PDFS Earnings Prediction
The chart below shows how PDFS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PDFS sees a -0.57% change in stock price 10 days leading up to the earnings, and a +0.62% change 10 days following the report. On the earnings day itself, the stock moves by +1.79%. This data can give you a slight idea of what to expect for the next quarter's release.
PDFS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
50.09M
21.79%
7.92%
Gross Margin
67.89%
1.07%
-6.59%
Operating Margin
1.02%
147.89%
-77.68%
Net Margin
1.08%
-50.00%
-77.26%
EPS
0.01
-50.00%
-83.33%
No Data Available
PDFS Earnings Analysis
PDF Solutions Inc Corporation (PDFS.O) Earnings Conference Call
Positive
Q4 Revenue Surge: Revenue for Q4 reached $50.1 million, reflecting a 22% year-over-year increase, surpassing the long-term growth target.
Record Revenue Growth: Total revenue for 2024 was a record $179.5 million, an 8% increase from $165.8 million in 2023, with significant growth in the second half of the year at 16%.
Analytics Revenue Surge: Analytics revenue grew 22% in Q4 compared to the same period last year, contributing to 96% of total revenue for the quarter.
Gross Margin Improvement: Gross margin improved to 74% for the full year, up from 73% in the previous year, moving closer to the target model of 75%.
EPS Growth Achievement: Earnings per share (EPS) for the full year was $0.84, representing a 15% growth compared to the prior year.
Negative
Full Year Revenue Performance: Revenue growth for the full year 2024 was only 8%, with nearly all growth occurring in the second half, indicating a weak performance in the first half compared to the previous year.
Rising Operating Expenses Concerns: Operating expenses increased by 16% year over year, primarily due to higher sales and marketing spending, which raises concerns about cost management amidst revenue growth.
Accounts Receivable Concerns: The accounts receivable balance was elevated at the end of the quarter, indicating potential issues with cash flow and collections, which could impact future liquidity.
Profitability Concerns Amid Margin Improvement: Despite a gross margin improvement to 74%, the decline in gainshare revenue, which has a very high gross margin, raises concerns about the sustainability of overall profitability.
Backlog Decrease Analysis: The backlog decreased from $2.39 million in Q3 to $2.21 million in Q4, suggesting a potential slowdown in future revenue generation and customer demand.
PDFS FAQs
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PDFS Earning Call Sentiment
Earnings call transcript: PDF Solutions Q4 2024 revenue beats expectations
PDFS.O
-2.39%Positive
The earnings call revealed strong financial performance, with a 22% YoY revenue increase in Q4 and improved gross margins. The ongoing AI integration and successful product development, including eProbe and ModelOps, indicate future growth potential. Despite some risks like customer caution and supply chain challenges, the company's positive cash flow and share buybacks enhance shareholder value. The Q&A session highlighted management's confidence in the eProbe pipeline and ModelOps receptivity, balancing concerns about backlog changes. Given the company's small-cap status, the stock is likely to react positively, with a 2% to 8% increase expected.
