Home

Nova Reports Record Fourth Quarter and Full Year 2024 Results

Download PDF

REHOVOT, Israel, Feb. 13, 2025 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights:

  • Record Quarterly revenue of $194.8 million, a 9% QoQ increase, exceeding the Company guidance and up 45% YoY.
  • GAAP net income of $50.5 million, or $1.58 per diluted share, up 32% YoY.
  • Record non-GAAP net income of $62.3 million, or $1.94 per diluted share, exceeding the Company guidance, and up 43% YoY.
  • Record sales of materials metrology, driven by sales of Nova Metrion and Nova Veraflex platforms
  • Record sales for dimensional metrology stand-alone solutions, driven by demand for unique capabilities in advanced packaging and GAA manufacturing.

Full Year 2024 Highlights:

  • Record annual revenue of $672.4 million up 30% YoY
  • Record GAAP net income of $183.8 million, or $5.75 per diluted share up 34% YoY
  • Record Non-GAAP net income of $214.9 million, or $6.69 per diluted share up 38% YoY
  • Record sales for advanced packaging processes, more than doubling revenues from the segment
  • Record sales of materials metrology, driven by growing adoption of the Company's solutions across market segments

GAAP Results (K)

 

Q4 2024

Q3 2024

Q4 2023

FY 2024

FY 2023

Revenues

$194,766

$178,974

$134,219

$672,396

$517,922

Net Income

$50,481

$51,279

$38,068

$183,762

$136,310

Earnings per Diluted Share

$1.58

$1.60

$1.20

$5.75

$4.28

Non-GAAP Results (K)

 

Q4 2024

Q3 2024

Q4 2023

FY 2024

FY 2023

Net Income

$62,302

$56,056

$43,597

$214,926

$155,891

Earnings per Diluted Share

$1.94

$1.74

$1.36

$6.69

$4.86

 

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release.
See also "Use of Non-GAAP Adjusted Financial Measures" section.

Management Comments

"Nova continues to outperform the market, with quarterly and annual sales records which exceeded the high end of the guidance in both revenue and profitability," said Gaby Waisman, President and CEO. "As we reflect on the past year, we count multiple achievements across our product lines, including strategic penetrations into leading manufacturers, an evolving position in new segments, and a growing market share. All of these, combined with Nova's long-term strategy for perpetual growth, set the stage for our continued growth in 2025."

2025 First Quarter Financial Outlook

Management provided an outlook for the first quarter, the period ending March 31, 2025. Based on current estimates, management expects:

  • $205 million to $215 million in revenue
  • $1.75 to $1.91 in diluted GAAP EPS
  • $2.00 to $2.16 in diluted non-GAAP EPS

2024 Fourth Quarter Results

Total revenues for the fourth quarter of 2024 were $194.8 million, an increase of 9% compared with the third quarter of 2024 and an increase of 45% compared with the fourth quarter of 2023.

Gross margin in the fourth quarter of 2024 was 56.4%, compared with 56.6% in the third quarter of 2024 and 55.1% in the fourth quarter of 2023.

Operating expenses in the fourth quarter of 2024 were $54.5 million, compared with $52.1 million in the third quarter of 2024 and $40.4 million in the fourth quarter of 2023.

On a GAAP basis, the Company reported net income of $50.5 million, or $1.58 per diluted share, in the fourth quarter of 2024. This is compared with net income of $51.3 million, or $1.60 per diluted share, in the third quarter of 2024, and $38.1 million, or $1.20 per diluted share, in the fourth quarter of 2023.

On a non-GAAP basis, the Company reported net income of $ 62.3 million, or $1.94 per diluted share, in the fourth quarter of 2024. This is compared with net income of $ 56.1 million, or $1.74 per diluted share, in the third quarter of 2024, and $43.6 million, or $1.36 per diluted share, in the fourth quarter of 2023.

2024 Full Year Results

Total revenues for 2024 were $672.4 million, an increase of 30% compared to total revenues of $517.9 million for 2023.

Gross margin in 2024 was 57.6%, compared with 56.6% in 2023.

