Arteris, Inc. · NASDAQ:AIP

Arteris — Investor Presentation (February 2025)

31 slides from Arteris's investor presentation, February 2025

  1. Slide 1: Accelerating The Creation Of Semiconductors

    Accelerating The Creation Of Semiconductors Corporate Overview Charlie Janac Nick Hawkins CEO CFO February 2025 1 © 2025 Arteris, Inc.

  2. Slide 2: Disclaimer

    Disclaimer This presentation and the accompanying oral presentation have been prepared by Arteris, Inc. ("Arteris IP“ or “the "Company") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or r

  3. Slide 3: Today’s Chips Have Become The Core Of Electronic Systems

    Today’s Chips Have Become The Core Of Electronic Systems Arteris system IP solutions address an estimated 10-20% of SoC silicon area, solving SoC complexity challenges  system IP changes between and within SoC projects Requirements Specification IP Integration Verification Physical NoC Estimation R

  4. Slide 4: Modern SoCs Require System IP For Optimal Performance

    Modern SoCs Require System IP For Optimal Performance Arteris’ focus is on customer competitive advantage  Arteris enables engineers at the world’s transformative brands to connect and integrate SoCs that fuel modern innovation  As pioneers of NoC interconnect IP and a leader in SoC Integration Au

  5. Slide 5: Arteris Addressing Emerging Electronics Trends

    Arteris Addressing Emerging Electronics Trends Adoption of New Semi. Smart Systems Connected Supporting Silicon Based Technologies Everywhere Business Creation More Processors & IP Blocks – data movement key competency – MXM Network Ring Network Binary Time Network Artificial Intelligence – electron

  6. Slide 6: Large System IP Market Supports Company Growth

    Large System IP Market Supports Company Growth Vital technologies are increasingly critical to successful SoC creation SoC Integration Network-on-Chip Network-on-Chip Automation Interconnect IP Interface IP SoC IP blocks connected & Protocol converters, switches, Additional interconnects & IP config

  7. Slide 7: Arteris’ System IP Business Has Deep Moats

    Arteris’ System IP Business Has Deep Moats System IP market represents technology and business challenges Marketable Product Royalty Investment Product Design In Engine  Annual product  Customer SoC design  Generating royalties  Established products releases + new win into electronic over a deca

  8. Slide 8: FlexGen – Smart NoC IP

    FlexGen – Smart NoC IP Arteris Revolutionizes Semiconductor Design with FlexGen - Smart Network-on-Chip IP Delivering Productivity Improvements and Quality of Results Challenge: SoC design complexity has surpassed manual human capabilities, requiring smart NoC automation. Modern SoCs have 5 to 20+ u

  9. Slide 9: Arteris – A Leading SoC System IP Company & NoC Pioneer

    Arteris – A Leading SoC System IP Company & NoC Pioneer Global customer base deploying Arteris interconnect IP and SoC integration software Diversified Customer Base  Silicon-proven IP used in ~3.7 billion+ units shipped to date2 Subset of Publicly Disclosed Customers  200+ customers and nearly 85

  10. Slide 10: Accelerating Innovation In Key Verticals

    Accelerating Innovation In Key Verticals 2024 ACV+Royalties vertical breakdown estimates Communications 11% Consumer 9% • Training • Vehicle • Inference endpoints Automotive • Generative AI • Robotics 37% AI/ML • Datacenter AI addresses all verticals 47% • Infrastructure Enterprise 32% Industrial 9%

  11. Slide 11: Arteris’ System IP Position In Artificial Intelligence/Machine Learning

    Arteris’ System IP Position In Artificial Intelligence/Machine Learning Data movement is a key competency of AI SoCs; Arteris offers superior bandwidth & features Number of Arteris Customers  235+ AI SoC design wins Customers – Dec 24 Datacenter 5+ Training Automotive EV OEM #1 Datacenter 30+ Infer

  12. Slide 12: Key Arteris AI Customer Wins

    Key Arteris AI Customer Wins Blaize Menta Market Need Market Need  Edge AI solutions are expanding into a variety of applications,  Chiplet platforms at the edge and IoT computing require many of which are currently limited by processing power or interconnect solutions that address the technical c

  13. Slide 13: Expanding Into The Micro-controller Market In 2024

    Expanding Into The Micro-controller Market In 2024 For automotive, industrial and high-end IoT applications  Micro-controllers (MCUs) are complex 2023 MCU Market enough for Arteris system IP – More processing power, AI etc.  Moving into less complex, higher $38.8 Billion volume designs at Arteris’

  14. Slide 14: Key Arteris Automotive MCU Customer Wins

    Key Arteris Automotive MCU Customer Wins Infineon GigaDevice Market Need Market Need  Software-defined vehicle compute needs continue to  In a dynamic automotive market, automotive SoC grow—beyond complex CPUs, increasingly down to solutions need to meet enhanced product performance, microcontroll

  15. Slide 15: Expanding RISC-V Collaboration from AI Datacenter to AI Edge

    Expanding RISC-V Collaboration from AI Datacenter to AI Edge Market Need  Solutions for designing energy-efficient, extensible, and secure chips using the RISC-V architecture Arteris and RISC-V Ecosystem  Collaboration with major RISC-V processor IP providers to enable the growing set of mutual cu

  16. Slide 16: Arteris Is One Of The Major Silicon Enabling Companies

    Arteris Is One Of The Major Silicon Enabling Companies Inorganic growth  Dec. 2022 – Acquisition of Semifore  Nov. 2020 – Acquisition Business balance of Magillem  Geography balance Focus on high growth  Customer size balance segments &  Application balance customers  License vs royalty Organi

  17. Slide 17: Financial Overview

    Financial Overview Nick Hawkins 17 © 2025 Arteris, Inc.

