Universal Display (OLED) Citi's 2024 Global TMT Conference summary

Market adoption and growth outlook

• OLED displays now exceed LCDs in global smartphone shipments, with over 50% penetration and growing adoption in mid- and low-tier models.

• TV OLED unit growth is estimated at 20% for the year, with LG Display expecting to sell about six million white OLED TVs, up 20% from 2023.

• IT market OLED penetration is currently 3-4%, with industry analysts projecting 20% by 2030; major OEMs are investing in new capacity and launching OLED-based products.

• Automotive and lighting segments are adopting OLED, especially in EVs for energy efficiency and in tail lights for visual benefits.

Financial performance and guidance

• 2024 revenue guidance is $645M-$675M, with a midpoint of $660M, and projected gross margins of 76%-77% and operating margins of 35%-40%.

• Revenue is expected to grow 15% in 2024 after a decline in 2023, with balanced performance between H1 and H2.

• Revenue growth is influenced by new customer agreements and volume pricing, with significant unit growth projected.

Technology and product development

• Phosphorescent blue OLED commercialization has been delayed beyond 2024, with the timeline extended by months, not years; broad applicability is expected across smartphones, TVs, and IT.

• Blue OLED will initially be more costly to produce due to molecular complexity, but pricing will reflect added value and manufacturing investment.

• Manufacturing for blue OLED will be centered in Ireland, with a secondary US source planned; supply chains are being prepared for commercial rollout.

• Blue OLED is included in most customer IP agreements except Samsung, which will require a separate license.