Slide 1: Enabling Semiconductor Design and Manufacturing Through AI, Digital Twin Modeling
Enabling Semiconductor Design and Manufacturing Through AI, Digital Twin Modeling, Software Innovation and Automation From Atoms to Systems APRIL 2024 Q2 2024 Earnings Presentation August 7, 2024
Slide 2: Disclaimer
Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments, of Silvaco Group, Inc. ("Silvaco" or the “Company”). The information contained
Slide 3: Silvaco At-A-Glance
Silvaco At-A-Glance Software platforms for digital twin modeling in semiconductor design & manufacturing 800+(1) → Silvaco is a provider of TCAD, EDA Customers software, and SIP solutions that enable semiconductor design and digital twin #2(2) modeling through AI software and Global TCAD revenue inn
Slide 4: Financial Overview
Financial Overview Consistent record of growth and margin expansion Q2 2024 FY 2023 R E V E NUE $15.0m $54.2m G R O S S MA R G IN 68% 83% O P E R AT I N G I N C O M E ( L O S S ) ($37.8m) $1.1m N O N - G A A P G R O S S M A R G I N (1) 86% 83% N O N - G A A P O P E R AT I N G I N C O M E (1) $1.7m $
Slide 5: From Atoms to Systems – Silvaco Solutions
From Atoms to Systems – Silvaco Solutions Foundation Interface IP Systems IP IP Management Circuits Design Technology Co-Optimiz at ion (DTCO) Silvaco SIP Devices Fab Technology Co-Optimiz at ion (FTCO ) Processes Silvaco EDA Atoms Silvaco TCAD ©2024 Silvaco Group, Inc. 5
Slide 6: Why Customers Choose Silvaco
Why Customers Choose Silvaco Electronic system design software is a crucial part of the semiconductor value chain TCAD Differentiated Platforms Adoption • Power 4 of 10 Largest SiC, GaN EDA • Display Power Device Adoption Providers (1) • Memory 7 of 10 EDA Largest Adoption flat panel display Deeply
Slide 7: Seasoned Management Team with Deep Industry Expertise
Seasoned Management Team with Deep Industry Expertise Average 35 year of experience Babak Taheri, Ph.D Ryan Benton Raul Camposano, Ph.D. Ian Chen Farhad Hayat CEO and Board Member. Chief Financial Officer Chief Technology Officer Chief Revenue Officer VP Global Mark eting Dr. Eric Guichard Ben Louie
Slide 8: Electronic Design and Manufacturing Software Enables Value Chain
Electronic Design and Manufacturing Software Enables Value Chain Silvaco is expanding market SAM using AI-based digital twin modeling & simulation Electronic System Design Digital Twin. Fab Technology Co-Optimization (FTCOTM) TAM(1) $17B(2) $90.6B(3) SAM(4) $3.1B(5) ~$0.5B(6) Design Fabrication Pack
Slide 9: A New Era of Semiconductor Design Challenges
A New Era of Semiconductor Design Challenges Complexity, New Materials, Go-to-Market Numerous Design Challenges…. …Facing Diverse End Markets / Applications Smaller process nodes Increasingly Complex Increased integration Requirements Memory HPC 5G IoT Automotive Compute Phones / GPUs Multi-core arc
Slide 10: Strong Industry Tailwinds Driving Adoption of Silvaco Platform
Strong Industry Tailwinds Driving Adoption of Silvaco Platform Emerging applications of digital twins and AI Industry adoption of new semiconductor materials (SiC and GaN) Photodetector New display technologies SiC, GaN for EV Flexible and Power Chargers Display µLED and Adoption of new photonics ma
Slide 11: Four Levels of AI in EDA Industry
Four Levels of AI in EDA Industry Silvaco is leveraging AI to close the gap between design and fabrication to improve yield Design Self-Optimizing Tools(1) Fab Assistant(2) Improve Performance of Existing Build Digital Twin of Fab Process Design Tools • Use manufacturing data to develop • Training f
Slide 12: Silvaco's AI-Driven Fab Technology Co-Optimization (FTCO)
Silvaco’s AI-Driven Fab Technology Co-Optimization (FTCO ) Removing cost of prototyping by utilizing AI-generated digital twin models Digital Twin AI-Driven AI-Based Data Generation Fab Data Mining Fab Modeling Model Optimization M ODEL Technology DoE Setup Electron Microscope View GOOD Wafer UNTI L