  18. Slide 18: FY2024 Highlights

    FY2024 Highlights 14 New Customers Company Record Highs Including • Major automotive OEMs $57.7M • Market leading consumer electronics company • Market leading microcontroller company Revenue +25% $65.1M ACV + Royalties Improvement in Non-GAAP Operating Income $88.4M RPO1 ~850 SoC design starts to d

  19. Slide 19: Key Financial Parameters

    Key Financial Parameters Revenue Free Cash Flow Derived from 2 Main Sources  Majority of deals paid up License & Support front FCF Leads 90%  Fully ratable (since 2Q’23)  Revenue deferred  2 – 3 year design term NGOI  OpEx as incurred  Long-term CAGR1:15 – 20% Royalties 10%  Long-term CAGR1:

  20. Slide 20: Future Royalty Engine

    Future Royalty Engine 66% of design wins waiting to deliver royalty revenue; 18% of customer designs still ramping up Royalty Pipeline 7% 4% 7% # Designs 16% 66% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 160+ active royalty Pre-MP Designs Four + Years Royalties Third Year Royalties

  21. Slide 21: Design Wins Result in Future Royalty Expansion

    Design Wins Result in Future Royalty Expansion Temporary automotive chip inventory Variable Royalties correction Royalties ($ millions) Auto Royalty 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 $ Industrial Enterprise Computing Communications Consumer Automotive Other

  22. Slide 22: 4Q/FY 2024 Business Highlights

    4Q/FY 2024 Business Highlights  Record-high quarterly and annual revenue at $15.5M and $57.7M, (+24% Y/Y, +7% Y/Y) 4Q’23 4Q’24 Y/Y FY’23 FY’24 Y/Y respectively Revenue 12.5 15.5 ▲24% 53.7 57.7 ▲7%  Record-high ACV + Royalties at $65.1M, ACV + Royalties 56.1 65.1 ▲16% 56.1 65.1 ▲16% +16% Y/Y NG OpE

  23. Slide 23: 4Q/FY 2024 Actuals vs Guidance

    4Q/FY 2024 Actuals vs Guidance 4Q 2024 4Q 2024 In $ millions Guidance Results Revenue 14.7 – 15.7 15.5 Near top-end of guidance range ACV + Royalties 63 – 67 65.1 At mid-point of guidance range NGOI* (5) – (4) (2.8) Above top-end of guidance range Free Cash Flow* (0.9) – 1.1 (2.7) Short-term working

  24. Slide 24: Guidance

    Guidance 1Q 2025 Guidance FY 2025 Guidance ACV + Royalties1 Revenue2 ACV + Royalties3 Revenue4 $65.5M - $67.5M $15.7M - $16.1M $73M - $77M $66M - $70M Non-GAAP Op. Free Cash Flow* Non-GAAP Op. Free Cash Flow* Income* Income* ($4M) – ($3M) ($2.0M) – $2.0M ($12.5M) – ($8.5M) $1M – $7M 1. 66.5M at the

  25. Slide 25: Thank you

    Thank you Arteris, Inc. All rights reserved worldwide. Arteris, Arteris IP, the Arteris IP logo, and the other Arteris marks found at https://www.arteris.com/trademarks are trademarks or registered trademarks of Arteris, Inc. or its subsidiaries. All other trademarks are the property of their respec

  26. Slide 26: Appendix - Non-GAAP Financial Measures

    Appendix - Non-GAAP Financial Measures To supplement our financial results, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core performance. These non-GAAP measures, which may be different than

  27. Slide 27: Appendix - GAAP To Non-GAAP Reconciliation

    Appendix - GAAP To Non-GAAP Reconciliation Operating expenses Three Months Ending: Twelve Months Ending: In $ thousands December 31, September 30, December 31, December 31, December 31, 2023 2024 2024 2023 2024 Operating expenses 20,305 21,171 21,016 83,731 83,358 Less: Stock-based compensation 3,38

  28. Slide 28: Appendix - GAAP To Non-GAAP Reconciliation

    Appendix - GAAP To Non-GAAP Reconciliation Income (loss) from operations Three Months Ending: Twelve Months Ending: In $ thousands December 31, September 30, December 31, December 31, December 31, 2023 2024 2024 2023 2024 Operating income (loss) (9,249) (7,919) (7,102) (35,142) (31,596) Add: Stock-b

  29. Slide 29: Appendix – Free Cash Flow

    Appendix –Free Cash Flow Three Months Ending: Twelve Months Ending: In $ thousands December 31, September 30, December 31, December 31, December 31, 2023 2024 2024 2023 2024 Net cash (used in) provided by operating (2,979) 1,123 (2,631) (15,729) (720) activities Less: Purchase of property and equipm

  30. Slide 30: Appendix - Arteris Business Model

    Appendix - Arteris Business Model Arteris customers have delivered 3.7 Billion units based on nearly 850 SoC projects 6-9 months 12-36 months 7-24 months 3-10 years, depending on segment License/support Semiconductor Semi sells SoCs to OEM OEM Delivers Electronic OEM Systems License Fee/Royalty or S

  31. Slide 31: Appendix - License Revenue / ACV / RPO Model

    Appendix - License Revenue / ACV / RPO Model Example $3M deal, 36-month license term $3M / 3 Yr 2Q ’27 $1M 1Q ’26 $1M 3Q ’27 $1M 2Q ’26 $1M 1Q ’27 $1M 4Q ’24 $1M 2Q ’25 $1M 3Q ’25 $1M 4Q ‘25 $1M 3Q ’26 $1M 4Q ’26 $1M FY 25 $1M FY 26 $1M 1Q ’25 $1M Deal Signed ACV 12/29/24 FY 25 $1M FY 26 $1M FY 27 $

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