CEVA (CEVA) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 revenue of $27.2 million, up 13% year-over-year, with double-digit growth in both licensing and royalties, and record device shipments exceeding 400 million Bluetooth, Wi-Fi, and cellular IoT units.

• Signed 10 licensing deals in Q3, including strategic agreements in AI, 5G Advanced, spatial audio, and the first NeuPro-Nano AI NPU license, with three deals involving OEMs and several first-time customers.

• Raised full-year 2024 guidance due to improved backlog, pipeline, and robust business fundamentals, and expanded the share repurchase program by 700,000 shares.

• Net loss from continuing operations narrowed to $1.3 million for Q3, with non-GAAP net income rising 137% to $3.4 million and non-GAAP diluted EPS increasing to $0.14.

• Completed the sale of Intrinsix, with discontinued operations showing a net loss of $5.3 million for the nine months.

Financial highlights

• Total revenue: $27.2 million, up 13% YoY; licensing revenue: $15.6 million (+12% YoY); royalty revenue: $11.6 million (+15% YoY).

• Non-GAAP net income: $3.4 million (+137% YoY); non-GAAP diluted EPS: $0.14 (+133% YoY); GAAP net loss: $1.3 million, improved from $2.8 million loss YoY.

• Gross margin: 85% GAAP (vs. 90% YoY), 87% non-GAAP (vs. 92% YoY), impacted by strategic 5G Advanced customization work.

• Non-GAAP operating income: $2.1 million (+30% YoY); GAAP operating loss: $2.6 million, slightly improved YoY.

• Cash, equivalents, and marketable securities: $158 million at quarter end, with no debt.

Outlook and guidance

• Full-year 2024 revenue growth expected in the 7%-9% range, higher than previous guidance.

• Fourth quarter revenue expected between $26.5 million and $28.5 million.

• Non-GAAP operating margins and profits expected to double in 2024 over 2023.

• Licensing and related revenues expected to expand into new industrial and consumer IoT markets.