NASDAQ$RMBS

Rambus Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Achieved solid Q2 results in line with expectations, generating outstanding cash from operations and experiencing robust growth in product revenue.

Rambus reported solid second-quarter results with revenue of $132.1 million and strong cash generation from operations. The company saw robust growth in product revenue and anticipates a strong third quarter driven by double-digit sequential chip growth.

  • Achieved solid Q2 results in line with expectations.
  • Generated outstanding cash from operations of $70.4 million.
  • Delivered $56.7 million in product revenue, up 13% sequentially.
  • Continued product portfolio expansion with DDR5 server PMICs, Client Clock Driver, and PCIe 7 IP solutions.

Headline financials

Total Revenue

$132M

Previous: $120M+10.3%
EPS

$0.33

Previous: $0.31+6.5%
Licensing billings

$61.5M

Previous: $60.2M+2.2%
Capital Expenditures

-$14.3M

Previous: -$14.5M+1.0%
Free Cash Flow

$21.7M

Previous: $154M-85.9%
Net Income

$36.1M

Previous: $169M-78.6%
Operating Income

$40.3M

Previous: $11.7M+244.8%
Gross Profit

$105M

Previous: $96.2M+9.4%
R&D Expense

$40.5M

No prior period
Stock-Based Comp

$11.7M

Previous: $11.4M+2.4%

Revenue & EPS history

Rambus · Revenue · Quarterly

$132M

Q2 2024+10.3%vs Q2 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 third quarter of 2024 during its upcoming conference call.

Tailwinds

  • Licensing billings (operational metric) between $60 million and $66 million.
  • Product revenue (GAAP) between $62 million and $68 million.
  • Contract and other revenue (GAAP) between $17 million and $23 million.
  • Interest and other income (expense), net $4 million.
  • Diluted share count 109 million

Headwinds

  • Operating costs and expenses to be between $97 million and $93 million.
  • Non-GAAP operating costs and expenses to be between $82 million and $78 million.
  • Expectations also assume a tax rate of 22%.
  • Excludes stock-based compensation expense of $12 million.
  • Excludes amortization of acquired intangible assets of $3 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 2024

Historical avgQ2 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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