Slide 1: Q4 & FY 2024 Financial Results Conference Call
Veeco Instruments Q4 & FY 2024 Financial Results Conference Call February 12th, 2025
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,
Slide 3: CEO Overview
CEO Overview Bill Miller, Ph.D.
Slide 4: Executing Several Strategic Growth Opportunities
Executing Several Strategic Growth Opportunities Several Key ✓ Shipped 1st NSA system to leading-edge logic customer Strategic ✓ Agreement to ship LSA evaluation to 2nd leading memory customer in 2025 Milestones ✓ Shipped 300mm GaN on Si eval to Tier 1 Power Device customer Semi Business ✓ Record Se
Slide 5: FY 2024 Highlights
FY 2024 Highlights Revenue • Results above mid-point of updated guidance $717M Non-GAAP • Top-line grows 8% year-over-year • Led by 13% YoY growth in Semiconductor business Operating Income • Non-GAAP Operating Income increases 6% year-over- $116M year Diluted Non-GAAP EPS Top and bottom line growth
Slide 6: Q4 Financial Highlights
Q4 Financial Highlights Revenue • Revenue increases 5% year-over-year $182M Non-GAAP • Semiconductor business delivers another solid quarter of revenue, highlighted by record Laser Annealing revenue Operating Income $27M • Laser Annealing shipments to two leading edge customers Gate-All-Around nodes
Slide 7: Role in the Semi Manufacturing
Role in the Semi Manufacturing Representative Process Steps FRONT END BACK END Ion Inspection/ Advanced Deposition Lithography Etch Annealing Implantation Metrology Packaging IBD IBD Wet LSA NSA Processing Litho 300 EUV Veeco technologies are critical for several Semi manufacturing process steps IBD
Slide 8: Semi SAM Expansion To Drive Outperformance
Semi SAM Expansion To Drive Outperformance Industry Markets Enabling Technologies Inflections Advanced GAA/BSPD Logic 20% Device Shrink - EUV/High IBD NA Lithography LSA NSA IBD 300 EUV 15% Memory HBM/3D Devices 10% 5% 3D Packaging For AI 0% Advanced Wet 2025-2029 CAGR WFE Growth * Veeco Semi SAM Pr
Slide 9: Semi Evaluations Capture Industry Inflections
Semi Evaluations Capture Industry Inflections *Evaluations typically compete to win several applications. The number of applications under evaluation will vary by system, customer, and market. Increase in evaluations to enable penetration of key SAM growth opportunities
Slide 10: CFO Financial Overview
CFO Financial Overview John Kiernan
Slide 11: FY 2024 Revenue by Market & Region
FY 2024 Revenue by Market & Region Revenue by Market Revenue by Region Compound Semiconductor 11% APAC Data Storage China APAC 14% China 36% 32% Semiconductor 65% $717M 10% Scientific & United Other States EMEA USA EMEA 9% 23% ROW is negligible Revenue Trend ($M) FY 22 FY 23 FY 24 Revenue Trend ($M)
Slide 12: FY Operating Results
FY Operating Results GAAP Non-GAAP In millions (except per share amounts) FY 23 FY 24 FY 23 FY 24 Revenue $666.4 $717.3 $666.4 $717.3 Gross Profit 285.1 304.0 290.2 310.4 Gross Margin 42.8% 42.4% 43.5% 43.3% Operating Expenses 215.1 237.0 180.6 194.4 Operating Income 69.9 67.0 109.6 116.1 Net Income
Slide 13: Q4 Revenue by Market & Region
Q4 Revenue by Market & Region Revenue by Market Revenue by Region Compound Semiconductor 13% APAC Data Storage China 8% APAC China 39% 31% Semiconductor $182M 62% 18% Scientific & United Other United States EMEA States EMEA 19% 11% ROW is negligible Revenue Trend ($M) Q4 23 Q3 24 Q4 24 Revenue Trend
Slide 14: Q4 Operating Results
Q4 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q3 24 Q4 24 Q3 24 Q4 24 Revenue $184.8 $182.1 $184.8 $182.1 Gross Profit 79.2 74.0 80.9 75.5 Gross Margin 42.9% 40.6% 43.8% 41.5% Operating Expenses 54.9 70.1 49.9 48.1 Operating Income 24.3 3.9 31.0 27.4 Net Income 22.0 15.0
Slide 15: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q4 23 Q3 24 Q4 24 Cash & Short-Term Investments 306 321 345 Accounts Receivable 103 132 97 Inventories 238 242 247 Accounts Payable 42 50 44 Cash Flow from Operations 29 18 28 Capital Expenditures 11 4 5 DSO (days) 53 64 48 DIO (days) 231 207 203 DPO
Slide 16: Q1 2025 Outlook
Q1 2025 Outlook GAAP Non-GAAP Revenue $155M - $175M $155M - $175M Gross Margin ~41% ~42% Operating Expenses $56M - $58M $47M - $49M Net Income $7M - $13M $16M - $22M Diluted Earnings Per Share $0.11 - $0.22 $0.26 - $0.36 A reconciliation of GAAP to Non-GAAP financial measures can be found in the bac
Slide 17: Why own Veeco?
