Pdf Solutions, Inc. · NASDAQ:PDFS

Pdf Solutions — Investor Presentation (May 2023)

29 slides from Pdf Solutions's investor presentation, May 2023

  1. Slide 1: Investor Presentation May 2023

    Investor Presentation May 2023 John Kibarian, President & CEO, Co-Founder Kimon Michaels, Executive VP, Products and Solutions, Co-Founder Adnan Raza, Executive VP, Finance & CFO © 2023 PDF Solutions, All Rights Reserved 1

  2. Slide 2: Forward-looking statements

    Certain statements in this presentation, and statements that may be made when discussing it, regarding the Company’s future expected business performance and financial results are forward looking and are subject to future events and circumstances. Actual results could differ materially from those ex

  3. Slide 3: PDF Solutions Overview

    PDF Solutions Overview ◼ PDF provides advanced data analytics, machine learning, and equipment connectivity products, services, and systems for the semiconductor supply chain ◼ PDF products improve process efficiency and product reliability: – Analytics software and services for the end-to-end needs

  4. Slide 4: Building a Platform for Success

    Building a Platform for Success • Analytics revenue grew 31% Y/Y from TTM Q1’22 to TTM Q1’23 GROWTH • Analytics at 88% of total revenue in TTM Q1’23 vs. 87% in TTM Q1’22 • GAAP gross margin of 71% for Q1’23 PROFITABILITY • Non-GAAP gross margin of 75% for Q1’23 • 70%+ non-GAAP gross margins target m

  5. Slide 5: The Leading Data Analytics Platform

    The Leading Data Analytics Platform Data Access & Integration Across the Value Chain Unique View to Data Sources in the Value Chain Exensio® Cimetrix® DFITM & CV ® Systems Analytics Platform Connectivity Platform Proprietary Data Sources Leading Analytics Differentiated Data Bridging the Supply Chai

  6. Slide 6: PDF Business Models

    PDF Business Models PDF has two business models to capture the value of our solutions, which combines advanced analytics and differentiated data Subscription Model: Gainshare Model: when value is data and analytics when value is time to volume – Analytics is primarily subscription-based and is the –

  7. Slide 7: Benefiting From Strong Market Tailwinds

    Benefiting From Strong Market Tailwinds Value in Semiconductor Supply Chain Shifting to Mass Production: – Increased value in mass production continuous improvement vs. simply time to market – Financial risk shifting away from foundry to fabless & system companies Foundries consolidating due to % of

  8. Slide 8: Data and Analytics Growing in Importance

    Data and Analytics Growing in Importance Data & Analytics in Semis & Electronics ($B) $32 $18 2020 2027 Data & Analytics in Semiconductor & Electronics Companies moving to faster decision speed with manufacturing is expected to grow significantly greater sophistication, especially in tech. sector 50

  9. Slide 9: PDF has a Unique View & Comprehensive Access to Data Across the Supply Chain

    PDF has a Unique View & Comprehensive Access to Data Across the Supply Chain ✓ Wafer-level grading and Coverage by disposition Design Semis Parametric Wafer Assembly Final System-level ✓ Test reduction and adaptation manufacturing test sort test test ✓ Die quality and RMA prediction ✓ Virtual metrol

  10. Slide 10: PDF Spans and Bridges the Supply Chain Stack to Enable Smart Manufacturing

    PDF Spans and Bridges the Supply Chain Stack to Enable Smart Manufacturing ✓ The only commercial data and SYSTEM analytics-focused provider with breadth and scale EMS required by our customers ✓ Analytics and data SEMI (Fabless, Fab-lite) implemented broadly across the supply chain ✓ Most of the top

  11. Slide 11: Customer Base Spans Equipment, Fabless, Fab, OSAT, and System

    Customer Base Spans Equipment, Fabless, Fab, OSAT, and System >125K equipment >40K process tools >350 revenue #1 commercial Fastest growing Leading solution for to factory under PDF process generating customers solution for mfg yield commercial provider die traceability connections control across th

  12. Slide 12: Available Market Size

    Available Market Size ◼ Today, PDF provides the only 1,800 commercial, supply-chain- IYR 1,600 DFI wide analytics products, 1,400 Analytics w/o DFI services, and systems 1,200 ◼ Growth in analytics market Millions $ 1,000 800 being driven from 600 – Move to cloud and increased data volumes 400 – Add

  13. Slide 13: PDF Offers Connectivity and Control for Manufacturing Equipment Since Dec 2020

    PDF Offers Connectivity and Control for Manufacturing Equipment Since Dec 2020 Data Sources ◼ PDF is the only provider of analytics, differentiated data, and connectivity ◼ PDF’s mission is to lead the Data Connectivity Platform trend toward Smart (SECS/GEM, GEM300, EDA/Interface A) Manufacturing &

  14. Slide 14: Acquisitions and Product Releases Expanded Scope

    Acquisitions and Product Releases Expanded Scope Gainshare Model “Selling Time to Volume” Subscription Model “Selling Actionable Data” 2023 Q1 PDF Solutions Announce Collaboration with 2021 proteanTecs and Voltaiq Conversion of Quick Start Analog Devices Adopts contract to a large PDF Solutions’ Ana

