CEVA (CEVA) Q4 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth in 2024, with full-year revenue at $106.9M, up 10% year-over-year, and expanded market leadership in smart edge technologies.

• Q4 2024 revenue reached $29.2M, up 21% year-over-year, exceeding guidance, with royalty revenue at $13.5M, up 9%.

• Completed 43 licensing agreements in 2024, including several strategic long-term deals with top-tier MCU and mobile OEMs; 12 customers licensed multiple technologies.

• Achieved record shipments, surpassing 2 billion CEVA-powered units in 2024, with 623M units shipped in Q4, up 38% year-over-year.

• Divested Intrinsix business, with results recast as discontinued operations.

Financial highlights

• Q4 licensing and related revenue was $15.7M, up 33% year-over-year; Q4 non-GAAP net income was $2.7M, with diluted EPS of $0.11.

• Full-year non-GAAP operating income doubled to $10.2M; non-GAAP net income and EPS also doubled to $9M and $0.36.

• Q4 GAAP gross margin was 88%; non-GAAP gross margin was 89%.

• Q4 non-GAAP operating income was $4.5M, up from $1.9M in Q4 2023.

• Returned $8.5M to shareholders in 2024 via repurchase of 375,000 shares; 1M shares remain in the program.

Outlook and guidance

• 2025 revenue expected to grow 7%-11% over 2024, with stronger growth in the second half.

• Non-GAAP operating income, margins, net income, and EPS projected to grow 48%-52% year-over-year.

• Q1 2025 revenue forecasted at $25.5-$27.5M, with gross margin slightly lower due to seasonality.

• Management expects to continue organic growth and capitalize on non-organic opportunities.

• Expanding customer base and AI adoption seen as drivers for future licensing and royalty growth.