Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-39110 ONTO INNOVATION INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inco ...

Financial Data and Key Metrics Changes - The company achieved a significant milestone by surpassing $1 billion in revenue for the year, with a revenue growth of 32%, well above the market estimate of 9% for wafer fab equipment in 2022 [4][11][29] - Fourth quarter revenue was reported at $253 million, up 12% year-over-year, and $3 million above the midpoint of guidance [29][52] - Operating income for the full year reached $302 million, with net income of $275 million, marking a 43% increase in earnings [11][23] - Gross margins for the fourth quarter were 54%, consistent with previous guidance, despite inflationary pressures on raw materials and labor [30][52] Business Line Data and Key Metrics Changes - Revenue from specialty devices and advanced packaging grew 15% year-over-year, achieving $125.4 million, representing 49% of total revenue [51] - Advanced nodes revenue was $85.3 million, growing 16% year-over-year, accounting for 34% of total revenue [51] - Software and services revenue slightly declined by 1% year-over-year to $42.6 million, representing 17% of total revenue [51] Market Data and Key Metrics Changes - The company expects a decline in specialty and advanced packaging by mid to upper teens in Q1 2023, with advanced nodes revenue anticipated to drop by approximately 30% due to reduced memory spending and restrictions in China [16][56] - The overall wafer fab equipment spending estimates are down 20% for 2023, with some analysts forecasting a 30% decline when excluding front-end and lithography spending [35][56] Company Strategy and Development Direction - The company plans to reduce annual spending by $25 million to $30 million, focusing on operational efficiencies and strategic investments in R&D [15][56] - The company aims to optimize inventory levels, targeting a return to the mid $200 million range in 2023 [53] - The long-term outlook for chip growth remains strong, with estimates suggesting a market size of $1 trillion by 2030 [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform despite a weakening environment, citing a backlog that supports revenue doubling in lithography and growth in power and compound semiconductor customers [17][18] - The company anticipates a slow start to 2023 but expects improvements in margins and operational efficiencies as the year progresses [15][56] - Management noted that while factory expansions are slowing, customer engagement remains strong for developing new technologies [10] Other Important Information - The company repurchased over 1 million shares year-to-date, returning $65.2 million to shareholders under a $100 million authorization [14] - Cash and short-term investments totaled $548 million, with operating cash flow of $137 million for the year, down from 2021 levels due to increased inventory management [13] Q&A Session Summary Question: What is the expected revenue decline for 2023? - Management indicated a revenue decline of 18% to 22% year-over-year, with expectations of stabilization in Q2 [60][75] Question: How are cost savings being achieved? - Cost savings are expected to be approximately $16 million in operating expenses and $11 million in cost of goods sold, with a focus on operational efficiencies [41][62] Question: What is the outlook for memory spending? - Management suggested that memory spending may resume at the earliest in late 2023 or into 2024, primarily in R&D rather than production [104] Question: How does the company view the compound semiconductor market? - The company sees significant growth potential in the compound semiconductor market, with expectations of double-digit growth rates in the coming years [90][123] Question: What is the company's capital allocation strategy? - The company is open to share buybacks and M&A opportunities, maintaining a healthy balance sheet while seeking growth avenues [120]

Onto Innovation Inc. (NYSE:ONTO) Q3 2022 Earnings Conference Call October 27, 2022 4:30 PM ET Company Participants Michael Sheaffer - Senior Director Investor Relations, Corporate Communications & Market Research Mike Plisinski - Chief Executive Officer Mark Slicer - Chief Financial Officer Conference Call Participants Craig Ellis - B. Riley Securities Mark Miller - The Benchmark Company Hans Chung - D.A. Davidson Trevor Janoski - Needham Operator Good day and welcome to the Onto Innovation Third Quarter Ea ...

| --- | --- | --- | --- | --- | |-------|-------|-------|-----------------------|-------| | | | | | | | | | | | | | | | | | | | | | | Onto Innovation | | | | | | Investor Presentation | | | | | | AUGUST 2022 | | Safe Harbor • The information presented herein contains forward-looking statements that relate to anticipated future operating results and performance. These statements are only predictions based on management's current expectations and assumptions, including market size and forecasted growth, Total ...

