Key Financial Highlights:
- Q4 revenues: $16.7 million, exceeding the top end of our guidance and marking the fourth consecutive quarter of revenue growth.
- Q4 gross margin: 60.4% GAAP; 64.5% non-GAAP.
- Cash, cash equivalents and short-term deposits: $131.0 million.
HOD HASHARON, Israel, Feb. 26, 2025 -- Valens Semiconductor Ltd. (NYSE: VLN), a leader in high-performance connectivity, today reported financial results for the fourth quarter and full year ended December 31, 2024.
"2024 was a challenging year for many companies around the world, including semiconductor companies in many markets, and these challenges affected Valens as well. However, although our sales were slowed by continued inventory digestion and weakness in our customer markets, we believe that we are emerging from the bottom of the cycle, and that 2025 will prove a turnaround year for our company," said Gideon Ben-Zvi, CEO of Valens Semiconductor. "We recently announced an ambitious, but achievable, five-year plan that, if achieved, could see Valens more than quadrupling its revenues over the coming years, as our high-speed connectivity chipsets find growth in existing markets, such as video conferencing, and within new markets such as industrial machine vision, and as our automotive products gain traction from new ADAS-based platforms."
"Given the continued validation of our groundbreaking technology and our fortress balance sheet, we are well positioned to capitalize on exciting growth opportunities and to expand Valens' business," said Guy Nathanzon, CFO of Valens Semiconductor. "We recently announced another share repurchase program of up to $15 million, following the completion of the $10 million program we announced in late 2024. The share repurchase program reflects our confidence in the company's long-term growth and commitment to enhancing shareholder value."
Q4 2024 Financial Highlights:
- Q4 revenues reached $16.7 million, exceeding our guidance of $16.0-$16.3 million, compared to $16.0 million in Q3 2024 and $21.9 million in Q4 2023.
- Q4 Cross-Industry Business ("CIB") revenues, including Acroname revenues, accounted for approximately 70% of total revenues at $11.7 million compared to $9.4 million dollars in Q3 2024 and $15.8 million in Q4 2023.
- Q4 Automotive revenues accounted for approximately 30% of total revenues at $5.0 million, compared to $6.6 million dollars in Q3 2024 and $6.1 million in Q4 2023. - Q4 GAAP gross margin was 60.4% (non-GAAP gross margin was 64.5%), above the mid-point of the guidance. This is compared to a GAAP gross margin of 56.4% for Q3 2024 and 61.7% for Q4 2023 (non-GAAP gross margin of 60.7% in Q3 2024 and 63.1% in Q4 2023). On a segment basis, Q4 gross margin from the CIB was 64.7% and gross margin from Automotive was 50.5%. This compares to a Q3 2024 gross margin of 70.2% and 37.0%, respectively, and a Q4 2023 gross margin of 76.6% and 22.6%, respectively. The increase in Q4 automotive gross margin was due to an optimization of our product cost. The decrease in gross margin of the CIB was due to a product mix shift and lower fixed cost absorption.
- Q4 GAAP net loss decreased to $(7.3) million, compared to a net loss of $(10.4) million dollars in Q3 2024 and a net profit of $2.8 million dollars in Q4 2023.
- Q4 adjusted EBITDA was a loss of $(3.7) million, better than the guidance range of $(4.0)-$(4.9) million EBITDA loss. This compares to an adjusted EBITDA loss of $(5.1) million dollars in Q3 2024 and an adjusted EBITDA profit of $2.2 million dollars in Q4 2023.
Full Year 2024 Financial Highlights
- 2024 revenues reached $57.9 million, compared to $84.2 million in the fiscal year of 2023.
- CIB revenues accounted for 62.7% (equivalent to $36.3 million, of which Acroname contributed $3.4 million) compared to 68.2% (equivalent to $57.4 million) in 2023, as customers worked through excess inventory, which slowed the pace of orders.
- Automotive revenues accounted for 37.3% (equivalent to $21.6 million), compared to 31.8% (equivalent to $26.8 million) in 2023. The decrease is due to gradual price erosion and a reduction in the number of units sold to Mercedes Benz. - 2024 GAAP gross margin was 59.2% (non-GAAP gross margin was 62.9%). This compared to a GAAP gross margin of 62.5% for 2023 (and non-GAAP gross margin of 63.9%). On a segment basis, 2024 gross margin from the CIB was 71.0% and gross margin from Automotive was 39.5%. This compares to gross margin of 77.1% and 31.1%, respectively, in 2023. The increase in 2024 automotive gross margin was due to an optimization of our product cost. The decrease in gross margin of the CIB was due to a product mix shift and lower fixed cost absorption.
- 2024 GAAP net loss was $(36.6) million, compared to a GAAP net loss of $(19.7) million in 2023.
- Adjusted EBITDA loss in 2024 was $(21.1) million, compared to $(10.3) million in 2023.
- Robust balance sheet of $131.0 million in cash, cash equivalents and short-term deposits, and no debt, as of December 31, 2024, compared to $133.1 at the end of September 2024, and $142.0 million as of December 31, 2023.
- Inventory balance of $10.2 million on December 31, 2024, down from $11.7 million on September 30, 2024, and $13.8 million on December 31, 2023.
2024 Business Highlights:
- Achieved three design wins with leading European automotive OEMs for Valens' MIPI A-PHY standard-compliant chipsets.
- Completed the acquisition of Acroname to accelerate the introduction of new innovative USB products for the industrial and professional audio video markets.
- Targeted new verticals that have high growth potential, including industrial machine vision, with recently released chipsets.
- Commercialized the VS6320 chipset, which has attracted over 50 customers for professional audio-video and machine vision applications that have started development of products, mainly for the video conferencing market, that are expected to be commercialized during the second half of 2025.
- Presented a five-year plan that, if achieved, could see Valens more than quadruple its top-line revenues by 2029.
- Announced a share repurchase program of $10 million, which was completed in January 2025.
Financial Outlook for Q1 and Full Year of 2025
For Q1 2025, Valens Semiconductor is targeting revenues to range between $16.3 million and $16.6 million, gross margin to range between 60.8% and 61.3%, and adjusted EBITDA loss to range between $(4.5) million and $(4.2) million.
For the full year 2025, Valens Semiconductor is targeting revenues to range between $71 million and $76 million.
Goals for 2025
- Professional Audio-
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