NASDAQ$RMBS

Rambus Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Rambus reported strong Q3 results with revenue and earnings above the midpoint of guidance.

Rambus delivered a strong third quarter with GAAP revenue of $105.3 million and a net income of $103.2 million, largely driven by a net gain on divestiture. The company generated $51.6 million in cash from operations and completed a $100.0 million accelerated share repurchase program.

  • Delivered strong Q3 results with revenue and earnings above the midpoint of guidance
  • Generated $51.6 million in cash from operations
  • Completed $100.0 million accelerated share repurchase program
  • Completed the sale of the PHY IP business, strengthening focus on chips and digital IP

Headline financials

Total Revenue

$105M

Previous: $112M-6.2%
EPS (adj)

$0.44

Previous: $0.01+4300.0%
Licensing billings

$57.9M

Previous: $62.2M-6.9%
Capital Expenditures

-$22.5M

Previous: -$12.7M-77.5%
Free Cash Flow

$80.7M

Previous: -$11.7M+789.5%
Net Income

$103M

Previous: $939K+10890.2%
Operating Income

$105M

Previous: $16.9M+519.7%
Gross Profit

$81.3M

Previous: $85.3M-4.7%
Cash & Equivalents

$132M

Previous: $142M-6.8%
Total Assets

$1.18B

Previous: $969M+22.2%
R&D Expense

$37.4M

No prior period
Stock-Based Comp

$10M

Previous: $8.87M+13.2%

Revenue & EPS history

Rambus · Revenue · Quarterly

$105M

Q3 2023-6.2%vs Q3 2022
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 fourth quarter of 2023 during its upcoming conference call. The following table sets forth fourth quarter outlook for other measures.

Tailwinds

  • Licensing billings (operational metric) between $56 million and $62 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 $2 million
  • Diluted share count of 110 million

Headwinds

  • Operating costs and expenses to be between $88 million and $84 million.
  • Non-GAAP operating costs and expenses to be between $73 million and $69 million.
  • Tax rate of 24%
  • Stock-based compensation expense of $11 million
  • Amortization of acquired intangible assets of $4 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 Q3 2023

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro