ROCKVILLE, Md., Feb. 13, 2025 /PRNewswire/ -- Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, today announced its financial results for the fourth quarter ended December 31, 2024. Financial results for the fourth quarter and all periods presented reflect Ceva's continuing operations only, with the Intrinsix business reflected as a discontinued operation, unless otherwise noted.
Fourth Quarter Highlights:
- Total revenue of $29.2 million, up 21% year-over-year
- Royalty revenue of $13.5 million, up 9% year-over-year, and the fifth consecutive quarter of year-over-year royalty revenue growth
- Record high 623 million Ceva-powered units shipped, up 38% year-over-year
- Secured major licensing deals - Wi-Fi architecture license with global MCU leader & cellular DSP license with U.S. mobile OEM for in-house 5G modem
Full Year 2024 Highlights:
- Total revenue of $106.9 million, up 10% year-over-year
- Royalty revenue of $46.9 million, up 18% year-over-year
- Annual Ceva-powered smart edge devices shipments reach record 2 billion units - over 60 devices sold every second
- Expanded leadership in wireless connectivity and grew customer base in edge AI and sensing - 43 license agreements signed, 12 of which licensed multiple technologies, 9 of which were first-time customers and 11 of which were with OEMs
- GAAP loss per share of $0.37, non-GAAP diluted earnings per share doubled year-over-year to $0.36
Amir Panush, Chief Executive of Ceva, commented: "We are pleased to finish the year with another strong quarter, with total revenues up 21% year-over-year, and ahead of our guidance. The continued strength of our licensing business is highlighted by two strategic customer agreements signed in the quarter, which reinforce our long-term relationships with these key customers and hold the potential to drive meaningful long-term royalty streams in the years to come. In royalties, strong end market demand across nearly every vertical we address enabled us to deliver our fifth consecutive quarter of year-over-year royalty growth, as our customers shipped a record high of 623 million Ceva-powered smart edge devices."
Mr. Panush continued: "2024 was a pivotal year for Ceva. We successfully concluded long-term licensing partnerships with key customers in our core markets and expanded our customer base and TAM with new engagements. Our market leadership is also evident in our royalty business, where our customers shipped a record 2 billion Ceva-powered smart devices in 2024. Overall, our diverse customer base, spanning multiple industries and end markets, creates a powerful foundation for driving licensing growth and generating strong, long-term royalty revenues, further enhanced by the expanding role of AI across industries and everyday life."
Fourth Quarter 2024 Review
Total revenue for the fourth quarter of 2024 was $29.2 million, a 21% increase compared to $24.2 million reported for the fourth quarter of 2023. Licensing and related revenue for the fourth quarter of 2024 was $15.7 million, a 33% increase compared to $11.8 million reported for the same quarter a year ago. Royalty revenue for the fourth quarter of 2024 was $13.5 million, a 9% increase compared to $12.3 million reported for the fourth quarter of 2023.
During the quarter, twelve IP licensing agreements were concluded, targeting a wide range of end markets and applications, including 5G smartphones, Wi-Fi-enabled MCUs, edge AI for consumer IoT, sensor fusion software for mobile, and Wi-Fi, Bluetooth, and cellular IoT connectivity for a range of consumer and industrial IoT applications. Two of the deals signed were with OEMs and three were first-time customers.
GAAP gross margin for the fourth quarter of 2024 was 88%, as compared to 91% in the fourth quarter of 2023. GAAP operating income for the fourth quarter of 2024 was $0.1 million, as compared to a GAAP operating loss of $2.8 million for the same period in 2023. GAAP net loss for the fourth quarter of 2024 was $1.7 million, as compared to a GAAP net loss of $8.1 million reported for the same period in 2023. GAAP diluted loss per share for the fourth quarter of 2024 was $0.07, as compared to GAAP diluted loss per share of $0.34 for the same period in 2023.
GAAP net income including the discontinued operation for the fourth quarter of 2023 was $3.8 million. GAAP diluted income per share including the discontinued operation for the fourth quarter of 2023 was $0.16.
Non-GAAP gross margin for the fourth quarter of 2024 was 89%, as compared to 92% for the same period in 2023. Non-GAAP operating income for the fourth quarter of 2024 was $4.5 million, as compared to non-GAAP operating income of $1.9 million reported for the fourth quarter of 2023. Non-GAAP net income and diluted income per share for the fourth quarter of 2024 were $2.7 million and $0.11, respectively, compared with non-GAAP net income and diluted income per share of $2.3 million and $0.10, respectively, reported for the fourth quarter of 2023.
