Pdf Solutions, Inc. · NASDAQ:PDFS
Pdf Solutions — Investor Presentation (November 2020)
30 slides from Pdf Solutions's investor presentation, November 2020
Slide 1: Investor Presentation November 2020
Investor Presentation November 2020 John Kibarian, President & CEO, Co-Founder Kimon Michaels, Executive VP, Products and Solutions, Co-Founder Adnan Raza, Executive VP, Finance & CFO © 2020 PDF Solutions, All Rights Reserved 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: PDF Solutions Overview
PDF Solutions Overview ◼ PDF is an analytics company that provides products, services, and systems designed to improve process efficiency and product reliability for the semiconductor supply chain ◼ PDF uniquely provides: – Products and services for the end-to-end data analytics needs of the semicon
Slide 4: Building a Platform for Success
Building a Platform for Success - Analytics revenue CAGR of 24% from 2018 through TTM Q3 2020 GROWTH - Analytics are 64% of total revenues in TTM Q3 2020 vs 58% in CY 2019, 45% in CY 2018 - 59% GAAP and 63% non-GAAP gross margins for Q3 2020 PROFITABILITY - Total company non-GAAP gross margins conti
Slide 5: Overview
Overview ◼ Exensio® Software – End to End Analytics platform for electronics supply chain Software ◼ Differentiated Data – DFI™ system IP (including eProbe® hardware) – CV® infrastructure (including pdFasTest®) Hardware – Intellectual Property (proprietary test structure) ◼ Professional Services – E
Slide 6: PDF Business Models
PDF Business Models In ‘000 Average Analytics revenue per customer $500 ◼ PDF has a long history of providing solutions combining $450 $400 $353 advanced analytics and differentiated data $300 ◼ PDF has two business models to capture the value of our $200 products, services, and systems $100 $0 2018
Slide 7: Value Shifting to Mass Production
Value Shifting to Mass Production Foundries on Leading Edge Foundry Market By Node 25 20 15 10 5 0 www.techrepublic.com/article/moores-law-is-dead-three-predictions-about-the-computers-of-tomorrow node ◼ Trends: – Moore’s Law is slowing down, and foundry business is consolidating due to process comp
Slide 8: Data and Analytics Growing in Importance
Data and Analytics Growing in Importance High-tech sectors will see a greater percentage of cost reductions than average and represent nearly a fourth Companies moving to faster decision speed with of the total revenue reductions tracked greater sophistication, especially in tech. sector Only half o
Slide 9: Unique View and Access to Data Sources in Manufacturing and Testing
PDF Has A Unique View And Access To Data Sources In The Manufacturing And Testing Value Chain Coverage by ◼ Wafer-level grading and disposition Semis Parametric Wafer Final System-level Design Assembly manufacturing test sort test test ◼ Test reduction and adaptation ◼ Die quality and RMA prediction
Slide 10: PDF Spans and Bridges the Supply Chain Stack
PDF Spans and Bridges the Supply Chain Stack ◼ The only commercial SYSTEM analytics-focused provider with breadth and scale SEMI DEVICE required by our customers (Fabless & Fab-lite) ◼ Analytics and data implemented broadly across FACTORY the supply chain (Foundry, OSAT) ◼ Unique view and access to
Slide 11: Customer Base Spans Fabless, Fab, OSAT, and System
Customer Base Spans Fabless, Fab, OSAT, and System 127 revenue #1 commercial #2 and fastest Leading commercial generating solution for mfg growing commercial provider of die customers in yield and control provider in mfg test traceability through 29 countries through with large cloud operations leve
Slide 12: PDF Solutions – Total Available Market
PDF Solutions – Total Available Market 1400 ◼ Today, PDF provides the only 1200 commercial, supply-chain- 1000 wide analytics products, services, and systems Millions $ 800 600 ◼ Growth in analytics TAM 400 being driven from 200 – Move to cloud and increased data volumes 0 2016 Today – Additional op
Slide 13: PDF Solutions and Advantest Partnership
PDF Solutions and Advantest Partnership – 30 July 2020 Overview of PDF Solutions Strategic Rationale of Partnership Mfg Test Assembly Analytics Operations Operations ◼ The only end-to-end data and analytics solutions provider for the ◼ >40 and deepens Expands >100 tools >20 supported>50 by Exensio,>
Slide 14: Acquisitions and Product Releases Expanded Our Scope and TAM
