Slide 1: Financial Results for Q4 and Full Year 2024
Financial Results for Q4 and Full Year 2024 January 30, 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: Q4'24 and 2024 Summary
Q4’24 and 2024 Summary Q4 Sales of $753M, Non-GAAP EPS of $0.95, 2024 Sales of $2,820M, Non-GAAP EPS of $3.22 2021 2022 2023 2024 $4.0B $7.00 $1,200 Sales EPS $3.5B $3.7B $6.00 $5.98 $1,000 $3.0B $3.1B $3.2B $5.00 $2.8B $800 $2.5B $4.62 $2.7B $4.25 $4.00 $2.3B $600 $2.0B $2.1B $3.22 $3.00 $1.5B $2.8
Slide 5: Q4'24 and 2024 Summary & 2025 Full Year Outlook
Q4’24 and 2024 Summary & 2025 Full Year Outlook Q4 Summary 2024 Summary 2025 Outlook and Mid-Term Earnings Model 2025 ATE TAM growth ~5%, share growth low-single digits driven by Q4’24 sales of $753M and non- Total Company revenue $2.8B up 8% YoY VIP Compute and modest second half recovery in Mobile
Slide 6: Fourth Quarter and Full Year 2024 Financial Results, Mid-Term Earnings Model Update and First Quarter 2025 Guidance
Fourth Quarter and Full Year 2024 Financial Results, Mid-Term Earnings Model Update and First Quarter 2025 Guidance Sanjay Mehta, Vice President and Chief Financial Officer 6
Slide 7: Q4'24 Key Highlights
Q4’24 Business Unit Summary Semiconductor Other Product Test Robotics Test (w/IST) (System Test and Wireless Test) Q4’24 Sales $561M $98M $94M Sales up 28% vs Q4’23 excl. DIS, (22% as Sales up 11% QoQ but down 24% from Sales up 14% vs Q4’23 Q4’23 Q4’24 Key Highlights reported) Strength in connectivi
Slide 8: Q4'24 Non-GAAP Results
Q4’24 Non-GAAP Results $ in millions, except EPS Q4’23 Actual(1) Q3’24 Actual(1) Q4’24 Actual(1) Sales $671M $737M $753M Gross Margin 56.6% $380M 59.7% $440M 59.4% $447M R&D 15.2% $102M 15.9% $117M 17.1% $128M SG&A 21.2% $142M 21.4% $158M 20.7% $156M OPEX 36.5% $245M 37.3% $275M 37.8% $284M Operatin
Slide 9: Annual Non-GAAP Results
Annual Non-GAAP Results $ in millions, except EPS 2023(1) 2024(1) Sales $2,676M $2,820M Gross Margin 57.4% $1,537M 58.6% $1,653M R&D 15.6% $418M 16.3% $461M SG&A 21.4% $571M 21.8% $615M OPEX 37.0% $990M 38.2% $1,076M Operating Profit 20.4% $547M 20.4% $576M Income Taxes (& effective tax rate) 15.5%
Slide 10: 2024 Key Highlights
2024 Business Unit Summary Semiconductor Other Product Test Robotics Test (w/IST) (System Test and Wireless Test) Sales 2024 $2,124M $365M $331M Sales up 12.5% vs 2023, excl. DIS (9% Sales down 3% from 2023 Sales down 4% vs 2023 as reported) 2024 Key Highlights Continued end-market weakness in Syste
Slide 11: Q1'25 Non-GAAP Guidance
Q1’25 Non-GAAP Guidance $ in millions, except EPS Q4’24 Actual(1) Q1’25 Guidance(1) Sales $753M $660M - $700M Gross Margin 59.4% 58.5% - 59.5% OPEX 37.8% 42.5% – 41.5% Operating Profit 21.7% 16.0% - 18.0% Effective Tax Rate 7.6% 15.0% EPS $0.95 $0.58 - $0.68 Diluted Shares 163M 163M (1) See attached
Slide 12: Balance Sheet & Capital Allocation
Balance Sheet & Capital Allocation Q4’23 Q3’24 Q4’24 $ in millions Actual Actual Actual Cash and Marketable Securities $937M $678M $724M Inventory $310M $297M $298M DSO 57 Days 60 Days 58 Days Capital Additions $44M $52M $57M Depreciation and Amortization(1) $40M $45M $49M Free Cash Flow(2) $204M $1
Slide 13: Teradyne Non-GAAP 2028 Earnings Model
Teradyne Non-GAAP 2028 Earnings Model 27% EPS CAGR from ‘24 to ‘28 at Mid-Point Financial Model(1)(2) 2024 2028E (New Model) 2024 Sales Mix 2028E Sales Mix(3) TER Revenue ($M) $2,820 $4,500 $5,500 =$2,820M =$5,000M Growth off 2024 12% 18% Gross Margin % 59% 59% 60% OPEX % 38% 31% 28% Operating Profi
Slide 14: Q4'24 and 2024 Summary & 2025 Full Year Outlook
Q4’24 and 2024 Summary & 2025 Full Year Outlook Q4 Summary 2024 Summary 2025 Outlook and Mid-Term Earnings Model 2025 ATE TAM growth ~5%, share growth low-single digits driven by Q4’24 sales of $753M and non- Total Company revenue $2.8B up 8% YoY VIP Compute and modest second half recovery in Mobile
