Pdf Solutions, Inc. · NASDAQ:PDFS
Pdf Solutions — Investor Presentation (February 2022)
31 slides from Pdf Solutions's investor presentation, February 2022
Slide 1: Investor Presentation February 2022
Investor Presentation February 2022 John Kibarian, President & CEO, Co-Founder Kimon Michaels, Executive VP, Products and Solutions, Co-Founder Adnan Raza, Executive VP, Finance & CFO © 2022 PDF Solutions, All Rights Reserved 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: Building a Platform for Success
Building a Platform for Success • Record total full year CY 2021 revenue of $111.1M GROWTH • Analytics at 84% of total revenue in CY 2021, grew at a CAGR of 37% from CY 2019 to CY 2021 • GAAP gross margin of 61% for Q4’21, and 60% for CY 2021 PROFITABILITY • Non-GAAP gross margin of 65% for Q4’21, a
Slide 5: The Leading Data Analytics Platform
The Leading Data Analytics Platform Data Access & Integration Across the Value Chain Unique View to Data Sources in the Value Chain Exensio® Cimetrix® DFITM System & CV ® Infrastructure End to End Analytics Connectivity Products Proprietary Data Sources Platform & Platform Leading Analytics Differen
Slide 6: PDF Business Models
PDF Business Models PDF has two business models to capture the value of our solutions, which combines advanced analytics and differentiated data Subscription Model: Gainshare Model: when value is data and analytics when value is time to volume – Analytics is primarily subscription-based and is the –
Slide 7: Benefiting From Strong Market Tailwinds
Benefiting From Strong Market Tailwinds Value in Semiconductor Supply Chain Shifting to Mass Production: – Increased value in mass production continuous improvement vs. simply time to market – Financial risk shifting away from foundry to fabless & system companies Foundries consolidating due to % of
Slide 8: Data and Analytics Growing in Importance
Data and Analytics Growing in Importance Data & Analytics in Semis & Electronics ($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
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
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
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 >340 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 the
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
Slide 13: PDF Solutions and Advantest Partnership – July 2020
PDF Solutions and Advantest Partnership – 30 July 2020 Overview of PDF Solutions Strategic Rationale of Partnership Mfg Test Assembly Analytics Operations Operations The only end-to-end data and analytics solutions provider for the >40 and deepens Expands >100 tools >20 supported >50 by Exensio,
Slide 14: 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 Products trend toward Smart (SECS/GEM, GEM300, EDA/Interface A) Manufacturing & I
Slide 15: Acquisitions and Product Releases Expanded Scope
Acquisitions and Product Releases Expanded Scope Gainshare Model “Selling Time to Volume” Subscription Model “Selling Actionable Data” 2020 Q1 2020 Q3 First 8-figure size deal Partnership 2018 of conversion to cloud with Advantest CV Core Bookings of >3x YoY >50% world's 2015 o Proof of concept and
Slide 16: Revenue Transition to Analytics
GROWTH Revenue Transition to Analytics Integrated Integrated Integrated Yield Ramp CY 2019 Yield Ramp CY 2020 Yield Ramp CY 2021 42% 35% 16% 58% 65% 84% Analytics Analytics Analytics © 2022 PDF Solutions, All Rights Reserved 16
Slide 17: Analytics Revenue
GROWTH Analytics Revenue $93.4 CAGR of 37% from 2019 to CY 2021 Average Analytics revenue per customer, excluding Cimetrix, $594K in CY 2021, a 34% $57.2 increase from $443K in 2019 $ Millions $49.6 CY 2019 CY 2020 CY 2021 © 2022 PDF Solutions, All Rights Reserved 17
Slide 18: Gross Margins
PROFITABILITY Gross Margins Progressing towards our long term target Non-GAAP gross 65% 65% margin of 70%+ 64% Analytics customers 63% transitioning to subscription and cloud over time 61% 61% First monetization of 60% technology was IYR engagements with associated 58% royalties Second wave
Slide 19: Diversified Revenue Distribution
DIVERSIFICATION Diversified Revenue Distribution Customer Concentration Regional Concentration Largest customer down to 17% of revenue in CY 2021 vs. 23% in CY 2020 CY 2021 CY 2021 Globally diverse geographic 23% in CY20 distribution 17% 16% APAC No country outside the Largest United States ac
Slide 20: Balance Sheet Strength
STRENGTH Balance Sheet Strength Existing balance sheet End of End of End of End of ($ Millions) strength provides foundation 2018 2019 2020 2021 for investment in growth of Cash and ST invt $96.1 $97.6 $145.3 $140.2 analytics business both organically and inorganically Debt $0 $0 $0 $0 Shares bu
Slide 21: Disciplined Capital Allocation
INVESTMENT Disciplined Capital Allocation Capex investments include DFI, CVi, IP, DEX network, and Invest in Organic Invest in M&A to Return Capital to infrastructure Shareholders through Growth Enhance Growth Stock Buyback Cash balance has increased while we: – Invest in Capex – Received strate
Slide 22: Long-Term Financial Targets
VALUE Long-Term Financial Targets Target Annual Analytics Revenue Growth 20% Non-GAAP Gross Margins >70% Non-GAAP Operating Margin 20% © 2022 PDF Solutions, All Rights Reserved 22
Slide 23: Investment Results in Strong Patent Position
Investment Results in Strong Patent Position Our investments in analytics & differentiated data result 191 Issued in a strong and growing patent position Patents Patents based on 30 years of know-how in semiconductor development and mass production Key patents in areas of: – Design for inspect
Slide 24: Summary
Summary Rapid Growth Disciplined Improved Capital Profitability Allocation Platform to Drive Shareholder Value Strong Increased Balance Sheet Visibility Enhanced Diversification © 2022 PDF Solutions, All Rights Reserved 24
Slide 25: Thank You
Thank You pdf-solutions pdfsolutionsinc pdfs.inc pdf_solutions pdfs_cn © 2022 PDF Solutions, All Rights Reserved 25
Slide 26: Financials - Appendix
Financials - Appendix © 2022 PDF Solutions, All Rights Reserved 26
Slide 27: 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 28: GAAP to Non-GAAP Income Reconciliation
GAAP to Non-GAAP Income Reconciliation in thousands (except share amounts, percent of revenue, and EPS) 2019 2020 2021 GAAP net income (loss) $ (5,418) $ (40,363) $ (21,488) Adjustments to reconcile GAAP net income (loss) to non-GAAP net income (loss): Stock-based compensation expense 11,423 12,463
Slide 29: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation in thousands 2019 2020 2021 GAAP Gross Margin $ 52,111 $ 51,281 $ 66,867 Adjustments to reconcile GAAP gross margin (loss) to non-GAAP gross margin: Stock-based compensation expense 3,185 3,454 2,563 Amortization of acquired technology 574 705 2,079 Non-G
Slide 30: Balance Sheet
Balance Sheet ($ '000) 2019 2020 2021 ASSETS Current assets: Cash and short-term investments 97,605 145,296 140,226 Accounts receivable, net 40,651 34,140 40,087 Prepaids and other current assets 9,320 13,944 8,194 Total current assets 147,576 193,380 188,507 Property, plant and equipment, net 40,79
Slide 31: © 2022 PDF Solutions, All Rights Reserved
© 2022 PDF Solutions, All Rights Reserved 31
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