Slide 1: Arteris 3Q 2024 Earnings Presentation
Arteris 3Q 2024 Earnings Presentation Charlie Janac Nick Hawkins CEO CFO November 5, 2024 1 © 2024 Arteris, Inc.
Slide 2: 3Q Business Highlights (1 of 2)
3Q Business Highlights (1 of 2) Achieved a record $60.5 million ACV plus Royalties and delivered $1.1 million in free cash flow; the third consecutive FCF positive quarter Growing adoption of our technology by our current customer base, including with a top 5 technology company that leverage Art
Slide 3: 3Q Business Highlights (2 of 2)
3Q Business Highlights (2 of 2) VeriSilicon licensed FlexNoC 5 interconnect IP for use in Tenstorrent has adopted Arteris NoC for its next- high-performance data center SoC solutions generation of chiplet-based AI and HPC SoCs Tier IV has chosen Arteris interconnect technology for use Expanded our c
Slide 4: 3Q 2024 Results: Revenue, ACV + Royalties, RPO, Gross Profit
3Q 2024 Results Revenue, ACV + Royalties, RPO, Gross Profit 3Q 2023 2Q 2024 3Q 2024 Guidance 3Q 2024 Revenue $13.3M $14.6M $14.2M - $15.2M $14.7M (+11% Y/Y) ACV + $60.5M $57.3M $60.1M $58.5M - $62.5M Royalties (+6% Y/Y) RPO $62.5M $77.5M N/A $78.4M (+25% Y/Y) Non-GAAP: $12.2M Non-GAAP: $13.4M Non-GA
Slide 5: 3Q 2024 Results: Operating Expenses, Operating Income
3Q 2024 Results Operating Expenses, Operating Income 3Q 2023 2Q 2024 3Q 2024 Guidance 3Q 2024 Operating GAAP: $20.4M GAAP: $21.2M GAAP: $20.6M N/A Non-GAAP: $16.8M Expenses Non-GAAP: $16.8M Non-GAAP: $16.8M (flat Y/Y) GAAP: ($7.9M) Operating GAAP: ($8.5M) GAAP: ($7.4M) Non-GAAP: Non-GAAP: ($4.5M) No
Slide 6: 3Q 2024 Results: Free Cash Flow, Cash
3Q 2024 Results Free Cash Flow, Cash 3Q 2023 2Q 2024 3Q 2024 Guidance 3Q 2024 Free Cash $1.1M ($3.1M) $0.3M ($1.4M) – $1.6M Flow (+$4.2M Y/Y) Cash, Cash Equivalents & $56.6M $53.9M N/A $54.5M Investments 6 © 2024 Arteris, Inc.
Slide 7: Guidance
Guidance 4Q 2024 Guidance FY 2024 Guidance ACV + Royalties Revenue1 ACV + Royalties2 Revenue $63M - $67M $14.7M - $15.7M $63M - $67M $56.9M - $57.9M (+$0.4M)3 Non-GAAP Op. Free Cash Flow Non-GAAP Op. Free Cash Flow Income Income ($5M) – ($4M) ($0.9M) – $1.1M ($17.1M) – ($16.1M) $0.7M – $2.7M (+$3.4M
Slide 8: Appendix - GAAP To Non-GAAP Reconciliation (Gross profit)
Appendix - GAAP To Non-GAAP Reconciliation Gross profit Three Months Ending: In $ thousands September 30, June 30, September 30, 2023 2024 2024 Gross profit 11,994 13,117 13,252 Add: Stock-based Compensation 181 186 221 Amortization of acquired intangible assets 50 50 50 Non-GAAP gross profit 12,225
Slide 9: Appendix - GAAP To Non-GAAP Reconciliation (Operating expenses)
Appendix - GAAP To Non-GAAP Reconciliation Operating expenses Three Months Ending: In $ thousands September 30, June 30, September 30, 2023 2024 2024 Operating expenses 20,447 20,558 21,171 Less: Stock-based Compensation 3,533 3,574 4,169 Amortization of acquired intangible assets 142 142 167 Non-GA
Slide 10: Appendix - GAAP To Non-GAAP Reconciliation (Income from operations)
Appendix - GAAP To Non-GAAP Reconciliation Income (loss) from operations Three Months Ending: In $ thousands September 30, June 30, September 30, 2023 2024 2024 Income (loss) from Operations (8,453) (7,441) (7,919) Add: Stock-based Compensation 3,714 3,760 4,390 Amortization of acquired intangible a
Slide 11: Appendix - Free Cash Flow
Appendix –Free Cash Flow Three Months Ending: In $ thousands September 30, June 30, September 30, 2023 2024 2024 Net cash (used in) provided by operating activities (2,806) 311 1,123 Less: Purchase of property and equipment (340) (47) (31) Free cash flow (3,146) 264 1,092 11 © 2024 Arteris, Inc.