Slide 1: Q4 2023 Financial Results
SkyWater Technology (Nasdaq: SKYT) Q4 2023 Financial Results February 26, 2024
Slide 2: 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: SkyWater's Unique Model Accelerates Disruption
SkyWater’s Unique Model Accelerates Disruption WHO WE ARE Technology as a Service (TaaS) SM SM Innovation as a Service Manufacturing as a Service Advanced Technology Services (ATS) Wafer Services enable co-creation of differentiated solutions supply customers with ICs and which are the unique expres
Slide 4: Recent Business Highlights
Recent Business Highlights • Significantly exceeded long-term growth targets in fiscal 2023, led by strong growth in ATS development revenue, which exceeded 50% year-over-year. • Secured customer commitments for capital investment over the next several years, supporting continued year-over-year reve
Slide 5: Q4 2023 Financial Progress
Q4 2023 Financial Progress • Continued Strong Financial Performance ◦ Unprecedented sixth straight quarter of sequential Revenue growth ▪ 2023 revenues of $287 million up 35% year over year ◦ Six quarters of strong Gross Margins and positive Adjusted EBITDA ▪ 2023 Adjusted EBITDA of $37 million or 1
Slide 6: Q4 2023 Financial Summary
Q4 2023 Financial Summary In USD millions Q4 23 Q4 22 Y/Y Q3 23 Q/Q Revenue ATS Development $57.2 $47.8 19% $53.9 6% • Exceeded expectations, due to continued sequential growth in Revenue ATS development revenue and strong growth in tool revenue Tool Revenue $9.9 $0.0 nm $3.2 206% • Total revenue +2
Slide 7: 2023 Financial Summary
2023 Financial Summary In USD millions 2023 2022 Y/Y Revenue ATS Development • Growth exceeded long-term annual growth targets Revenue $210.9 $137.9 53% • Total revenue +35% YoY ◦ Total ATS revenue growth of 62% YoY reflects strong customer Tool Revenue $14.7 $1.5 848% demand as well as higher tool
Slide 8: Six Quarters of Sequential Revenue Growth
Six Quarters of Sequential Revenue Growth 2023 Total Revenues up 35% Over Prior Year in USD $ millions +6% (3)% * Q4 2022 and Q2 2023 ATS development revenue excludes impact of modified customer contracts † Q1 2022 wafer services revenue excludes impact of modified customer contracts Proprietary 8
Slide 9: Total ATS Revenue by Customer
Total ATS Revenue by Customer (each color band is a distinct customer) • Total ATS revenue totaled a record $67.1M in Q4 2023 and $225.6M in FY 2023 ◦ 40% growth from Q4 2022 to Q4 2023 and 62% growth from FY 2022 to FY 2023 ◦ Total ATS revenue included tool revenue of $9.9M in Q4 2023 and $14.7M in
Slide 10: Improving Profitability and Cash Flow Metrics
Improving Profitability and Cash Flow Metrics Sixth Straight Quarter of Positive Adjusted EBITDA; 2023 Adjusted EBITDA = 13% of Revenue in USD $ millions * Q4 2022 and Q2 2023 Net Loss and Adjusted EBITDA included $4.7M and $3.6M revenue events with no associated costs, respectively. Proprietary 10
Slide 11: 2024 Business Outlook
2024 Business Outlook • We expect to achieve solid year-over-year growth in ATS development revenue. ◦ We entered 2024 with strong momentum in our ATS development business, which we expect to continue. ◦ The strong demand for our ATS development business demonstrates that our customers’ innovation i
Slide 12: Se SKyWwater
Se SKyWwater
Slide 13: 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 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation We continuously evaluate the non-GAAP financial measures we use, the manner in which non-GAAP financial measures are calculated, and the adjustments we make to GAAP results to derive our non-GAAP financial measures. In the third quarter of 2023, we made the following
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 GAAP revenue $48,101 $41,189 $35,025 $38,533 $162,848 $48,121 $47,407 $52,326 $65,087 $212,941 $66,094 $69,811 $71,624 $79,154 $286,682 GAAP cost of revenue $38,935 $39,377 $36,852 $55,156 $170,320 $49,061 $45,327 $44
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 GAAP selling, general and administrative expense $ 8,603 $ 15,415 $ 9,626 $ 9,951 $ 43,595 $ 11,690 $ 10,795 $ 10,778 $ 13,040 $ 46,303 $ 14,895 $ 17,820 $ 16,105 $ 15,092 $ 63,911 Equity-based compensation (108) (4,4
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Equity-based compensation allocation in the consolidated statements of operations: Cost of revenue $ 118 $ 827 $ 967 $ 1,130 $ 3,042 $ 1,125 $ 546 $ 456 $ 452 $ 2,578 $ 513 $ 291 $ 438 $ 313 $ 1,555 Research and devel
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 Net loss to shareholders $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) $ (8,590) $ (7,568) $ (10,325) $ (30,756) Interest expense 1,058 912 733 839
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Q4 2023 GAAP EPS Numerator: Net loss attributable to SkyWater Technology, Inc. $ (2,811) $ (6,979) $ (13,870) $ (27,036) $ (50,696) $ (16,606) $ (13,005) $ (6,939) $ (3,041) $ (39,593) $ (4,273) $ (8,590) $ (7,568) $ (10,325)