Skywater Technology, Inc. · NASDAQ:SKYT
Skywater Technology — Q1 2024 Earnings Presentation
22 slides from Skywater Technology's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Financial Results
Q1 2024 Financial Results May 8, 2024 Earnings Call Presentation
Slide 2: SkyWater Technology Forward-Looking Statements
SkyWater Technology Forward-Looking Statements This presentation and the accompanying oral presentation, including answers to questions, contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on the Compan
Slide 3: Q1 2024 Results Overview
Q1 2024 Results Overview • Record revenue of $79.6 million • ATS development revenue reached a new record $61.2 million • Up 7% from Q4 and up 28% compared to Q1 of 2023 • Sequential growth driven by continued strength in aerospace and defense, quantum computing, and bio-medical programs • Wafer Ser
Slide 4: Recent Business Highlights
Recent Business Highlights • Record Q1 Advanced Technology Service (ATS) development revenue exceeded expectations due to continued strong progress in multiple ATS programs within both the aerospace and defense and commercial end markets. • Our recent collaboration with Lumotive to start production
Slide 5: CMOS + X Standard technology modification and customization drives product differentiation
Blank Wafer CoL 1 Prototype wafer CoL 2 CoL 3a CMOS + X CoL 3b CoL 3c Cycles of learning through Advanced Technology Standard technology modification and Services development enable customers to customization drives product differentiation demonstrate and scale new ideas ©2024 SkyWater Technology. P
Slide 6: Macro Trends Driving SkyWater's Business
Macro Trends Driving SkyWater’s Business Aerospace & Defense Market Commercial Markets • Our work with commercial ATS customers is focused on shifts in how the world will compute, communicate, diagnose, and drive industry efficiencies into the future • These include the creation of device categories
Slide 7: Business Model with Strong Operating Leverage
Business Model with Strong Operating Leverage Minimal Ongoing Depreciation in CoR Significant Co-Investment by Customers Depreciation & Amortization Relative to Revenue † Tool funding incorporated in contract awards $100 20% through 2023 $ 76 Tools revenue recognized 2020-2023 44 Depreciation & Amor
Slide 8: Q1 Financial Review
Q1 Financial Review 2 skywater
Slide 9: Revenue Summary
Revenue Summary In USD millions Q1 2024 Q4 2023 Q/Q Q1 2023 Y/Y ATS Development Revenue $61.2 $57.2 7% $47.8 28% Wafer Services Revenue $10.0 $12.0 (17)% $17.8 (44)% Tools Revenue $8.5 $9.9 (15)% $0.5 nm Total Revenue $79.6 $79.2 1% $66.1 20% nm - Not Meaningful • Record ATS Development revenue driv
Slide 10: Gross Margin Summary
Gross Margin Summary In USD millions Q1 2024 Q4 2023 Q/Q Q1 2023 Y/Y GAAP Gross Profit $13.0 $12.0 8% $16.5 (21)% GAAP Gross Margin 16.3% 15.2% 110 bps 24.9% (860) bps Adjustments: Equity-Based Compensation $0.5 $0.3 45% $0.5 (11)% Business Transformation Costs $— $0.8 (100)% $— nm Restructuring Cos
Slide 11: Adjusted EBITDA Summary
Adjusted EBITDA Summary In USD millions Q1 2024 Q4 2023 Q/Q Q1 2023 Y/Y Net Loss $(5.7) $(10.3) (45)% $(4.3) 34% Interest Expense $2.4 $2.9 (18)% $2.5 (3)% Income Tax (Benefit) $— $(0.5) (109)% $— 100% Depreciation and amortization $5.1 $7.3 (30)% $7.4 (31)% EBITDA $1.8 $(0.6) (395)% $5.6 (68)% Adju
Slide 12: Revenue Trend
Revenue Trend Trailing 12 Months Revenue Now Exceeds $300M in USD $ millions $79.2 $79.6 $286.7 $69.8 $71.6 $65.1 $66.1 $212.9 $52.3 $48.1 $47.4 +6% (3)% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 2022 2023 ATS development revenue * Wafer Services revenue † Revenue impac
Slide 13: Adjusted EBITDA and Non-GAAP Net Loss Trend
Adjusted EBITDA and Non-GAAP Net Loss Trend $10.3 $10.3 $10.6 $37.2 $8.1 $4.8 $4.9 $3.8 $7.7 $(1.6) $(1.5) $(1.1) $(2.4) $(2.0) $(2.2) $(3.7) $(7.7) $(4.8) $(5.1) $(10.7) $(30.3) $(13.0) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 2022 2023 Non-GAAP Net Loss Adjusted EBIT
Slide 14: Business Outlook
Business Outlook Revenue growth expectations for the full year are largely unchanged since our February earnings call • We continue to expect ATS development growth in the range of 10% to 20% over 2023 • Tools revenue expected to increase to at least $70 million • Wafer Services revenue expected to
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 15
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We provide supplemental, non-GAAP financial information that our management regularly evaluates to provide additional insight to investors as supplemental information to our results reported using U.S. generally accepted accounting principles (GAAP). We provide non-GA
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 GAAP revenue $ 48,121 $ 47,407 $ 52,326 $ 65,087 $212,941 $ 66,094 $ 69,811 $ 71,624 $ 79,154 $286,682 $ 79,636 GAAP cost of revenue $ 49,061 $ 45,327 $ 44,049 $ 48,536 $186,973 $ 49,626 $ 53,144 $ 57,477 $ 67,143 $227,390 $ 66,656
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 GAAP selling, general and administrative expense $ 11,690 $ 10,795 $ 10,778 $ 13,040 $ 46,303 $ 14,895 $ 17,820 $ 16,105 $ 15,092 $ 63,911 $ 11,169 Equity-based compensation (1,866) (1,444) (1,128) (995) (5,433) (1,178) (1,459) (1,
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Equity-based compensation allocation in the consolidated statements of operations: Cost of revenue $ 1,125 $ 546 $ 456 $ 452 $ 2,578 $ 513 $ 291 $ 438 $ 313 $ 1,555 $ 455 Research and development expense 225 128 115 126 596 162 217
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 Net loss to shareholders $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) Interest expense 1,029 1,040 1,331 2,895 6,295 2,471 2,950 2,507 2,898 10,826 2,390 Income
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Q1 GAAP EPS Numerator: Net loss attributable to SkyWater Technology, Inc. $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) $ (5,729) Denominator: Weighted-average common shares o
Slide 22: SkyWater
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