Financial Performance - In 2024, the company generated $65.8 million in bookings and recognized $59.7 million in revenue, resulting in a net loss of $39.4 million and cash flows used in operating activities of $19.8 million[32]. - The company reported a GAAP operating loss of $40.3 million and a non-GAAP operating income of $5.5 million for 2024, compared to a GAAP operating income of $1.1 million and a non-GAAP operating income of $4.4 million in 2023[32]. - Strategic accounts contributed $40.3 million to total bookings in 2024, with a 37% CAGR in bookings from these accounts over the past two years[86]. - Approximately 53% and 60% of the company's revenue was derived from customers in APAC for the years ended December 31, 2024 and 2023, respectively[114]. - 18% and 23% of the company's revenue was derived from customers in China for the years ended December 31, 2024 and 2023, respectively, with ongoing economic slowdown in China posing risks to future revenue[115]. - 63% and 70% of the company's revenue for the years ended December 31, 2024 and 2023, respectively, was derived from international customers[129]. - The company generated $0.4 million and $0.6 million in revenues from the Middle East in 2024 and 2023, respectively[149]. Market Trends and Opportunities - The semiconductor market is experiencing increased complexity due to the demand for advanced manufacturing processes and new materials, leading to higher development costs and longer time-to-market[39]. - The automotive market is rapidly evolving, with increasing semiconductor content driven by electrification and advanced electronic controls, necessitating the adoption of wide bandgap materials like SiC and GaN[53]. - The memory market is expected to grow significantly, driven by demand for dynamic random-access memory and flash memory products, with new technologies like MRAM being explored[48]. - The IoT market is anticipated to grow as it requires complex SoCs for data processing and connectivity, with a focus on ultra-low energy demands[56]. - The shift to 5G/6G mobile communications is expected to increase demand for sophisticated chip designs, with the company providing unique tools for parasitic reduction and analysis[57]. - High-performance computing applications are driving demand for specialized circuit and memory elements, with the company offering solutions to meet performance, power, and latency requirements[59]. - The company focuses on growth industries such as AI, automotive, and high-performance computing, enabling customers' memory and power devices to play crucial roles in these sectors[6]. - The company aims to expand its market share in the growing display, automotive semiconductor, memory device, and IoT markets, leveraging its established position[81]. Research and Development - The company plans to increase R&D expenditures to expand its presence in established market segments, including low-geometry CMOS technology and photonics, with revenue generated from beta customers in 2023 and 2024[81]. - The company plans to continue investing in research and development, focusing on TCAD, analog and custom design, circuit simulation, and SIP[89]. - The company emphasizes the importance of TCAD, EDA, and SIP solutions to accelerate time-to-market and reduce costs in semiconductor design and manufacturing[60]. - The company provides production-ready silicon-proven SIP solutions, which help customers lower development costs and reduce time to market compared to non-silicon-proven alternatives[64]. - The company's TCAD solutions are designed to reduce time and manufacturing cycles in semiconductor technology development, contributing to cost reductions[66]. - The company has delivered more than 50 standard cell libraries and 96 memory compilers, demonstrating maximal density and routing performance across process technology nodes from 0.35nm to 16nm[75]. Customer Base and Sales Strategy - As of December 31, 2024, the company had over 800 customers globally, including over 200 academic institutions, with revenue distribution of 53% from Asia, 38% from North America, and 9% from Europe[84]. - The company gained 13 new customers in the power end-market and eight new customers in the memory end-market in 2024[86]. - The company aims to expand its customer base by increasing marketing and sales resources, particularly in automotive and IoT segments[86]. - The company plans to continue expanding its sales force both domestically and internationally, requiring significant financial and other resource investments[132]. - The company’s sales and marketing team included 30 regional sales representatives as of December 31, 2024, with an average of over 25 years of sales experience[88]. Competitive Landscape - The company may face increased competition from larger firms with greater resources, impacting its ability to maintain market share and pricing[105]. - Consolidation among customers in the semiconductor and photonics industries could lead to reduced demand for the company's software solutions and services[127]. - The introduction of new software solutions is critical, as failure to innovate could materially adversely affect revenues[123]. - The interoperability of the company's software solutions with customers' use cases and competitors' products is essential for success, and any failure in this area could negatively impact market share and demand[180]. Regulatory and Compliance Risks - The company is subject to various regulatory challenges, including anti-corruption and data privacy laws, which could impact its operations and compliance obligations[97]. - The company faces evolving cybersecurity risks due to remote work and reliance on third-party service providers, which could introduce vulnerabilities into its systems[188]. - The company is subject to various data privacy and security laws, which could lead to regulatory investigations, litigation, and significant fines if not complied with[203]. - The California Consumer Privacy Act (CCPA) allows for fines of up to $7,500 per intentional violation, impacting the company's financial condition[206]. - The EU General Data Protection Regulation (GDPR) imposes fines of up to €20 million or 4% of annual global revenue for non-compliance, which could adversely affect the company[208]. Ownership and Governance - The Pesic Family collectively holds approximately 70.7% of the total outstanding common stock, equating to 20,173,590 shares[223]. - Following the IPO in May 2024, the company became a "controlled company" and is exempt from certain corporate governance requirements[222]. - The Pesic Family has the ability to control all matters affecting the company, including business plans, mergers, and financing activities[225]. - The concentration of ownership by the Pesic Family may delay or prevent changes in control that other stockholders might favor[229]. - The interests of the Pesic Family may conflict with those of other stockholders, potentially affecting decision-making[229].