Operating expenses in 2024 were $199.5 million, compared with operating expenses of $160.9 million in 2023.

On a GAAP basis, the Company reported net income of $183.7 million, or $5.75 per diluted share, in 2024. This is compared with a net income of $136.3 million, or $4.28 per diluted share, in 2023.

On a non-GAAP basis, the Company reported net income of $214.9 million, or $6.69 per diluted share, in 2024. This is compared with net income of $155.9 million, or $4.86 per diluted share, in 2023.

Conference Call Information

Nova will host a conference call today, February 13, 2025, at 8:30 a.m. Eastern Time, to discuss the Company's fourth quarter 2024 financial results and outlook. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

U.S. TOLL-FREE Dial-in Number: 1-833-816-1427
ISRAEL TOLL-FREE    Dial-in Number: 1-809-213-284
INTERNATIONAL Dial-in Number: 1-412-317-0519

At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time

The conference call will also be webcast live from a Link on Nova's website at https://www.novami.com/investors/events/

A replay of the conference call will be available from February 13, 2025, at 11:30 a.m. Eastern Time until August 15, 2025, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:

Replay Dial-in U.S. TOLL-FREE: 1-877-344-7529
Replay Dial-in INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 8533745

A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/.

About Nova
Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art, high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into developing and producing the most advanced semiconductor devices. Nova's unique capability to deliver innovative solutions enables its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices worldwide. Additional information may be found on Nova's website link - https://www.novami.com/.

Nova is traded on the Nasdaq and TASE, Nasdaq ticker symbol NVMI.

Use of Non-GAAP Adjusted Financial Measures
This press release provides financial measures that exclude amortization of acquired intangible assets, stock-based compensation expenses, acquisition related expenses, revaluation of operating lease liabilities and remeasurement of intercompany loans, amortization of issuance costs and tax effect of non-GAAP adjustment, as applicable, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhance management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allow greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding, but not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following:  increased information technology security threats and sophisticated computer crime; foreign political and economic risks including supply-chain difficulties; regulations that could restrict our operations such as economic sanctions and export restrictions; changes in U.S. trade policies; indirect effects of the Russia – Ukraine conflict; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our intellectual property; open source technology exposure, including risks related to artificial intelligence; failure to compete effectively or to respond to rapid technological changes; consolidation in our industry; difficulty in predicting the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; difficulty in integrating current or future acquisitions; lengthy sales cycle and customer delays in orders; risks related to conditions in Israel, including related to the war against Hamas and other terrorist organizations; risks related to our convertible notes; currency fluctuations; and quarterly fluctuations in our operating results. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 20, 2024. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release.

(Tables to Follow)

  

NOVA LTD. 

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands) - (Unaudited)

 
 

As of December 31,

ASSETS

2024

 

2023

Current assets

     

Cash and cash equivalents

157,779

 

107,574

Short-term interest-bearing bank deposits

211,877

 

119,850

Marketable securities

216,910

 

216,258

Trade accounts receivable, net

139,318

 

111,256

Inventories

156,599

 

138,198

Other current assets

19,466

 

17,084

Total current assets

901,949

 

710,220

Non-current assets

     

Marketable securities

225,818

 

191,351

Interest-bearing bank deposits and restricted deposits

7,847

 

6,254

Deferred tax assets

31,639

 

23,583

Operating lease right-of-use assets

51,193

 

41,856

Property plant and equipment, net

81,746

 

66,874

Intangible assets, net

31,458

 

39,184

Goodwill

48,317

 

50,080

Other long-term assets

10,455

 

4,405

Total non-current assets

488,473

 

423,587

Total assets

1,390,422

 

1,133,807

LIABILITIES AND SHAREHOLDERS' EQUITY

     

Current liabilities

     

   Convertible senior notes, net

180,564

 

197,678

Trade accounts payable

59,578

 

35,158

Deferred revenues

72,886

 

41,978

Operating lease current liabilities

7,169

 

6,703

Other current liabilities

68,033

 

41,294

Total current liabilities

388,230

 

322,811

Non-current liabilities

     

Operating lease long-term liabilities

48,363

 

