Why Rambus Stock Nose-Dived This Week

Core Viewpoint - Rambus experienced a significant decline in stock price following a disappointing earnings report, with shares dropping nearly 29% over five trading days [1] Financial Performance - Rambus reported total revenue of over $132 million for Q2, which is a 10% increase year-over-year, but net income fell sharply to slightly over $36 million ($0.33 per share) from nearly $169 million in Q2 2023 [2] - Analysts had anticipated higher revenue of $139 million and a net income of $0.45 per share, indicating a double miss on estimates [3] Revenue Breakdown - The largest revenue stream, product revenue, increased slightly to $56.7 million from $55 million year-over-year [4] - Royalties surged by 39% to $56.4 million, while contract and other revenue declined to $19 million from slightly over $24 million [4] Guidance - Rambus provided guidance for Q3, projecting product revenue between $62 million to $68 million, licensing billings of $60 million to $66 million, and contract and other revenue of $17 million to $23 million, with operating costs expected to be between $93 million to $97 million [5] - No revenue or profitability guidance was provided in the earnings release [6]