Q2 2024 CEVA Inc Earnings Call Transcript
Key Points
- CEVA Inc (CEVA) reported a strong second quarter, exceeding estimates with significant licensing execution and royalty growth driven by IoT and smartphone shipments.
- Licensing revenue increased by 28% year over year, with a healthy backlog heading into the third quarter due to significant deals signed.
- Royalty revenue grew 19% year over year, supported by strong smartphone shipments and increased market share in Bluetooth, Wi-Fi, and cellular IoT.
- CEVA Inc (CEVA) launched two new IP products, NeuPro-Nano and Ceva-Waves Links, enhancing their AI and connectivity offerings.
- The company is seeing increased opportunities in the US semiconductor market, aligning with their growth strategy and indicating successful execution.
- Total GAAP operating expenses for the second quarter were at the higher end of guidance due to increased sales commissions and employee-related benefits.
- Despite strong quarterly results, the annual revenue guidance was not significantly increased, suggesting potential caution about future quarters.
- The majority of Wi-Fi shipments are still Wi-Fi 4, indicating a delay in the transition to higher-priced Wi-Fi 6 and Wi-Fi 7 technologies.
- CEVA Inc (CEVA) faces competition in each specific IP area, despite having a comprehensive portfolio.
- The company is still recovering from a significant inventory correction in the smartphone market, which has not yet returned to peak levels.
Good day and welcome to the CEVA Inc. Second Quarter 2024 Earnings Call. All participants will be in listen only mode. (Operator Instructions) After today's remarks, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Richard Kingston, Vice President of Market Intelligence, Investor and Public Relations. Please go ahead.
Thank you, Jason and good morning, everyone. Welcome to Cevaâs second quarter 2024 earnings conference call. Joining me today on the call are Amir Panush, Ceva, Chief Executive Officer and Yaniv Arieli, Chief Financial Officer of Ceva.
Before handing over to Amir, I would like to remind everyone that today's discussion contains forward-looking statements that involve risks and uncertainties as well as assumptions that if they materialize or prove incorrect, could cause the results of Ceva to differ materially from those expressed or implied by such forward-looking
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