In This Article:
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Revenue: $14.7 million, up 11% year over year.
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Annual Contract Value plus Royalties: $60.5 million, a record high for the company.
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Remaining Performance Obligations (RPO): $78.4 million, a 25% year over year increase.
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GAAP Gross Profit: $13.3 million, representing a gross margin of 90%.
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Non-GAAP Gross Profit: $13.5 million, representing a gross margin of 92%.
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GAAP Operating Expense: $21.2 million, a 4% year over year increase.
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Non-GAAP Operating Expense: $16.8 million, flat both sequentially and year over year.
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GAAP Operating Loss: $7.9 million.
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Non-GAAP Operating Loss: $3.3 million.
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Net Loss: $7.7 million or $0.20 per share.
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Non-GAAP Net Loss: $3.1 million or $0.08 per share.
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Cash, Cash Equivalents, and Investments: $54.5 million.
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Free Cash Flow: Positive $1.1 million.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Arteris Inc (NASDAQ:AIP) achieved a record annual contract value plus royalties of $60.5 million in the third quarter of 2024.
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The company delivered positive free cash flow of $1.1 million, marking the third consecutive quarter of positive free cash flow.
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There is growing demand for AI-driven enterprise computing and automotive SOC solutions, contributing to the company's success.
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Arteris Inc (NASDAQ:AIP) expanded its customer base, including a top five global technology company and Neo, a leader in the smart electric vehicle market.
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The company announced new product innovations, such as NOC tiling, to enhance AI SOC design capabilities, which have been well-received by customers.
Negative Points
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Despite positive results, Arteris Inc (NASDAQ:AIP) faces a challenging market environment with potential headwinds from global economic conditions.
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The company reported a GAAP operating loss of $7.9 million for the third quarter, although this was an improvement from the prior year.
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There are concerns about the impact of geopolitical tensions, particularly in the Chinese automotive market, which could affect future growth.
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The average selling prices (ASPs) for microcontroller market deals are lower compared to complex SOCs, potentially impacting revenue.
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Revenue recognition for new products, such as the tiling and mesh network features, has not yet commenced, indicating a delay in revenue realization.
Q & A Highlights
Q: How does the current global automotive market, particularly China's growing share, impact Arteris? A: K. Charles Janac, CEO, explained that Arteris benefits from being involved in numerous projects across various regions, including China. Despite market share shifts, Arteris maintains a strong presence in the Chinese automotive market, with companies like Nio using their technology. Nick Hawkins, CFO, added that while Mobileye faces headwinds, it remains strong, and the impact on Arteris' revenue is minimal.