Executive Summary

Q4 2024 delivered record revenue of $17.9M and gross bookings of $20.3M, with GAAP gross margin at 86% and non-GAAP at 89%; revenue rose 43% YoY and 63% QoQ, driven by TCAD and EDA strength and an FTCO follow-on order .
Non-GAAP diluted EPS was $0.15 versus $(0.08) a year ago, and GAAP diluted EPS was $0.14 versus $(0.11); GAAP net income was $4.2M vs. $(2.2)M in Q4 2023 .
Guidance introduced for Q1 2025 (revenue $14.5–$17.0M) and FY 2025 (revenue $66–$72M; non-GAAP gross margin 84–89%; non-GAAP operating income $2–$7M; non-GAAP EPS $0.07–$0.19), with the Cadence PPC acquisition contributing modestly in 2025 due to ASC 606 timing .
Street consensus from S&P Global for Q4 2024 was unavailable due to access limits; comparisons to sell-side estimates could not be made. Values would normally be retrieved from S&P Global for revenue and EPS consensus.*

What Went Well and What Went Wrong

What Went Well

Record Q4 revenue ($17.9M) and bookings ($20.3M) with non-GAAP gross margin expanding to 89%; CFO noted scale benefits from largely fixed cost of revenue .
Strong product mix: TCAD revenue $12.7M (+65% YoY) and EDA revenue $4.2M (+57% YoY); booking momentum supported by a $5.0M FTCO follow-on order at a strategic memory customer .
Strategic expansion via acquisition of Cadence’s PPC/OPC product line (closed March 4, 2025), complementary to TCAD/EDA and expected to reach mid-single-digit revenue by 2026; management emphasized integration with FTCO and SAM expansion .

“Revenue was $17.9 million, up 43% year-over-year… driven by continued adoption of our FTCO platform and strong EDA sales.” — CFO Ryan Benton .

What Went Wrong

SIP revenue was $0.9M, down 57% YoY; SIP bookings fell 79% in Q4 due to residual impacts from a delayed strategic resale agreement and APAC slowdowns .
Q4 actual revenue ($17.9M) came in below the Q3-issued Q4 guidance range of $18.1–$21.2M; company updated preliminary ranges in January (revenue $17.7–$18.1M) before reporting final results .
Elevated operating costs and litigation items remain a headwind; management expects Q1 and 2025 OpEx to reflect acquisition-related costs and public company G&A, pressuring near-term non-GAAP operating income .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($M)	$12.486	$10.972	$17.859
GAAP Diluted EPS ($)	$(0.11)	$(0.23)	$0.14
Non-GAAP Diluted EPS ($)	$(0.08)	$(0.06)	$0.15
GAAP Gross Margin (%)	79%	75%	86%
Non-GAAP Gross Margin (%)	79%	80%	89%
GAAP Operating Income ($M)	$(1.936)	$(7.302)	$2.424
Non-GAAP Operating Income ($M)	$(1.294)	$(2.565)	$3.124
GAAP Net Income ($M)	$(2.247)	$(6.551)	$4.157
Non-GAAP Net Income ($M)	$(1.642)	$(1.829)	$4.268

Segment revenue (product lines):

Product Line	Q4 2023 ($M)	Q4 2024 ($M)	YoY Change
TCAD	$7.725	$12.737	+65%
EDA	$2.708	$4.247	+57%
SIP/IP	$2.053	$0.875	−57%

Geography revenue:

Region	Q4 2023 ($M)	Q4 2024 ($M)
Americas	$3.596	$7.157
APAC	$7.866	$9.245
EMEA	$1.024	$1.457

KPIs and balance metrics:

KPI	Q4 2023	Q3 2024	Q4 2024
Gross Bookings ($M)	$15.565	$9.875	$20.310
Remaining Performance Obligation ($M)	$29.818	$32.592	$34.287
Cash + Marketable Securities ($M)	N/A	$100.4	$87.5
Diluted Shares (period)	20.0M	29.048M	28.849M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance / Update	Actual/Outcome	Change
Revenue ($M)	Q4 2024	$18.1–$21.2 (Nov 12)	$17.7–$18.1 (Jan 14 prelim)	$17.859	Lowered vs Nov; met Jan prelim
Gross Bookings ($M)	Q4 2024	$18.5–$21.5	$20.1–$20.4 (prelim)	$20.310	In-line/high end
Non-GAAP Gross Margin (%)	Q4 2024	85–87%	88–90% (prelim)	89%	Raised; delivered above Nov
Non-GAAP Operating Income ($M)	Q4 2024	$2.6–$5.6	$2.6–$3.4 (prelim)	$3.124	Narrowed; delivered mid
Revenue ($M)	Q1 2025	N/A	$14.5–$17.0	N/A	New
Gross Bookings ($M)	Q1 2025	N/A	$16.0–$19.0	N/A	New
Non-GAAP Gross Margin (%)	Q1 2025	N/A	84–87%	N/A	New
Non-GAAP Op Income ($M)	Q1 2025	N/A	$(1.0) to $1.0	N/A	New
Non-GAAP Diluted EPS ($)	Q1 2025	N/A	$(0.03) to $0.03	N/A	New
Revenue ($M)	FY 2025	N/A	$66–$72	N/A	New
Gross Bookings ($M)	FY 2025	N/A	$72–$79	N/A	New
Non-GAAP Gross Margin (%)	FY 2025	N/A	84–89%	N/A	New
Non-GAAP Op Income ($M)	FY 2025	N/A	$2–$7	N/A	New
Non-GAAP Diluted EPS ($)	FY 2025	N/A	$0.07–$0.19	N/A	New

