SVCO Earnings Prediction
The chart below shows how SVCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SVCO sees a +17.30% change in stock price 10 days leading up to the earnings, and a -5.17% change 10 days following the report. On the earnings day itself, the stock moves by +0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
SVCO Key Earning Data
2024/Q4
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SVCO Earnings Analysis
Silvaco Group Inc Corporation (SVCO.O) Earnings Conference Call
Positive
Gross Bookings Increase: Silvaco reported gross bookings of $65.8 million for fiscal year 2024, reflecting a 13% increase from 2023, indicating strong demand for their products.
Fiscal Year 2024 Revenue Growth: Revenue for fiscal year 2024 was $59.7 million, a 10% increase from the previous year, showcasing consistent growth in sales.
Gross Margin Improvement: The company achieved a non-GAAP gross margin of 86% in 2024, up from 83% in 2023, demonstrating improved operational efficiency.
Operating Income Improvement: Non-GAAP operating income increased to $5.5 million in 2024 from $4.4 million in 2023, highlighting effective cost management and revenue growth.
Non-GAAP Net Income Increase: Silvaco's non-GAAP net income per share rose to $0.25 in 2024, compared to $0.17 in 2023, reflecting enhanced profitability.
Customer Acquisition Success: The company added 46 new customers in 2024, including significant wins in the power and memory markets, which positions them well for future growth.
Strategic Partnerships and Innovation: Silvaco's partnership with Micron Global and membership in the Smart USA Institute under the Chips Manufacturing USA program enhances their market reach and innovation capabilities.
Market Expansion through Acquisition: The acquisition of Cadence's OPC product line is expected to expand Silvaco's addressable market by $357 million, strengthening their position in advanced memory manufacturing and foundry operations.
AI-Driven Semiconductor Innovation: Silvaco's strategic focus on AI-driven semiconductor design and digital twin modeling is expected to drive long-term growth and innovation in the semiconductor industry.
Negative
Operating Income Decline Expected: Non GAAP operating income for 2025 is expected to decline to between $2 million and $7 million, down from $5.5 million in 2024, indicating potential challenges in maintaining profitability amidst rising expenses.
Gross Margin Projections: Non GAAP gross margin for 2025 is projected to be between 84% and 89%, a decrease from 86% in 2024, suggesting potential pressure on profitability despite revenue growth expectations.
Rising Operating Expenses: Operating expenses increased significantly to $12.8 million in Q4 2024 from $11.1 million in Q4 2023, primarily due to higher G&A costs associated with being a public company and ongoing investments in R&D and sales, indicating a trend of rising costs that may impact future profitability.
SIP Bookings Decline: SIP bookings saw a significant decline of 79% in Q4 2024, reflecting lingering impacts from a delay in renewing a key strategic resale agreement and general order slowdowns in the APAC region, which could hinder overall growth.
Acquisition Revenue Caution: The company expressed caution regarding the revenue contribution from the recent acquisition of Cadence’s OPC product line, indicating uncertainties in revenue recognition and potential modest contributions in the near term, which may affect overall financial performance.
Q1 2025 Operating Loss Guidance: The guidance for Q1 2025 includes a potential operating loss of up to $1 million, highlighting the challenges the company may face in achieving profitability in the short term.
SVCO FAQs
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SVCO Earning Call Sentiment
Earnings call transcript: Silvaco Q4 2024 EPS beats forecast, stock dips
SVCO.O
-4.47%Positive
The earnings report reveals significant improvements in financial performance, including a 43% revenue increase and a swing to profitability. Gross margins have improved, indicating operational efficiency. Despite some uncertainties regarding acquisitions, the overall sentiment is positive due to strong earnings and optimistic guidance. The lack of shareholder return plan is a minor drawback, but the focus on growth and operational efficiency is promising. The market reaction is likely to be positive, with a potential stock price increase of 2% to 8% over the next two weeks.
