Arteris(AIP) - 2024 Q4 - Annual Results

Financial Performance - Revenue for Q4 2024 was $15.5 million, representing a 24% year-over-year increase[6] - Annual Contract Value (ACV) plus royalties reached a record $65.1 million, up 16% year-over-year[6] - Remaining performance obligation (RPO) was $88.4 million, an increase of 22% year-over-year[6] - Full year 2024 revenue totaled $57.7 million, an 8% increase compared to 2023[6] - The net loss for Q4 2024 was $8.2 million, or $0.20 per share, compared to a net loss of $10.5 million in Q4 2023[6][18] - For FY 2024, the net loss was $33.6 million, or $0.86 per share, an improvement from a net loss of $36.9 million in FY 2023[6][18] - Non-GAAP operating loss for FY 2024 was $14.8 million, an improvement from $19.8 million in FY 2023[6] - Net loss for the twelve months ended December 31, 2024, was $33,638 million, a slight improvement from a net loss of $36,869 million in 2023[22] - Non-GAAP gross profit for the twelve months ended December 31, 2024, was $52,744 million, compared to $49,294 million in 2023, reflecting a year-over-year increase of 5.0%[33] - Non-GAAP net loss per share attributable to common stockholders for 2024 was $0.43, compared to $0.60 in 2023, indicating a reduction in loss per share[33] Customer Acquisition and Guidance - The company signed 14 new customers in 2024, including two major automotive OEMs[6] - Guidance for Q1 2025 projects ACV plus royalties between $65.5 million and $67.5 million[8] Assets and Liabilities - Total assets increased to $106,135 million in 2024 from $102,801 million in 2023, representing a growth of 3.3%[20] - Total current assets rose to $69,083 million in 2024, up from $58,430 million in 2023, marking an increase of 18.0%[20] - Total liabilities increased to $107,323 million in 2024 from $87,698 million in 2023, an increase of 22.3%[20] Cash Flow and Expenses - Cash and cash equivalents at the end of the period were $14,072 million, slightly down from $14,084 million in 2023[22] - Research and development expenses for the twelve months ended December 31, 2024, were $45,007 million, consistent with $45,128 million in 2023[33] - Free cash flow for the twelve months ended December 31, 2024, was $(1,044) million, a significant improvement from $(17,232) million in 2023[35] - Net cash used in operating activities decreased to $(720) million in 2024 from $(15,729) million in 2023[35] - Net cash provided by investing activities was $970 million in 2024, compared to $(4,691) million in 2023[35] - Net cash used in financing activities was $(262) million in 2024, down from $(2,919) million in 2023[35] Future Revenue Potential - Active customers, defined as those with ongoing license agreements, are a key metric for revenue potential, although specific numbers were not disclosed[28] - Remaining performance obligations (RPO) represent contracted future revenue not yet recognized, indicating strong future revenue potential[31] Tax Impact - The company maintains a full valuation allowance against deferred tax assets in the US, resulting in no significant tax impact from Non-GAAP adjustments[34] Product Development - The company announced the release of FlexGen smart NoC IP, which could enhance engineer productivity by up to 10x[12]