Silvaco Reports Second Quarter 2024 Financial Results
Silvaco Group, Inc. (SVCO) reported strong Q2 2024 financial results, with revenue of $15.0 million, up 19% year-over-year, at the high end of guidance. Quarterly bookings reached $19.5 million, up 36% year-over-year, exceeding expectations. TCAD revenue grew 34% to $10.4 million, while EDA revenue increased 20% to $3.0 million. However, SIP revenue declined 30% to $1.6 million.
The company reported a GAAP net loss of $(38.4) million, primarily due to stock-based compensation and an acquisition-related litigation charge. Non-GAAP net income was $1.8 million. Silvaco completed its IPO in May, raising $106 million net. The company maintains its full-year revenue guidance and has raised its bookings guidance, citing strong demand and growing interest in its digital twin product.
Silvaco Group, Inc. (SVCO) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con un fatturato di 15,0 milioni di dollari, in aumento del 19% rispetto all'anno precedente, ai massimi della guida. Le prenotazioni trimestrali hanno raggiunto 19,5 milioni di dollari, in crescita del 36% rispetto all'anno scorso, superando le aspettative. Il fatturato TCAD è cresciuto del 34%, raggiungendo 10,4 milioni di dollari, mentre il fatturato EDA è aumentato del 20%, arrivando a 3,0 milioni di dollari. Tuttavia, il fatturato SIP è diminuito del 30%, attestandosi a 1,6 milioni di dollari.
L'azienda ha riportato una perdita netta GAAP di $(38,4) milioni, principalmente a causa di compensi basati su azioni e di costi legati a contenziosi derivanti da acquisizioni. Il reddito netto non-GAAP è stato di 1,8 milioni di dollari. Silvaco ha completato la sua IPO a maggio, raccogliendo 106 milioni di dollari netti. L'azienda mantiene la sua guida per il fatturato dell'intero anno e ha aumentato la sua previsione di prenotazioni, citando una forte domanda e un crescente interesse per il suo prodotto digital twin.
Silvaco Group, Inc. (SVCO) informó resultados financieros sólidos para el segundo trimestre de 2024, con ingresos de 15.0 millones de dólares, un aumento del 19% en comparación con el año anterior, en el límite superior de la guía. Las reservas trimestrales alcanzaron 19.5 millones de dólares, un incremento del 36% en comparación con el año pasado, superando las expectativas. Los ingresos de TCAD crecieron un 34%, alcanzando 10.4 millones de dólares, mientras que los ingresos de EDA aumentaron un 20%, llegando a 3.0 millones de dólares. Sin embargo, los ingresos de SIP cayeron un 30%, a 1.6 millones de dólares.
La compañía reportó una pérdida neta GAAP de $(38.4) millones, principalmente debido a compensaciones basadas en acciones y a un cargo por litigios relacionados con adquisiciones. Los ingresos netos no GAAP fueron de 1.8 millones de dólares. Silvaco completó su IPO en mayo, recaudando 106 millones de dólares netos. La empresa mantiene su guía de ingresos para todo el año y ha elevado su guía de reservas, citando una fuerte demanda y un creciente interés en su producto digital twin.
실바코 그룹, 주식회사 (SVCO)는 2024년 2분기 재무 실적이 우수하게 나타났으며, 1,500만 달러의 매출로 전년 대비 19% 증가하여 가이드라인의 상한선에 도달했습니다. 분기 예약 금액은 1,950만 달러로 전년 대비 36% 증가하여 기대치를 초과했습니다. TCAD 매출은 34% 증가하여 1,040만 달러에 도달했으며, EDA 매출은 20% 증가하여 300만 달러에 달했습니다. 하지만 SIP 매출은 30% 감소하여 160만 달러에 그쳤습니다.
회사는 주식 기반 보상 및 인수 관련 소송 비용으로 인해 GAAP 순손실이 $(3,840만)으로 나타났습니다. 비-GAAP 순이익은 180만 달러였습니다. 실바코는 5월에 IPO를 완료하여 순수익 1억 6백만 달러를 올렸습니다. 회사는 연 매출 가이드를 유지하며, 디지털 트윈 제품에 대한 강한 수요와 관심 증가를 언급하며 예약 가이드를 상향 조정했습니다.
