Nordic Semiconductor (NOD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached USD 159 million, up 18% year-over-year and 24% sequentially, driven by strong consumer demand, seasonality, and broad market recovery.

• Gross margin was 49.5%, slightly down from 50.5% in Q3 2023, with EBITDA at USD 16.2 million.

• Consumer segment led the recovery, accounting for 69% of total revenue.

• The nRF54 Series launch is expected in Q4, with first commercial launches and key customers already designing with the new products.

• Signed LOI for possible acquisition of Novelda to expand into ultra-wideband technology.

Financial highlights

• Q3 2024 revenue was USD 158.8 million (+18% YoY, +24% QoQ); gross profit USD 78.7 million (+15% YoY).

• Bluetooth revenue increased 19% YoY to USD 143.1 million; proprietary products grew 18% to USD 12.1 million.

• Healthcare revenue was USD 21 million, down 21% YoY but up 41% sequentially.

• Operating cash flow was USD 13.8 million, reversing a prior year outflow; cash position at USD 260.8 million.

• Capex remained low at USD 3.1 million (1.5%–2% of revenue); inventories increased to USD 181 million.

Outlook and guidance

• Q4 2024 revenue is guided between USD 130–150 million, with gross margin expected around 50%.

• This implies 20%–39% YoY growth for Q4, but a sequential decline of 6%–18% from Q3.

• Modest growth is expected in 2025, with acceleration anticipated from 2026 onward as new products ramp.

• Long-term ambition is to deliver average annual revenue growth above 20% and reach a 25% EBITDA margin within five years.