Non-GAAP net income including the discontinued operation for the fourth quarter of 2023 was $2.4 million. Non-GAAP diluted income per share including the discontinued operation for the fourth quarter of 2023 was $0.10.
Full Year 2024 Review
Total revenue for 2024 was $106.9 million, an increase of 10%, when compared to $97.4 million reported for 2023. Licensing and related revenue for 2024 was $60.0 million, an increase of 4%, when compared to $57.6 million reported for 2023. Royalty revenue for 2024 was $46.9 million, representing an increase of 18%, as compared to $39.9 million reported for 2023.
Yaniv Arieli, Chief Financial Officer of Ceva, added: "In 2024, we drove double-digit revenue growth and doubled our non-GAAP EPS, through focused execution and operating efficiency. Our strategic focus on customer engagements to achieve better deal economics and value is producing excellent results as is evident by the year-over-year growth in annual licensing revenue. As we look to the future, we are confident in our ability to continue on our organic growth trajectory and to capitalize on non-organic opportunities to accelerate our growth."
In 2024, 43 licensing deals were concluded, including 11 with OEMs and 9 with first-time customers. 12 of these customers licensed multiple technologies from Ceva. A record 2 billion Ceva-powered smart edge devices were shipped, including a record 1.1 billion Bluetooth devices, a record 179 million Wi-Fi devices, a record 170 million Cellular IoT devices, 340 million smartphones and 170 million other smart edge devices powered by Ceva DSPs, AI accelerators and sensor fusion software.
GAAP operating loss for 2024 was $7.5 million, as compared to a GAAP operating loss of $13.5 million reported for 2023. GAAP net loss and diluted loss per share for 2024 were $8.8 million and $0.37, respectively, compared to GAAP net loss and diluted loss per share of $18.4 million and $0.79, respectively, reported for 2023.
GAAP net loss including the discontinued operation for 2023 was $11.9 million. GAAP diluted loss per share including the discontinued operation for 2023 was $0.51.
Non-GAAP operating income for 2024 was $10.2 million, compared with $3.6 million reported for 2023. Non-GAAP net income and diluted earnings per share for 2024 were $9.0 million and $0.36, respectively, compared to $4.4 million and $0.18 reported for 2023. Non-GAAP net income including the discontinued operation for 2023 was $2.4 million. Non-GAAP diluted income per share including the discontinued operation for 2023 was $0.10.
In the fourth quarter of 2024, Ceva repurchased approximately 32,000 shares for approximately $1 million under the company's stock repurchase program. Overall in 2024, Ceva repurchased approximately 375,000 shares for approximately $8.5 million.
Ceva Conference Call
On February 13, 2025, Ceva management will conduct a conference call at 8:30 a.m. Eastern Time to discuss the operating performance for the quarter and review the full year.
The conference call will be available via the following dial in numbers:
- U.S. Participants: Dial 1-844-435-0316 (Access Code: CEVA)
- International Participants: Dial +1-412-317-6365 (Access Code: CEVA)
The conference call will also be available live via webcast at the following link: https://app.webinar.net/LolQE7BawV9. Please go to the web site at least fifteen minutes prior to the call to register.
For those who cannot access the live broadcast, a replay will be available by dialing +1-877-344-7529 or +1-412-317-0088 (access code: 5632639) from one hour after the end of the call until 9:00 a.m. (Eastern Time) on February 20, 2025. The replay will also be available at Ceva's web site www.ceva-ip.com.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they materialize or prove incorrect, could cause the results of Ceva to differ materially from those expressed or implied by such forward-looking statements and assumptions. Forward-looking statements include statements regarding Ceva's ability to reinforce long-term relationships with key customers, to drive licensing growth and long-term royalty streams, to deliver long-term shareholder value, and to continue on Ceva's organic growth trajectory and to capitalize on non-organic opportunities to accelerate growth. The risks, uncertainties and assumptions that could cause differing Ceva results include: the effect of intense industry competition; the ability of Ceva's technologies and products incorporating Ceva's technologies to achieve market acceptance; Ceva's ability to meet changing needs of end-users and evolving market demands; the cyclical nature of and general economic conditions in the semiconductor industry; Ceva's ability to diversify its royalty streams and license revenues; Ceva's ability to continue to generate significant revenues from the handset baseband market and to penetrate new markets; instability and disruptions related to the ongoing Israel - Gaza conflict; and general market conditions and other risks relating to Ceva's business, including, but not limited to, those that are described from time to time in our SEC filings. Ceva assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Non-GAAP Financial Measures
Non-GAAP gross margin for the fourth quarter of 2024 excluded: (a) equity-based compensation expenses of $0.1 million and (b) amortization of acquired intangibles of $0.1 million. Non-GAAP gross margin for the fourth quarter of 2023 excluded: (a) equity-based compensation expenses of $0.2 million and (b) amortization of acquired intangibles of $0.1 million.
