Nova (NVMI) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and profitability in 2024, with full-year revenue up 30% year over year to $672.4 million and non-GAAP net income up 38%.

• Outperformed industry indices and exceeded guidance for both Q4 and the full year, driven by strong sales across product lines and strategic market penetration.

• Growth fueled by broad adoption of metrology solutions in advanced packaging, logic, and memory, with advanced packaging revenue more than doubling to 15% of product revenue.

• Acquisition of Sentronics Metrology completed for ~$60 million, expected to diversify offerings and be accretive within 12 months.

• Nova is expanding its total addressable market by targeting advanced logic, memory, packaging, and specialty devices, aiming for 50% TAM growth by 2027.

Financial highlights

• Q4 2024 revenue reached $210 million, up 45% year over year, with record non-GAAP net income and strong sales in both materials and dimensional metrology solutions.

• Full-year 2024 revenue was $672.4 million, up 30% year over year.

• Q4 2024 GAAP net income: $50.5 million ($1.58/diluted share); non-GAAP net income: $62.3 million ($1.94/diluted share).

• Q4 2024 gross margin: 56% GAAP, 58% non-GAAP; annual GAAP gross margin: 57.6%, non-GAAP 59%.

• Ended 2024 with $820 million in cash and equivalents; generated $218 million in free cash flow.

Outlook and guidance

• Q1 2025 revenue expected between $205 million and $215 million.

• Q1 2025 GAAP EPS guidance: $1.75–$1.91; non-GAAP EPS: $2.00–$2.16.

• Long-term financial targets include $1 billion in annual sales, gross margin of 57%–59%, and operating margin of 27%–31%.

• Service revenue projected to grow 10–15% in 2025; advanced packaging and logic expected to lead growth.

• Company expects to outperform WFE growth in 2025, driven by AI, HPC, and advanced packaging demand.