Navitas Semiconductor (NVTS) - 2024 Q1 - Quarterly Results

Q1 2024 Earnings Release Navitas' Q1 2024 earnings report details strong revenue growth, improved operational losses, and strategic market expansion, alongside comprehensive financial statements and important investor disclosures Performance Highlights and Business Outlook Navitas achieved significant Q1 2024 revenue growth and expanded its market presence, projecting continued performance into Q2 Financial Highlights Q1 2024 saw a 73% revenue increase to $23.2 million, with improved GAAP and non-GAAP operating losses Q1 2024 Key Financial Metrics | Metric | Q1 2024 ($M) | Q1 2023 ($M) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 23.2 | 13.4 | +73% | | GAAP Loss from Operations | (31.6) | (35.5) | Improvement | | Non-GAAP Loss from Operations | (11.8) | (12.3) | Improvement | | Cash and Cash Equivalents | 129.7 | N/A | N/A | Market, Customer, and Technology Highlights Navitas expanded its customer pipeline to $1.6 billion, introduced GaNSlim™ technology, and secured key design wins in AI data centers and EV markets - The customer pipeline has grown to $1.6 billion, indicating strong future demand for electrification and energy savings[2] - Introduced new GaNSlim™ technology to enhance system integration, reduce time-to-market, and lower system costs compared to silicon-based solutions[4] - Secured 3 major design wins for AI Data Centers with leading power-supply companies and expects to power data centers at major cloud providers like AWS, Azure, and Google[5] - Engaged with over 160 EV-related customers, increasing the total EV pipeline by over 50% since December 2023[5] - Expanded presence in the Mobile/Consumer market by adding over 20 new fast chargers, bringing the total to over 450 released customer products across all top 10 mobile OEMs[5] Business Outlook Navitas projects Q2 2024 net revenues of approximately $20 million with a non-GAAP gross margin of 40% Q2 2024 Guidance | Metric | Expected Value | | :--- | :--- | | Net Revenues | $20M ± $0.5M | | Non-GAAP Gross Margin | 40% ± 50 bps | | Non-GAAP Operating Expenses | Approx. $21.5M | Financial Statements This section presents the company's Q1 2024 financial performance, including detailed statements of operations, balance sheets, and GAAP to non-GAAP reconciliations Consolidated Statements of Operations (GAAP) The GAAP statement of operations shows a significant reduction in net loss for Q1 2024, driven by increased revenues and other income Q1 2024 vs Q1 2023 Statement of Operations (in thousands) | Line Item | Q1 2024 ($K) | Q1 2023 ($K) | | :--- | :--- | :--- | | Net Revenues | 23,175 | 13,358 | | Loss from Operations | (31,575) | (35,466) | | Total other income (expense), net | 27,964 | (26,838) | | Net Loss | (3,681) | (62,365) | | Net Loss Per Share (Basic & Diluted) | (0.02) | (0.39) | Condensed Consolidated Balance Sheets The balance sheet highlights the company's financial position, including cash, inventories, total assets, liabilities, and equity Balance Sheet Highlights (in thousands) | Account | March 31, 2024 ($K) | December 31, 2023 ($K) | | :--- | :--- | :--- | | Cash and cash equivalents | 129,682 | 152,839 | | Inventories | 33,176 | 23,166 | | Total assets | 467,889 | 485,546 | | Total liabilities | 69,972 | 104,929 | | Total stockholders' equity | 397,917 | 380,617 | Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP financial results to non-GAAP measures, adjusting for items like stock-based compensation and earnout liabilities Q1 2024 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | GAAP ($K) | Adjustments ($K) | Non-GAAP ($K) | | :--- | :--- | :--- | :--- | | Loss from Operations | (31,575) | 19,742 | (11,833) | | Net Loss | (3,681) | (6,540) | (10,221) | | Net Loss Per Share | (0.02) | | (0.06) | - Major adjustments to reconcile GAAP to Non-GAAP results for Q1 2024 include $13.5 million in stock-based compensation, $4.8 million in amortization of intangible assets, and a $26.2 million gain from the change in fair value of earnout liabilities[16][18] Disclosures and Company Information This section provides important disclosures regarding non-GAAP financial measures, forward-looking statements, and company background for investors Non-GAAP Financial Measures The company utilizes non-GAAP financial measures to offer a supplementary view of its operational performance and facilitate period-over-period comparisons - The company uses non-GAAP financial measures, which exclude items like stock-based compensation, to provide investors with a supplemental view of its operating performance and to enable financial trend comparisons between periods[7] Forward-Looking Statements This section clarifies the nature of forward-looking statements, including the customer pipeline, and outlines potential risks that could impact future results - The "Customer pipeline" statistic of $1.6 billion is a forward-looking statement and should not be considered a proxy for backlog or an estimate of future revenue[8][9] - The company outlines several risks that could cause actual results to differ from forward-looking statements, including failure to integrate acquired businesses, competition, demand in end markets, and changes in government trade policies[10][11] About Navitas Navitas is a pure-play power semiconductor company specializing in GaN and SiC technologies for key markets like EV, solar, and data centers - Navitas is a pure-play, next-generation power semiconductor company specializing in Gallium Nitride (GaN) and Silicon Carbide (SiC) technologies[12] - Key focus markets include EV, solar, energy storage, data centers, and mobile/consumer electronics[12] - As of August 2023, the company has shipped over 125 million GaN units and 12 million SiC units[12]