Financial Data and Key Metrics Changes - The company reported record revenues of $256.3 million for Q2 2022, exceeding previous guidance by approximately $8 million [24] - Gross margins for Q2 were 52%, down from 54% in Q1, primarily due to the recognition of lithography systems revenue [26] - Net income for Q2 was $64 million, or $1.28 per share, which was $0.02 above the midpoint of previous guidance [28] - Cash at the end of Q2 was $545 million, an increase of $34 million since the start of the year [29] Business Line Data and Key Metrics Changes - Advanced nodes revenue was $94.5 million, growing 47% year-over-year and representing 37% of total revenue [25] - Specialty device and advanced packaging revenue reached $117.3 million, up 28% year-over-year, accounting for 46% of total revenue [25] - Software and services revenue set a record at $44.5 million, growing 19% year-over-year and representing 17% of total revenue [25] Market Data and Key Metrics Changes - Revenue from the advanced nodes market was down slightly from Q1 but up 47% year-over-year [16] - Revenue from the Iris platform grew 49% year-over-year, with expectations to meet or exceed $50 million in revenue from this segment by year-end [19] - The company has a backlog exceeding $700 million, indicating strong demand across various markets [39] Company Strategy and Development Direction - The company aims to transform into a partner of choice for connected solutions across the semiconductor value chain [40] - There is a focus on increasing manufacturing efficiencies and leveraging supply chain improvements to enhance gross margins [11][12] - The company is actively working on expanding capacity to meet growing demand, particularly for advanced nodes and specialty devices [50] Management's Comments on Operating Environment and Future Outlook - Management expects stronger revenue in the second half of 2022 compared to the first half, driven by growth in advanced nodes and NAND customers [35] - There are anticipated declines in specialty and advanced packaging customers after a strong Q2, with expectations for recovery in Q4 [38] - The company is confident in its visibility and demand, with a book-to-bill ratio remaining above 1 [67] Other Important Information - The company is prioritizing M&A as a key strategy for shareholder value creation, alongside potential stock buybacks [89][92] - The impact of the US CHIPS Act and European funding for chip production is expected to create opportunities, although the timeline for order book impact remains fluid [87][88] Q&A Session Summary Question: Production issues for inspection systems in Q2 - Management acknowledged challenges with suppliers unable to meet demand, impacting $5 million in revenue, but expects to resolve these constraints by Q4 [44][45] Question: Future gross margins for JetStep lithography systems - Management indicated steady improvements in gross margins over the next six quarters, with expectations to return to 54%-55% range in Q3 and Q4 [46] Question: Long-term outlook for JetStep systems and backlog - The company has already booked full capacity for 2023 and is working on increasing capacity for 2024 demand [50] Question: Market share and size of the Atlas product line - Estimated market size for Atlas is $400 million to $500 million, with a significant share in high-end applications [80] Question: Revenue potential from increased capacity next year - Management indicated a backlog of $100 million and potential for additional revenue if supply constraints are alleviated [82] Question: Impact of the US CHIPS Act on order book - Management expects aggressive announcements from customers as funding rules are established, with a timeline of about a year for significant impacts [88]

Onto Innovation Inc. (NYSE:ONTO) Q1 2022 Earnings Conference Call May 3, 2022 4:30 PM ET Company Participants Michael Sheaffer – Investor Relations Michael Plisinski – Chief Executive Officer Steven Roth – Chief Financial Officer Conference Call Participants Craig Ellis – B. Riley Securities Quinn Bolton – Needham Tom Diffely – D.A. Davidson Brian Chin – Stifel Dave Duley – Steelhead Mark Miller – The Benchmark Company Operator Good day and welcome to the Onto Innovation First Quarter Earnings Release Confe ...

Onto Innovation Inc. (NYSE:ONTO) Q4 2021 Results Conference Call February 8, 2022 4:30 PM ET Company Participants Michael Sheaffer - IR Michael Plisinski - CEO Steven Roth - CFO Conference Call Participants Craig Ellis - B. Riley Securities Quinn Bolton - Needham Brian Chin - Stifel Mark Miller - Benchmark Company David Duley - Steelhead Securities Hans Chung - D.A. Davidson Operator Good day, ladies and gentlemen, and welcome to the Onto Innovation Fourth Quarter Earnings Release Conference Call. Today's c ...

| --- | --- | --- | --- | --- | |-------|-------|-------|-----------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Onto Innovation | | | | | | Investor Presentation | | | | | | JANUARY 2022 | | | | | | Mike Plisinski, CEO | | Safe Harbor • The information presented herein contains forward-looking statements that relate to anticipated future operating results and performance. These statements are only predictions based on management's current expectations and assump ...

Onto Innovation Inc. (NYSE:ONTO) Q3 2021 Earnings Conference Call November 4, 2021 4:30 PM ET Company Participants Michael Sheaffer - Senior Director, Investor Relations, Corporate Communications and Marketing Research Michael Plisinski - Chief Executive Officer Steven Roth - Senior Vice President and Chief Financial Officer Conference Call Participants Craig Ellis - B. Riley Securities Patrick Ho - Stifel Quinn Bolton - Needham & Company David Duley - Steelhead Securities Operator Good day, and welcome to ...

Onto Innovation Investor Presentation AUGUST 2021 Safe Harbor • The information presented herein contains forward-looking statements that relate to anticipated future operating results and performance. These statements are only predictions based on management's current expectations and assumptions, including market size and forecasted growth, Total Available Market (or "TAM"), Served Available Market (or "SAM") and revenue estimates, and necessarily involve risks and uncertainties. We do not assume any obli ...