Financial Data and Key Metrics Changes - For fiscal year 2024, the company reported gross bookings of $65.8 million, reflecting a 13% increase from 2023, and revenue of $59.7 million, representing a 10% increase from 2023 [8][31] - Non-GAAP gross margin improved to 86% from 83% in 2023, while non-GAAP operating income increased to $5.5 million from $4.4 million in 2023 [8][31] - Non-GAAP net income per share rose to $0.25 from $0.17 in 2023, with shares used in the calculation increasing to 26.8 million from 20 million [8][31] Business Line Data and Key Metrics Changes - In Q4 2024, TCAD bookings reached $14.3 million, up 68% year over year, while EDA bookings were $5.5 million, up 31% year over year [27][30] - For the full year 2024, TCAD bookings totaled $46.9 million, a 32% increase, while EDA bookings were $15.4 million [34] Market Data and Key Metrics Changes - In Q4 2024, Asia Pacific revenues were $9.2 million, accounting for 52% of total sales, while the Americas contributed just over $7 million, or 40% of sales [35] - For the full year, Asia Pacific revenues were $31.6 million, representing 53% of sales, with the Americas at $22.5 million, or 38% of sales [35] Company Strategy and Development Direction - The company aims to drive innovation through AI-based semiconductor design, focusing on advanced CMOS geometries and power semiconductors [9][25] - The recent acquisition of Cadence's OPC product line is expected to enhance the company's capabilities in advanced memory manufacturing and foundry operations [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the acquisition of the OPC product line, indicating it will contribute to mid-single-digit revenue by 2026 [18][38] - The company expects gross bookings for 2025 to range between $72 million and $79 million, with revenue projected between $66 million and $72 million [38] Other Important Information - The company added 46 new customers in 2024, with a focus on expanding in power and memory markets [11][92] - The company has a strong cash position, ending December with $87.5 million in cash, cash equivalents, and marketable securities [29] Q&A Session Summary Question: Clarification on the contribution of the acquisition of the Cadence OPC product line - Management indicated that the contribution is expected to be modest for 2025, with more details to be provided in future calls [41][44] Question: Guidance for operating profits and OpEx increase - Management confirmed that the increase in operating expenses is due to both the acquisition and planned growth in R&D and sales [46][47] Question: Customer acquisition and integration with existing products - Management stated that the OPC product will initially be sold as a standalone product but will be integrated into the FTCO platform over the next six to nine months [54][56] Question: Current exposure to China and revenue contribution - Management expects revenue contribution from China to remain flat, around 15% to 20% for 2025 [73] Question: Gross margin guidance and long-term targets - Management explained that gross margin fluctuations are sensitive to revenue changes and that they expect margins to improve as revenue scales [80] Question: Customer acquisition pace and quality - Management anticipates maintaining the pace of customer acquisition but emphasizes that the quality of new customers will be more significant moving forward [88][89]
Silvaco Group, Inc.(SVCO) - 2024 Q4 - Earnings Call Transcript