Revenue and Bookings - Software solutions accounted for 62% and 72% of revenue for the three and nine months ended September 30, 2024, respectively, compared to 74% and 73% for the same periods in 2023[121]. - Bookings for the three and nine months ended September 30, 2024, were $9.9 million and $45.5 million, respectively, down from $12.5 million and $42.5 million in the same periods of 2023[122]. - Revenue for the three and nine months ended September 30, 2024, was $11.0 million and $41.8 million, respectively, compared to $14.9 million and $41.8 million for the same periods in 2023[122]. - Approximately 88% and 90% of bookings for the three and nine months ended September 30, 2024, came from existing customers, compared to 85% and 80% for the same periods in 2023[121]. - Total revenue decreased by $3.9 million, or 27%, to $10.97 million for the three months ended September 30, 2024, compared to $14.94 million for the same period in 2023[150]. - Bookings for the three months ended September 30, 2024, were $9.9 million, down from $12.5 million for the same period in 2023, while nine-month bookings increased to $45.5 million from $42.5 million[167]. Expenses and Losses - Research and development expenses were 38% and 37% of revenue for the three and nine months ended September 30, 2024, respectively, up from 22% and 24% for the same periods in 2023[128]. - Operating expenses increased by 42% to $15.49 million for the three months ended September 30, 2024, compared to $10.93 million for the same period in 2023[148]. - Research and development expenses increased by 26% to $4.13 million for the three months ended September 30, 2024, from $3.29 million for the same period in 2023[148]. - Selling and marketing expenses increased by 22% to $3.83 million for the three months ended September 30, 2024, from $3.14 million for the same period in 2023[148]. - General and administrative expenses increased by 58% to $7.13 million for the three months ended September 30, 2024, from $4.50 million for the same period in 2023[148]. - Net loss for the three months ended September 30, 2024, was $6.55 million, compared to a net income of $1.45 million for the same period in 2023, representing a 552% decrease[148]. - Total operating expenses increased to $74.9 million for the nine months ended September 30, 2024, compared to $32.0 million for the same period in 2023, representing a 134% increase[154]. - Research and development expenses rose by $5.7 million, or 57%, to $15.5 million for the nine months ended September 30, 2024, primarily due to stock-based compensation expenses[156]. - Selling and marketing expenses increased by $5.4 million, or 61%, to $14.3 million for the nine months ended September 30, 2024, driven by stock-based compensation and increased headcount[158]. - General and administrative expenses surged by $16.7 million, or 126%, to $30.0 million for the nine months ended September 30, 2024, largely due to stock-based compensation and legal fees[160]. - Non-GAAP operating loss for the nine months ended September 30, 2024, was $(42.7) million, compared to a non-GAAP operating income of $3.1 million for the same period in 2023[174]. - Non-GAAP net loss for the nine months ended September 30, 2024, was $(42.7) million, compared to a non-GAAP net income of $3.1 million for the same period in 2023[175]. Cash Flow and Financing - The company had $26.6 million in cash and cash equivalents as of September 30, 2024, with $73.8 million in short-term marketable securities[177]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $10.7 million, a decrease of $11.0 million compared to the same period in 2023[188]. - The company used $73.0 million in investing activities during the nine months ended September 30, 2024, primarily for purchases of marketable securities[189]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $105.5 million, including $106.0 million from the IPO[190]. - The gross proceeds from the IPO were $114.0 million, with $106.0 million net after underwriting discounts and commissions of $8.0 million[182]. - The company drew $4.3 million on the East West Bank Loan during the nine months ended September 30, 2024, which was repaid in full in May 2024[179]. - The company incurred $2.6 million related to deferred transaction costs in connection with the IPO[190]. - As of September 30, 2024, 18.7% of the company's cash and cash equivalents were held with one financial institution, exceeding federally insured limits[184]. Market Outlook and Strategy - The global EDA software market is forecasted to reach $22.2 billion by 2030, representing a 9% CAGR[128]. - The company aims to enhance product offerings through in-house R&D, acquisitions, and strategic partnerships to meet the increasing complexity of semiconductor designs[127]. - The company anticipates that focusing on higher margin products will lead to gross margin and operating margin expansion[131]. - The company plans to continue investing in software solutions to establish and expand its leadership position in target markets[128]. Revenue Recognition - The company recognizes revenue from software licenses upfront upon delivery, while maintenance and service revenue is recognized ratably over the contract term[136].
Silvaco Group, Inc.(SVCO) - 2024 Q3 - Quarterly Report