Arteris, Inc. Reports Strong Q4 Results and Future Guidance

Author: Owen Jenkins Updated: 02-18-2025 04:20 PM

Arteris, Inc. Financial Highlights for Q4 2024

Arteris, Inc. (NASDAQ: AIP), a prominent provider in the semiconductor sector, recently shared outstanding results for the fourth quarter of 2024. The company's Annual Contract Value plus royalties reached an incredible $65.1 million, reflecting a notable increase of 16% year-over-year. This was primarily attributed to surging demand for its commercial semiconductor System IP products, especially in the realms of AI-driven enterprises and automotive SoCs.

Revenue Growth and Operational Performance

A substantial revenue figure of $15.5 million was recorded for the fourth quarter, showcasing a remarkable 24% rise compared to the same quarter in the previous year. The remaining performance obligation (RPO) also saw a rise to $88.4 million, indicating robust future revenue expectations.

Specific Financial Highlights

Arteris has revealed certain key figures from its Q4 and full year 2024 financial performance:

Operating Loss: $7.1 million, an improvement compared to an operating loss of $9.2 million from the previous year.
Net Loss: $8.2 million, translating to a loss of $0.20 per share.
Full Year Revenue: Total revenue for the full year reached $57.7 million, representing an 8% increase year-over-year.
Annual Contract Value plus Royalties: Growth to $65.1 million, indicating strong customer retention and acquisition.

Strategic Developments and Market Expansion

The upcoming year holds promising opportunities for Arteris. The company has successfully signed on 14 new clients, including two significant automotive OEMs, which signifies an expansion into critical technology sectors like chiplets and AI applications. Arteris' innovative solutions continue to enhance productivity while reducing power consumption.

2025 Guidance Outlook

For the first quarter of 2025, Arteris anticipates an Annual Contract Value plus royalties in the range of $65.5 to $67.5 million. Revenue is projected between $15.7 million and $16.1 million. The full year 2025 guidance predicts an annual revenue between $66.0 million and $70.0 million.

Implications for Investors and Stakeholders

The positive trajectory detailed in this quarter's results indicates not only operational strengths but also a growing market presence that can greatly benefit shareholders in 2025. The company's focus on innovative technology and leveraging industry partnerships positions it well for continued expansion and potential profitability.

Frequently Asked Questions

What are the recent financial highlights reported by Arteris, Inc.?

Arteris, Inc. reported a revenue of $15.5 million for Q4 2024, a 24% increase year-over-year, and a total Annual Contract Value and royalties of $65.1 million.

What projections does Arteris have for the upcoming year?

The company projects Q1 2025 revenue between $15.7 million and $16.1 million, with full-year revenue expected to range from $66 million to $70 million.

How has Arteris expanded its customer base?

Arteris has successfully added 14 new customers in Q4 2024, including major automotive OEMs, demonstrating strong demand for its products across various sectors.

What is the significance of the Annual Contract Value (ACV)?

The ACV indicates the total revenue expected from contracts with customers, reflecting both existing relationships and newly acquired clients, crucial for predicting future revenue streams.

How does Arteris's technology impact its market positioning?

With a focus on efficiency and performance in high-growth sectors such as AI and automotive technologies, Arteris's solutions help clients accelerate their chip design processes, enhancing its competitive edge.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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