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Sep 30, 2023

Rambus Q3 2023 Earnings Report

Rambus reported strong Q3 results with revenue and earnings above the midpoint of guidance.

Key Takeaways

Rambus delivered a strong third quarter with GAAP revenue of $105.3 million and a net income of $103.2 million, largely driven by a net gain on divestiture. The company generated $51.6 million in cash from operations and completed a $100.0 million accelerated share repurchase program.

Delivered strong Q3 results with revenue and earnings above the midpoint of guidance

Generated $51.6 million in cash from operations

Completed $100.0 million accelerated share repurchase program

Completed the sale of the PHY IP business, strengthening focus on chips and digital IP

Total Revenue
$105M
Previous year: $112M
-6.2%
EPS
$0.44
Previous year: $0.01
+4300.0%
Licensing billings
$57.9M
Previous year: $62.2M
-6.9%
Gross Profit
$81.3M
Previous year: $85.3M
-4.7%
Cash and Equivalents
$132M
Previous year: $142M
-6.8%
Free Cash Flow
$43.6M
Previous year: $73.8M
-40.9%
Total Assets
$1.18B
Previous year: $969M
+22.2%

Rambus

Rambus

Rambus Revenue by Segment

Forward Guidance

The Company will discuss its full revenue guidance for the fourth quarter of 2023 during its upcoming conference call. The following table sets forth fourth quarter outlook for other measures.

Positive Outlook

  • Licensing billings (operational metric) between $56 million and $62 million.
  • Product revenue to be between $52 million and $58 million
  • Contract and other revenue to be between $17 million and $23 million.
  • Non-GAAP interest and other income (expense), net, of $2 million
  • Diluted share count of 110 million

Challenges Ahead

  • Operating costs and expenses to be between $88 million and $84 million.
  • Non-GAAP operating costs and expenses to be between $73 million and $69 million.
  • Tax rate of 24%
  • Stock-based compensation expense of $11 million
  • Amortization of acquired intangible assets of $4 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income