Silvaco Group, Inc. (SVCO) a annoncé des résultats financiers solides pour le deuxième trimestre 2024, avec des revenus de 15,0 millions de dollars, en hausse de 19 % par rapport à l'année précédente, au haut de la prévision. Les commandes trimestrielles ont atteint 19,5 millions de dollars, en hausse de 36 % par rapport à l'année précédente, dépassant les attentes. Les revenus TCAD ont augmenté de 34 % pour atteindre 10,4 millions de dollars, tandis que les revenus EDA ont augmenté de 20 % pour atteindre 3,0 millions de dollars. Cependant, les revenus SIP ont diminué de 30 % pour s'établir à 1,6 million de dollars.
L'entreprise a signalé une perte nette GAAP de $(38,4) millions, principalement en raison des compensations sur actions et d'une charge liée à un litige relatif à une acquisition. Le revenu net non-GAAP était de 1,8 million de dollars. Silvaco a terminé son introduction en bourse en mai, levant 106 millions de dollars nets. L’entreprise maintient ses prévisions de revenus pour l'année entière et a relevé ses prévisions de commandes, citant une forte demande et un intérêt croissant pour son produit jumeau numérique.
Silvaco Group, Inc. (SVCO) meldete starke Finanzresultate für das zweite Quartal 2024, mit einem Umsatz von 15,0 Millionen Dollar, was einem Anstieg von 19 % im Vergleich zum Vorjahr entspricht und am oberen Ende der Guidance liegt. Die vierteljährlichen Buchungen erreichten 19,5 Millionen Dollar, was einer Steigerung von 36 % im Jahresvergleich entspricht und die Erwartungen übertraf. Der Umsatz von TCAD wuchs um 34 % auf 10,4 Millionen Dollar, während der Umsatz von EDA um 20 % auf 3,0 Millionen Dollar anstieg. Der Umsatz von SIP hingegen ging um 30 % auf 1,6 Millionen Dollar zurück.
Das Unternehmen berichtete von einem GAAP-Nettoverlust von $(38,4) Millionen, hauptsächlich aufgrund von aktienbasierten Vergütungen und Kosten im Zusammenhang mit einem Übernahme-Streitfall. Der Non-GAAP-Nettoertrag betrug 1,8 Millionen Dollar. Silvaco schloss im Mai seinen Börsengang ab und erzielte einen Nettoerlös von 106 Millionen Dollar. Das Unternehmen hält an seinem Umsatzleitfaden für das Gesamtjahr fest und hat seine Buchungsprognose angehoben, aufgrund der starken Nachfrage und des wachsenden Interesses an seinem digitalen Zwilling-Produkt.
- Revenue of $15.0 million, up 19% year-over-year
- Quarterly bookings of $19.5 million, up 36% year-over-year
- TCAD revenue grew 34% to $10.4 million
- EDA revenue increased 20% to $3.0 million
- Non-GAAP net income of $1.8 million, up from $0.8 million in Q2 2023
- Completed IPO in May, raising $106 million net
- Raised full-year bookings guidance
- GAAP net loss of $(38.4) million, compared to $(0.3) million in Q2 2023
- SIP revenue declined 30% to $1.6 million
- GAAP operating loss of $(37.8) million, compared to $(0.2) million in Q2 2023
Insights
Silvaco's Q2 2024 results show strong growth and positive momentum. Revenue of
The company's TCAD segment performed exceptionally well, with revenue up
Non-GAAP metrics paint a positive picture, with gross margin improving to
Silvaco's introduction of the FTCO™ platform for digital twin modeling is a significant technological advancement. This AI-based solution for wafer-level fabrication facilities positions Silvaco at the forefront of semiconductor innovation. The enhanced partnership with Micron Technology, including a
The strong performance in TCAD and EDA segments, coupled with ten new customer wins, demonstrates Silvaco's competitive edge in these critical areas. The company's focus on AI-driven solutions aligns well with industry trends towards more intelligent and efficient semiconductor design processes.