Why own ? Enabling SAM Expansion Technologies For to Deliver Industry Outperformance Inflections Long-Term Investment 2 3 Strategy to WFE Growth Drive Long- Term Value 1 4
Slide 18: Q&A
Q&A (ace
Slide 19: Backup & Financial Tables
Backup & Financial Tables (ace
Slide 20: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2021 2022 2023 2024 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Semi 247.1 77.6 97.5 100.4 93.8 369.4 93.1 106.3 98.2 115.2 412.7 120.4 109.9 124.1 112.1 466.6 Compound 107.0 37.1 31.1 28.1 24.9 121.2 21.2 24.1 25.7 16.3 87.3 21.0 18.2 15.6 22.8 77.6 Semi Data
Slide 21: Convertible Notes – Outstanding
Convertible Notes – Outstanding As of December 31, 2024 Principal Carrying Annual Cash Annual Non-Cash Initial Conversion Convertible Notes Coupon Amount Value Interest Interest Price Convertible Notes Due Jan 2025*** $27M $26M 3.5% $0.9M $0.1M $24.00 Convertible Notes Due June 2027 25M 25M 3.75% 0.
Slide 22: Effect of Convertible Notes on Diluted EPS
Effect of Convertible Notes on Diluted EPS (Effective Q4 2024) 2027 Convertible Notes 2029 Convertible Notes (GAAP and Non-GAAP)** Quarterly Incremental GAAP Non-GAAP* Average Stock Price per Dilutive Shares (in Common Share Reduction to Interest Incremental Reduction to Interest Incremental thousan
Slide 23: Note on Reconciliation Tables
Note on Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 24: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation $ millions Q3 24 Q4 24 2024 2023 $ millions, except per share amounts Q3 24 Q4 24 2024 2023 Net sales $184.8 $182.1 $717.3 $666.4 GAAP Basic weighted average shares 56.4 56.5 56.4 53.8 GAAP gross profit 79.2 74.0 304.0 285.1 GAAP Diluted weigh
Slide 25: Q4 2024 Actual: GAAP to Non-GAAP Reconciliation
Q4 2024 Actual: GAAP to Non-GAAP Reconciliation $ millions Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $182.1 $182.1 Gross Profit 74.0 1.5 — — 75.5 Gross Margin 40.6% 41.5% Operating Expenses $70.1 (7.6) (1.6) (12.9) $48.1 Operating Income $3.9 9.1 1.6 12
Slide 26: FY 2024 Actual: GAAP to Non-GAAP Reconciliation
FY 2024 Actual: GAAP to Non-GAAP Reconciliation $ millions Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $717.3 $717.3 Gross Profit 304.0 6.3 — 0.2 310.4 Gross Margin 42.4% 43.3% Operating Expenses $237.0 (29.6) (7.0) (6.1) $194.4 Operating Income $67.0 35.
Slide 27: Q1 2025 Guidance
Q1 2025 Guidance ($ millions, except per share amounts) Reconciliation of GAAP to non-GAAP Financial Data Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $155–$175 $155–$175 Gross Profit 63–72 2 — — 65–74 Gross Margin 41%–41% 42%–42% Operating Expenses $56–$5