Pdf Solutions, Inc. · NASDAQ:PDFS
Pdf Solutions — Investor Presentation (February 2024)
27 slides from Pdf Solutions's investor presentation, February 2024
Slide 1: Investor Presentation February 2024
Investor Presentation February 2024 John Kibarian, President & CEO, Co-Founder Kimon Michaels, Executive VP, Products and Solutions, Co-Founder Adnan Raza, Executive VP, Finance & CFO © 2024 PDF Solutions, Inc. or its subsidiaries 1
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
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
Slide 4: PDF Solutions Platform Overview
PDF Solutions Platform Overview 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 Chain St
Slide 5: PDF Solutions Integrated Platform Architecture
PDF Solutions Integrated Platform Architecture Fully integrated solution to accelerate production ramp, improve overall yield and quality PDF platform revenue growth drivers: ◼ AI driven actionable insights ◼ New go-to-market paths via partnerships ◼ Transition to automotive electrification © 2024 P
Slide 6: Building a Platform for Success
Building a Platform for Success • Analytics revenue grew 17% Y/Y from CY2022 to CY2023 GROWTH • Analytics at 92% of total revenue in CY2023 • GAAP gross margin of 68% for Q4’23 PROFITABILITY • Non-GAAP gross margin of 72% for Q4’23 • 70%+ non-GAAP gross margins target model • Greater than 100% Exens
Slide 7: Well-Received 2023 User Conference and Analyst Day
Well-Received 2023 User Conference and Analyst Day ◼ 300+ registered attendees ◼ 17 customer/partner presentations ◼ Over 80 companies and industry organizations represented Presenting Companies © 2024 PDF Solutions, Inc. or its subsidiaries 7
Slide 8: The Opportunity For PDF Is Expanding
The Opportunity For PDF Is Expanding Established strong presence: ◼ >140k equipment factory connections SYSTEM with over >40k process tools ◼ 350+ revenue generating customers in 31 countries through CY2023 EMS Strong product suite: ◼ #1 commercial solution for manufacturing yield and control with l
Slide 9: Strong Semiconductor End-Market Drivers
Strong Semiconductor End-Market Drivers ◼ AI is driving increasing data generation and data availability, which in turn is driving semiconductor revenue ◼ Driven by AI, semi revenue expected to reach $1T+ by 2030 Sources: Applied Materials; IDC, April 2023 © 2024 PDF Solutions, Inc. or its subsidiar
Slide 10: Semiconductor Growth Inflection Points
Semiconductor Growth Inflection Points Achieving the necessary semi growth requires overcoming new inflection points ◼ New architectures & materials https://semiwiki.com/semiconductor- services/techinsights/316095-semicon-west- 2022-and-the-imec-roadmap/ ◼ Chiplets ◼ Geographic disaggregation https:
Slide 11: AI Is Enabler For Rapid Growth
AI Is Enabler For Rapid Growth ◼ AI adoption across the semiconductor supply chain is a key component to efficiently achieving semi growth ◼ Successful AI application requires: – Cross-supply chain data integration – The right data, not just more data – AI/ML model operations https://itif.org/public
Slide 12: Total Semiconductor Analytics TAM
Total Semiconductor Analytics TAM Potential value capture of analytics in Semiconductors Methodology ($ in billions) ▪ Analytics as a portion of total R&D and COGS spending by Semiconductor Companies across $26.1 three categories: ’23-’30 CAGR ▪ Fabless-Logic 9% ▪ IDM $14.3 ▪ Memory/Storage $10.4 ▪
Slide 13: Market Opportunity – PDF SAM
Market Opportunity – PDF SAM $3.0B ◼ SAM of more than $2B ~$2.6 B $2.5B (based on 2023 data) ◼ Growth drivers: $2.0B – Adoption across supply chain Billions $ $1.5B ~$1.3 B – ML & advanced solutions $1.0B – DFI for quality & reliability $0.5B – Transition to cloud 0 2019 2023 Source: PDF Solutions e