However, the decline in SIP revenue warrants attention. The extended five-year licensing agreement for SIP could help stabilize this segment in the future, but it's important to monitor its performance in upcoming quarters.
Quarterly revenue of
Quarterly bookings of
SANTA CLARA, Calif., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Silvaco Group, Inc. (Nasdaq: SVCO, “Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation, today announced its second quarter 2024 results.
“I am thrilled to announce that Silvaco reported strong financial results for its first quarter as a public company,” said Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued, “Our revenue came in at the high end of our guidance, driven by strong demand for our products across various sectors. We believe this momentum will continue into the second half of the year. Moreover, we are seeing growing customer interest in our digital twin product, which is a good sign for our future growth.”
Commenting on the financial results and outlook, Ryan Benton, Silvaco’s Chief Financial Officer, added, “Our strong bookings for the second quarter exceeded our expectations, and revenue came in at the high end of our guidance range, driven by strong demand from our customers. For quarterly bookings, we are raising guidance for the full-year and maintaining our revenue guidance for the full-year.”
Second Quarter 2024 Financial Results
GAAP Financial Results
- Revenue of
$15.0 million , up19% year-over-year, seasonally down6% quarter-over-quarter.- TCAD revenue of
$10.4 million , up34% year-over-year. - EDA revenue of
$3.0 million , up20% year-over-year. - SIP revenue of
$1.6 million , down30% year-over-year.
- TCAD revenue of
- GAAP gross profit and GAAP gross margin were
$10.1 million and68% , respectively, which includes the impact of$2.5 million stock-based compensation, down from$10.2 million and81% year over year. - GAAP operating expenses of
$47.9 million , which includes$19.3 million stock-based compensation and a$14.7 million charge for acquisition related estimated litigation claim, increased from$10.4 million in Q2 2023. - GAAP operating loss and margin of
$(37.8) million and (253)%, compared to$(0.2) million and (2)% in Q2 2023, respectively. - GAAP net loss of
$(38.4) million , compared to a GAAP net loss of$(0.3) million in Q2 2023. - GAAP basic and diluted net loss per share of
$(1.55) . - As of June 30, 2024, cash and cash equivalents and marketable securities totaled
$102.3 million .
Key Operating Indicators and Non-GAAP Financial Results:
- Gross bookings were
$19.5 million , up36% year-over-year. - As of June 30, 2024, remaining performance obligation ("RPO") balance of
$33.2 million ,47% of which is expected to be recognized as revenue in the next 12 months, up$4.0 million and14% sequentially from Q1 2024 due to strong bookings. - Non-GAAP gross profit and non-GAAP gross margin were
$12.8 million and86% , respectively, up from$10.2 million and81% year over year. - Non-GAAP operating expenses of
$11.2 million , up from$9.3 million in Q2 2023. - Non-GAAP operating income and non-GAAP operating margin of
$1.7 million and11% , compared to$0.8 million and6% in Q2 2023, respectively. - Non-GAAP net income of
$1.8 million , compared to$0.8 million in Q2 2023. - Non-GAAP diluted net income per share of
$0.07 .
For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric for Silvaco's second quarter 2024, first quarter 2024 and second quarter 2023 results, see “Discussion of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.
Second Quarter 2024 Business Highlights
- Introduced and monetized artificial intelligence-based platform for digital twin modeling named Fab Technology Co-Optimization (FTCO™) used at wafer-level fabrication facilities. Announced enhanced partnership with Micron Technology, which included expanding the FTCO™ partnership and securing a
$5.0 million investment.
- Strong TCAD and EDA quarterly revenues with a key FTCO™ digital-twin modeling product sale to memory customer and ten new customer wins, partially offset by lower SIP revenue. Additionally, we have extended a SIP licensing agreement for an additional five years starting April 1, 2024.
- Completed initial public offering in May, raising
$106 million net of underwriters' fees.
Supplementary materials to this press release, including our second quarter 2024 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.
