NASDAQ$SKYT

SkyWater Technology Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

SkyWater Technology reported its fourth quarter and full fiscal year 2024 financial results, achieving record fiscal year revenue, gross profit, and EPS.

SkyWater Technology reported a 5% decrease in Q4 2024 revenue year-over-year to $75.5 million, but a significant increase in gross margin to 25.6% GAAP and 26.6% non-GAAP. The company achieved net income of $1.9 million non-GAAP, a substantial improvement from a net loss in the prior year, and recorded record fiscal year revenue of $342.3 million.

  • Q4 2024 revenue decreased by 5% year-over-year to $75.5 million.
  • Gross margin significantly increased to 25.6% on a GAAP basis in Q4 2024, up from 15.2% in Q4 2023.
  • Net income to shareholders was $1.9 million on a non-GAAP basis in Q4 2024, compared to a net loss of $1.1 million in Q4 2023.
  • Adjusted EBITDA for Q4 2024 was $10.2 million, representing 13.5% of revenue.

Headline financials

Total Revenue

$75.5M

Previous: $79.2M-4.6%
EPS (adj)

$40K

Previous: -$0.02+200000100.0%
Gross Margin

25.6%

Previous: 15.2%+68.4%
Non-GAAP Gross Profit

$20.1M

Previous: $13.8M+45.4%
Non-GAAP Gross Margin

26.6%

Previous: 17.4%+52.9%
Net Income Margin

-0.9%

Previous: -13.0%+93.1%
Adjusted EBITDA

$10.2M

Previous: $10.6M-3.7%
Adjusted EBITDA Margin

13.5%

Previous: 13.4%+0.7%
Capital Expenditures

-$2.69M

Previous: -$6.01M+55.3%
Net Income

-$700K

Previous: -$8.4M+91.7%
Operating Income

$2.65M

Previous: -$5.95M+144.6%
Gross Profit

$19.3M

Previous: $12M+60.7%
R&D Expense

$4.21M

Previous: $2.29M+84.4%

Revenue & EPS history

SkyWater · Revenue · Quarterly

$75.5M

Q4 2024-4.6%vs Q4 2023
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

SkyWater · $69.8M total across 2 segments · Q2 2023

  • Legacy ATS Development
    $53M+77.7%
  • Legacy Wafer Services
    $16.8M-4.5%

Forward guidance

For Q1 2025, SkyWater expects total revenue between $59 million and $63 million, with approximately $1 million from tools revenue. GAAP diluted net loss per share is projected to be in the range of $(0.14) to $(0.20), and non-GAAP diluted net loss per share between $(0.10) and $(0.16).

Tailwinds

  • Continued top-line momentum in Advanced Technology Services (ATS).
  • Anticipated rebound in Wafer Services business from current levels.
  • Increasing mix of new products and customers throughout the year.
  • Expected expansion of gross margins as revenue momentum grows.
  • Another positive year for non-GAAP EPS for fiscal 2025.

Headwinds

  • Projected GAAP diluted net loss per share for Q1 2025.
  • Projected non-GAAP diluted net loss per share for Q1 2025.
  • Only approximately $1 million of expected revenue from tools in Q1 2025.
  • The outlook for non-GAAP diluted net loss per share excludes anticipated equity-based compensation expense.
  • Actual results may differ materially from the forward-looking statements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+4.7%

Avg return

Earnings day

+9.0%

Avg return

5 days after

+8.3%

Avg return

30 days after

65%

13 / 20 earnings

Positive

+41.4%

Q2 2024

Best reaction

-39.1%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%+5.7%+5.7%
Q4 2025+7.1%+3.6%-6.2%
Q3 2025+26.9%+50.2%+22.2%
Q1 2025+4.5%+15.6%+24.6%
Q4 2024-10.4%-15.3%-30.7%
Q3 2024-9.1%-16.1%-5.8%
Q2 2024+41.4%+41.2%+35.3%
Q1 2024-36.5%-26.0%-27.3%
Q4 2023+13.8%+21.3%+9.9%
Q3 2023+2.0%+4.3%+50.0%
Q2 2023-19.2%-30.9%-32.4%
Q1 2023-5.3%-0.7%+6.0%
Q4 2022+21.6%+30.4%+2.3%
Q3 2022+34.6%+37.3%+9.2%
Q2 2022+27.5%+17.4%-33.2%
Q1 2022+14.4%-2.7%+14.0%
Q4 2021-4.8%+10.4%+15.0%
Q3 2021-39.1%-29.8%-46.7%
Q2 2021+15.1%+26.8%+79.1%
Q1 2021+8.2%+37.4%+74.8%
Q3 2020
Q2 2020
Q1 2020
Q4 2019
Q3 2019

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