Nova Reports Record Fourth Quarter and Full Year 2024 Results
REHOVOT, Israel, Feb. 13, 2025 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the fourth quarter and full year ended December 31, 2024.
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Fourth Quarter 2024 Highlights:
-- Record Quarterly revenue of $194.8 million, a 9% QoQ increase, exceeding
the Company guidance and up 45% YoY.
-- GAAP net income of $50.5 million, or $1.58 per diluted share, up 32%
YoY.
-- Record non-GAAP net income of $62.3 million, or $1.94 per diluted share,
exceeding the Company guidance, and up 43% YoY.
-- Record sales of materials metrology, driven by sales of Nova Metrion and
Nova Veraflex platforms
-- Record sales for dimensional metrology stand-alone solutions, driven by
demand for unique capabilities in advanced packaging and GAA
manufacturing.
Full Year 2024 Highlights:
-- Record annual revenue of $672.4 million up 30% YoY
-- Record GAAP net income of $183.8 million, or $5.75 per diluted share up
34% YoY
-- Record Non-GAAP net income of $214.9 million, or $6.69 per diluted share
up 38% YoY
-- Record sales for advanced packaging processes, more than doubling
revenues from the segment
-- Record sales of materials metrology, driven by growing adoption of the
Company's solutions across market segments
GAAP Results (K)
Q4 2024 Q3 2024 Q4 2023 FY 2024 FY 2023
Revenues $194,766 $178,974 $134,219 $672,396 $517,922
Net Income $50,481 $51,279 $38,068 $183,762 $136,310
Earnings per Diluted Share $1.58 $1.60 $1.20 $5.75 $4.28
Non-GAAP Results (K)
Q4 2024 Q3 2024 Q4 2023 FY 2024 FY 2023
Net Income $62,302 $56,056 $43,597 $214,926 $155,891
Earnings per Diluted Share $1.94 $1.74 $1.36 $6.69 $4.86
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the
financial statements included in this release.
See also "Use of Non-GAAP Adjusted Financial Measures" section.
Management Comments
"Nova continues to outperform the market, with quarterly and annual sales records which exceeded the high end of the guidance in both revenue and profitability," said Gaby Waisman, President and CEO. "As we reflect on the past year, we count multiple achievements across our product lines, including strategic penetrations into leading manufacturers, an evolving position in new segments, and a growing market share. All of these, combined with Nova's long-term strategy for perpetual growth, set the stage for our continued growth in 2025."
2025 First Quarter Financial Outlook
Management provided an outlook for the first quarter, the period ending March 31, 2025. Based on current estimates, management expects:
-- $205 million to $215 million in revenue
-- $1.75 to $1.91 in diluted GAAP EPS
-- $2.00 to $2.16 in diluted non-GAAP EPS
2024 Fourth Quarter Results
Total revenues for the fourth quarter of 2024 were $194.8 million, an increase of 9% compared with the third quarter of 2024 and an increase of 45% compared with the fourth quarter of 2023.
Gross margin in the fourth quarter of 2024 was 56.4%, compared with 56.6% in the third quarter of 2024 and 55.1% in the fourth quarter of 2023.
Operating expenses in the fourth quarter of 2024 were $54.5 million, compared with $52.1 million in the third quarter of 2024 and $40.4 million in the fourth quarter of 2023.
On a GAAP basis, the Company reported net income of $50.5 million, or $1.58 per diluted share, in the fourth quarter of 2024. This is compared with net income of $51.3 million, or $1.60 per diluted share, in the third quarter of 2024, and $38.1 million, or $1.20 per diluted share, in the fourth quarter of 2023.
On a non-GAAP basis, the Company reported net income of $ 62.3 million, or $1.94 per diluted share, in the fourth quarter of 2024. This is compared with net income of $ 56.1 million, or $1.74 per diluted share, in the third quarter of 2024, and $43.6 million, or $1.36 per diluted share, in the fourth quarter of 2023.
2024 Full Year Results
Total revenues for 2024 were $672.4 million, an increase of 30% compared to total revenues of $517.9 million for 2023.
Gross margin in 2024 was 57.6%, compared with 56.6% in 2023.