Third Quarter and Full Year 2024 Financial Outlook
As of August 7, 2024, Silvaco is providing guidance for its third quarter of 2024 and its full-year 2024, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin and non-GAAP operating income. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin, and GAAP operating income is the most comparable GAAP measure to non-GAAP operating income. Non-GAAP operating income differs from GAAP operating income in that it excludes items such as certain transaction-related costs, IPO preparation costs, estimated acquisition-related litigation claims and costs, stock-based compensation, amortization of acquired intangible assets, impairment charges and executive severance costs. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin or GAAP operating income or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income guidance to GAAP gross margin or GAAP operating income, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.
Based on current business trends and conditions, the Company expects for third quarter 2024 the following:
- Gross bookings in the range of
$16.0 million to$18.0 million , which would represent a28% to44% increase from the third quarter of 2023.
- Revenue in the range of
$15.5 million to$16.5 million , which would represent a4% to10% increase from the third quarter of 2023.
- Non-GAAP gross margin to be in the range of
85% to88% .
- Non-GAAP operating income in the range of
$1.8 million to$2.8 million , which would represent a34% decrease to2% increase from the third quarter of 2023.
For full year 2024, the Company expects:
- Gross bookings of
$67.0 million to$71.0 million , which would represent a15% to22% increase from 2023.
- Revenue of
$63.0 million to$66.0 million , which would represent a16% to22% increase from 2023.
- Non-GAAP gross margin to be in the range of
85% to89% .
- Non-GAAP operating income of
$8.0 million to$11.0 million , which would represent an82% to150% increase from 2023.
About Silvaco
Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.
Safe Harbor Statement
This press release contains forward-looking statements based on Silvaco's current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.
These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position, and guidance, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products, and anticipated results of those products for our customers, our competitive positioning, projected costs, technological capabilities, and plans, and macroeconomic trends.
A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation, the following: (a) market conditions; (b) anticipated trends, challenges and growth in our business and the markets in which we operate; (c) our ability to appropriately respond to changing technologies on a timely and cost-effective basis; (d) the size and growth potential of the markets for our software solutions, and our ability to serve those markets; (e) our expectations regarding competition in our existing and new markets; (f) the level of demand in our customers’ end markets; (g) regulatory developments in the United States and foreign countries; (h) changes in trade policies, including the imposition of tariffs; (i) proposed new software solutions, services or developments; (j) our ability to attract and retain key management personnel; (k) our customer relationships and our ability to retain and expand our customer relationships; (l) our ability to diversify our customer base and develop relationships in new markets; (m) the strategies, prospects, plans, expectations, and objectives of management for future operations; (n) public health crises, pandemics, and epidemics and their effects on our business and our customers’ businesses; (o) the impact of the current conflicts between Ukraine and Russia and Israel and Hamas and the ongoing trade disputes among the United States and China on our business, financial condition or prospects, including extreme volatility in the global capital markets making debt or equity financing more difficult to obtain, more costly or more dilutive, delays and disruptions of the global supply chains and the business activities of our suppliers, distributors, customers and other business partners; (p) changes in general economic or business conditions or economic or demographic trends in the United States and foreign countries including changes in interest rates and inflation; (q) our ability to raise additional capital; (r) our ability to accurately forecast demand for our software solutions; (s) our expectations regarding the outcome of any ongoing litigation; (t) our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act and as a smaller reporting company under the Exchange Act; (u) our expectations regarding our ability to obtain, maintain, protect and enforce intellectual property protection for our technology; (v) our status as a controlled company; and (w) our use of the net proceeds from our initial public offering.
It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Additional information relating to the uncertainty affecting the Silvaco’s business is contained in Silvaco's filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Silvaco's website at http://investors.silvaco.com/. These forward-looking statements represent Silvaco's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Silvaco disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
Discussion of Non-GAAP Financial Measures
We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP net income (loss) per share. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons.
