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Jun 30, 2024

Rambus Q2 2024 Earnings Report

Achieved solid Q2 results in line with expectations, generating outstanding cash from operations and experiencing robust growth in product revenue.

Key Takeaways

Rambus reported solid second-quarter results with revenue of $132.1 million and strong cash generation from operations. The company saw robust growth in product revenue and anticipates a strong third quarter driven by double-digit sequential chip growth.

Achieved solid Q2 results in line with expectations.

Generated outstanding cash from operations of $70.4 million.

Delivered $56.7 million in product revenue, up 13% sequentially.

Continued product portfolio expansion with DDR5 server PMICs, Client Clock Driver, and PCIe 7 IP solutions.

Total Revenue
$137M
Previous year: $120M
+14.6%
EPS
$0.46
Previous year: $0.31
+48.4%
Licensing billings
$61.5M
Previous year: $60.2M
+2.2%
Gross Profit
$97.6M
Previous year: $96.2M
+1.4%
Cash and Equivalents
$125M
Previous year: $122M
+2.0%
Free Cash Flow
$59.1M
Previous year: $43.7M
+35.2%
Total Assets
$1.25B
Previous year: $1.13B
+11.0%

Rambus

Rambus

Rambus Revenue by Segment

Forward Guidance

The Company will discuss its full revenue guidance for the third quarter of 2024 during its upcoming conference call.

Positive Outlook

  • Licensing billings (operational metric) between $60 million and $66 million.
  • Product revenue (GAAP) between $62 million and $68 million.
  • Contract and other revenue (GAAP) between $17 million and $23 million.
  • Interest and other income (expense), net $4 million.
  • Diluted share count 109 million

Challenges Ahead

  • Operating costs and expenses to be between $97 million and $93 million.
  • Non-GAAP operating costs and expenses to be between $82 million and $78 million.
  • Expectations also assume a tax rate of 22%.
  • Excludes stock-based compensation expense of $12 million.
  • Excludes amortization of acquired intangible assets of $3 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income