Teradyne, Inc. · NASDAQ:TER
Teradyne — Q1 2025 Earnings Presentation
18 slides from Teradyne's earnings presentation, Apr 29, 2025
Slide 1: Financial Results for Q1 2025
Financial Results for Q1 2025 April 29, 2025
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward -looking statements by their use of forward-looking words such as “anticipate,”
Slide 3: Business Update and Outlook
Business Update and Outlook Greg Smith, President and CEO 3
Slide 4: Q1'25 Summary
Q1’25 Summary Sales of $686M | Non-GAAP Gross Margin of 60.6% | Non-GAAP EPS of $0.75 | EPS Above High Guidance Q1’25 Range: $660M - $700M Q1’25 Range: 58.5% - 59.5% Q1’25 Range: $0.58 - $0.68 Quarterly Revenue ($M) Non-GAAP Gross Margin % (1) Non-GAAP EPS (1) $1,000M 65.0% $1.40 $800M 60.0% $1.20 $
Slide 5: Q1'25 Summary and Q2'25 Outlook
Q1’25 Summary and Q2’25 Outlook Q1’25 Summary Q2’25 Outlook Revenue of $686M above mid-point of guidance; Non- Revenue between $610M - $680M; Non-GAAP EPS GAAP EPS of $0.75 above high-end of guidance range from $0.41 - $0.64 • Stronger than planned SoC driven primarily by Mobile • Second quarter gui
Slide 6: First Quarter 2025 Financial Results and Second Quarter 2025 Guidance
First Quarter 2025 Financial Results and Second Quarter 2025 Guidance Sanjay Mehta, Vice President and Chief Financial Officer 6
Slide 7: Q1'25 Non-GAAP Results
Q1’25 Non-GAAP Results $ in millions, except EPS Q1’24 Actual(1) Q4’24 Actual(1) Q1’25 Actual(1) Sales $600M $753M $686M Gross Margin 56.6% $339M 59.4% $447M 60.6% $416M R&D 17.2% $103M 17.1% $128M 17.2% $118M SG&A 24.6% $147M 20.7% $156M 22.9% $157M OPEX 41.8% $251M 37.8% $284M 40.1% $275M Operatin
Slide 8: Q1'25 Business Unit Summary
Q1’25 Business Unit Summary Semiconductor Test Robotics Product Test Q1’25 Sales $543M $69M $74M Q1’25 Key • Sales up 25% vs Q1’24, (32% • Sales down 30% QoQ and down • Sales down 4% vs Q1’24 Highlights excl. DIS) 21% from Q1’24 • Strength in connectivity as key • SoC up 34% vs Q1’24 due to • Contin
Slide 9: Balance Sheet & Capital Allocation
Balance Sheet & Capital Allocation $ in millions Q1’24 Actual Q4’24 Actual Q1’25 Actual Cash and Marketable Securities $871M $724M $622M Inventory $314M $298M $345M DSO 65 days 58 days 60 days Capital Additions $44M $57M $64M Depreciation and Amortization(1) $44M $49M $46M Free Cash Flow(2) ($37M) $
Slide 10: Q2'25 Non-GAAP Guidance
Q2’25 Non-GAAP Guidance $ in millions Q1’25 Actual(1) Q2’25 Guidance(1) Sales $686M $610M - $680M Gross Margin 60.6% 56.5% - 57.5% OPEX 40.1% 44.5% – 40.5% Operating Profit 20.5% 12.0% - 17.0% Income Taxes (& effective tax rate) 13.5% 13.5% EPS $0.75 $0.41 - $0.64 Diluted Shares 162M 161M 10 (1) See
Slide 11: Q1'25 Summary and Q2'25 Outlook
Q1’25 Summary and Q2’25 Outlook Q1’25 Summary Q2’25 Outlook Revenue of $686M above mid-point of guidance; Non- Revenue between $610M - $680M; Non-GAAP EPS GAAP EPS of $0.75 above high-end of guidance range from $0.41 - $0.64 • Stronger than planned SoC driven primarily by Mobile • Second quarter gui
Slide 12: Teradyne
TERADYNE
Slide 13: Supplemental Information
Supplemental Information 13
Slide 14: History of Capital Allocation
History of Capital Allocation Since 2015, 82M shares repurchased at an average price of ~$51 per share $ in millions 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1’25 Cumulative Buybacks(1) $300 $146 $200 $823 $500 $88 $600 $752 $401 $199 $159 $4,168 Dividends $51 $49 $55 $67 $61 $66 $66 $70 $
Slide 15: Semiconductor Test Market Growth Trends Are Favorable
Semiconductor Test Market Growth Trends Are Favorable Semiconductor Test Market • SoC market powered by unit growth, complexity, new technology adoption • Memory test driven by bit growth, diversity, higher bandwidth $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2016 2017 2018 2019 2020 2021 2022 202
Slide 16: Teradyne Non-GAAP Target Earnings Model
Teradyne Non-GAAP Target Earnings Model 27% EPS CAGR from ‘24 to ‘28 at Mid-Point Target Earnings Model1 2024 Target Model 2024 Sales Mix Target Model Sales Mix2 TER Revenue ($M) $2,820 $4,500 – $5,500 Growth off 2024 12% - 18% 13% 16% Gross Margin % 59% 59% - 60% OPEX % 38% 31% - 28% $2.82B $5.00B
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses in this presentation and on the earnings call non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complemen
Slide 18: Teradyne
TERADYNE