We define non-GAAP gross profit and non-GAAP gross margin as our GAAP gross profit and GAAP gross margin adjusted to exclude certain costs, including stock-based compensation and amortization of acquired intangible assets. We define non-GAAP operating expenses, non-GAAP operating income (loss), and non-GAAP operating margin as our GAAP operating expenses, GAAP operating income (loss), and GAAP operating margin, in each case, adjusted to exclude certain costs, including certain transaction-related costs, IPO preparation costs, estimated acquisition-related litigation claims and costs, stock-based compensation, amortization of acquired intangible assets, impairment charges, and executive severance costs. We define non-GAAP net income (loss) as our GAAP net income (loss) adjusted to exclude certain costs, including certain transaction-related costs, IPO preparation costs, estimated acquisition-related litigation claims and costs, stock-based compensation, amortization of acquired intangible assets, impairment charges, executive severance costs, change in fair value of contingent consideration, foreign exchange (gain) loss, loss on extinguishment of debt, and the income tax effect on non-GAAP items. Our non-GAAP net income (loss) per share is calculated in the same way as our non-GAAP net income (loss), but on a per share basis. We monitor non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share as non-GAAP financial measures to supplement the financial information we present in accordance with GAAP to provide investors with additional information regarding our financial results.
Certain items are excluded from our non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share because these items are non-cash in nature or are not indicative of our core operating performance and render comparisons with prior periods and competitors less meaningful. We adjust GAAP gross profit, GAAP gross margin, GAAP operating expenses, GAAP operating income (loss), GAAP operating margin, and net income (loss) for these items to arrive at non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, and non-GAAP net income (loss) because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structure and the method by which the assets were acquired. By excluding certain items that may not be indicative of our recurring core operating results, we believe that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share, provide meaningful supplemental information regarding our performance.
We believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze our financial performance and the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.
| SILVACO GROUP, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited, in thousands except share and par value amounts) | |||||||
| June 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 34,274 | $ | 4,421 | |||
| Short-term marketable securities | 54,611 | — | |||||
| Accounts receivable, net | 6,781 | 4,006 | |||||
| Contract assets, net | 9,175 | 8,749 | |||||
| Prepaid expenses and other current assets | 3,369 | 2,549 | |||||
| Deferred transaction costs | — | 1,163 | |||||
| Total current assets | 108,210 | 20,888 | |||||
| Long-term assets: | |||||||
| Long-term marketable securities | 13,392 | — | |||||
| Property and equipment, net | 742 | 591 | |||||
| Operating lease right-of-use assets, net | 2,144 | 1,963 | |||||
| Intangible assets, net | 4,956 | 342 | |||||
| Goodwill | 9,026 | 9,026 | |||||
| Long-term portion of contract assets, net | 9,096 | 6,250 | |||||
| Other assets | 1,845 | 1,825 | |||||
| Total long-term assets | 41,201 | 19,997 | |||||
| Total assets | $ | 149,411 | $ | 40,885 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 2,572 | $ | 2,495 | |||