Non-GAAP operating income for the fourth quarter of 2024 excluded: (a) equity-based compensation expenses of $3.9 million, (b) the impact of the amortization of acquired intangibles of $0.3 million and (c) $0.3 million of costs associated with business acquisitions. Non-GAAP operating income for the fourth quarter of 2023 excluded: (a) equity-based compensation expenses of $4.1 million, (b) the impact of the amortization of acquired intangibles of $0.3 million and (c) $0.4 million of costs associated with business acquisitions.
Non-GAAP net income and diluted income per share for the fourth quarter of 2024 excluded: (a) equity-based compensation expenses of $3.9 million, (b) the impact of the amortization of acquired intangibles of $0.3 million and (c) $0.3 million of costs associated with business acquisitions. Non-GAAP net income and diluted income per share for the fourth quarter of 2023 excluded: (a) equity-based compensation expenses of $4.1 million, (b) the impact of the amortization of acquired intangibles of $0.3 million, (c) $0.4 million of costs associated with business acquisitions, (d) $0.1 million income associated with the remeasurement of marketable equity securities, (e) $1.3 million tax charges, an impact as a result of the completion of a tax audit for prior years and (f) $4.5 million tax charges, including one-time write off of a deferred tax asset related to Section 174 (US tax regulations).
Non-GAAP gross margin for 2024 excluded: (a) equity-based compensation expenses of $0.7 million and (b) amortization of acquired intangibles of $0.5 million. Non-GAAP gross margin for 2023 excluded: (a) equity-based compensation expenses of $0.8 million and (b) amortization and impairment of acquired intangibles of $0.4 million.
Non-GAAP operating income for 2024 excluded: (a) equity-based compensation expenses of $15.6 million, (b) the impact of the amortization of acquired intangibles of $1.0 million, and (c) $1.0 million of costs associated with business acquisition. Non-GAAP operating income for 2023 excluded (a) equity-based compensation expenses of $15.5 million, (b) the impact of the amortization of acquired intangibles of $1.0 million and (c) $0.6 million of costs associated with business acquisition.
Non-GAAP net income and diluted earnings per share for 2024 excluded: (a) equity-based compensation expenses of $15.6 million, (b) the impact of the amortization of acquired intangibles of $1.0 million, (c) $1.0 million of costs associated with business acquisition and (d) $0.1 million associated with the remeasurement of marketable equity securities.
Non-GAAP net income and diluted earnings per share for 2023 excluded: (a) equity-based compensation expenses of $15.5 million, (b) the impact of the amortization of acquired intangibles of $1.0 million, (c) $0.6 million associated with business acquisition, (d) $1.3 tax charges, an impact as a result of the completion of a tax audit for prior years, and (e) $4.5 million tax charges, including one-time write off of a deferred tax asset related to Section 174 (US tax regulations).
Non-GAAP net income with the discontinued operations for 2023 was $2.4 million. Non-GAAP diluted income per share with the discontinued operations for 2023 was $0.10.
About Ceva, Inc.
At Ceva, we are passionate about bringing new levels of innovation to the smart edge. Our wireless communications, sensing and Edge AI technologies are at the heart of some of today's most advanced smart edge products. From wireless connectivity IPs (Bluetooth, Wi-Fi, UWB and 5G platform IP), to scalable Edge AI NPU IP s and sensor fusion solutions, we have the broadest portfolio of IP to connect, sense and infer data more reliably and efficiently. We deliver differentiated solutions that combine outstanding performance at ultra-low power within a very small silicon footprint. Our goal is simple - to deliver the silicon and software IP to enable a smarter, safer, and more interconnected world. This philosophy is in practice today, with Ceva powering more than 19 billion of the world's most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles and 5G mobile networks.
