Slide 1: Cognex Q4 2023 Financial Results
Cognex Q4 2023 Financial Results February 15, 2024 1 © 2024 Cognex Corporation
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this report, as well as oral statements made by the Company from time to time, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers can ide
Slide 3: Q4 2023 Overview
Q4 2023 Overview Continue to operate in a challenging, yet stable operating environment, while making strong progress on strategic initiatives. ▪ Q4 completed record year for new product introductions ▪ Reported revenue -18% Y/Y with most major end markets down, while Logistics remained stable ▪ F/X
Slide 4: Q4 2023 Financial Highlights
Q4 2023 Financial Highlights Revenue ($M) Adjusted Gross Margin Adjusted EBITDA Adjusted EPS Margin $239 $0.28 25.8% $197 71.1% 70.7% 12.6% $0.11 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 ▪ Reported revenue -18% ▪ Favorable: Less broker buys ▪ Operating de-leverage ▪ Decline dr
Slide 5: 2023 Financial Highlights
2023 Financial Highlights Revenue ($M) Adjusted Gross Margin Adjusted EBITDA Adjusted EPS Margin $1.33 $1,006 $838 72.0% 72.5% 28.7% $0.73 18.5% 2022 2023 2022 2023 2022 2023 2022 2023 ▪ Reported revenue -17% ▪ Favorable: Less broker ▪ Operating de-leverage ▪ Decline driven by lower ▪ F/X -1% / Mori
Slide 6: 2023 End Market Results
2023 End Market Results End Market % of Rev ‘23 vs. ‘22 Drivers • Base auto Auto 25% Down MSD • EV Battery • A few large e-commerce customers down significantly in 1H23; steady since 3Q22 Logistics 20% Down ~20% • Base logistics Consumer • Slowdown in capex investment at large customer 20% Down ~30%
Slide 7: 2023 Was Record Year for New Products
2023 Was Record Year for New Products • >2x as many products launched compared to recent years • DataMan® 580 enables higher-speed logistics operations • In-Sight ® 3800 provides edge learning at twice the speed as previous systems • In-Sight SnAPPTM brings new levels of ease, providing machine visi
Slide 8: Emerging Customer Initiative
Emerging Customer Initiative • Expanding salesforce to reach underpenetrated customers • Simplicity of new products driven by edge learning AI enables served market expansion • Opex investment of $28M in 2023 2024 Expectations • >$50 million revenue • Emerging Customer Salesnoid 2023 cohort is activ
Slide 9: Outlook
Outlook Metric Q1 2024 Full Year 2024 Expectations ▪ We expect challenging, yet stable operating environment to Revenue $190M to $205M continue through first-half, but momentum to build in back-half ▪ Logistics growth, but likely below long-term market growth Adjusted Gross Margin High 60% ▪ EV
Slide 10: Non-GAAP Metric Changes
Non-GAAP Metric Changes 10 © 2024 Cognex Corporation
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including adjusted gross margin, adjusted operating expense, adjusted operating income, adjusted EBITDA, adjusted net income, adjusted earnings per share of common stock, diluted, adjusted effective tax rate,
Slide 12: GAAP to Non-GAAP Tables
GAAP to Non-GAAP Tables USD $ in 000s unless noted as per share Reconciliation of Gross Margin to Adjusted Gross Margin Three-months Ended Full-year Ended Apr. 2, 2023 Jul. 2, 2023 Oct. 1, 2023 Dec. 31, 2023 Apr. 3, 2022 Jul. 3, 2022 Oct. 2, 2022 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 Gross Margi
Slide 13: GAAP to Non-GAAP Tables
GAAP to Non-GAAP Tables USD $ in 000s unless noted as per share Reconciliation of Operating Income to Adjusted EBITDA Three-months Ended Full-year Ended Apr. 2, 2023 Jul. 2, 2023 Oct. 1, 2023 Dec. 31, 2023 Apr. 3, 2022 Jul. 3, 2022 Oct. 2, 2022 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 Operating Inc
Slide 14: GAAP to Non-GAAP Tables
GAAP to Non-GAAP Tables USD $ in 000s unless noted as per share Reconciliation of Earnings Per Share to Adjusted Earnings Per Share Three-months Ended Full-year Ended Apr. 2, 2023 Jul. 2, 2023 Oct. 1, 2023 Dec. 31, 2023 Apr. 3, 2022 Jul. 3, 2022 Oct. 2, 2022 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022
Slide 15: Comparison of non-GAAP Adjustment Methodologies
Comparison of non-GAAP Adjustment Methodologies USD $ in 000s unless noted as per share Adjusted Operating Income Comparison of Old vs. New Methodology Three-months Ended YTD 3Q23 Year End Apr. 2, 2023 Jul. 2, 2023 Oct. 1, 2023 Dec. 31, 2023 Apr. 4, 2022 Jul. 3, 2022 Oct. 2, 2022 Dec. 31, 2022 1Q-3Q
Slide 16: Description of Adjustments
Description of Adjustments In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides various non-GAAP measures that incorporate adjustments for the impacts of special items. Adjustments incorporated in the preparation of these non-GAAP measures for the period
Slide 17: Description of Adjustments (Continued)
Description of Adjustments (Continued) Amortization of acquisition-related intangible assets: • The Company excludes the amortization of acquired intangible assets from non-GAAP expense and income measures. These items are inconsistent in amount and frequency and are significantly impacted by the ti