Ceva, Inc. Announces Fourth Quarter and Full Year 2024 Financial Results
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 IPs 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(TM)
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
(loss) per share (in thousands):
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
revenues
Equity-based compensation expense included in research and 2,432 2,430 9,298 9,133
development expenses
Equity-based compensation expense included in sales and 494 471 1,801 1,776
marketing expenses
Equity-based compensation expense included in general and 827 1,008 3,763 3,795
administrative expenses
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
marketable equity securities.
Income tax expenses, an impact as a result of the completion - 1,302 1,302
of a tax audit for prior years
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
computation of diluted net income (loss) per share (in
thousands)
Weighted-average number of shares related to outstanding 1,579 1,271 1,491 1,197
stock-based awards (in thousands)
Weighted-average number of Common Stock used in 25,216 24,789 25,104 24,681
computation of diluted net income (loss) per share, excluding
the above (in thousands)
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
revenues
Equity-based compensation expense included in 2,432 2,430 9,298 9,133
research and development expenses
Equity-based compensation expense included in sales 494 471 1,801 1,776
and marketing expenses
Equity-based compensation expense included in 827 1,008 3,763 3,795
general and administrative expenses
Amortization of intangible assets 255 278 1,090 1,031
Costs associated with the Business and asset 250 356 1,033 551
acquisition
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.
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SOURCE Ceva, Inc.