Our headquarters are in Rockville, Maryland with a global customer base supported by operations worldwide. Our employees are among the leading experts in their areas of specialty, consistently solving the most complex design challenges, enabling our customers to bring innovative smart edge products to market.
Ceva is a sustainability- and environmentally-conscious company, adhering to our Code of Business Conduct and Ethics. As such, we emphasize and focus on environmental preservation, recycling, the welfare of our employees and privacy - which we promote on a corporate level. At Ceva, we are committed to social responsibility, values of preservation and consciousness towards these purposes.
Ceva: Powering the Smart Edge
Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram.
Ceva, Inc. AND ITS SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - U.S. GAAP | ||||
U.S. dollars in thousands, except per share data | ||||
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
Revenues: | ||||
Licensing and related revenues | $ 15,733 | $ 11,816 | $ 59,999 | $ 57,555 |
Royalties | 13,490 | 12,346 | 46,940 | 39,864 |
Total revenues | 29,223 | 24,162 | 106,939 | 97,419 |
Cost of revenues | 3,371 | 2,259 | 12,768 | 11,648 |
Gross profit | 25,852 | 21,903 | 94,171 | 85,771 |
Operating expenses: | ||||
Research and development, net | 16,877 | 18,145 | 71,616 | 72,689 |
Sales and marketing | 3,625 | 2,829 | 12,624 | 11,042 |
General and administrative | 5,126 | 3,567 | 16,877 | 14,913 |
Amortization of intangible assets | 150 | 149 | 599 | 594 |
Total operating expenses | 25,778 | 24,690 | 101,716 | 99,238 |
Operating income (loss) | 74 | (2,787) | (7,545) | (13,467) |
Financial income (loss), net | (78) | 1,767 | 4,884 | 5,264 |
Remeasurement of marketable equity securities | 3 | 74 | (94) | (2) |
Loss before taxes on income | (1) | (946) | (2,755) | (8,205) |
Taxes on Income | 1,735 | 7,152 | 6,031 | 10,232 |
Net loss from continuing operations | (1,736) | (8,098) | (8,786) | (18,437) |
Net income from discontinued operation | - | 11,867 | - | 6,559 |
Net Income (loss) | $ (1,736) | $ 3,769 | $ (8,786) | $ (11,878) |
Basic and diluted net income (loss) per share: | ||||
Continuing operations | (0.07) | (0.34) | (0.37) | (0.79) |
Discontinued operation | - | 0.50 | - | 0.28 |
Basic and diluted net income (loss) per share | $ (0.07) | $ 0.16 | $ (0.37) | $ (0.51) |
Weighted-average shares used to compute net income | ||||
Basic | 23,637 | 23,518 | 23,613 | 23,484 |
Diluted | 23,637 | 23,946 | 23,613 | 23,484 |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||||
U.S. Dollars in thousands, except per share amounts | ||||
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
GAAP net income (loss) | $ (1,736) | $ 3,769 | $ (8,786) | $ (11,878) |
Equity-based compensation expense included in cost of | 143 | 190 | 713 | 826 |
Equity-based compensation expense included in research and | 2,432 | 2,430 | 9,298 | 9,133 |
Equity-based compensation expense included in sales and | 494 | 471 | 1,801 | 1,776 |
Equity-based compensation expense included in general and | 827 | 1,008 | 3,763 | 3,795 |
Amortization of intangible assets | 255 | 278 | 1,090 | 1,031 |
Costs associated with business and asset acquisitions | 250 | 356 | 1,033 | 551 |
(Income) loss associated with the remeasurement of | (3) | (74) | 94 | 2 |
Income tax expenses, an impact as a result of the completion | - | 1,302 | - | 1,302 |
Adjustment related to US tax reform rule 174 | - | 4,460 | - | 4,460 |
Non-GAAP from discontinued operation | - | (11,812) | - | (8,579) |
Non-GAAP net income | $2,662 | $2,378 | $ 9,006 | $ 2,419 |
GAAP weighted-average number of Common Stock used in | 23,637 | 23,518 | 23,613 | 23,484 |
