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Jun 30, 2024
Ceva Q2 2024 Earnings Report
Reported strong Q2 2024 results with revenue growth driven by licensing and royalties.
Key Takeaways
Ceva reported strong Q2 2024 financial results, exceeding estimates with a 24% increase in total revenue compared to the same quarter last year. Licensing and royalty revenues grew by 28% and 19%, respectively. The company signed strategic deals in AI, wireless infrastructure, and Bluetooth, and achieved significant growth in the smartphone market.
Total revenue increased by 24% year-over-year to $28.4 million.
Licensing and related revenue grew by 28% year-over-year to $17.3 million.
Royalty revenue increased by 19% year-over-year to $11.2 million, driven by 461 million shipped units.
GAAP operating loss improved to $0.04 million, compared to a $5.3 million loss in the same period last year.
Ceva
Ceva
Ceva Revenue by Segment
Revenue by Segment
Licensing & related Revenue
CapyFin.comRoyalties Revenue
CapyFin.com Forward Guidance
The company is encouraged by the strength of its licensing pipeline and royalty growth potential from its broad and diversified customer base. They continued to buy back the company’s stock during the quarter and have $158 million in cash and cash equivalents, marketable securities and bank deposits to leverage to grow their share in edge AI and other high-growth markets.
Positive Outlook
- Customer demand for IP portfolio driven by AI adoption.
- Signed strategic deals with leading companies.
- Royalty business growth due to broad market strength and market share gains in IoT.
- Strong growth in the smartphone market.
- Excellent second quarter performance generated top line growth of 24% year-over-year.
Challenges Ahead
- Intense industry competition.
- The ability of Ceva's technologies and products incorporating Ceva's technologies to achieve market acceptance.
- Ceva's ability to meet changing needs of end-users and evolving market demands.
- The cyclical nature of and general economic conditions in the semiconductor industry.
- Instability and disruptions related to the ongoing Israel-Gaza conflict.
Revenue & Expenses
Visualization of income flow from segment revenue to net income