  15. Slide 15: Revenue Transition to Analytics

    GROWTH Revenue Transition to Analytics Integrated Integrated Yield Ramp TTM Q1’22 Yield Ramp TTM Q1’23 13% 12% 87% 88% Analytics Analytics © 2023 PDF Solutions, All Rights Reserved 15

  16. Slide 16: Analytics Revenue

    GROWTH Analytics Revenue ◼ Y/Y Analytics Growth of 31% from TTM Q1’22 to TTM Q1’23 $136.4 ◼ Average Analytics revenue per customer, excluding Cimetrix, $104.5 $816K in TTM Q1’23, a 17% $ Millions increase from $697K in TTM Q1’22 TTM Q1'22 TTM Q1'23 © 2023 PDF Solutions, All Rights Reserved 16

  17. Slide 17: Gross Margins

    PROFITABILITY Gross Margins ◼ Achieved our long-term target Non-GAAP gross margin of 72% 70%+ in TTM Q1’23 ◼ Analytics customers 69% transitioning to subscription and cloud over time 66% ◼ First monetization of technology was IYR 63% engagements with associated royalties ◼ Second wave of monetizatio

  18. Slide 18: Global Geographic Revenue Distribution

    DIVERSIFICATION Global Geographic Revenue Distribution ◼ Globally diverse geographic TTM Q1’23 distribution ◼ No country outside the United States accounts for 18% more than ~18% United States ◼ United States largest market at 51% of revenues Rest of the world 51% 31% China © 2023 PDF Solutions, All

  19. Slide 19: Balance Sheet Strength

    STRENGTH Balance Sheet Strength End of End of End of End of Q1 ◼ Existing balance sheet ($ Millions) 2019 2020 2021 2022 2023 strength provides foundation Cash and ST invt $97.6 $145.3 $140.2 $139.2 $133.5 for investment in growth of Debt $0.0 $0.0 $0.0 $0.0 $0.0 analytics business both organically

  20. Slide 20: Disciplined Capital Allocation

    INVESTMENT Disciplined Capital Allocation ◼ Capex investments include Return Capital to DFI, CVi, IP, DEX network, and Invest in Organic Invest in M&A to Stockholders through Growth Enhance Growth Stock Buyback infrastructure ◼ Cash balance has increased while we: – Invested in Capex Capex Share Rep

  21. Slide 21: Target Financial Model

    VALUE Target Financial Model Target Annual Analytics Revenue Growth 20% Non-GAAP Gross Margins >70% Non-GAAP Operating Margin 20% © 2023 PDF Solutions, All Rights Reserved 21

  22. Slide 22: Summary

    Summary Rapid Growth Disciplined Improved Capital Profitability Allocation Platform to Drive Stockholder Value Strong Increased Balance Sheet Visibility Enhanced Diversification © 2023 PDF Solutions, All Rights Reserved 22

  23. Slide 23: Thank You

    Thank You pdf-solutions pdfsolutionsinc pdfs.inc pdf_solutions pdfs_cn © 2023 PDF Solutions, All Rights Reserved 23

  24. Slide 24: Financials - Appendix

    Financials - Appendix © 2023 PDF Solutions, All Rights Reserved 24

  25. Slide 25: Non-GAAP Presentation

    Non-GAAP Presentation In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), the Company also provides certain non-GAAP financial measures. Non- GAAP net income (loss) excludes the effects of non-recurr

  26. Slide 26: GAAP to Non-GAAP Income Reconciliation

    GAAP to Non-GAAP Income Reconciliation in thousands (except share amounts, percent of revenue, and EPS) 2020 2021 2022 Q1'23 GAAP net income (loss) $ (40,363) $ (21,488) $ (3,429) $ 355 Adjustments to reconcile GAAP net income (loss) to non-GAAP net income (loss): Stock-based compensation expense 12

  27. Slide 27: GAAP to Non-GAAP Gross Margin Reconciliation

    GAAP to Non-GAAP Gross Margin Reconciliation in thousands 2020 2021 2022 Q1'23 GAAP Gross Margin $ 51,281 $ 66,867 $ 100,642 $ 28,855 GAAP Gross Margin % 58% 60% 68% 71% Adjustments to reconcile GAAP gross margin (loss) to non-GAAP gross margin: Stock-based compensation expense 3,454 2,563 2,974 965

  28. Slide 28: Balance Sheet

    Balance Sheet ($ '000) 2020 2021 2022 Q1'23 ASSETS Current assets: Cash and short-term investments 145,296 140,226 139,181 133,528 Accounts receivable, net 34,140 40,087 42,164 47,048 Prepaids and other current assets 13,944 8,194 12,063 12,565 Total current assets 193,380 188,507 193,408 193,141 Pr

  29. Slide 29: © 2023 PDF Solutions, All Rights Reserved

    © 2023 PDF Solutions, All Rights Reserved 29

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