Kla Corporation · NASDAQ:KLAC
Kla — Q2 2025 Earnings Presentation
19 slides from Kla's earnings presentation, Jan 30, 2025
Slide 1: Q2 Fiscal 2025 Earnings
Q2 Fiscal 2025 Earnings Quarter Ended December 31, 2024 • Reported January 30, 2025 KLA Non-Confidential | Unrestricted 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this letter other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors and WFE; (ii) our market position for the future and future growth in demand for our products; (iii) our forecast of financial measures fo
Slide 3: Calendar 2024 – A Record Year In Review
Calendar 2024 – A Record Year In Review 12% 6% Revenue Growth FCF Growth* Revenue $10.85B FCF $3.4B 61.4% 34% Gross Profit Margin* Net Income Margin* Gross Profit* $6.7B EPS* $27.37** 40.6% (Top) The 39xx Series “GEN 5” has played a critical role in defect discovery for $2.9B Operating Profit Margin
Slide 4: KLA's 2025 Priorities
KLA’s 2025 Priorities Support Our Deliver on Critical Drive productivity Customers Programs KLA Non-Confidential | Unrestricted 4
Slide 5: The KLA Operating Model
The KLA Operating Model Consistent Strategy and Execution Application of common processes and discipline Cascades throughout the organization Strong focus on talent development Management By Metrics Culture of performance and accountability Expectation of continuous improvement Superior
Slide 6: December Quarter 2024 Income Statement Highlights
December Quarter 2024 Income Statement Highlights $3.1B 61.7% 42.3% $1.1B Revenue Gross Margin* Operating Margin* Net Income* $8.20 (Right) The KLA 295x Series or “GEN4” Non-GAAP Diluted EPS is the industry-standard for inline monitoring. It pairs sensitivity with optical wafer defect inspection spe
Slide 7: Breakdown of Revenue by Reportable Segments and End Markets
Breakdown of Revenue by Reportable Segments and End Markets Revenue Y/Y Q/Q Quarterly Revenue CY24 Q2-FY25: Q2-FY25 Growth Growth Revenue % CY24 Growth Semi Process Control End Market Semiconductor System Revenue 2 Process Control $2,755 +26% +7% 90% $9,735 +13% (Systems + Services) 76% Specialty Se
Slide 8: Breakdown of Revenue by Major Product and Regions
Breakdown of Revenue by Major Product and Regions Q2-FY25 Revenue Y/Y Q/Q Quarterly Revenue CY24 Q2-FY25 Growth Growth Revenue % CY24 Growth Revenue by Region Wafer Inspection $1,563 +34% +14% 51% $5,088 +22% 9% 4% Patterning $531 +23% -8% 17% $2,189 +1% 29% Specialty Semi Process $143 +5% +27% 5% $
Slide 9: Strong Investment Grade Balance Sheet
Strong Investment Grade Balance Sheet Balance Sheet Summary 1 ($M) Bond Maturity Profile Investment Grade Credit Ratings Total Cash2 $ 3,780 Bonds Outstanding $5.95B Moody’s A2 Working Capital $ 5,634 Weighted Average Total Assets $ 15,002 4.67% S&P A- Interest Rate Debt3 $ 5,882 Weighted Average 19
Slide 10: FCF Generation Fuels Consistent Capital Return to Shareholders
FCF Generation Fuels Consistent Capital Return to Shareholders Free Cash Flow 1 and FCF Margin 2 Investment Market in Growth and Leadership and $3.4 New Products Differentiated $3.2 Solutions $3.0 $2.5 Value Creation $1.8 $1.3 33% $1.2 Capital Returns Strong Margins 31% 31% 30% to Shareholders and F
Slide 11: Return to Shareholders Across Both Share Repurchases & Dividends
Return to Shareholders Across Both Share Repurchases & Dividends Share Repurchases - Last 5 Years 1 Track Record of Dividend Increases September 2024: Announced 15th consecutive annual dividend increase, up 17% to $1.70/share from $1.45/share 6.80 6.05 4,483 ~$371 ~15% 4.70 5.35 Avg price per share
Slide 12: Free Cash Flow and Capital Return Highlights
Free Cash Flow and Capital Return Highlights $650M $757M December Quarter Share Buyback December Quarter Free Cash Flow* $2.06B CY24 Share Buyback 25% December Quarter FCF Margin* $227M December Quarter Dividends Paid 69% December Quarter FCF Conversion* (Above) Surfscan® SP7XP is an advanced wafer
Slide 13: Guidance for Q3 FY2025 – March 2025 Quarter
Guidance for Q3 FY2025 – March 2025 Quarter March 2025 Quarter Guidance Macro Assumptions Revenue $3.0B +/- $150M Semi PC Revenue By End Market Foundry/Logic: ~73% Non-GAAP 62% +/- 1% Memory: ~27% DRAM ~75% | NAND ~25% Gross Margin* Model Assumptions GAAP Diluted Non-GAAP Operating Expenses*
Slide 14: Appendix
Appendix Reconciliation of Financial Results
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 15
Slide 16: Reconciliation of Free Cash Flow and Related Metrics
Reconciliation of Free Cash Flow and Related Metrics KLA Non-Confidential | Unrestricted 16
Slide 17: Reconciliation of Guidance
Reconciliation of Guidance Q3 FY2025 Guidance Range: KLA Non-Confidential | Unrestricted 17
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 18
Slide 19: KLA Non-Confidential | Unrestricted
KLA Non-Confidential | Unrestricted 19