| Accrued expenses and other current liabilities | 23,748 | 10,255 | |||||
| Accrued income taxes | 2,288 | 1,626 | |||||
| Deferred revenue, current | 8,519 | 7,882 | |||||
| Operating lease liabilities, current | 863 | 735 | |||||
| Related party line of credit | — | 2,000 | |||||
| Vendor financing obligation, current | 2,049 | — | |||||
| Total current liabilities | 40,039 | 24,993 | |||||
| Long-term liabilities: | |||||||
| Deferred revenue, non-current | 3,337 | 5,071 | |||||
| Operating lease liabilities, non-current | 1,266 | 1,198 | |||||
| Vendor financing obligation, non-current | 2,738 | — | |||||
| Other long-term liabilities | 185 | 221 | |||||
| Total liabilities | 47,565 | 31,483 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 3 | 2 | |||||
| Additional paid-in capital | 129,837 | — | |||||
| (Accumulated deficit) Retained earnings | (25,618 | ) | 11,392 | ||||
| Accumulated other comprehensive loss | (2,376 | ) | (1,992 | ) | |||
| Total stockholders' equity | 101,846 | 9,402 | |||||
| Total liabilities and stockholders' equity | $ | 149,411 | $ | 40,885 | |||
| SILVACO GROUP, INC. | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME | |||||||||||||||
| (Unaudited, in thousands except share and per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue: | |||||||||||||||
| Software license revenue | $ | 11,023 | $ | 8,845 | $ | 23,281 | $ | 19,510 | |||||||
| Maintenance and service | 3,937 | 3,680 | 7,568 | 7,306 | |||||||||||
| Total revenue | 14,960 | 12,525 | 30,849 | 26,816 | |||||||||||
| Cost of revenue | 4,861 | 2,373 | 6,834 | 4,398 | |||||||||||
| Gross profit | 10,099 | 10,152 | 24,015 | 22,418 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 7,707 | 3,169 | 11,323 | 6,544 | |||||||||||
| Selling and marketing | 7,171 | 2,930 | 10,483 | 5,735 | |||||||||||
| General and administrative | 18,314 | 4,258 | 22,914 | 8,811 | |||||||||||
| Estimated litigation claim | 14,696 | — | 14,696 | — | |||||||||||
| Total operating expenses | 47,888 | 10,357 | 59,416 | 21,090 | |||||||||||
| Operating (loss) income | (37,789 | ) | (205 | ) | (35,401 | ) | 1,328 | ||||||||
| Loss on debt extinguishment | (718 | ) | — | (718 | ) | — | |||||||||
| Interest income | 682 | 2 | 682 | 3 | |||||||||||
| Interest and other expense, net | (349 | ) | (240 | ) | (554 | ) | (572 | ) | |||||||
| (Loss) income before income tax provision | (38,174 | ) | (443 | ) | (35,991 | ) | 759 | ||||||||
| Income tax provision (benefit) | 214 | (112 | ) | 1,019 | 276 | ||||||||||
| Net (loss) income | $ | (38,388 | ) | $ | (331 | ) | $ | (37,010 | ) | $ | 483 | ||||
| (Loss) earnings per share attributable to common stockholders: | |||||||||||||||
| Basic and diluted | $ | (1.55 | ) | $ | (0.02 | ) | $ | (1.66 | ) | $ | 0.02 | ||||
| Weighted average shares used in computing per share amounts: | |||||||||||||||
| Basic and diluted | 24,811,112 | 20,000,000 | 22,405,557 | 20,000,000 | |||||||||||
| SILVACO GROUP, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited, in thousands) | |||||||
| Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (37,010 | ) | $ | 483 | ||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||
| Depreciation and amortization | 475 | 309 | |||||
| Stock-based compensation expense | 21,829 | — | |||||
| Provision for credit losses | 143 | 43 | |||||
| Estimated litigation claim | 14,696 | — | |||||
| Loss on debt extinguishment | 718 | — | |||||
| Accretion of discount on marketable securities, net | (194 | ) | — | ||||
| Change in fair value of contingent consideration | (18 | ) | 341 | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (3,102 | ) | 759 | ||||
