ASML Holding(ASML) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 2024 total net sales of €7.5 billion, gross margin of 50.8%, and net income of €2.1 billion[1] - Q3 2024 gross profit of €3.8 billion, slightly down from Q2 2024 gross margin of 51.5% to 50.8%[2] - Q3 2024 EPS (basic) increased to €5.28 from €4.01 in Q2 2024[2] - Revenue growth in the September quarter reached $96.77 billion, driven by strong iPhone sales in China[110] - Revenue growth in the latest quarter was 11.1% year-over-year, reaching $1.1 billion[15] - Revenue growth for the quarter was reported at 12.5% year-over-year, reaching $1.2 billion[20] - Revenue increased by 15% year-over-year to $12.3 billion, driven by strong performance in the North American market[22] - Revenue for the quarter reached $1.2 billion, representing a 15% year-over-year growth[39] - Revenue increased by 15% year-over-year to $12.3 billion[48] - Net income rose by 20% to $250 million, driven by higher sales and improved efficiency[18] - Net income rose by 20% to $2.8 billion, driven by strong performance in key markets[48] Sales and Bookings - Q3 2024 net bookings of €2.6 billion, including €1.4 billion from EUV[1] - Q3 2024 new lithography systems sold increased to 106 units from 89 units in Q2 2024[2] - Revenue growth in the September quarter reached $96.77 billion, driven by strong iPhone sales in China[110] - The company reported a 10% increase in user base, reaching 1.5 billion active users globally[12] - User base increased by 10.5% to 50 million active users[15] - User base increased by 8% to 50 million active users, driven by market expansion in Asia[20] - User base grew by 8% to 250 million active users, with significant growth in emerging markets[22] - User base increased to 50 million, up 10% from the previous quarter[39] - User base grew by 10% to 150 million active users, with significant growth in emerging markets[48] Future Projections and Guidance - Q4 2024 total net sales expected between €8.8 billion and €9.2 billion, with a gross margin between 49% and 50%[1] - Full-year 2024 total net sales expected to be around €28 billion[1] - 2025 total net sales expected to be between €30 billion and €35 billion, with a gross margin between 51% and 53%[1] - The company provided Q4 revenue guidance of $105 billion to $110 billion, reflecting a 7-10% year-over-year growth[13] - The company provided Q1 2024 revenue guidance of $1.2 billion, representing a 12% year-over-year growth[19] - Guidance for the next quarter projects revenue between $1.3 billion and $1.35 billion, representing a 10-12% growth[20] - The company provided Q4 revenue guidance of $13.5 billion to $14 billion, representing a 10-12% year-over-year growth[22] - The company expects Q4 revenue to be between $1.3 billion and $1.4 billion, reflecting a 12-15% growth projection[39] - The company issued a positive Q4 revenue guidance of $13.5 billion, reflecting a 12% increase year-over-year[48] Research and Development (R&D) - Q4 2024 R&D costs expected to be around €1.1 billion and SG&A costs around €300 million[4] - R&D investment increased by 15% year-over-year, totaling $2.5 billion, focusing on AI and cloud technologies[11] - R&D investment for new technologies increased by 15% to $200 million[17] - The company plans to invest $200 million in new technology R&D, focusing on AI and cloud computing[20] - R&D spending increased by 20% to $1.2 billion, focusing on next-generation technologies[22] - New product development investment increased by 20% to $200 million, focusing on AI and cloud technologies[39] - The company plans to invest $1.5 billion in new technology R&D over the next fiscal year[48] Market Expansion and Acquisitions - The company plans to expand into three new markets in Southeast Asia, targeting a 20% market share within two years[13] - The company plans to expand into three new international markets in the next fiscal year[16] - The company announced a strategic acquisition of a smaller competitor for $150 million to expand its market share in Europe[20] - Market expansion into Southeast Asia is underway, with a projected investment of $200 million over the next two years[22] - Market expansion into Southeast Asia is planned, with an initial investment of $50 million[39] - Market expansion into Southeast Asia is expected to contribute an additional $500 million in revenue[48] - The company completed two strategic acquisitions, totaling $3.8 billion, to enhance its AI capabilities[14] - The company completed a strategic acquisition for $500 million, expected to enhance market share by 5%[16] - The company completed the acquisition of a key competitor for $1.5 billion, enhancing its market share in the cloud services sector[22] - The company completed the acquisition of a competitor for $300 million, expected to contribute $100 million in annual revenue[39] - The company completed a $2 billion acquisition of a competitor, enhancing its market share[48] Product Launches and Innovations - A new product line is expected to launch in Q1 2024, with projected revenue of $1.2 billion in the first year[12] - The company announced a new product launch scheduled for Q2 2024, expected to contribute $150 million in revenue[19] - New product launches are expected to contribute $300 million in revenue over the next fiscal year[20] - The company plans to launch a new AI-powered product line in Q4, expected to contribute $500 million in revenue annually[22] - The company plans to launch a new AI-powered platform in Q1 2024, targeting a 20% increase in user engagement[39] - A new product line is set to launch in Q4, projected to generate $300 million in initial sales[48] Operational Efficiency and Margins - Operating margin improved to 25%, up from 22% in the previous quarter[14] - Gross margin improved to 45.2%, up from 42.8% in the previous quarter[18] - Operating expenses decreased by 8% to $300 million due to cost optimization efforts[15] - Operating margin improved to 22.3%, up from 19.8% in the previous quarter[20] - Operating margin improved to 25%, up from 22% in the previous quarter, due to cost optimization efforts[22] - Operating margin improved to 25%, up from 22% in the previous quarter[39] - Operating margin improved to 25%, up from 22% in the previous quarter[48] Dividends and Share Buybacks - Interim dividend of €1.52 per ordinary share payable on November 7, 2024[5] - The company announced a new $2 billion share buyback program, reflecting confidence in future growth[22] Cash Flow and Capital Expenditures - Free cash flow for the quarter stood at $8.9 billion, a 12% increase compared to the same period last year[11] - Capital expenditures for the quarter were $120 million, primarily allocated to infrastructure and data centers[20] - Capital expenditures for the year are projected to be $500 million, primarily for infrastructure and technology upgrades[39] Customer Metrics - Customer retention rate improved to 92%, up from 89% in the previous quarter[12] - The company reported a 15% increase in subscription revenue, reaching $450 million[20] - The company highlighted a 20% reduction in customer acquisition costs due to improved marketing efficiency[20] - Strategic partnerships with major tech firms are expected to drive an additional $300 million in revenue by 2024[22] - Strategic partnerships are expected to drive a 15% increase in B2B sales[48]