NASDAQ$RMBS

Rambus Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Rambus reported strong sequential growth in Q3, fueled by a double-digit increase in product revenue, and generated excellent cash from operations.

Rambus Inc. reported financial results for the third quarter ended September 30, 2024. GAAP revenue for the third quarter was $145.5 million, licensing billings were $65.4 million, product revenue was $66.4 million, and contract and other revenue was $15.0 million. The Company also generated $62.1 million in cash provided by operating activities in the third quarter.

  • Delivered $66.4 million in product revenue, up 17% sequentially and 27% year over year
  • Achieved strong sequential earnings growth and generated excellent cash from operations of $62.1 million
  • Unveiled industry-first complete chipsets for next-generation, industry-standard DDR5 MRDIMMs and RDIMMs for the data center and AI
  • Introduced the industry’s first complete chipsets for industry-standard DDR5 MRDIMM 12800 and RDIMM 8000 to address the rising performance needs of the data center and AI.

Headline financials

Total Revenue

$146M

Previous: $105M+38.2%
EPS

$0.45

Previous: $0.44+2.3%
Licensing billings

$65.4M

Previous: $57.9M+13.0%
Capital Expenditures

-$24.2M

Previous: -$22.5M-7.8%
Free Cash Flow

$24.5M

Previous: $80.7M-69.7%
Net Income

$48.7M

Previous: $103M-52.8%
Operating Income

$54.7M

Previous: $105M-47.8%
Gross Profit

$117M

Previous: $81.3M+44.5%
R&D Expense

$41.3M

Previous: $37.4M+10.5%
Stock-Based Comp

$12M

Previous: $10M+19.5%

Revenue & EPS history

Rambus · Revenue · Quarterly

$146M

Q3 2024+38.2%vs Q3 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 fourth quarter of 2024 during its upcoming conference call. For the fourth quarter of 2024, the Company expects licensing billings to be between $57 million and $63 million. The Company also expects royalty revenue to be between $54 million and $60 million, product revenue to be between $72 million and $78 million, and contract and other revenue to be between $22 million and $28 million. The Company also expects operating costs and expenses to be between $101 million and $97 million. Additionally, the Company expects non-GAAP operating costs and expenses to be between $86 million and $82 million. These expectations also assume a tax rate of 22% and a diluted share count of 108 million, and exclude stock-based compensation expense of $13 million and amortization of acquired intangible assets of $2 million.

Tailwinds

  • Expects licensing billings to be between $57 million and $63 million
  • Expects royalty revenue to be between $54 million and $60 million
  • Expects product revenue to be between $72 million and $78 million
  • Expects contract and other revenue to be between $22 million and $28 million
  • Expects non-GAAP operating costs and expenses to be between $86 million and $82 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.
  • Expects operating costs and expenses to be between $101 million and $97 million.
  • Expectations assume a tax rate of 22%
  • Expectations assume a diluted share count of 108 million
  • Expectations exclude stock-based compensation expense of $13 million and amortization of acquired intangible assets of $2 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 2024

Historical avgQ3 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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