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Jun 30, 2022

Universal Display Q2 2022 Earnings Report

Second quarter financial results announced with revenue increasing despite economic challenges and revised full-year guidance.

Key Takeaways

Universal Display Corporation reported Q2 2022 revenue of $136.6 million, an increase from $129.7 million in Q2 2021. Despite this increase, the company revised its 2022 revenue forecast to approximately $600 million due to macroeconomic uncertainty and volatility.

Total revenue for Q2 2022 was $136.6 million compared to $129.7 million in Q2 2021.

Material sales revenue was $71.9 million, down from $77.4 million in the same quarter last year.

Royalty and license fees revenue increased to $60.3 million from $48.2 million in Q2 2021.

Operating income rose to $53.3 million, compared to $49.9 million in the previous year.

Total Revenue
$137M
Previous year: $130M
+5.3%
EPS
$0.87
Previous year: $0.85
+2.4%
Gross margin on mat. sales
65%
Previous year: 67%
-3.0%
Gross Profit
$109M
Previous year: $102M
+7.5%
Cash and Equivalents
$214M
Previous year: $543M
-60.6%
Free Cash Flow
$22.9M
Previous year: $18.9M
+21.4%
Total Assets
$1.5B
Previous year: $1.35B
+11.0%

Universal Display

Universal Display

Universal Display Revenue by Segment

Forward Guidance

The company revised its 2022 revenue forecast to approximately $600 million, plus or minus $10 million, due to downward trends in customer order forecasts and increasing macroeconomic uncertainty.

Positive Outlook

  • Well-positioned to continue investing in long-term strategic growth initiatives.
  • Reinforce first-mover advantage.
  • Expand materials and technologies portfolio.
  • Broaden support to customers and the OLED industry.
  • On track to meet preliminary target specs with phosphorescent blue by year-end.

Challenges Ahead

  • Near-term macro headwinds may weigh on demand.
  • Customers lowered their order forecasts.
  • Increasing macroeconomic uncertainty.
  • Increasing macroeconomic volatility.
  • Deterioration in the overall global market economy had a negative impact on the demand for OLED products

Revenue & Expenses

Visualization of income flow from segment revenue to net income