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
AI/FTCO momentum	Introduced/monetized FTCO; $5.0M investment and key sale to memory customer	$5.0M follow-on order booked first week Q4; platform expanded to advanced CMOS	Multiple FTCO bookings; $5.0M follow-on order; integration path with OPC to complete fab co-optimization	Strengthening adoption; broader integration
OPC/PPC acquisition	N/A	N/A	Closed PPC acquisition (Mar 4, 2025); AI-driven OPC, SAM +$357M; modest 2025 revenue due to ASC 606, scaling in 2026	Strategic expansion; synergy build
Product performance	TCAD +34% YoY; EDA +20% YoY; SIP −30% YoY	TCAD/EDA pressured by order timing and China delays; SIP down	TCAD +65% YoY; EDA +57% YoY; SIP −57% YoY	Mix shift to TCAD/EDA
Regional dynamics	Americas strong in Q2	China delays impacted Q3 results	APAC 52%, Americas 40%, EMEA 8%; China expected ~15–20% of FY25	APAC steady; Americas up
Tariffs/macro	N/A	Delays/pricing sensitivity mentioned	Order pushouts; cautious FY25 guidance ranges; macro conservatism	Persistent headwind
R&D execution	Scaling TCAD/EDA; IPO proceeds support investment	ISO9001 achieved; expanded TCAD platform	Agile R&D in power, memory, photonics; 6–9 month integration timelines	Sustained investment
Legal/regulatory	N/A	Litigation charges impacted GAAP	Positive legal updates (Aldini dismissal; Nangate interest motion denial)	Improving backdrop

Management Commentary

“We are proud to close out the year with strong momentum and growing customer traction, including 46 new customer wins in 2024 and multiple bookings on our AI based, flagship FTCO platform.” — CEO Babak Taheri .
“Non-GAAP operating income was $3.1 million… These bottom line results reflect the impact that increased revenue scale can bring.” — CFO Ryan Benton .
“By integrating AI and machine learning into our OPC tools, Silvaco enhances efficiency and scalability… entering the high-value OPC segment expands our SAM by $357 million.” — CEO Babak Taheri .
“We continue to target 15% to 25% revenue growth, 90% plus non-GAAP gross margin and 25% plus non-GAAP operating margin.” — CFO Ryan Benton .

Q&A Highlights

OPC/PPC revenue contribution: management declined to quantify 2025 PPC revenue due to transition complexities; characterized as “very modest,” reiterating mid-single-digit run-rate by 2026 .
Operating expenses: FY25 OpEx includes acquired teams and one-time integration costs; R&D and sales & marketing to grow with revenue; G&A to gain leverage over time .
FTCO pipeline: aiming for manufacturing adoption with advanced CMOS and power customers in H2; typical integration 6–9 months; active R&D partnerships in photonics and displays .
China exposure: ~15–20% of FY25 revenue expected; macro/tariff uncertainties drove order pushouts, not cancellations .
Gross margin drivers: sensitivity to fixed COGS; margin expands with revenue scale; Q4 non-GAAP GM reached 89% .

Estimates Context

S&P Global Street consensus for Q4 2024 revenue and EPS was unavailable due to data access limitations; therefore, we cannot quantify the magnitude of beat/miss versus consensus.*
Relative to company guidance: Q4 revenue of $17.9M was slightly below the November guidance range ($18.1–$21.2M) but within the January preliminary update ($17.7–$18.1M). Non-GAAP gross margin and operating income delivered near the midpoint of updated ranges .

Key Takeaways for Investors

Mix shift to higher-margin TCAD/EDA drove a material margin and earnings inflection in Q4; bookings strength and RPO ($34.3M) support near-term revenue visibility .
Near-term headwinds remain in SIP and APAC order timing; management’s conservative Q1/FY25 ranges reflect tariff/macro caution, but no evidence of cancellations .
Strategic PPC/OPC acquisition expands SAM and strengthens manufacturing adjacency; early renewals already contributed, with deeper FTCO integration expected over 6–9 months .
Watch Q2–Q3 for FTCO manufacturing adoption milestones in advanced CMOS/power and display R&D progress—potential catalysts for bookings and revenue acceleration .
Margin trajectory is levered to revenue scale given largely fixed COGS; sustained double-digit bookings growth should support 85–90% non-GAAP GM over FY25 guidance .
Legal backdrop improved (Aldini dismissal; Nangate motion denial), reducing non-core noise versus 2024 and aiding focus on operating execution .
For trading: earnings momentum is tied to FTCO adoption and PPC cross-sell; monitor quarterly bookings cadence and any China/tariff updates on calls for narrative shifts .

*Estimates from S&P Global were not retrievable due to access limits; normally, consensus values (Primary EPS Consensus Mean, Revenue Consensus Mean) would be sourced from S&P Global.

Silvaco Group, Inc. (SVCO)·Q4 2024 Earnings Summary