Pdf Solutions, Inc. · NASDAQ:PDFS
Pdf Solutions — Investor Day (October 2023)
33 slides from Pdf Solutions's investor day presentation, Oct 24, 2023
Slide 1: Financial Outlook
2023In PDF Solutions Collaboration with Analyst Day Santa Clara Marriott - 2700 Mission College Boulevard Santa Clara, California 95054 USA Financial Outlook 24th October 2023 © 2023 PDF Solutions, Inc. 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: Agenda
§ Industry Drivers and Overview of PDF Solutions § Market Size and Opportunities § PDF Progress Since Last Analyst Day § Opportunities Ahead © 2023 PDF Solutions, Inc. 3
Slide 4: Sustained, Long-Term Semi Growth
Sustained, Long-Term Semi Growth n AI is driving increasing data generation and data availability, which in turn is driving semiconductor revenue n Driven by AI, semi revenue expected to reach $1T+ by 2030 Sources: Applied Materials; IDC, April 2023 © 2023 PDF Solutions, Inc. 4
Slide 5: Inflection Points To Semi Growth
Inflection Points To Semi Growth Achieving the necessary semi growth requires overcoming new inflection points n New architectures & materials n Chiplets https://semiwiki.com/semiconductor- services/techinsights/316095-semicon-west- n Geographic disaggregation 2022-and-the-imec-roadmap/ https://www.
Slide 6: AI Enables Achieving Rapid Growth
AI Enables Achieving Rapid Growth n AI adoption across the semiconductor supply chain is a key component to efficiently achieving semi growth n Successful AI application requires: – Cross-supply chain data integration – The right data, not just more data – AI/ML model operations https://itif.org/pub
Slide 7: PDF's Vision & Mission Statements
PDF’s Vision & Mission Statements To be the world’s leading data and analytics platform spanning the Vision semiconductor and electronics ecosystems. Provide innovative solutions to create, access, and organize data to enable analysis and control for semiconductor and electronics Mission companies t
Slide 8: PDF Solutions Integrated Platform For Semiconductor Analytics
PDF Solutions Integrated Platform For Semiconductor Analytics Fully integrated solution to accelerate production ramp, improve overall yield and quality Growth drivers benefiting from PDF platform include: n AI driven actionable insights n New go-to-market paths via partnerships n Transition to auto
Slide 9: AI Is Transforming The PDF Platform Total Experience
AI Is Transforming The PDF Platform Total Experience Model Ops Predictive Modeling Burn-in Guided Analytics AIML Next Gen FDC Mission Control Center Guided Analytics 3.5% 2.1% 1.1% © 2023 PDF Solutions, Inc. 9
Slide 10: PDF Partnerships Connect The Industry
PDF Partnerships Connect The Industry § Exensio® Fab, Test, Assy, data integration with Test Pattern EDA layout & design for comprehensive E2E analytics § Cloud platform analytics partner for Semiconductor supply Cloud Analytics 78 Products chain solutions – over 78 products cloud ready Actionable i
Slide 11: Strategic Partnership Benefits For PDF
Strategic Partnership Benefits For PDF n Enables new PDF products and Engineering increases value from PDF platforms platform n Expands go-to-market via partner sales channels Equipment n Extends PDF to multiple buyer cohorts within customer base Enterprise platforms © 2023 PDF Solutions, Inc. 11
Slide 12: Automotive Electrification Growth Drivers For PDF
Automotive Electrification Growth Drivers For PDF n Unified analytics platform for quality, reliability and traceability n Silicon carbide (SiC) fabs ramp and production control n Battery factories production yield and reliability Image credit "Bing Image Creator" © 2023 PDF Solutions, Inc. 12
Slide 13: PDF Solutions Integrated Data Platform
PDF Solutions Integrated Data Platform Data Access & Integration Across the Value Chain Unique View to Data Sources in the Value Chain Exensio® Cimetrix® DFITM & CV ® Systems Analytics Platform Connectivity Platform Proprietary Data Sources Leading Analytics Differentiated Data Bridging the Supply C
Slide 14: The Opportunity For PDF Is Expanding
The Opportunity For PDF Is Expanding Established strong presence: n >125k equipment factory connections SYSTEM with over >40k process tools n >350 revenue generating customers in 32 countries through TTM Q2’23 EMS Strong product suite: n #1 commercial solution for manufacturing yield and control wit
Slide 15: Agenda
§ Industry Drivers and Overview of PDF Solutions § Market Size and Opportunities § PDF Progress Since Last Analyst Day § Opportunities Ahead © 2023 PDF Solutions, Inc. 15
Slide 16: Total Semiconductor Analytics TAM
Total Semiconductor Analytics TAM Potential value capture of analytics in Semiconductors Methodology ($ in billions) § Analytics as a portion of total R&D and COGS spending by Semiconductor Companies across $26.1 three categories: ’23-’30 CAGR § Fabless-Logic 9% § IDM $14.3 § Memory/Storage $10.4 §
Slide 17: Market Opportunity – PDF SAM
