CEVA (CEVA) Q4 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth and increased profitability in 2024, expanding market leadership in smart edge technologies and wireless connectivity.

• Exceeded expectations for licensing and royalty revenue, driven by strong demand for AI at the edge and wireless connectivity.

• Signed 43 licensing agreements in 2024, including major long-term deals with top-tier MCU and mobile OEMs, and completed 12 deals in Q4.

• Powered a record 2 billion units in 2024, with significant growth in Bluetooth, Wi-Fi, and cellular IoT shipments; Q4 shipments reached 623 million, up 38% year-over-year.

• Non-GAAP diluted EPS doubled year-over-year to $0.36; GAAP loss per share improved to $0.37 from $0.79.

Financial highlights

• Q4 2024 revenue grew 21% year-over-year to $29.2 million; licensing revenue up 33% to $15.7 million, royalty revenue up 9% to $13.5 million.

• Full-year 2024 revenue increased 10% to $106.9 million, surpassing initial guidance.

• Q4 non-GAAP operating income was $4.5 million (15% margin), up from $1.9 million; non-GAAP net income was $2.7 million (11 cents/share), up 12%.

• Annual non-GAAP operating income more than doubled to $10 million; net income and EPS also doubled to $9 million and $0.36.

• Q4 GAAP net loss narrowed to $1.7 million (7 cents/share) from $8.1 million (34 cents/share) a year ago.

Outlook and guidance

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

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

• Q1 2025 revenue forecasted at $25.5-$27.5 million, with gross margin expected at 87%-88%.

• Expense growth for 2025 planned at 2%-6%, below topline growth.

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