Financial Performance - Achieved record gross bookings of $65.8 million and revenue of $59.7 million for full-year 2024, representing a 10% year-over-year revenue increase[1][14] - Fourth quarter revenue reached $17.9 million, up 43% year-over-year and 63% quarter-over-quarter[1][6] - Gross bookings for Q4 2024 were $20.3 million, up 30% year-over-year[1][6] - Non-GAAP net income for full-year 2024 was $6.7 million, compared to $3.4 million in 2023[1][14] - Total revenue for the three months ended December 31, 2024, was $17,859,000, representing a 43.0% increase from $12,486,000 in the same period of 2023[32] - Software license revenue increased to $13,870,000 for the three months ended December 31, 2024, up 58.9% from $8,738,000 in the prior year[32] - Non-GAAP diluted net income per share for full-year 2024 was $0.25, compared to $0.17 in 2023[1][14] - GAAP net income for Q4 2024 was $4.2 million, compared to a net loss of $2.2 million in Q4 2023[1][6] - Net income for the three months ended December 31, 2024, was $4,157,000, compared to a net loss of $2,247,000 in the same period of 2023[32] - Non-GAAP Net income for the twelve months ended December 31, 2024, was $6,676 million, up from $3,442 million in 2023, representing a 94.5% increase[38] Customer Acquisition - Signed 46 new customers in 2024, contributing approximately 10% of gross bookings for the year[1][8] Cash and Assets - As of December 31, 2024, cash and cash equivalents totaled $87.5 million[1][6] - Total current assets increased to $107,280,000 as of December 31, 2024, from $20,888,000 in 2023, marking a substantial growth of 413.5%[30] - Total assets reached $142,345,000 as of December 31, 2024, compared to $40,885,000 in 2023, indicating an increase of 248.5%[30] - Cash and cash equivalents at the end of the period increased to $19.606 million in 2024 from $4.421 million in 2023[34] - The company raised $106.020 million from its initial public offering in 2024, contributing to a net cash provided by financing activities of $101.301 million[34] Expenses and Liabilities - Research and development expenses rose to $20,740,000 for the twelve months ended December 31, 2024, a significant increase of 57.5% from $13,170,000 in 2023[32] - Total liabilities increased to $42,262,000 as of December 31, 2024, from $31,483,000 in 2023, reflecting a rise of 34.2%[30] - The company experienced a significant increase in stock-based compensation expense, rising to $26.915 million in 2024 from zero in 2023[34] - Non-GAAP Operating expenses for the twelve months ended December 31, 2024, totaled $45,902 million, compared to $40,491 million in 2023, marking a 13.4% rise[38] Guidance and Future Expectations - Guidance for full-year 2025 includes revenue expectations in the range of $66.0 million to $72.0 million, representing an 11% to 21% increase from 2024[1][17] Mergers and Acquisitions - Acquired Cadence's Process Proximity Compensation product line, marking a significant milestone in the company's M&A strategy[2][3] Revenue Breakdown - Revenue from software licenses accounted for 74% of total revenue in Q4 2024, up from 70% in Q4 2023[36] - The EDA product line contributed 24% to total revenue in Q4 2024, consistent with the previous quarter[36] Losses and Cash Flow - The company reported a net loss of $39.404 million for the year ended December 31, 2024, compared to a net loss of $0.316 million in 2023[34] - Cash flows from operating activities showed a net cash used of $19.774 million in 2024, a significant decrease from net cash provided of $1.180 million in 2023[34]