Slide 13: History of Acquisitions
History of Acquisitions Proven track record of identifying and integrating products and IP Atomistic TCAD TCAD Enter IP market Broaden Foundation IP Memory compiler IP portfolio creation and characterization SIP Variation SPICE netlist Silicon substrate Physical aware design analysis & analysis veri
Slide 14: Growth Strategy Summary
Growth Strategy Summary Growing in semiconductor and photonics markets Continue to expand presence Focus on large & growing markets across key end market Expand into advanced CMOS, Expand market specialized SIP, photonics, and further expansion with AI for Digital Twin Expand presence through Strate
Slide 15: Financial Overview
Financial Overview ©2024 Silvaco Group, Inc. 15
Slide 16: Highly Recurring, Visible Business Model with Multiple Growth Vectors
Highly Recurring, Visible Business Model with Multiple Growth Vectors Electronic system design software is a crucial part of the semiconductor value chain Global Presence A comprehensive and expanding international strategy 1H-24 that effectively meets diverse customer needs. Bookings FTCO Digital-T
Slide 17: Q2-24 Bookings Performance
Q2-24 Bookings Performance ($ in millions) Quarterly Bookings Trend Q2-24 Bookings by Product → Q2-24 Bookings up 36% from previous year including 10 New Customer Wins. → TCAD: Up $6.2 million and 78% from previous year driven by FTCOTM digital-twin modeling → Remaining Performance Obligation(1) of
Slide 18: Q2-24 Revenue Performance
Q2-24 Revenue Performance ($ in millions) Quarterly Sales Sales by Category Sales by Product % Sales by Country → Software License: Term- → TCAD: Up $2.6 million and → Americas: Up $3.9 million and Based licenses (averaging 34% from previous year driven 107% from previous year $15.9 3 years) and sem
Slide 19: Quarterly Financial Summary
Quarterly Financial Summary ($ in millions) Gross Profit and Gross Margin Operating Income (Loss) $13.9 $13.9 $3.3 $12.8 $2.4 88% 88% $1.7 $10.2 $10.2 $10.1 $0.8 86% ($0.2) Q2-23 Q1-24 Q2-24 81% 81% Q2-24 Comments Q2-24 includes– 68% → $21.8 million stock-based compensation (“SBC”): cost of revenue
Slide 20: Long-Term Financial Targets
Long-Term Financial Targets 2024 Long-Term Comments 2022 2023 Target(1) Guidance Revenue Growing Base Business with Multiple Additional Growth Strategies Growth 11% 17% 16% - 22% • Expanding global sales and support presence YoY • Increasing adoption of FTCO Digital-Twin Modeling Product • Strengthe
Slide 21: Financial and Business Highlights
Financial and Business Highlights Second Quarter 2024 Strong TCAD and EDA quarterly revenues with a key Introduced AI-based platform for our digital twin modeling FTCO digital-twin modeling product sale to memory known as FTCO , for wafer-level fabrication facilities. customer and ten new customer w
Slide 22: Financial Guidance
Financial Guidance Third Quarter 2024 Full Year 2024 Gross bookings in the range of $16.0 million to $18.0 Gross bookings in the range of $67.0 million to $71.0 million, which would represent a 28% to 44% increase from million, which would represent an 15% to 22% increase the third quarter of 2023.
Slide 23: Q&A
Q&A ©2024 Silvaco Group, Inc. 23
Slide 24: Thank you.
Thank you. ©2024 Silvaco Group, Inc.
Slide 25: Reconciliation—Non-GAAP Gross Profit and Gross Margin
Reconciliation—Non-GAAP Gross Profit and Gross Margin Appendix Three Months Ended ($ in thousands) June 30, 2023 March 31, 2024 June 30, 2024 Gross Profit $10,152 $13,916 $10,099 Add: Stock-based compensation — — 2,467 Amortization of acquired intangibles (1) — — 249 Non-GAAP Gross Profit $10,152 $1
Slide 26: Reconciliation—Non-GAAP Operating Income (Loss)
Reconciliation—Non-GAAP Operating Income (Loss) Appendix Three Months Ended ($ in thousands) June 30, 2023 March 31, 2024 June 30, 2024 Operating Income (Loss) ($205) $2,388 ($37,789) Add: Stock-based Compensation — — 21,829 Acquisition-related litigation claim and legal costs (1) 233 594 16,717 Amo