PDF Acquisitions and Product Releases Expanded Our Scope and TAM Gainshare Model “Selling Time to Volume” Subscription Model “Selling Actionable Data” 2020 Q1 2015 First 8-figure size deal 2018 of conversion to cloud Salland Acquisition CV Core Bookings of >3x YoY o Test, package, assembly mgmt o Pr
Slide 15: Revenue Transition to Analytics
GROWTH Revenue Transition to Analytics CY 2018 TTM Q3 2020 Analytics Analytics 64% 45% Integrated Yield Ramp Integrated 55% Yield Ramp 36% Analytics accounted for 62% of revenues in Q3 2020 © 2020 PDF Solutions, All Rights Reserved 15
Slide 16: Analytics Revenue
GROWTH Analytics Revenue $60 $56.3 ◼ Q3 2020 bookings > 2019 bookings $50 ◼ 1H CY2020 bookings also > 2019 bookings $38.5 $40 ◼ CAGR of 24% from 2018 to TTM Q3 2020 $ Millions $30 ◼ Average Analytics revenue per customer has increased 28% from $353K in 2018 to $450K $20 in TTM Q3 2020 $10 $0 CY 2018
Slide 17: Gross Margins
PROFITABILITY Gross Margins GAAP Non-GAAP ◼ Progressing towards our long 70% term target Non-GAAP gross 70% margin of 70%+ 65% 65% 64% ◼ First monetization of technology was IYR 60% 59% 60% engagements with associated royalties 55% 55% 55% ◼ Second wave of monetization consists of growing the 50% 50
Slide 18: Global Geographic Revenue Distribution
DIVERSIFICATION Global Geographic Revenue Distribution TTM Q3 2020 ◼ Globally diverse geographic distribution 17% ◼ No foreign country accounts for more than 20% ◼ US largest market at 41% of APAC 42% revenues NORTH AMERICA EMEA 41% © 2020 PDF Solutions, All Rights Reserved 18
Slide 19: Balance Sheet Strength
STRENGTH Balance Sheet Strength ◼ Existing balance sheet strength provides foundation for investment in growth of End of Q3 End of Q3 ($ Millions) analytics business both 2019 2020 organically and inorganically Cash and ST invt $100.3 $168.4 + $65.2 million from ◼ Cash and Short term Advantest in Ju
Slide 20: Disciplined Capital Allocation
Disciplined Capital Allocation ◼ Capex investments include DFI, CVi, IP, DEX network, and Invest in Organic Invest in M&A to Return Capital to infrastructure Shareholders through Growth Enhance Growth Stock Buyback ◼ Cash balance has increased while we: – Invest in Capex – Make acquisitions $50 Cape
Slide 21: Long-Term Targets
VALUE Long-Term Targets Target Annual Analytics Revenue Growth 20% Non-GAAP Gross Margins >70% Non-GAAP Operating Margin 20% © 2020 PDF Solutions, All Rights Reserved 21
Slide 22: Investment Results in Strong Patent Position
Investment Results in Strong Patent Position ◼ Our investments in analytics & differentiated data result 174 Issued in a strong and growing patent position Patents ◼ Patents based on 28 years of know-how in semiconductor development and mass production ◼ Key patents in areas of: – Design for inspect
Slide 23: Summary
Summary Rapid Growth Disciplined Improved Capital Profitability Allocation Platform to Drive Shareholder Value Strong Increased Balance Sheet Visibility Enhanced Diversification © 2020 PDF Solutions, All Rights Reserved 23
Slide 24: Thank You
Thank You pdf-solutions pdfsolutionsinc pdfs.inc pdf_solutions pdfs_cn © 2020 PDF Solutions, All Rights Reserved 24
Slide 25: Financials - Appendix
Financials - Appendix © 2020 PDF Solutions, All Rights Reserved 25
Slide 26: Non-GAAP Presentation
Non-GAAP Presentation In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), the Company also provides certain non-GAAP financial measures. Non- GAAP net income (loss) excludes the effects of non-recurr
Slide 27: GAAP to Non-GAAP Income Reconciliation
GAAP to Non-GAAP Income Reconciliation in thousands (except share amounts, percent of revenue, and EPS) 2020 YTD 2018 2019 thru Q3 GAAP net income (loss) $ (7,716) $ (5,418) $ (6,914) Adjustments to reconcile GAAP net income (loss) to non-GAAP net income (loss): Stock-based compensation expense 10,2
Slide 28: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation in thousands 2020 YTD 2018 2019 thru Q3 GAAP Gross Margin $ 42,992 $ 52,112 $ 38,753 Adjustments to reconcile GAAP gross margin (loss) to non-GAAP gross margin: Stock-based compensation expense 3,554 3,186 2,582 Impaired deferred costs - - - Previously im
Slide 29: Balance Sheet
Balance Sheet Actual Actual Actual Actual Actual ($ '000) 2018 2019 Q1 '20 Q2 '20 Q3 '20 Cash and cash equivalents $96,089 $97,605 $100,385 $103,441 $118,386 Accounts receivable, net 29,332 33,208 28,002 19,903 33,749 Unbilled accounts receivable 22,238 7,332 9,362 9,057 6,639 Prepaids and other cur
Slide 30: © 2020 PDF Solutions, All Rights Reserved
© 2020 PDF Solutions, All Rights Reserved 30
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