Operating expenses in 2024 were $199.5 million, compared with operating expenses of $160.9 million in 2023.
On a GAAP basis, the Company reported net income of $183.7 million, or $5.75 per diluted share, in 2024. This is compared with a net income of $136.3 million, or $4.28 per diluted share, in 2023.
On a non-GAAP basis, the Company reported net income of $214.9 million, or $6.69 per diluted share, in 2024. This is compared with net income of $155.9 million, or $4.86 per diluted share, in 2023.
Conference Call Information
Nova will host a conference call today, February 13, 2025, at 8:30 a.m. Eastern Time, to discuss the Company's fourth quarter 2024 financial results and outlook. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
U.S. TOLL-FREE Dial-in Number: 1-833-816-1427
ISRAEL TOLL-FREE Dial-in Number: 1-809-213-284
INTERNATIONAL Dial-in Number: 1-412-317-0519
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
The conference call will also be webcast live from a Link on Nova's website at https://www.novami.com/investors/events/.
A replay of the conference call will be available from February 13, 2025, at 11:30 a.m. Eastern Time until August 15, 2025, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:
Replay Dial-in U.S. TOLL-FREE: 1-877-344-7529
Replay Dial-in INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 8533745
A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/.
About Nova
Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art, high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into developing and producing the most advanced semiconductor devices. Nova's unique capability to deliver innovative solutions enables its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices worldwide. Additional information may be found on Nova's website link - https://www.novami.com/.
Nova is traded on the Nasdaq and TASE, Nasdaq ticker symbol NVMI.
Use of Non-GAAP Adjusted Financial Measures
This press release provides financial measures that exclude amortization of acquired intangible assets, stock-based compensation expenses, acquisition related expenses, revaluation of operating lease liabilities and remeasurement of intercompany loans, amortization of issuance costs and tax effect of non-GAAP adjustment, as applicable, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhance management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allow greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding, but not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: increased information technology security threats and sophisticated computer crime; foreign political and economic risks including supply-chain difficulties; regulations that could restrict our operations such as economic sanctions and export restrictions; changes in U.S. trade policies; indirect effects of the Russia - Ukraine conflict; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our intellectual property; open source technology exposure, including risks related to artificial intelligence; failure to compete effectively or to respond to rapid technological changes; consolidation in our industry; difficulty in predicting the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; difficulty in integrating current or future acquisitions; lengthy sales cycle and customer delays in orders; risks related to conditions in Israel, including related to the war against Hamas and other terrorist organizations; risks related to our convertible notes; currency fluctuations; and quarterly fluctuations in our operating results. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 20, 2024. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release.
(Tables to Follow)
NOVA LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands) - (Unaudited)
As of December 31,
ASSETS 2024 2023
Current assets
Cash and cash equivalents 157,779 107,574
Short-term interest-bearing bank deposits 211,877 119,850
Marketable securities 216,910 216,258
Trade accounts receivable, net 139,318 111,256
Inventories 156,599 138,198
Other current assets 19,466 17,084
Total current assets 901,949 710,220
Non-current assets
Marketable securities 225,818 191,351
Interest-bearing bank deposits and restricted deposits 7,847 6,254