Weighted-average number of shares related to outstanding | 1,579 | 1,271 | 1,491 | 1,197 |
Weighted-average number of Common Stock used in | 25,216 | 24,789 | 25,104 | 24,681 |
GAAP diluted income (loss) per share | ($ 0.07) | $ 0.16 | $ (0.37) | $ (0.51) |
Equity-based compensation expense | $ 0.16 | $ 0.17 | $ 0.65 | $ 0.66 |
Amortization of intangible assets | $ 0.01 | $ 0.01 | $ 0.04 | $ 0.04 |
Costs associated with business and asset acquisitions | $ 0.01 | $ 0.02 | $ 0.04 | $ 0.02 |
Adjustment related to income tax expenses | $ - | $ 0.24 | $ - | $ 0.25 |
Non-GAAP from discontinued operation | $ - | ($ 0.50) | $ - | ($ 0.36) |
Non-GAAP diluted earnings per share | $ 0.11 | $ 0.10 | $ 0.36 | $ 0.10 |
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
GAAP Operating Income (loss) | $ 74 | $ (2,787) | $ (7,545) | $ (13,467) |
Equity-based compensation expense included in cost of | 143 | 190 | 713 | 826 |
Equity-based compensation expense included in | 2,432 | 2,430 | 9,298 | 9,133 |
Equity-based compensation expense included in sales | 494 | 471 | 1,801 | 1,776 |
Equity-based compensation expense included in | 827 | 1,008 | 3,763 | 3,795 |
Amortization of intangible assets | 255 | 278 | 1,090 | 1,031 |
Costs associated with the Business and asset | 250 | 356 | 1,033 | 551 |
Total non-GAAP Operating Income | $ 4,475 | $ 1,946 | $ 10,153 | $ 3,645 |
Three months ended | Twelve months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
GAAP Gross Profit | $ 25,852 | $ 21,903 | $ 94,171 | $ 85,771 |
GAAP Gross Margin | 88 % | 91 % | 88 % | 88 % |
Equity-based compensation expense included in cost of revenues | 143 | 190 | 713 | 826 |
Amortization of intangible assets | 105 | 129 | 491 | 437 |
Total Non-GAAP Gross profit | 26,100 | 22,222 | 95,375 | 87,034 |
Non-GAAP Gross Margin | 89 % | 92 % | 89 % | 89 % |
Ceva, Inc. AND ITS SUBSIDIARIES | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(U.S. Dollars in thousands) | |||
December 31, | December 31, | ||
2024 | 2023 (*) | ||
Unaudited | Unaudited | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 18,498 | $ 23,287 | |
Marketable securities and short-term bank deposits | 145,146 | 143,251 | |
Trade receivables, net | 15,969 | 8,433 | |
Unbilled receivables | 21,240 | 21,874 | |
Prepaid expenses and other current assets | 15,488 | 12,526 | |
Total current assets | 216,341 | 209,371 | |
Long-term assets: | |||
Severance pay fund | 7,161 | 7,070 | |
Deferred tax assets, net | 1,456 | 1,609 | |
Property and equipment, net | 6,877 | 6,732 | |
Operating lease right-of-use assets | 5,811 | 6,978 | |
Investment in marketable equity securities | 312 | 406 | |
Goodwill | 58,308 | 58,308 | |
Intangible assets, net | 1,877 | 2,967 | |
Other long-term assets | 10,805 | 10,644 | |
Total assets | $ 308,948 | $ 304,085 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Trade payables | $ 1,125 | $ 1,154 | |
Deferred revenues | 3,599 | 3,018 | |
Accrued expenses and other payables | 23,207 | 20,202 | |
Operating lease liabilities | 2,598 | 2,513 | |
Total current liabilities | 30,529 | 26,887 | |
Long-term liabilities: | |||
Accrued severance pay | 7,365 | 7,524 | |
Operating lease liabilities | 2,963 | 3,943 | |
Other accrued liabilities | 1,535 | 1,390 | |
Total liabilities | 42,392 | 39,744 | |
Stockholders' equity: | |||
Common stock | 24 | 23 | |
Additional paid in-capital | 259,891 | 252,100 | |
Treasury stock | (3,222) | (5,620) | |
Accumulated other comprehensive loss | (1,330) | (2,329) | |
Retained earnings | 11,193 | 20,167 | |
Total stockholders' equity | 266,556 | 264,341 | |
Total liabilities and stockholders' equity | $ 308,948 | $ 304,085 | |
(*) Derived from audited financial statements. |
SOURCE Ceva, Inc.