Slide 14: Analytics Revenue
Analytics Revenue ◼ Y/Y Analytics Growth of 17% from CY2022 to CY2023 $152.1 ◼ Average Analytics revenue per customer, excluding Cimetrix, $908K in CY2023, a 15% increase from $789K in $ Millions CY2022 $130.5 CY2022 CY2023 © 2024 PDF Solutions, Inc. or its subsidiaries 14
Slide 15: Gross Margins
Gross Margins ◼ Achieved our long-term target Non-GAAP gross margin of 73% 70%+ in CY2023 71% ◼ Analytics customers 69% transitioning to subscription 68% and cloud over time ◼ First monetization of technology was IYR engagements with associated royalties ◼ Second wave of monetization consists of gro
Slide 16: Global Geographic Revenue Distribution
Global Geographic Revenue Distribution CY2023 ◼ Globally diverse geographic distribution China ◼ No country outside the 16% United States accounts for more than ~16% ◼ United States largest market at 56% of revenues United States Rest of the world 56% 28% © 2024 PDF Solutions, Inc. or its subsidiari
Slide 17: Acquisitions and Product Releases Expanded Scope
Acquisitions and Product Releases Expanded Scope Continued Transition To Subscription Model 2000 - 2010 2023 1H PDF Solutions Collaboration AISS Acquisition with proteanTecs and Voltaiq o Layout analysis 2020 2021 First 8-figure size deal of Conversion of Quick Start Analog Devices Adopts PDF IDS So
Slide 18: Disciplined Capital Allocation
Disciplined Capital Allocation ◼ Capex investments Invest inOrganic Growth Invest in M&A to Return Capital to Stockholders through include DFI/eProbe, EnhanceGrowth Stock Buyback CVi, IP, DEX network, and infrastructure Total, $92.0 ◼ Cash balance has increased while PDF: M&A, $33.5 – Invested in Ca
Slide 19: Long-Term Target Financial Model
Long-Term Target Financial Model Total Revenue Growth >20% Non-GAAP Gross Margins >75% Non-GAAP Operating Margin 20% © 2024 PDF Solutions, Inc. or its subsidiaries 19
Slide 20: Summary – PDF Solutions
Summary – PDF Solutions Rapid Growth Disciplined Improved Capital Profitability Allocation Platform to Drive Stockholder Value Strong Increased Balance Sheet Visibility Enhanced Diversification © 2024 PDF Solutions, Inc. or its subsidiaries 20
Slide 21: Thank You
Thank You pdf-solutions pdfsolutionsinc pdfs.inc pdf_solutions pdfs_cn © 2024 PDF Solutions, Inc. or its subsidiaries 21
Slide 22: Financials - Appendix
Financials - Appendix © 2024 PDF Solutions, Inc. or its subsidiaries 22
Slide 23: 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
Slide 24: 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 2023 GAAP net income (loss) $ (40,363) $ (21,488) $ (3,429) $ 3,105 Adjustments to reconcile GAAP net income (loss) to non-GAAP net income (loss): Stock-based compensation expense 1
Slide 25: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation in thousands 2020 2021 2022 2023 GAAP Gross Margin $ 51,281 $ 66,867 $ 100,642 $ 114,086 GAAP Gross Margin % 58% 60% 68% 69% Adjustments to reconcile GAAP gross margin (loss) to non-GAAP gross margin: Stock-based compensation expense 3,454 2,563 2,974 4,1
Slide 26: Balance Sheet
Balance Sheet December 31 ($ '000) 2020 2021 2022 2023 ASSETS Current assets: Cash and short-term investments 145,296 140,226 139,181 135,522 Accounts receivable, net 34,140 40,087 42,164 44,904 Prepaids and other current assets 13,944 8,194 12,063 17,422 Total current assets 193,380 188,507 193,408
Slide 27: © 2024 PDF Solutions, Inc. or its subsidiaries
© 2024 PDF Solutions, Inc. or its subsidiaries 27
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