Deferred tax assets 31,639 23,583
Operating lease right-of-use assets 51,193 41,856
Property plant and equipment, net 81,746 66,874
Intangible assets, net 31,458 39,184
Goodwill 48,317 50,080
Other long-term assets 10,455 4,405
Total non-current assets 488,473 423,587
Total assets 1,390,422 1,133,807
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Convertible senior notes, net 180,564 197,678
Trade accounts payable 59,578 35,158
Deferred revenues 72,886 41,978
Operating lease current liabilities 7,169 6,703
Other current liabilities 68,033 41,294
Total current liabilities 388,230 322,811
Non-current liabilities
Operating lease long-term liabilities 48,363 39,762
Long-term deferred tax liability 8,495 10,574
Other long-term liabilities 17,539 9,908
Total non-current liabilities 74,397 60,244
Shareholders' equity 927,795 750,752
Total liabilities and shareholders' equity 1,390,422 1,133,807
NOVA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data) - (Unaudited)
Three months ended Year ended
December 31, December 31,
2024 2023 2024 2023
Revenues:
Products 158,546 104,108 538,350 405,037
Services 36,220 30,111 134,046 112,885
Total revenues 194,766 134,219 672,396 517,922
Total cost of revenues 84,835 60,207 285,310 224,745
Gross profit 109,931 74,012 387,086 293,177
Operating expenses:
Research and development, net 30,909 21,290 110,257 88,043
Sales and marketing 15,980 13,580 65,090 52,467
General and administrative 7,571 5,480 24,199 20,404
Total operating expenses 54,460 40,350 199,546 160,914
Operating income 55,471 33,662 187,540 132,263
Financing income, net 3,756 7,283 28,747 22,436
Income before taxes on income 59,227 40,945 216,287 154,699
Income tax expenses 8,746 2,877 32,525 18,389
Net income for the period 50,481 38,068 183,762 136,310
Earnings per share:
Basic 1.72 1.31 6.31 4.73
Diluted 1.58 1.20 5.75 4.28
Shares used in calculation of earnings per share
(in thousands):
Basic 29,304 28,975 29,113 28,828
Diluted 32,062 32,023 32,138 32,089
NOVA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands) - (Unaudited)
Three months ended Year ended
December 31, December 31,
2024 2023 2024 2023
Cash flows from operating activities:
Net income 50,481 38,068 183,762 136,310
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment 3,029 2,756 11,736 10,344
Amortization of intangible assets 1,267 1,461 5,643 5,857
Amortization of premium and accretion of discount on marketable securities, net (1,820) (1,134) (7,178) (3,001)
Amortization of debt issuance costs 310 324 1,280 1,284
Share-based compensation 6,349 5,654 25,209 18,286
Net effect of exchange rate fluctuation 4,109 (2,591) 3,025 1,754
Changes in assets and liabilities:
Trade accounts receivable, net (26,196) (18,606) (29,051) (1,183)
Inventories 876 2,851 (23,897) (26,000)
Other current and long-term assets (4,097) (361) (9,671) (5,752)
Deferred tax, net (4,849) (185) (9,722) (6,241)
Operating lease right-of-use assets 559 259 3,668 3,050
Trade accounts payable 6,309 8,917 17,506 (7,807)
Deferred revenues 19,494 (292) 34,553 11,391
Operating lease liabilities 97 2,091 (3,938) (3,221)
Other current and long-term liabilities 12,686 (9,671) 32,299 (11,352)
Accrued severance pay, net (82) 64 42 (188)
Net cash provided by operating activities 68,522 29,605 235,266 123,531
Cash flows from investment activities:
Change in short-term and long-term interest-bearing bank deposits (4,339) 31,367 (93,595) (29,658)
Investment in marketable securities (60,175) (106,695) (271,987) (273,572)
Proceeds from maturity of marketable securities 57,421 44,443 246,397 195,087
Purchase of property and equipment (8,121) (7,601) (17,215) (17,188)
Net cash used in investing activities (15,214) (38,486) (136,400) (125,331)
Cash flows from
financing activities:
Purchases of treasury shares (30,000) (30,000) (112)
Conversion of convertible senior notes (18,506) (18,506)
Proceeds from exercise of options 90 160 122
Net cash provided by financing activities (48,416) (48,346) 10
Effect of exchange rate fluctuations on cash and cash equivalents (1,076) (25) (315) (2,357)
Changes in cash and cash equivalents
and restricted cash 3,816 (8,906) 50,205 (4,147)
Cash and cash equivalents
and restricted cash
