Nordic Semiconductor (NOD) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $150 million, up 39% year-over-year, driven by broad-based growth, recovery from inventory adjustments, and strong consumer and healthcare demand.

• Gross margin was 49%, with EBITDA turning positive at $9 million, a significant turnaround from a loss in Q4 2023.

• Management highlighted successful launches of the nRF54 Series and nRF9151 module, and ongoing efforts to regain traction in the broad market.

• Workforce was reduced by 8% in Q4 as part of cost realignment, with $3 million in restructuring expenses recognized.

• Maintained market leadership in Bluetooth Low Energy, with 35% share of certifications and strong customer relationships.

Financial highlights

• Bluetooth revenue was $132 million in Q4, up 46% year-over-year; proprietary revenue was $8.3 million, down 15% year-over-year; long-range (cellular IoT) revenue was $7 million, up 16% year-over-year and 181% sequentially.

• Consumer segment revenue was $94 million (63% of Q4 total), up 40% year-over-year; industrial and healthcare segments also saw strong Q4 growth.

• Operating cash flow was $49.2 million in Q4, compared to an outflow of $9 million in Q4 2023.

• CapEx was $3.5 million (2% of revenue), reflecting continued low investment levels.

• Cash and cash equivalents at year-end were $287.9 million, with an equity ratio of 70.6%.

Outlook and guidance

• Q1 2025 revenue guidance is $140–$160 million, nearly double Q1 2024 revenue of $74 million, with gross margin expected around 50%.

• Management expects continued underlying revenue recovery, with strong demand in consumer and healthcare, but industrial and Europe remain slow.

• OpEx is targeted to remain flat in 2025 despite inflation and new product launches.

• No guidance provided beyond Q1; management notes potential volatility from individual customers.

• Long-term goals: average annual revenue growth above 20% and ~25% EBITDA margin within five years.