Core Insights - Silvaco Group, Inc. achieved record gross bookings of $65.8 million and revenue of $59.7 million for the full year 2024, marking a 13% increase in gross bookings year-over-year and a 10% increase in revenue year-over-year [1][11][14] - The company signed 46 new customers in 2024 and expanded relationships with existing customers across key markets such as power, automotive, memory, foundry, and display [1][2] - Silvaco expanded its product portfolio through the acquisition of Cadence's Process Proximity Compensation product line, enhancing its EDA and TCAD tool suites [1][6][2] Business Highlights - In Q4 2024, Silvaco acquired 13 new customers, contributing approximately 9% to gross bookings for the quarter [6] - The company announced a partnership with Micon Global to enhance its reach in the EMEA market [6] - Silvaco joined the SMART USA Institute under the CHIPS Manufacturing USA program to advance digital twin technologies in semiconductor manufacturing [6] - The company received a $5.0 million follow-on order for its FTCO™ digital-twin modeling product from a strategic memory customer [6] Financial Performance - For Q4 2024, Silvaco reported revenue of $17.9 million, a 43% increase year-over-year and a 63% increase quarter-over-quarter [6] - TCAD revenue reached $12.7 million, up 65% year-over-year, while EDA revenue was $4.2 million, up 57% year-over-year [6] - The company achieved a GAAP net income of $4.2 million in Q4 2024, compared to a net loss of $2.2 million in Q4 2023 [11] - Non-GAAP net income for Q4 2024 was $4.3 million, compared to a non-GAAP net loss of $(1.6) million in Q4 2023 [11] Future Outlook - For Q1 2025, Silvaco expects gross bookings in the range of $16.0 million to $19.0 million and revenue between $14.5 million and $17.0 million [14] - For the full year 2025, the company anticipates gross bookings between $72.0 million and $79.0 million, representing a 9% to 20% increase from 2024 [14] - Revenue for 2025 is expected to be in the range of $66.0 million to $72.0 million, indicating an 11% to 21% increase from 2024 [14]

Core Insights - Silvaco Group, Inc. announced the strategic acquisition of Cadence's Process Proximity Compensation (PPC) product line, enhancing its capabilities in semiconductor design and digital twin modeling through AI software and innovation [1][2] Company Overview - Silvaco is a provider of TCAD, EDA software, and SIP solutions, focusing on semiconductor design and digital twin modeling across various markets including automotive, memory, and 5G/6G mobile [4] Acquisition Details - The PPC product line includes an optical proximity correction (OPC) suite of tools that will complement Silvaco's existing EDA and TCAD offerings, aiming to improve accuracy and efficiency in semiconductor manufacturing [2][3] - The acquisition is expected to enhance Silvaco's advanced computational lithography solutions, addressing the complexities of semiconductor manufacturing at advanced nodes [2][3] Strategic Goals - The acquisition aligns with Silvaco's strategy to provide a comprehensive digital full-flow solution and focus on faster-growing areas within its digital portfolio [3] - Silvaco aims to leverage the expertise and technology from Cadence to advance its AI-based FTCO platform and improve innovation and automation for customers [3] Market Position - The PPC product line has been adopted by leading semiconductor companies, providing Silvaco with complementary go-to-market opportunities and enhancing its EDA, TCAD, and AI-Driven Fab Technology Co-Optimization offerings [3][4] - The company reported record results for bookings and revenue in 2024, driven by demand for its digital twin modeling platform and growth in key semiconductor markets [4]

Group 1 - Silvaco Group, Inc. is currently under investigation for securities fraud, which raises concerns among investors [1] - Affected investors are encouraged to reach out to the Schall Law Firm for potential legal action [1]

Core Viewpoint - The Schall Law Firm is inviting shareholders who have incurred losses to participate in an inquiry regarding potential securities law violations by Silvaco Group, Inc. [1] Group 1 - The inquiry is focused on possible violations of securities laws that may have affected shareholders [1] - Shareholders are encouraged to join the inquiry if they have experienced financial losses related to their investments in Silvaco Group, Inc. [1] - The law firm aims to investigate the circumstances surrounding the alleged violations to determine the extent of the impact on shareholders [1]