| Contract assets | (4,081 | ) | 290 | ||||
| Prepaid and other current assets | (882 | ) | (13 | ) | |||
| Other assets | (84 | ) | — | ||||
| Accounts payable | (2 | ) | (1,068 | ) | |||
| Accrued expenses | (1,321 | ) | (652 | ) | |||
| Accrued income taxes | 687 | (107 | ) | ||||
| Deferred revenue | (673 | ) | 1,368 | ||||
| Other current liabilities | 34 | 830 | |||||
| Other long-term liabilities | (9 | ) | (417 | ) | |||
| Net cash (used in) provided by operating activities | (8,794 | ) | 2,166 | ||||
| Cash flows from investing activities: | |||||||
| Purchases of marketable securities | (67,809 | ) | — | ||||
| Purchases of property and equipment | (56 | ) | (202 | ) | |||
| Net cash used in investing activities | (67,865 | ) | (202 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from initial public offering, net of underwriting fees | 106,020 | — | |||||
| Proceeds from issuance of convertible note, net of debt issuance costs | 4,852 | — | |||||
| Proceeds from loan facility | 4,250 | — | |||||
| Repayment of loan facility | (4,250 | ) | — | ||||
| Repayment of 2022 line of credit | (2,000 | ) | — | ||||
| Deferred transaction costs | (2,126 | ) | — | ||||
| Contingent consideration | (22 | ) | (921 | ) | |||
| Payments of vendor financing obligation | (300 | ) | — | ||||
| Net cash provided by (used in) financing activities | 106,424 | (921 | ) | ||||
| Effect of exchange rate fluctuations on cash and cash equivalents | 88 | (173 | ) | ||||
| Net increase in cash and cash equivalents | 29,853 | 870 | |||||
| Cash and cash equivalents, beginning of period | 4,421 | 5,478 | |||||
| Cash and cash equivalents, end of period | $ | 34,274 | $ | 6,348 | |||
| SILVACO GROUP, INC. | |||||||||||||||||
| REVENUE | |||||||||||||||||
| (Unaudited, in thousands) | |||||||||||||||||
| 2023 | 2024 | ||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | |||||||||||
| Revenue by Product Line: | |||||||||||||||||
| TCAD | 62 | % | 62 | % | 52 | % | 62 | % | 59 | % | 66 | % | 69 | % | |||
| EDA | 29 | % | 20 | % | 31 | % | 22 | % | 26 | % | 30 | % | 20 | % | |||
| IP | 9 | % | 18 | % | 17 | % | 16 | % | 15 | % | 4 | % | 11 | % | |||
| Total revenue | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||
| Revenue Item Category: | |||||||||||||||||
| Software license revenue | 75 | % | 71 | % | 74 | % | 70 | % | 73 | % | 77 | % | 74 | % | |||
| Maintenance and service | 25 | % | 29 | % | 26 | % | 30 | % | 27 | % | 23 | % | 26 | % | |||
| Total revenue | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||
| SILVACO GROUP, INC. | ||||||||||||||||
| GAAP to Non-GAAP Reconciliation | ||||||||||||||||
| (Unaudited, in thousands except per share amounts) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| Reconciliation GAAP to Non-GAAP | 6/30/2024 | 6/30/2023 | 6/30/2024 | 6/30/2023 | ||||||||||||
| GAAP Gross profit | $ | 10,099 | $ | 10,152 | $ | 24,015 | $ | 22,418 | ||||||||
| Add: Stock-based compensation | 2,467 | — | 2,467 | — | ||||||||||||
| Add: Amortization of acquired intangible assets | 249 | — | 249 | — | ||||||||||||
| Non-GAAP Gross profit | $ | 12,815 | $ | 10,152 | $ | 26,731 | $ | 22,418 | ||||||||
| GAAP Research and development | $ | 7,707 | $ | 3,169 | $ | 11,323 | $ | 6,544 | ||||||||
| Less: Stock-based compensation | (4,065 | ) | — | (4,065 | ) | — | ||||||||||
| Less: Amortization of acquired intangible assets | (47 | ) | (74 | ) | (117 | ) | (175 | ) | ||||||||
| Non-GAAP Research and Development | $ | 3,595 | $ | 3,095 | $ | 7,141 | $ | 6,369 | ||||||||
| GAAP Sales and marketing | $ | 7,171 | $ | 2,930 | $ | 10,483 | $ | 5,735 | ||||||||
| Less: Stock-based compensation | (3,552 | ) | — | (3,552 | ) | — | ||||||||||
