Onto Innovation (ONTO) Q4 2024 earnings summary

Executive summary

• Achieved sixth consecutive quarter of growth, setting a new quarterly revenue record of $264 million in Q4 2024, driven by strong AI packaging demand, advanced nodes, and specialty/advanced packaging markets.

• Full year 2024 revenue reached $987 million, up 21% year-over-year, with operating income rising 37% and EPS increasing 43%.

• AI packaging revenue surged 180% over 2023, with significant momentum in advanced nodes and new product launches for next-generation 3D interconnect and inspection tools.

Financial highlights

• Q4 revenue of $264 million, up 5% sequentially and 21% year-over-year; Q4 non-GAAP EPS of $1.51, up 13% sequentially and 42% year-over-year.

• Q4 2024 GAAP gross margin was 50%; non-GAAP gross margin was 55%, excluding acquisition and restructuring charges.

• Q4 2024 non-GAAP operating income was $75 million (29% of revenue); GAAP operating income was $42 million.

• Cash and short-term investments at quarter-end totaled $852 million; operating cash flow was $56 million in Q4 and $246 million for the year, up 43% over 2023.

• Inventory declined for the sixth consecutive quarter, ending at $287 million.

Outlook and guidance

• Q1 2025 revenue expected between $260–$274 million; gross margin 54%–56%; operating expenses $69–$72 million; non-GAAP EPS $1.40–$1.54; GAAP EPS $1.14–$1.28.

• Anticipates strong growth in advanced nodes (logic and memory), with DRAM and NAND orders increasing; power segment to see a seasonal dip in Q1, then growth.

• Expects to outperform industry growth rates, with new products contributing incrementally in 2025 and more significantly in 2026.