Arteris Announces Financial Results for the Second Quarter 2024 and Third Quarter and Full Year 2024 Guidance

CAMPBELL, Calif., Aug. 01, 2024 -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced financial results for the second quarter ended June 30, 2024 and provided third quarter and full year 2024 guidance.

“We’re excited to report a record $60.1 million in Annual Contract Value and Trailing-Twelve-Month Variable Royalties and our second consecutive quarter of positive free cash flow in the second quarter of 2024,” said K. Charles Janac, President and CEO of Arteris. “As our customer base continues to expand with market leading companies in the Automotive and AI technology sectors, including those transitioning from internal solutions, the industry need for Arteris’ high-performance commercial System IP solutions, is evident,” concluded Janac.

Second Quarter 2024 Financial Highlights:

• Revenue of $14.6 million, up 13% sequentially
• Annual Contract Value (ACV) and trailing-twelve-months (TTM) variable royalties of $60.1 million, up 3% year-over-year
• Remaining performance obligation (RPO) of $77.5 million, up 19% year-over-year, growing to the highest level we have ever reported
• Non-GAAP free cash flow of positive $0.3 million or 1.8% of revenue
• Operating loss of $7.4 million
• Non-GAAP operating loss of $3.5 million, compared to a Non-GAAP operating loss of $4.2 million in the year ago period
• Net loss of $8.3 million or $0.22 per share
• Non-GAAP net loss of $4.4 million or $0.11 per share

Second Quarter 2024 Business Highlights:

• Added seven new customers across key markets, including Automotive, Enterprise Computing, Communications and Consumer Electronics;
• Continued growth momentum in Automotive with the addition of two market-leading global automotive OEMs to our customer base;
• Steady design activity, with design starts in dynamic technology areas, including a major robotaxi company and a market-leading assisted driving technology company;
• Forged an ecosystem partnership with Andes Technology, a founding and premier member of RISC-V and a leading supplier of high-performance, low-power RISC-V processor IP;
• Esperanto Technologies, an AI solution provider for Generative AI and high-performance computing, chose Arteris SoC integration automation software for its automation efficiency, error reduction and streamlined design workflows; and
• AIP included in the Russell 2000® Index.

Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP net loss, Non-GAAP net loss per share, free cash flow and free cash flow margin are Non-GAAP financial measures. Additional information on Arteris’ historic reported results, including a reconciliation of these Non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.

Third Quarter and Full Year 2024 Guidance:

The guidance provided above are forward-looking statements and reflects Arteris' expectations as of today's date. Actual results may differ materially. Refer to the section titled "Forward-Looking Statements" below for information on the factors, among others, that could cause our actual results to differ materially from these forward-looking statements.

A reconciliation of Non-GAAP guidance measures reported above to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Arteris' results computed in accordance with GAAP.

Definitions of the other business metrics used in this press release including ACV, active customers, confirmed design starts and RPO are included below under the heading “Other Business Metrics.”

Financial Tables

To read financial tables, click here

Conference Call

Arteris will host a conference call today on August 1, 2024 to review its second quarter 2024 financial results and to discuss its financial outlook.

A live webcast will also be available in the Investor Relations section of Arteris’ website at: https://ir.arteris.com/events-and-presentations

A replay of the webcast will be available in the Investor Relations section of Arteris' website approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.

About Arteris

Arteris is a leading provider of system IP for the acceleration of system-on-chip (SoC) development across today’s electronic systems. Arteris network-on-chip (NoC) interconnect IP and SoC integration automation technology enable higher product performance with lower power consumption and faster time to market, delivering better SoC economics so its customers can focus on dreaming up what comes next. Learn more at arteris.com.