Pixelworks Inc (PXLW) Q4 2024 Earnings Call Highlights: Navigating Revenue Challenges with ...

In This Article:

  • Revenue: $9.1 million in Q4 2024, down from $9.5 million in Q3 2024 and $20.1 million in Q4 2023.

  • Home and Enterprise Revenue: Approximately $8.5 million in Q4 2024.

  • Mobile Revenue: Approximately $550,000 in Q4 2024.

  • Non-GAAP Gross Margin: 54.8% in Q4 2024, up from 51.3% in Q3 2024 and 44.8% in Q4 2023.

  • Non-GAAP Operating Expenses: $10.4 million in Q4 2024, down from $12.4 million in Q3 2024 and $12 million in Q4 2023.

  • Non-GAAP Net Loss: $4.3 million or $0.07 per share in Q4 2024, compared to $7.1 million or $0.12 per share in Q3 2024 and $2.6 million or $0.05 per share in Q4 2023.

  • Adjusted EBITDA: Negative $3.6 million in Q4 2024, compared to negative $6.3 million in Q3 2024 and negative $1.9 million in Q4 2023.

  • Cash and Cash Equivalents: $23.6 million at the end of Q4 2024, down from $28.8 million at the end of Q3 2024.

  • Q1 2025 Revenue Guidance: Expected to be between $7 million and $8 million.

  • Q1 2025 Non-GAAP Gross Margin Guidance: Expected to be between 49% and 51%.

  • Q1 2025 Non-GAAP Operating Expenses Guidance: Expected to be between $10 million and $11 million.

  • Q1 2025 Non-GAAP EPS Guidance: Expected to range between a loss of $0.13 per share and a loss of $0.10 per share.

Release Date: February 12, 2025

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

Positive Points

  • Pixelworks Inc (NASDAQ:PXLW) achieved significant improvement in gross margin, expanding over 340 basis points sequentially and nearly 1,000 basis points year over year.

  • The company has secured multiyear agreements with major studios like Walt Disney Studios and Universal Pictures for its TrueCut Motion platform.

  • Pixelworks Inc (NASDAQ:PXLW) is in active discussions with three major device brands for potential incorporation of TrueCut Motion capability into future devices.

  • The company has established a new framework for providing ASIC design services, which could contribute to revenue growth by mid-year.

  • Pixelworks Inc (NASDAQ:PXLW) expects its Shanghai subsidiary to achieve profitability for the full year of 2025, aided by cost reductions and subsidies.

Negative Points

  • Revenue for the fourth quarter of 2024 decreased to $9.1 million from $20.1 million in the fourth quarter of 2023, primarily due to headwinds in the mobile sector.

  • The company reported a non-GAAP net loss of $4.3 million for the fourth quarter of 2024, compared to a net loss of $2.6 million in the same quarter of 2023.

  • Pixelworks Inc (NASDAQ:PXLW) anticipates a slower start to 2025 in terms of total revenue, with a forecasted range of $7 million to $8 million for the first quarter.

  • The strategic review process for the Pixelworks Shanghai subsidiary is ongoing, with no definitive timeframe for completion, creating uncertainty.

  • The company is not expecting to be fully profitable at the top level in 2025, although it aims to be close by the end of the year.