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Sep 25, 2021

Onto Innovation Q3 2021 Earnings Report

Reported record quarterly revenue that exceeded guidance, resulting in 59% year-over-year growth.

Key Takeaways

Onto Innovation reported record quarterly revenue of $200.6 million, representing a 59% year-over-year growth. The company's gross margin improved to 55%, and operating margin also improved to 21% GAAP and 29% non-GAAP. The company expects continued revenue growth for the fourth quarter extending into 2022.

Quarterly revenue of $200.6 million, a 59% year-over-year increase.

Gross margin improved to 55% from 54% year-over-year.

Operating margin improved to 21% GAAP and 29% non-GAAP.

Metrology revenue from advanced logic customers increased 95% over the second quarter.

Total Revenue
$201M
Previous year: $126M
+58.6%
EPS
$0.98
Previous year: $0.4
+145.0%
Gross profit margin
55%
Previous year: 54%
+1.9%
Gross Profit
$109M
Previous year: $68.9M
+58.7%
Cash and Equivalents
$462M
Previous year: $340M
+35.6%
Free Cash Flow
$48.2M
Previous year: $25.2M
+91.4%
Total Assets
$1.6B
Previous year: $1.43B
+12.1%

Onto Innovation

Onto Innovation

Forward Guidance

Management provided an outlook for the fourth quarter, the fiscal period ending January 1, 2022. Based on current estimates, management expects revenue between $210 million and $220 million, GAAP EPS between $0.75 and $0.89, and non-GAAP EPS between $1.02 and $1.16.

Positive Outlook

  • $210 million to $220 million in revenue
  • $210 million to $220 million in revenue
  • $0.75 to $0.89 in diluted GAAP EPS
  • $0.75 to $0.89 in diluted GAAP EPS
  • $1.02 to $1.16 in diluted non-GAAP EPS

Challenges Ahead

  • The guidance assumes that well-publicized supply chain issues will not materially impact our vendors’ scheduled deliveries in the quarter.
  • The guidance assumes that well-publicized supply chain issues will not materially impact our vendors’ scheduled deliveries in the quarter.