Market Opportunity – PDF SAM $3.0B n Today, market size is ~$2.6 B 2.0x vs. 2019 $2.5B n PDF total revenue is up 1.9x TTM Q2’23 vs. $2.0B 2019 n Analytics revenue is up Billions $ $1.5B ~$1.3 B 2.8x TTM Q2’23 vs. 2019 $1.0B n Growth drivers: – Adoption across supply $0.5B chain – ML & advanced solut
Slide 18: Agenda
§ Industry Drivers and Overview of PDF Solutions § Market Size and Opportunities § PDF Progress Since Last Analyst Day § Opportunities Ahead © 2023 PDF Solutions, Inc. 18
Slide 19: PDF Solutions – Overview Of Revenue Sources
PDF Solutions – Overview Of Revenue Sources Revenue Revenue Source Description Type Categories Perpetual Software (on premise) Exensio Analytics Big Data Analytics Platform Term-Based License Software and Hardware (on premise) SaaS (cloud) Analytics IP-based inline and end of line yield Differentiat
Slide 20: Revenue – Demonstrating Continued Shift To Analytics
Revenue – Demonstrating Continued Shift To Analytics n Strong revenue $163 M growth driven by: 20% CAGR $20 M – Conversion of pilot (Total Rev) programs – Move to cloud – Increasing number of $86 M multiple module $142 M customers $36 M 35% CAGR (Analytics) – Shift to subscription $50 M n Analytics
Slide 21: Strong Margin Progression Over Time
Strong Margin Progression Over Time Gross Margin EBIT Margin n Continued focus on +9% 74% revenue growth and 70% +13% 19% cost optimization strategies 65% – Non-GAAP Margins up 9% (Gross) and 13% 6% (EBIT) 61% 2% n Compared to long- term model communicated in -9% 2019, exceeding Gross Margin target
Slide 22: Recurring Revenue Contribution To Analytics Revenue
Recurring Revenue Contribution To Analytics Revenue n Recurring Analytics 68% revenue has expanded to nearly 70% based on the growth of SaaS, TBL and ratable solutions 45% n Perpetual, TBL upfront (e.g., ASC 606), and services, continues to grow and contribute to the balance of Analytics revenue Q4'
Slide 23: Growing Analytics Revenue Per Customer
Growing Analytics Revenue Per Customer (Excluding CCG) 1.85x $840 n Average Analytics revenue per customer, excluding Cimetrix, of $840K in TTM Q2’23 – up 1.85x $ In Thousands $455 vs 2019 n Drivers include: – Transition to Cloud – Ratable solutions – Multi-element deals 2019 TTM Q2'2023 © 2023 PDF
Slide 24: Wallet Share Expands With Increased Exensio Module Count
Wallet Share Expands With Increased Exensio Module Count Average Revenue by Number of Modules – Q2’23 n Multi-module 9.0x adoption by Exensio customers greatly increases wallet share Exensio Modules Revenue Multiplier n 4.8x include: – Manufacturing Analytics – Process Control – Test Operations 1.0x
Slide 25: Exensio Multi-Module Customer Spend Has Grown
Exensio Multi-Module Customer Spend Has Grown Sum of the Quarterly Average of Multi-Module Customer Revenue n Over 20% of Exensio module customers +68% $1,191 utilize 2 or more Exensio modules PDF has grown $ in Thousands n $708 revenues from multi- module contracts as customers buy more of our plat
Slide 26: PDF Has Scaled Revenues And Has Increased Profit Margins
PDF Has Scaled Revenues And Has Increased Profit Margins YoY TTM Revenue Growth + LTM Non-GAAP EBIT n Enterprise nature and 47% cross selling of products allows us to both scale revenue and increase profitability n Over the longer-term period we expect revenue growth + 6% operating profit metric to
Slide 27: Total And Current Backlog
Total And Current Backlog n PDF focused on both $244,907 growing backlog and creating a long-term revenue relationship with its customers $ in Thousands n Total backlog outpacing current backlog growth $51,890 44% provides increased 71% revenue visibility 2019 Q2'2023 Current Backlog Total Backlog ©
Slide 28: Disciplined Capital Allocation
Disciplined Capital Allocation n Capex investments Invest in Organic Invest in M&A to Return Capital to include DFI/eProbe, Stockholders through Growth Enhance Growth Stock Buyback CVi, IP, DEX network, and infrastructure n Cash balance has $90 Total, $84.1 increased while PDF: $80 – Invested in Cap
Slide 29: Agenda
§ Industry Drivers and Overview of PDF Solutions § Market Size and Opportunities § PDF Progress Since Last Analyst Day § Opportunities Ahead © 2023 PDF Solutions, Inc. 29
Slide 30: Long-Term Target Financial Model
Long-Term Target Financial Model As of 2019 As of 2023 Annual Analytics Revenue Growth 20% - Total Revenue Growth - >20% Non-GAAP Gross Margins >70% >75% Non-GAAP Operating Margin 20% 20% © 2023 PDF Solutions, Inc. 30
Slide 31: Additional Vectors Of PDF Growth
Additional Vectors Of PDF Growth DFI/eProbe Freemium Partnership Battery Adoption © 2023 PDF Solutions, Inc. 31
Slide 32: Summary – PDF Solutions
Summary – PDF Solutions Rapid Growth Disciplined Improved Capital Profitability Allocation Platform to Drive Stockholder Value Strong Increased Balance Sheet Visibility Enhanced Diversification © 2023 PDF Solutions, Inc. 32
Slide 33: Thank You
Thank You pdf-solutions pdfsolutionsinc pdfs.inc pdf_solutions pdfs_cn © 2023 PDF Solutions, Inc. 33