Slide 1: Earnings Presentation Q4 & Fiscal Year 2024
Earnings Presentation Q4 & Fiscal Year 2024 February 27, 2025 This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words
Slide 3: nLIGHT 2024 Business Highlights
nLIGHT 2024 Business Highlights • 2024 Financials | growth in A&D; healthy balance sheet; strong backlog growth – Total revenue declined 5% y/y to $199M due to continued weakness in Industrial and Microfabrication – A&D revenue increased 20% y/y to $110M as existing programs began to ramp – Backlog
Slide 4: Q4 Business Highlights
Q4 24 Business Highlights • Q4 revenue in-line with January 15th pre-announcement – $47.4M of total revenue, products revenue of $31.7M and development revenue of $15.7M – A&D revenue increased 13% year-over-year • Gross margins and Adjusted EBITDA below guidance due to lower volumes and non-recurri
Slide 5: Revenue by End Market
Revenue | By end market Quarterly Revenue – By Market Market $ Millions Q4 ‘24 vs. Q4 ‘23 Change -9% $75 $72 $69 $67 $66 $64 $62 $61 24% $61$60 $60 20% 29% 25% $57 $56 27% $54$53 $52 23% Microfabrication $52$51 25% 27% $51$52 $51 $48 29% 20% -20% $46 25%$47 24% 23% 20%$45 $44$43$43 27% $45 $42 $42 2
Slide 6: Financial Update
Financial Update
Slide 7: Summary Financial Results | Revenue and Gross Margin
Summary Financial Results | Revenue and Gross Margin Full Year and Q4 $ Millions; % of Revenue Q4 2023 Q4 2024 2023 2024 Total Revenue $51.9 $47.4 $209.9 $198.5 Products Revenue 37.9 31.7 156.7 136.7 Development Revenue 14.0 15.7 53.2 61.9 Gross Margin 18.9% 2.4% 22.0% 16.6% Products Margin 22.4% 0.
Slide 8: Gross Margin | Product and Development
Gross Margin | Product and Development Revenue and Gross Margin – Quarterly Product Revenue $ Millions; % of Revenue Overall GM % $80 40% 37% Products GM % 36% 36% 36% $70 33% 33% 35% 35% 36% 32% 35% 34% 34% 30% 30% 30% 33% 33% 32% 29% $60 31% 28% 29% 30% 30% 29% 30% 30% 29% 29% 30% 26% 28% 24% 24%
Slide 9: Operating Expenses | R&D and SG&A
Operating Expenses | R&D and SG&A Operating Expenses (Non-GAAP) $ Millions; % of Revenue $20 $19.3$19.3$19.5 50% SG&A $18.8 $18.1 $18.2 $18.0$18.3$17.7 $17.6 $17.4 R&D $17.3 $17.2 $16.6 OpEx as % of Revenue $16.0 $15.1 40% $14.7 8.6 $15 $14.2 $14.3 8.4 9.0 7.8 8.1 10.1 $12.9 $12.9 $12.8 7.7 7.9 8.6
Slide 10: Summary Financial Results | Profitability and Cash Flow
Summary Financial Results | Profitability and Cash Flow Full Year and Q4 $ Millions; % of Revenue Q4 2023 Q4 2024 2023 2024 Net Income (Loss) ($13.2) ($25.0) ($41.7) ($60.8) Non-GAAP Net Income (Loss)* (6.0) (14.5) (13.6) (30.9) Net Income (Loss) Per Share (diluted) (0.28) (0.51) (0.90) (1.27) Non-G
Slide 11: Strong Balance Sheet and Working Capital Management
Strong Balance Sheet and Working Capital Management Cash and Investments ($M) Accounts Receivable ($M) and Inventory ($M) and Days Sales Outstanding (DSO) Days of Inventory (DOI) $90 73 75 $100 180 $200 70 71 157 67 68 155 65 65 $90 141 $175 $80 62 152 160 61 131 144 58 60 $77$80 $81 140 $70 55 $80
Slide 12: Outlook | Q1 2025
Outlook | Q1 2025 • Q1 2025 Revenues of $45 million to $51 million; midpoint of $48 million – Laser Products: approximately $33 million at midpoint – Advanced Development: approximately $15 million at midpoint • Q1 2025 Gross Margin of 13% to 17% – Laser Products: 16% to 20% – Advanced Development:
Slide 13: Simply brilliant
Ve eeceeee Simply brilliant
Slide 14: Appendix
Appendix
Slide 15: Supplemental Information | Revenue, Gross Margin and Operating Expenses
Supplemental Information | Revenue, Gross Margin and Operating Expenses Revenue and Gross Margin nLight, Inc. 2019 2020 2021 2022 2023 2024 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Revenue: P
Slide 16: GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS
GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS nLight, Inc. 2019 2020 2021 2022 2023 2024 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Net income (loss) $ (1,235) $ (155) $
Slide 17: Supplemental Information | Key Revenue Metrics
Supplemental Information | Key Revenue Metrics nLight, Inc. 2019 2020 2021 2022 2023 2024 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 FY 2022 Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Q3 Q4 FY 2024 Revenues by end market Industrial $ 18,124 $ 20,920 $ 1
Slide 18: Supplemental Information | Fiber Laser Revenue by Power Level
Supplemental Information | Fiber Laser Revenue by Power Level Fiber Laser Revenue by Power – Quarterly Percent of total fiber laser sales 100% 9% 10% Low Power 14% 12% 11% 14% 17% 17% 12% 12% 16% 16% 90% 22% 19% 17% 20% 19% 20% 19% < 2kW 27% 27% 31% 30% 34% 32% 35% 80% 43% 41% 45% 28% 51% 49% 34% 28