Silvaco Group (SVCO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $11.0 million, down 27% year-over-year due to delayed orders, especially from China and a $5.0 million order shift to Q4; year-to-date revenue remained flat at $41.8 million.

• 14 new customers were added in Q3, with strong traction in power, automotive, Mil/Aero, display, and foundry markets; 58% of new wins were in power.

• Strategic partnerships with major universities, expansion of the TCAD platform into advanced CMOS and digital twin modeling, and ISO 9001 certification were achieved.

• Inclusion in Russell indices and appointment of new SVP, General Counsel, and Corporate Secretary enhanced visibility and leadership.

• IPO completed in May 2024, raising $106 million in net proceeds, strengthening liquidity.

Financial highlights

• Q3 gross bookings were $9.9 million, down 21% year-over-year; year-to-date bookings reached $45.5 million, up 7%.

• Q3 non-GAAP gross margin was 80%, GAAP gross margin was 75%, both down from 85% in the prior year.

• Q3 non-GAAP operating loss was $2.6 million; Q3 non-GAAP net loss was $1.8 million, with non-GAAP EPS at a loss of $0.06 per share.

• Ended Q3 with $100.4 million in cash and equivalents, including marketable securities.

• Operating expenses rose 42% year-over-year in Q3 2024, driven by higher R&D, G&A, and litigation charges.

Outlook and guidance

• FY24 revenue guidance is $60–$63 million, representing 10–16% growth over 2023.

• Q4 revenue expected at $18.1–$21.2 million, a record quarter, with Q4 bookings forecasted at $18.5–$21.5 million.

• FY24 non-GAAP gross margin forecasted at 85–87%; non-GAAP operating income expected at $5–$8 million.

• Long-term targets: 15–25% top-line growth, 90% non-GAAP gross margin, 25%+ non-GAAP operating margin.

• Management expects cash and marketable securities to be sufficient for at least the next 12 months.