Record annual revenue of $1.005 billion, resulting in 27% year-over-year growth

WILMINGTON, Mass. — (BUSINESS WIRE) — February 9, 2023 — Onto Innovation Inc. (NYSE: ONTO) (“Onto Innovation,” “Onto,” or the “Company”) today announced financial results for the fourth quarter and full year 2022.

2022 Fourth Quarter Financial Highlights

• Quarterly revenue of $253 million, resulting in 12% growth over the same period last year.
• Record quarterly GAAP operating income of $61 million and GAAP net income of $66 million.
• Quarterly non-GAAP operating income of $76 million and record non-GAAP net income of $78 million.
• Record quarterly GAAP diluted earnings per share of $1.34 increased 43% over the same period last year.
• Record quarterly non-GAAP diluted earnings per share of $1.57 increased 28% over the same period last year.
• Repurchased 846,336 shares of common stock in the fourth quarter, resulting in a return of capital to shareholders of $53.7 million.

2022 Full Year Financial Highlights

• Record full year revenue of $1.005 billion grew 27% year-over-year.
• Achieved 54% gross margin for the full year as well as for the fourth quarter.
• Improved full year GAAP operating margin of 24% and non-GAAP operating margin of 30%, as compared to 20% and 28% respectively last year.
• Record full year GAAP diluted earnings per share of $4.49 increased 57% year-over-year.
• Record full year non-GAAP diluted earnings per share of $5.52 increased 43% year-over-year.

Fourth Quarter and Full Year Business Highlights

• Revenue from specialty and advanced packaging customers grew 24% over the third quarter.
• Dragonfly^® G3 process control system was selected by more than 15 customers in 2022 for emerging sub-micron applications such as hybrid bonding and quality assurance of leading-edge wafers in logic, memory, and power devices.
• Atlas^® OCD platform has been qualified at all three manufacturers investing in next-generation gate-all-around nanosheet structures.
• Iris ^™ films metrology system revenue grew to over $50 million for the full year 2022.
• Full year 2022 systems revenue increased 32% over the prior year and has nearly doubled since Onto’s first full year of operation in 2020.

Michael Plisinski, chief executive officer for Onto Innovation, commented, “We are extremely proud to finish the year with record revenue growth, crossing $1 billion in revenue this year. This achievement is possible because of the passion from our talented team and their commitment to our customers’ success. We were honored this year to receive a record of four awards from tier one customers and the industry trade organization for our contributions to high stack 3D NAND, metrology for new nanosheet transistors, and our collaborations to enable future 3D interconnect processes.”

“This underscores the increasingly more pivotal role we play in our customers’ roadmap development. Many of our most exciting achievements in 2022 are still only in R&D and pilot production implying additional upside when these technologies ramp into volume production. In the near term, we will take advantage of the current market correction to streamline our supply chain and reduce operational costs, while prioritizing our investments in the R&D our customers depend on. We will also focus on structuring our business to remain near our published operating model and continue to deliver shareholder value, while eyeing continued long-term growth through new serviceable markets and M&A.”