NASDAQ$RMBS

Rambus Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Delivered strong Q2 results with revenue in line and earnings at the high end of guidance.

Rambus reported a strong second quarter with revenue of $119.8 million, driven by product revenue of $55.0 million. The company generated $50.4 million in cash from operations and a GAAP diluted net income per share of $1.51, largely driven by a net benefit from income taxes.

  • Delivered strong Q2 results with revenue in line and earnings at the high end of guidance
  • Generated $50.4 million in cash from operations
  • Produced quarterly product revenue of $55.0 million driven by memory interface chips
  • GAAP diluted net income per share of $1.51, largely driven by a net benefit from income taxes of $155.3 million from a release of the Company's valuation allowance in the second quarter.

Headline financials

Total Revenue

$120M

Previous: $121M-1.1%
EPS (adj)

$0.31

Previous: $0.31+0.0%
Licensing billings

$60.2M

Previous: $66.1M-8.9%
Capital Expenditures

-$14.5M

Previous: -$6.43M-125.2%
Free Cash Flow

$154M

Previous: $28.6M+440.1%
Net Income

$169M

Previous: $35M+382.2%
Operating Income

$11.7M

Previous: $35.6M-67.1%
Gross Profit

$96.2M

Previous: $96.3M-0.1%
Cash & Equivalents

$122M

Previous: $171M-28.7%
Total Assets

$1.13B

Previous: $1.11B+1.5%
Stock-Based Comp

$11.4M

Previous: $8.64M+31.7%

Revenue & EPS history

Rambus · Revenue · Quarterly

$120M

Q2 2023-1.1%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Rambus · $120M total across 3 segments · Q2 2023

  • Product revenue
    $55M+3.1%
  • Royalties
    $40.7M-15.3%
  • Contract and other revenue
    $24.2M+22.2%

Forward guidance

The Company will discuss its full revenue guidance for the third quarter of 2023 during its upcoming conference call.

Tailwinds

  • The Company expects licensing billings to be between $59 million and $65 million.
  • The Company also expects royalty revenue to be between $26 million and $32 million
  • The Company expects product revenue to be between $47 million and $53 million
  • The Company expects contract and other revenue to be between $17 million and $23 million.
  • The Company expects non-GAAP interest and other income (expense), net, of $1 million

Headwinds

  • 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.
  • The Company expects operating costs and expenses to be between $90 million and $86 million.
  • The Company expects non-GAAP operating costs and expenses to be between $75 million and $71 million.
  • These expectations also assume a tax rate of 24% and diluted share count of 112 million
  • These expectations exclude stock-based compensation expense of $12 million, amortization of acquired intangible assets of $3 million, and interest income related to the significant financing component from fixed-fee patent and technology licensing arrangements of $0 million.

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 Q2 2023

Historical avgQ2 2023

-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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