| Less: Amortization of acquired intangible assets | (39 | ) | — | (178 | ) | — | ||||||||||
| Non-GAAP Sales and marketing | $ | 3,580 | $ | 2,930 | $ | 6,753 | $ | 5,735 | ||||||||
| GAAP General and administrative | $ | 18,314 | $ | 4,258 | $ | 22,914 | $ | 8,811 | ||||||||
| Less: Stock-based compensation | (11,745 | ) | — | (11,745 | ) | — | ||||||||||
| Less: Acquisition-related estimated litigation claim and legal costs | (2,021 | ) | (233 | ) | (2,615 | ) | (469 | ) | ||||||||
| Less: Amortization of acquired intangible assets | (568 | ) | (711 | ) | (695 | ) | (979 | ) | ||||||||
| Non-GAAP General and administrative | $ | 3,980 | $ | 3,314 | $ | 7,859 | $ | 7,363 | ||||||||
| GAAP Estimated litigation claim | $ | 14,696 | $ | — | $ | 14,696 | $ | — | ||||||||
| Less: Acquisition-related estimated litigation claim and legal costs | (14,696 | ) | — | (14,696 | ) | — | ||||||||||
| Non-GAAP Estimated litigation claim | — | — | — | — | ||||||||||||
| GAAP Operating expenses | $ | 47,888 | $ | 10,357 | $ | 59,416 | $ | 21,090 | ||||||||
| Less: Stock-based compensation | (19,362 | ) | — | (19,362 | ) | — | ||||||||||
| Less: Acquisition related estimated litigation claim and legal costs | (16,717 | ) | (233 | ) | (17,311 | ) | (469 | ) | ||||||||
| Less: IPO preparation costs | (607 | ) | (711 | ) | (873 | ) | (979 | ) | ||||||||
| Less: Amortization of acquired intangible assets | (47 | ) | (74 | ) | (117 | ) | (175 | ) | ||||||||
| Non-GAAP Operating expenses | $ | 11,155 | $ | 9,339 | $ | 21,753 | $ | 19,467 | ||||||||
| GAAP Income (loss) from operations | $ | (37,789 | ) | $ | (205 | ) | $ | (35,401 | ) | $ | 1,328 | |||||
| Add: Stock-based compensation | 21,829 | — | 21,829 | — | ||||||||||||
| Add: Acquisition related estimated litigation claim and legal costs | 16,717 | 233 | 17,311 | 469 | ||||||||||||
| Add: IPO preparation costs | 607 | 711 | 873 | 979 | ||||||||||||
| Add: Amortization of acquired intangible assets | 296 | 74 | 366 | 175 | ||||||||||||
| Non-GAAP Income (loss) from operations | $ | 1,660 | $ | 813 | $ | 4,978 | $ | 2,951 | ||||||||
| GAAP Net income (loss) | $ | (38,388 | ) | $ | (331 | ) | $ | (37,010 | ) | $ | 483 | |||||
| Add: Stock-based compensation | 21,829 | — | 21,829 | — | ||||||||||||
| Add: Acquisition related estimated litigation claim and legal costs | 16,717 | 233 | 17,311 | 469 | ||||||||||||
| Add: IPO preparation costs | 607 | 711 | 873 | 979 | ||||||||||||
| Add: Amortization of acquired intangible assets | 296 | 74 | 366 | 175 | ||||||||||||
| Add: Loss on debt extinguishment | 718 | — | 718 | — | ||||||||||||
| Add: Change in fair value of contingent consideration | (10 | ) | 65 | (18 | ) | 341 | ||||||||||
| Add: Foreign exchange loss | 114 | 168 | 244 | 415 | ||||||||||||
| Add: Income tax effect of non-GAAP adjustments | (43 | ) | (81 | ) | (76 | ) | (104 | ) | ||||||||
| Non-GAAP Net income (loss) | $ | 1,840 | $ | 839 | $ | 4,237 | $ | 2,758 | ||||||||
| GAAP Net income (loss) per share: | ||||||||||||||||
| Basic and diluted: | $ | (1.55 | ) | $ | (0.02 | ) | $ | (1.65 | ) | $ | 0.02 | |||||
| Non-GAAP Net income (loss) per share: | ||||||||||||||||
| Basic: | $ | 0.07 | $ | 0.04 | $ | 0.19 | $ | 0.14 | ||||||||
| Diluted: | $ | 0.07 | $ | 0.04 | $ | 0.18 | $ | 0.14 | ||||||||
| Weighted average shares used in GAAP and non-GAAP net income (loss) per share: | ||||||||||||||||
| Basic: | 24,811,112 | 20,000,000 | 22,405,557 | 20,000,000 | ||||||||||||
| Diluted: | 25,408,465 | 20,000,000 | 23,052,554 | 20,000,000 | ||||||||||||
Investor Contact:
Greg McNiff
investors@silvaco.com
Media Contact:
Tyler Weiland
press@silvaco.com
FAQ
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