Slide 15: Supplemental Information
Supplemental Information 15
Slide 16: Semiconductor Test TAM Estimates
Semiconductor Test TAM Estimates Semi ATE TAM Est. Ranges 2023 Historical Estimate 2024 Historical Estimate 2025 TAM Est as of 1/25 ($ in billions) SOC $4.0 $4.6 $4.7 – $5.1 Memory $0.9 $1.4 $1.3 – $1.5 Total Semi ATE $4.9 $6.0 $6.0 - $6.6 Semi ATE TAM Est. Mid-Point 2023 Historical Prior 2024 Curre
Slide 17: Historical Revenue (Segment Changes)
Historical Revenue (Segment Changes) Q4’23 FY2023 Q1’24 Q2’24 Q3’24 Q4’24 FY2024 SemiTest $460M $1,957M $435M $560M $569M $561M $2,124M Robotics $129M $375M $88M $90M $89M $98M $365M All Other (Product Test): System Test Group $57M $200M $53M $43M $48M $58M $201M Wireless $25M $144M $25M $36M $33M $
Slide 18: History of Capital Allocation
History of Capital Allocation Since 2015, 80M shares repurchased at an average price of ~$50 per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Cumulative ($M) Buybacks(1) 300 146 200 823 500 88 600 752 401 199 4,009 Dividends 51 49 55 67 61 66 66 70 68 76 630 Acquisitions/Investments (2) 2
Slide 19: Semiconductor Test Market Growth Trends Are Favorable
Semiconductor Test Market Growth Trends Are Favorable Semiconductor Test (1) SOC market powered (2) by unit growth, complexity, new technology adoption Memory test driven by bit growth, diversity, higher bandwidth (2) (1) SOC data includes product and service; market data from SEMI WWSEMS report and
Slide 20: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | 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
Slide 21: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 21
Slide 22: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 22
Slide 23: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 23
Slide 24: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 24
Slide 25: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 25
Slide 26: Appendix | GAAP to Non-GAAP Reconciliation
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Slide 27: Appendix | GAAP to Non-GAAP Reconciliation
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Slide 28: Appendix | GAAP to Non-GAAP Reconciliation
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Slide 29: Appendix | GAAP to Non-GAAP Reconciliation
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Slide 30: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 30
Slide 31: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 31
Slide 32: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 32
Slide 33: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 33
Slide 34: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 34
Slide 35: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 35
Slide 36: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 36
Slide 37: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation Q4'23 Q3'24 Q4'24 Q1'25 Low Guidance Q1'25 High Guidance #039;s % of sales #039;s % of sales #039;s % of sales #039;s % of sales #039;s % of sales GAAP Operating Expenses $255 38% $284 39% $294 39% $293 44% $299 43% Intangible Asset Amortization -$5 -1% -$5 -1% -$5 -1% -$
Slide 38: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation • Teradyne determines non-GAAP operating cash flow (“Free Cash Flow”) by adjusting GAAP cash flow from operations excluding discontinued operations, less property, plant and equipment additions. Free cash flow is considered a non-GAAP financial measure. Ter
Slide 39: Appendix | GAAP to Non-GAAP Reconciliation
Appendix | GAAP to Non-GAAP Reconciliation 2028 Model Range FY 2028 Low FY 2028 Mid FY 2028 High 2028 Estimated GAAP Diluted EPS $ 6.81 $ 8.06 $ 9.31 Add Back Intangible Asset Amortization $ 0.19 $ 0.19 $ 0.19 2028 Estimated Non-GAAP Diluted EPS $ 7.00 $ 8.25 $ 9.50 39