Nova (NVMI) Cantor Fitzgerald Global Technology Conference summary

Company overview and product portfolio

• Provides advanced metrology solutions for the semiconductor industry, spanning dimensional, material, and chemical metrology divisions.

• Products are widely adopted across leading and trailing edge, foundry, memory, and advanced packaging segments.

• Material metrology division is unique in offering inline solutions, with VeraFlex, Elipson, and Metrion product lines.

• Service business accounts for about 20% of revenues, with a large installed base generating recurring income.

• Achieved consistent outperformance, doubling revenues every 4–5 years, with gross margins of 57–59% and operating margins of 27–31%.

Growth drivers and 2025 outlook

• 2024 saw 30% revenue growth, outpacing the overall wafer fab equipment (WFE) market.

• Major growth drivers for 2025 are the Gate-All-Around transition and advanced packaging, with significant investments expected.

• Advanced packaging revenues more than doubled in 2024, now 15% of total revenues, with continued momentum into 2025.

• DRAM investments are expected to pick up, especially related to HBM and capacity additions.

• Expects to outperform the WFE market in 2025.

Materials metrology business and adoption process

• Customer engagement starts with a demo phase, followed by a 6–24 month evaluation period at the customer site.

• High success rate after evaluation, with quick revenue recognition upon tool acceptance.

• Ramp of tools per fab accelerates as customers find new applications and increase utilization.

• Next-generation tools drive higher ASPs through improved precision, productivity, and application coverage.

• 2025 is focused on strategic evaluations for Metrion, with major revenue ramp expected in 2026.