The following is a summary of the Arteris, Inc. (AIP) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Arteris reported Q1 2024 annual contract value plus royalties of $58.2 million and positive free cash flow.

• Total revenue for Q1 was $12.9 million, a 2% decrease YoY but a 4% increase sequentially.

• Remaining performance obligations equaled $74.7 million at the end of Q1, marking a YoY growth of 30%.

• The company achieved a GAAP gross profit of $11.5 million, or 89% margin, while the non-GAAP gross profit was $11.7 million, translating to 91% margin.

• The GAAP operating loss for the quarter was $9.1 million, and the net loss was $9.4 million, or a diluted net loss per share of $0.25. The non-GAAP net loss was $5.6 million, or a diluted net loss per share of $0.15

Business Progress:

• In Q1, Arteris witnessed robust licensing activity mainly in enterprise computing and automotive sectors.

• Half of the Q1 license deals come from AI and machine learning design initiations.

• Five major deals were signed with top-tier global tech companies in Q1.

• The company launched its network-on-chip product, FlexNoc 5, which continues to gain solid adoption across different verticals and geographical markets.

• Arteris is ramping up its RISC-V ecosystem support, aiding on-chip connectivity for firms deploying the Damo-XuanTie processor IP in their System-on-Chip designs.

• The company remains committed to prudent management of operating expenses and investing in profitable revenue growth.

• Arteris is advancing with multiple evaluations and an increasing prospective customer base for FlexNoC 5. The uptick in product pricing and value signifies its potential, and Arteris is set to announce additional value-added innovations. The company also observes consistent design timelines across different segments, with quick-paced generative AI designs driven by changes in large language model evaluations and algorithms.

More details: Arteris IR

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