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• Fourth Quarter Revenue: $230 million, increased 17% year on year.

• Excluding Moritex Revenue Growth: 12% year on year.

• Adjusted Gross Margin: 69.4%, down 130 basis points from the previous year.

• Adjusted Operating Expenses: Increased 3% year on year.

• Adjusted EBITDA Margin: 18.5%, up from 12.6% a year ago.

• GAAP Diluted EPS: $0.16, up from $0.07 in Q4 2023.

• Adjusted Diluted EPS: $0.20, up from $0.11 year on year.

• Free Cash Flow: $49 million, compared to $7 million in Q4 2023.

• Full Year 2024 Revenue: $915 million, grew 9% year on year.

• Adjusted Gross Margin for 2024: 69.3%, down 3.2 percentage points.

• Adjusted EBITDA Margin for 2024: 17.1%, declined 140 basis points.

• Adjusted Diluted EPS for 2024: $0.74, up from $0.73 in 2023.

• Total Free Cash Flow for 2024: $134 million.

• Cash and Investments at Year-End: $587 million, with no debt.

• First Quarter 2025 Revenue Outlook: Between $200 million and $220 million.

• Expected Adjusted Gross Margin for Q1 2025: High 60% range.

• Expected Adjusted EBITDA Margin for Q1 2025: Between 12% and 15%.

• Warning! GuruFocus has detected 5 Warning Signs with CGNX.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cognex Corp (NASDAQ:CGNX) successfully integrated its largest acquisition, Moritex, which contributed positively to the bottom line and was accretive to adjusted EPS in 2024.

• The company launched innovative AI-powered products, including the industry's first AI-enabled 3D smart camera and the VisionPro Deep Learning 4.0, enhancing its machine vision capabilities.

• Cognex Corp (NASDAQ:CGNX) achieved significant growth in its logistics segment, with a 20% revenue increase driven by global e-commerce leaders and regional logistics providers.

• The sales transformation initiative led to the acquisition of over 3,000 new customers in 2024, expanding the company's market reach.

• Cognex Corp (NASDAQ:CGNX) maintained strong financial discipline, with adjusted EBITDA margin improving to 18.5% in Q4, driven by revenue growth and cost management.

Negative Points

• The automotive segment experienced a 14% revenue decline due to reduced EV battery investment and tentativeness in large capital projects.

• Consumer electronics revenue decreased by 5% year on year, impacted by limited smartphone design changes and conservative CapEx spending.

• The company's core factory automation markets remained soft, with only slight stabilization despite improvements in macro indicators.

• Pricing pressures, particularly in China, negatively impacted gross margins, alongside unfavorable mix effects from higher logistics revenue.

• Cognex Corp (NASDAQ:CGNX) faces ongoing uncertainty in the automotive market, with expectations of continued weakness in 2025.