Core Insights - Silvaco Group, Inc. is expected to achieve record fourth quarter 2024 bookings and revenue, with bookings ranging from $20.1 million to $20.4 million, representing a year-over-year increase of 29% to 31%, and revenue expected between $17.7 million and $18.1 million, up 41% to 45% year-over-year [1][2][3] Financial Highlights - Fourth quarter 2024 GAAP gross margin is anticipated to be between 85% and 87%, while non-GAAP gross margin is expected to be between 88% and 90%, showing significant improvement from 79% in the fourth quarter of 2023 [2][5][25] - GAAP operating income is projected to be in the range of $2.3 million to $3.1 million, compared to a loss of $1.9 million in Q4 2023, while non-GAAP operating income is expected to range from $2.6 million to $3.4 million, up from a loss of $1.3 million in Q4 2023 [7][25] - GAAP net income per share is anticipated to be between $0.14 and $0.18, compared to a loss of $0.11 in Q4 2023, and non-GAAP net income per share is expected to be between $0.13 and $0.17, up from a loss of $0.08 in Q4 2023 [7][25] Business Highlights - The company signed 13 new customers in the fourth quarter 2024 and expanded relationships with existing customers in key markets such as photonics, power, automotive, memory, and foundry [1][6] - Silvaco announced a partnership with Micon Global to enhance its reach in the EMEA market and joined the SMART USA Institute under the CHIPS Manufacturing USA program to advance digital twin technologies [6] - The company achieved ISO 9001 certification, highlighting its commitment to quality and continuous improvement [6] Annual Financial Highlights - For the full year 2024, gross bookings are expected to be between $65.5 million and $65.9 million, reflecting a 13% increase compared to 2023, with annual revenue projected between $59.5 million and $59.9 million, representing a 10% year-over-year increase [13] - The company acquired 46 new customers across various key markets, expected to represent approximately 10% of gross bookings for the year [13] - GAAP gross margin for the full year is anticipated to be between 79% and 81%, while non-GAAP gross margin is expected to be between 85% and 87%, up from 83% in 2023 [13][25]

Core Insights - Silvaco Group, Inc. reported record-breaking bookings and revenue for the fourth quarter of 2024, driven by strong demand for its digital twin modeling platform and growth in key semiconductor markets [2][3] Financial Highlights - Fourth quarter 2024 bookings are expected to be between $20.1 million and $20.4 million, reflecting a year-over-year increase of 29% to 31% [1][6] - Fourth quarter 2024 revenue is anticipated to range from $17.7 million to $18.1 million, representing a year-over-year increase of 41% to 45% [1][6] - Fourth quarter 2024 GAAP gross margin is projected to be between 85% and 87%, while non-GAAP gross margin is expected to be between 88% and 90% [2][11] - For the full year 2024, gross bookings are expected to be between $65.5 million and $65.9 million, marking a 13% increase compared to 2023 [11] - Full year 2024 revenue is projected to be between $59.5 million and $59.9 million, indicating a year-over-year increase of approximately 10% [11] Customer Acquisition and Market Expansion - Silvaco signed 13 new customers in the fourth quarter of 2024, with these customers expected to represent approximately 9% of gross bookings for the quarter [6][11] - The company announced a partnership with Micon Global to enhance its reach in the EMEA market [6] - Silvaco joined the SMART USA Institute under the CHIPS Manufacturing USA program to advance digital twin technologies in semiconductor manufacturing [6] Legal and Compliance Updates - The Ninth Circuit Court of Appeals affirmed the dismissal of all claims against Silvaco brought by Aldini AG [6] - A favorable ruling was received in the Nangate Denmark ApS litigation, denying a motion for prejudgment interest [6] Leadership Commentary - CEO Dr. Babak Taheri expressed pride in the company's ability to execute and achieve record results, emphasizing the resilience of the business model and customer trust in Silvaco's solutions [3]

Core Viewpoint - Silvaco Group, Inc. has experienced a significant decline in share price following the release of disappointing preliminary Q3 financial results and a negative outlook, raising concerns about the company's transparency regarding its business conditions in China at the time of its May 2024 IPO [1][4]. Financial Performance - Silvaco reported a 27% year-over-year decrease in revenues for Q3 2024, primarily attributed to delayed orders from China [3]. - The company has significantly reduced its full-year guidance for key metrics, including gross bookings, revenue, year-over-year growth, and non-GAAP operating income [3]. Market Reaction - Following the announcement of the financial results, Silvaco's share price fell by $3.61, or 32%, closing at $7.45, which is 60% below the IPO price of $19 [4]. Investigation - Hagens Berman has initiated an investigation into Silvaco Group, focusing on the adequacy of the company's disclosures regarding its business conditions in China during and after the May 2024 IPO [2][4].

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against Silvaco Group, Inc. for possible violations of federal securities laws and unlawful business practices [1] - Silvaco conducted its IPO on May 8, 2024, offering 6 million shares at $19.00 each [2] - On October 15, 2024, Silvaco revised its revenue guidance for the full year 2024, lowering it to $60 million to $63 million from a previous range of $63 million to $66 million, and adjusted its year-over-year growth projection to 10% to 16% from 16% to 22% [3] - Following the revenue guidance revision, Silvaco's stock price dropped by $3.61, or 32.64%, closing at $7.45 per share on October 16, 2024 [4]