Ceva Inc ((CEVA)) has held its Q4 earnings call. Read on for the main highlights of the call.
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CEVA Inc’s recent earnings call showcased a robust performance throughout 2024. The sentiment conveyed was largely positive, with strong revenue and royalty growth taking center stage. The company celebrated significant strategic licensing deals and successful advancements in AI product development. While there were minor setbacks like a decline in financial income and a projected decrease in next quarter’s gross margin, these were overshadowed by the company’s numerous achievements.
Strong Fourth Quarter Revenue Growth
CEVA reported a remarkable 21% year-over-year revenue growth for the fourth quarter. This achievement was largely driven by substantial contributions from licensing and royalties, highlighting the company’s successful strategies in expanding its market reach.
Record High Royalty Shipments
In a significant milestone, CEVA achieved an all-time high in royalty shipments, powering 623 million units in the quarter. This marked the first time the company surpassed 600 million units within a single quarter, emphasizing its strong market demand and operational execution.
Significant Licensing Deals
The company secured important licensing agreements, including a long-term architecture licensing deal with a top-tier MCU company for their Wi-Fi platform and a similar agreement with a leading U.S. OEM for a 5G modem. These deals underscore CEVA’s strategic initiatives to solidify its position in key technology sectors.
Strong Full-Year Performance
For the entirety of 2024, CEVA delivered a 10% topline growth, reaching $106.9 million. Notably, the company also witnessed an 18% year-over-year revenue growth in royalties, underscoring its strong performance across various revenue streams.
AI Product Milestones
CEVA’s AI products reached significant milestones, with licensing agreements for AI DSPs and NeuPro-Nano NPUs with a first-time customer. These developments mark a pivotal step in the company’s AI strategy, enhancing its competitive edge in the rapidly evolving AI landscape.
Enhanced Profitability
The company doubled its non-GAAP EPS compared to 2023, showcasing a strong operational performance that created significant shareholder value. This increase in profitability reflects CEVA’s effective management and strategic execution.
Financial Income Decline
Despite the overall positive performance, CEVA reported a decline in financial income, which was negative $0.1 million compared to $1.8 million the previous year. This was attributed to a significant fall in the value of the Euro versus the U.S. dollar.
Lower Gross Margin Forecast
Looking ahead, CEVA expects a slight decrease in gross margin for the next quarter. This is due to lower seasonal royalty revenue and the allocation of design activities for strategic customers, indicating a cautious outlook in certain operational areas.
Forward-Looking Guidance
CEVA’s forward-looking guidance suggests continued growth into 2025, driven by increasing shipments in Wi-Fi, Bluetooth, and cellular IoT. The company anticipates annual revenue growth between 7% and 11%, with significant year-over-year increases in non-GAAP operating income and net income. These projections indicate CEVA’s confidence in sustaining its growth trajectory and expanding its market presence.
In conclusion, CEVA Inc’s earnings call revealed a largely positive sentiment with numerous key achievements throughout 2024. From record-breaking royalty shipments to strategic licensing deals, the company has demonstrated robust growth and operational strength. Despite minor setbacks in financial income and gross margin forecasts, CEVA’s forward-looking guidance remains optimistic, suggesting continued success in the coming years.
