Mayur Popuri's questions to Silvaco Group (SVCO) leadership • Q4 2024
Question
Mayur Popuri asked for clarification on the path to achieving the 90%+ long-term gross margin target given the 2025 guidance. He also questioned the company's capacity for further M&A after the recent acquisition and whether the pace of adding new customers was sustainable.
Answer
CFO Ryan Benton explained that gross margin is highly sensitive to revenue scale due to a largely fixed cost base, causing fluctuations with quarterly revenue. CEO Babak Taheri stated that while there is an ingestion period for acquisitions, the OPC deal integration will be fast (3-6 months), and the company can digest another deal concurrently. Regarding customer acquisition, Taheri expects the pace to remain similar but noted a strategic shift towards acquiring higher-quality, larger customers.