Napatech A/s · OSL:NAPA
Napatech A/s — Q4 2024 Earnings Presentation
22 slides from Napatech A/s's earnings presentation, Mar 2, 2025
Slide 1: Interim Management Statement 4Q-2024
Interim Management Statement 4Q-2024 Lars Boilesen, CEO Heine Thorsgaard, CFO February 26, 2025 NAPATECH A/S © COPYRIGHT 2025
Slide 2: Q&A Session
Q&A Session Following the presentation DK: +45 89 87 50 45 NO: +47 81 50 33 08 US: +1 646 787 9445 UK: +44 20 3936 2999 Participant Access Code: 645165 To ask a question, press * 1 on your telephone keypad To withdraw your question, press * 2 Texted question can be submitted using the button on the
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by Napatech A/S (the “Company”) solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various fo
Slide 4: Agenda
Agenda • Business Status 4Q and FY 2024 • Business Outlook • Financial Review and Outlook • Q&A Session 4 NAPATECH A/S © COPYRIGHT 2025
Slide 5: Business Status and Outlook
Business Status and Outlook 5 NAPATECH A/S © COPYRIGHT 2025
Slide 6: Business Status – 4Q and FY 2024
Business Status – 4Q and FY 2024 4Q-2024 and FY-2024 Financial Results: Napatech Strategic Plan: Revenue: (4Q) $5.4M USD (2024) $16.8M USD Gross Margin: (4Q) 65% (2024) 68% • Retain and expand our valuable installed base of customers 4Q and 2024 Highlights: • Extended collaboration agreement with In
Slide 7: Napatech At A Glance: Programmable Network Interface Cards
Napatech At A Glance: Programmable Network Interface Cards A D A Infrastructure Processing Unit Link E B SmartNIC B D Think C GPU or FPGA for AI D Memory chip C E E Central Processing Unit D F Server F Napatech’s Programmable NICs play a crucial role … providing access to CPUs and GPUs resources ✓ i
Slide 8: Market Opening For Large Growth
Market Opening For Large Growth PROGRAMMABLE NIC ORIGINS Hyperscale Equipment Cloud Operators Manufacturers Next-Wave Cloud Operators Fortune-500 Telecomm Enterprises Operators “Generative AI will drive Ethernet and Adapter and Government Fortune-5000 SmartNIC market to surpass $16B by 2028” - Dell’
Slide 9: Industry Megatrends Fueling Projected Market Growth
Industry Megatrends Fueling Projected Market Growth ARTIFICIAL INTELLIGENCE CLOUD-EDGE COMPUTING 5G MOBILE INFRASTRUCTURE CYBERSECURITY FINTECH BIG DATA ANALYTICS MONITORING & RECORDING Industry Megatrends Are The Launchpad For Programmable NICs New customers and projects regularly emerging that req
Slide 10: Applications Emerging
EXAMPLE APPLICATIONS: Base Business New Design Wins Applications Emerging Pipeline Opportunities Application Performance Monitoring >50 Design Wins SIEM Network Performance Monitoring Market Simulation Intrusion Detection Packet Caaaaaaapture Low Latency Trading Data Loss Prevention Test & Measureme
Slide 11: Programmable NICs: Early Winners Emerged
Programmable NICs: Early Winners Emerged TIME REQUIREMENTS FOUNDATIONAL NIC OFFLOAD NIC PROGRAMMABLE NICs Street Name Basic NIC SmartNIC SmartNIC DPU IPU Processing Controller, ASIC, FPGA, ASIC ASIC FPGA Engines ARM-SOC, x86 SOC Onboard CPU Scalability CPU Offload HW Programmable SW Programmable Thr
Slide 12: Programmable NIC Product Strategy
Programmable NIC Product Strategy Napatech production grade solutions target high growth APPLICATION applications and services in DRIVEN modern networks SOFTWARE FOCUSED Programmable NIC Software Link-Capture In success, people choose Napatech because we have the Link-Inline solution-focused softwar
Slide 13: Validation From New Pipeline Opportunities and Design Wins
Validation From New Pipeline Opportunities and Design Wins CURRENT BUSINESS Q4 DESIGN WINS • >400 unique customers in past 2 years • 8 design wins • Strong signals returning to base levels • Spanning cybersecurity, monitoring, 5G, telecom • Primary customers depleting built-up inventory • Potential
Slide 14: Solution Spotlight – Artificial Intelligence Infrastructure
Solution Spotlight – Artificial Intelligence Infrastructure • AI inferencing Vendor • AI infrastructure back end • High-volume production • N3070X SW and HW “Traditional Front-end Networks Remain Vital as AI Back-end Network Investment Skyrocket ” - Dell’Oro Feb 2024 14 NAPATECH A/S © COPYRIGHT 2025
Slide 15: Solution Spotlight: 5G Mobile Packet Core (UPF)
Solution Spotlight: 5G Mobile Packet Core (UPF) JANUARY 18: https://infohub.delltechnologies.com/en-us/l/telecom-co-innovation/dell- xr8000-server-based-solution-for-distributed-5g-upf-with-traffic-steering/ FEBRUARY 11: https://www.redhat.com/en/blog/unlocking-potential-5g-edge FEBRUARY 18: 15 NAPA
Slide 16: Please Visit Us At Mobile World Congress 2025
Please Visit Us At Mobile World Congress 2025 • WHEN: March 3-6, 2025 (Mon-Thurs) • WHERE: Barcelona, Spain • ACCESS: Napatech guest passes available • SOLUTIONS: 5G Core UPF Acceleration Network Performance Monitoring Application Performance Monitoring Lawful Interception Signaling Gateways Cyberse
Slide 17: Financial Review and Outlook
Financial Review and Outlook 17 NAPATECH A/S © COPYRIGHT 2024
Slide 18: Consolidated Income Statement Q4 2024
Consolidated Income Statement Q4 2024 Key Developments Q4 FY Q4 FY DK K '000 2024 2023 2024 2023 ∆ ∆ • Revenue in Q4 is up 11% compared to Q3 but Revenue 37,678 58,081 116,408 182,674 -35% -36% Cost of goods sold (13,069) (12,483) (37,049) (49,126) down 35% compared to Q4’23. Gro ss pro fit 24,609 4
Slide 19: Consolidated Cash Flow Statement Q4 2024
Consolidated Cash Flow Statement Q4 2024 Q4 FY Key Developments DK K '000 2024 2023 2024 2023 Earnings before tax (EBT) (23,526) (2,198) (117,087) (36,445) Adjustments to reconcile profit before tax to net cash flows 9,565 10,886 41,733 38,543 • Net Cash flow from operating activities in Q4 Working
Slide 20: 2025 Expectations
2025 Expectations • Napatech’s financial expectations for 2025 are as follows: Guidance Revenue DKK 150-190m Gross margin 69-71% Staff expenses & Other external costs DKK 170-180m Transferred to capitalized development costs DKK 8-12m • With performance in the middle of the guided ranges in 2025, EB
Slide 21: Q&A Session
Q&A Session Following the presentation DK: +45 89 87 50 45 NO: +47 81 50 33 08 US: +1 646 787 9445 UK: +44 20 3936 2999 Participant Access Code: 645165 To ask a question, press * 1 on your telephone keypad To withdraw your question, press * 2 Texted question can be submitted using the button on the
Slide 22: Stay Connected With Napatech
Stay Connected With Napatech On The Web: Social Media: Other News: www.google.com/alerts https://newsweb.oslobors.no/ www.napatech.com www.napatech.com/newsletter 22 NAPATECH A/S © COPYRIGHT 2025