- Delivered $66.4 million in product revenue, up 17% sequentially and 27% year over year
- Achieved strong sequential earnings growth and generated excellent cash from operations of $62.1 million
- Unveiled industry-first complete chipsets for next-generation, industry-standard DDR5 MRDIMMs and RDIMMs for the data center and AI
SAN JOSE, Calif. — (BUSINESS WIRE) — October 28, 2024 — Rambus Inc. (NASDAQ: RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the third quarter ended September 30, 2024. GAAP revenue for the third quarter was $145.5 million, licensing billings were $65.4 million, product revenue was $66.4 million, and contract and other revenue was $15.0 million. The Company also generated $62.1 million in cash provided by operating activities in the third quarter.
“We delivered strong sequential growth in Q3, fueled by a double-digit increase in product revenue, and generated excellent cash from operations,” said Luc Seraphin, chief executive officer of Rambus. “Building on our strong execution and strategic investment in new leadership products, we introduced the industry’s first complete chipsets for industry-standard DDR5 MRDIMM 12800 and RDIMM 8000 to address the rising performance needs of the data center and AI. These new chips represent a significant expansion of our addressable market and support the company’s long-term growth.”
Quarterly Financial Review - GAAP |
Three Months Ended September 30, |
||||||
(In millions, except for percentages and per share amounts) |
|
2024 |
|
|
|
2023 |
|
Revenue |
|
|
|
||||
Product revenue |
$ |
66.4 |
|
|
$ |
52.2 |
|
Royalties |
|
64.1 |
|
|
|
28.9 |
|
Contract and other revenue |
|
15.0 |
|
|
|
24.2 |
|
Total revenue |
|
145.5 |
|
|
|
105.3 |
|
Cost of product revenue |
|
24.6 |
|
|
|
19.4 |
|
Cost of contract and other revenue |
|
0.8 |
|
|
|
1.3 |
|
Amortization of acquired intangible assets (included in total cost of revenue) |
|
2.8 |
|
|
|
3.3 |
|
| Total operating expenses (benefits) (1) |
|
62.7 |
|
|
|
(23.6 |
) |
| Operating income |
$ |
54.6 |
|
|
$ |
104.9 |
|
| Operating margin |
|
38 |
% |
|
|
100 |
% |
| Net income |
$ |
48.7 |
|
|
$ |
103.2 |
|
| Diluted net income per share |
$ |
0.45 |
|
|
$ |
0.93 |
|
| Net cash provided by operating activities |
$ |
62.1 |
|
|
$ |
51.6 |
|
| _________________________________________ |
||
| (1) |
Includes amortization of acquired intangible assets of approximately $0.1 million and $0.3 million for the three months ended September 30, 2024 and 2023, respectively. |
|
| Quarterly Financial Review - Supplemental Information (1) |
Three Months Ended September 30, |
||||
| (In millions) |
|
2024 |
|
|
2023 |
| Licensing billings (operational metric) (2) |
$ |
65.4 |
|
$ |
57.9 |
| Product revenue (GAAP) |
$ |
66.4 |
|
$ |
52.2 |
| Contract and other revenue (GAAP) |
$ |
15.0 |
|
$ |
24.2 |
| Non-GAAP cost of product revenue |
$ |
24.4 |
|
$ |
19.2 |
| Cost of contract and other revenue (GAAP) |
$ |
0.8 |
|
$ |
1.3 |
| Non-GAAP total operating expenses |
$ |
55.3 |
|
$ |
52.4 |
| Non-GAAP interest and other income (expense), net |
$ |
4.2 |
|
$ |
1.9 |
| Diluted share count (GAAP) |
|
108 |
|
|
111 |
| _________________________________________ |
||
| (1) |
See “Supplemental Reconciliation of GAAP to Non-GAAP Results” table included below. |
|
|
|
|
|
| (2) |
Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements. |
|