-beginning of period 153,963 116,480 107,574 111,721
Cash and cash equivalents - end of period 157,779 107,574 157,779 107,574
NOVA LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)
Three months ended
December 31, September 30, December 31,
2024 2024 2023
GAAP gross profit 109,931 101,333 74,012
Stock-based compensation* 1,805 1,722 1,537
Amortization of acquired intangible assets 1,182 1,380 1,354
Non-GAAP gross profit 112,918 104,435 76,903
GAAP gross margin as a percentage of revenues 56 % 57 % 55 %
Non-GAAP gross margin as a percentage of revenues 58 % 58 % 57 %
GAAP operating income 55,471 49,231 33,662
Stock-based compensation* 6,349 6,194 5,654
Acquisition related expenses 917
Amortization of acquired intangible assets 1,267 1,467 1,461
Non-GAAP operating income 64,004 56,892 40,777
GAAP operating margin as a percentage of revenues 28 % 28 % 25 %
Non-GAAP operating margin as a percentage of revenues 33 % 32 % 30 %
GAAP net income 50,481 51,279 38,068
Stock-based compensation* 6,349 6,194 5,654
Acquisition related expenses 917
Amortization of acquired intangible assets 1,267 1,467 1,461
Amortization of debt issuance costs 310 326 324
Revaluation of operating lease and intercompany loans 4,706 (2,309) (827)
Tax effect of non-GAAP adjustments (1,728) (901) (1,083)
Non-GAAP net income 62,302 56,056 43,597
GAAP basic earnings per share 1.72 1.76 1.31
Non-GAAP basic earnings per share 2.13 1.93 1.50
GAAP diluted earnings per share 1.58 1.60 1.20
Non-GAAP diluted earnings per share 1.94 1.74 1.36
Shares used for calculation of earnings per share
(in thousands):
Basic 29,304 29,099 28,975
Diluted 32,062 32,238 32,023
* Stock-based compensation for the three months ended December 31, 2024 included in - Cost of revenues - 1,805; Research and development, net - 2,747; Sales and marketing - 1,234; General and administrative - 563.
NOVA LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)
Year ended December 31,
2024 2023
GAAP gross profit 387,086 293,177
Stock-based compensation* 7,013 4,946
Acquisition-related inventory step-up 5,284 5,430
Non-GAAP gross profit 399,383 303,553
GAAP gross margin as a percentage of revenues 58 % 57 %
Non-GAAP gross margin as a percentage of revenues 59 % 59 %
GAAP operating income 187,540 132,263
Stock-based compensation* 25,209 18,286
Acquisition related expenses 917
Amortization of acquired intangible assets 5,643 5,857
Non-GAAP operating income 219,309 156,406
GAAP operating margin as a percentage of revenues 28 % 26 %
Non-GAAP operating margin as a percentage of revenues 33 % 30 %
GAAP net income 183,762 136,310
Stock-based compensation* 25,209 18,286
Acquisition related expenses 917
Amortization of acquired intangible assets 5,643 5,857
Amortization of debt issuance costs 1,280 1,284
Revaluation of operating lease liabilities 3,221 (1,994)
Tax effect of non-GAAP adjustments (5,106) (3,852)
Non-GAAP net income 214,926 155,891
GAAP basic earnings per share 6.31 4.73
Non-GAAP basic earnings per share 7.38 5.41
GAAP diluted earnings per share 5.75 4.28
Non-GAAP diluted earnings per share 6.69 4.86
Shares used for calculation of earnings per share
(in thousands):
Basic 29,113 28,828
Diluted 32,138 32,089
* Stock-based compensation for the year ended December 31, 2024, included in - Cost of revenues - 7,013;
Research and development, net - 11,179; Sales and marketing - 4,864; General and administrative - 2,153.
NOVA LTD.
SUPPLEMENTAL INFORMATION - RECONCILIATION OF FIRST QUARTER 2025
GAAP TO NON-GAAP GUIDANCE
(U.S. dollars) (Unaudited)
Low High
Estimated GAAP net income per diluted share 1.75 1.91
Estimated non-GAAP items:
Stock-based compensation 0.19 0.19
Amortization of acquired intangible assets and inventory step-up 0.07 0.07
Acquisition related expenses 0.02 0.02
Amortization of issuance costs 0.01 0.01
Tax effect of non-GAAP adjustments (0.04) (0.04)
Estimated non-GAAP net income per diluted share 2.00 2.16
Company Contact:
Guy Kizner, Chief Financial Officer
Tel: +972-73-229-5760
E-mail - investors@novami.com
Nova website link - https://www.novami.com/
Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
E-mail - msegal@ms-ir.com
Logo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg
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SOURCE Nova
