Nordic Semiconductor (NOD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $128 million, up 72–73% sequentially but down 16–17% year-over-year, driven by demand recovery and seasonality, with distributor inventory adjustments largely resolved.

• A $10 million write-down on long-range inventory impacted gross margin and EBITDA, reflecting transition to new products and cautious inventory management.

• Adjusted EBITDA returned positive at $2.8–3 million, while reported EBITDA was a loss of $7–7.2 million due to the write-down.

• Strategic focus sharpened under NOD 2.0, with enhanced engineering execution and strengthened accountability.

• Recognized for sustainability, including use of recycled materials and inclusion in global rankings by TIME and Statista.

Financial highlights

• Q2 2024 revenue: $127.9 million, down 16–17% year-over-year, up 72–73% sequentially.

• Reported gross margin: 42% (impacted by write-down); adjusted gross margin: 49.8–50%.

• Adjusted EBITDA: $2.8–3 million (down from $28.5 million in Q2 2023); reported EBITDA: -$7–7.2 million.

• Operating cash flow turned positive in Q2; CapEx remained low at $2.5 million.

• Cash balance at quarter-end: $258 million; total available liquidity including undrawn facility: $455 million.

Outlook and guidance

• Q3 2024 revenue guidance: $150–170 million, representing 11–26% year-over-year growth and 17–33% sequential growth.

• Gross margin expected around 50%, consistent with underlying Q2 levels.

• Market stabilization and return to year-on-year growth anticipated for the first time since 2022.

• Focus remains on restoring profitability and maintaining long-term gross margin above 50%.