Rambus Inc · Q4 2023 earnings

Briefing

Delivered strong Q4 results with revenue and earnings at the high end of guidance.

Rambus reported strong fourth quarter and full-year results, driven by product leadership and execution on its strategy. Q4 GAAP revenue was $122.2 million and the company generated $54.8 million in cash from operations.

• Delivered strong Q4 results with revenue and earnings at the high end of guidance
• Generated $54.8 million in cash from operations in Q4
• Produced quarterly product revenue of $53.7 million driven by memory interface chips
• Launched industry’s first Gen4 DDR5 RCD for server memory modules

Headline financials

Revenue & EPS history

For the first quarter of 2024, the Company expects licensing billings to be between $59 million and $65 million. The Company also expects royalty revenue to be between $43 million and $49 million, product revenue to be between $47 million and $53 million and contract and other revenue to be between $17 million and $23 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. The Company also expects operating costs and expenses to be between $89 million and $85 million. Additionally, the Company expects non-GAAP operating costs and expenses to be between $75 million and $71 million. These expectations also assume non-GAAP interest and other income (expense), net, of ($3 million), tax rate of 22% and diluted share count of 110 million, and exclude stock-based compensation expense ($11 million), amortization expense ($3 million), and interest income related to the significant financing component from fixed-fee patent and technology licensing arrangements ($0 million).