  • Product revenue
    $52.2M-10.9%
  • Royalties
    $28.9M-3.3%
  • Contract and other revenue
    $24.2M+1.9%

Forward guidance

The Company will discuss its full revenue guidance for the second quarter of 2024 during its upcoming conference call. The following table sets forth the second quarter outlook for other measures.

Tailwinds

  • Licensing billings to be between $61 million and $67 million
  • Royalty revenue to be between $55 million and $61 million
  • Product revenue to be between $52 million and $58 million
  • Contract and other revenue to be between $17 million and $23 million
  • Non-GAAP interest and other income (expense), net, of $3 million

Headwinds

  • Operating costs and expenses to be between $95 million and $91 million
  • Non-GAAP operating costs and expenses to be between $80 million and $76 million
  • Expectations assume a tax rate of 22%
  • Expectations assume a diluted share count of 109 million
  • Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales and solutions licensing, among other matters.

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 Q1 2024

Historical avgQ1 2024

-1.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+3.5%

Avg return

30 days after

55%

38 / 69 earnings

Positive

+17.4%

Q1 2020

Best reaction

-27.4%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-24.4%-20.8%+4.7%
Q4 2025-13.4%-5.8%-19.2%
Q3 2025-8.7%-9.5%-16.5%
Q2 2025-2.3%-8.3%+13.2%
Q1 2025-5.6%-1.8%+4.6%
Q4 2024+6.8%+11.0%-12.9%
Q3 2024+17.2%+10.2%+31.3%
Q2 2024-17.7%-28.6%-25.5%
Q1 2024-7.4%-5.3%-7.1%
Q4 2023-19.7%-14.7%-7.5%
Q3 2023+5.3%+12.5%+33.8%
Q2 2023-12.3%-14.1%-9.8%
Q1 2023+9.4%+9.0%+44.2%
Q4 2022-2.6%+3.9%+0.0%
Q3 2022+9.3%+17.5%+27.8%
Q2 2022+3.8%+6.3%+2.0%
Q1 2022+5.4%+3.5%+1.5%
Q4 2021+6.1%+6.4%+15.7%
Q3 2021+4.2%+3.1%+17.1%
Q2 2021+3.5%+5.3%+1.9%
Q1 2021+0.9%+2.0%+2.7%
Q4 2020+2.5%+2.9%+10.1%
Q3 2020+3.7%+8.9%+19.1%
Q2 2020+1.6%+0.8%-2.7%
Q1 2020+17.4%+23.3%+26.5%
Q4 2019+0.5%+6.2%-3.3%
Q3 2019+2.3%-0.2%-8.6%
Q2 2019-0.9%-5.3%-12.8%
Q1 2019-4.3%-3.3%-6.7%
Q4 2018-4.6%+5.4%+14.8%
Q3 2018-5.3%+8.1%+1.1%
Q2 2018-7.7%-6.4%-9.9%
Q1 2018-6.4%-7.3%-2.5%
Q4 2017-8.2%-10.3%-10.4%
Q3 2017+5.2%+2.7%+12.5%
Q2 2017+4.6%+2.9%+0.4%
Q1 2017-3.0%-3.2%-6.0%
Q4 2016-6.6%-8.6%-6.8%
Q3 2016+7.7%+3.5%+17.1%
Q2 2016+3.9%+6.4%+5.8%
Q1 2016-8.3%
Q4 2015+4.8%
Q3 2015-27.4%
Q2 2015-1.1%
Q1 2015+9.8%
Q4 2014+7.1%
Q3 2014-8.9%
Q2 2014-1.6%
Q1 2014+0.6%
Q4 2013-0.4%
Q3 2013-0.6%
Q2 2013+2.2%
Q1 2013-11.1%
Q4 2012+5.0%
Q3 2012+2.1%
Q2 2012+1.4%
Q1 2012+3.8%
Q4 2011-2.6%
Q3 2011-3.9%
Q2 2011-15.0%
Q1 2010-3.9%
Q1 2011+0.2%
Q4 2010+1.3%
Q4 2008+1.3%
Q3 2009+0.1%
Q3 2010+0.1%
Q2 2009+0.2%
Q2 2010+0.2%
Q4 2009+0.2%

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