Onto Innovation (ONTO) Q4 2023 earnings summary

Executive summary

• Q4 revenue was $218.9M, above the high end of guidance, supported by stronger-than-expected Dragonfly inspection system orders.

• FY 2023 revenue was $815.9M; GAAP diluted EPS was $2.46 and non-GAAP diluted EPS was $3.73.

• Packaging and power semiconductor demand strengthened, while advanced-nodes spending declined with customer spending reductions.

Financial highlights

• Q4 GAAP operating income was $28.2M and net income was $30.3M; non-GAAP operating income was $56.4M and net income was $52.4M.

• Q4 GAAP diluted EPS was $0.61 versus $1.34 in Q4 2022; non-GAAP diluted EPS was $1.06 versus $1.57.

• FY GAAP net income was $121.2M versus $223.3M in 2022; non-GAAP net income was $183.9M versus $274.7M.

• FY operating cash flow was $172M, up 26% YoY; Q4 operating cash flow reached a record $62M, or 28% of revenue.

Outlook and guidance

• Q1 2024 revenue guidance: $215M–$230M; GAAP diluted EPS: $0.74–$0.94; non-GAAP diluted EPS: $1.00–$1.20.

• Management expects further growth as spending returns and resources focus on rapidly growing customer products and applications.