39,762

Long-term deferred tax liability

8,495

 

10,574

Other long-term liabilities

17,539

 

9,908

Total non-current liabilities

74,397

 

60,244

Shareholders' equity

927,795

 

750,752

Total liabilities and shareholders' equity 

1,390,422

 

1,133,807

 

 

NOVA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data) - (Unaudited)

 
 

Three months ended

December 31,

 

Year ended

December 31,

 

2024

 

2023

 

2024

   

2023

Revenues:

               

Products

158,546

 

104,108

 

538,350

   

405,037

Services

36,220

 

30,111

 

134,046

   

112,885

Total revenues

194,766

 

134,219

 

672,396

   

517,922

Total cost of revenues

84,835

 

60,207

 

285,310

   

224,745

Gross profit

109,931

 

74,012

 

387,086

   

293,177

Operating expenses:

               

Research and development, net

30,909

 

21,290

 

110,257

   

88,043

Sales and marketing

15,980

 

13,580

 

65,090

   

52,467

General and administrative

7,571

 

5,480

 

24,199

   

20,404

Total operating expenses

54,460

 

40,350

 

199,546

   

160,914

Operating income

55,471

 

33,662

 

187,540

   

132,263

Financing income, net

3,756

 

7,283

 

28,747

   

22,436

Income before taxes on income

59,227

 

40,945

 

216,287

   

154,699

Income tax expenses

8,746

 

2,877

 

32,525

   

18,389

Net income for the period

50,481

 

38,068

 

183,762

   

136,310

                 

Earnings per share:

               

Basic

1.72

 

1.31

 

6.31

   

4.73

Diluted

1.58

 

1.20

 

5.75

   

4.28

                 

Shares used in calculation of earnings per share
 (in thousands):

               

Basic

29,304

 

28,975

 

29,113

   

28,828

Diluted

32,062

 

32,023

 

32,138

   

32,089

 

 

 

NOVA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands) - (Unaudited)

 
 

Three months ended

December 31,

Year ended

December 31,

 

2024

   

2023

 

2024

 

2023

Cash flows from operating activities:

               

Net income

50,481

   

38,068

 

183,762

 

136,310

Adjustments to reconcile net income to net cash provided by operating activities:

               

     Depreciation of property and equipment

3,029

   

2,756

 

11,736

 

10,344

     Amortization of intangible assets

1,267

   

1,461

 

5,643

 

5,857

     Amortization of premium and accretion of discount on marketable securities, net

(1,820)

   

(1,134)

 

(7,178)

 

(3,001)

     Amortization of debt issuance costs

310

   

324

 

1,280

 

1,284

     Share-based compensation

6,349

   

5,654

 

25,209

 

18,286

     Net effect of exchange rate fluctuation

4,109

   

(2,591)

 

3,025

 

1,754

Changes in assets and liabilities:

               

     Trade accounts receivable, net

(26,196)

   

(18,606)

 

(29,051)

 

(1,183)

     Inventories

876

   

2,851

 

(23,897)

 

(26,000)

     Other current and long-term assets

(4,097)

   

(361)

 

(9,671)

 

(5,752)

     Deferred tax, net

(4,849)

   

(185)

 

(9,722)

 

(6,241)

     Operating lease right-of-use assets

559

   

259

 

3,668

 

3,050

     Trade accounts payable

6,309

   

8,917

 

17,506

 

(7,807)

     Deferred revenues

19,494

   

(292)

 

34,553

 

11,391

     Operating lease liabilities

97

   

2,091

 

(3,938)

 

(3,221)

     Other current and long-term liabilities

12,686

   

(9,671)

 

32,299

 

(11,352)

     Accrued severance pay, net

(82)

   

64

 

42

 

(188)

Net cash provided by operating activities

68,522

   

29,605

 

235,266

 

123,531

Cash flows from investment activities:

               

Change in short-term and long-term interest-bearing bank deposits

(4,339)

   

31,367

 

(93,595)

 

(29,658)

Investment in marketable securities

(60,175)

   

(106,695)

 

(271,987)

 

(273,572)

Proceeds from maturity of marketable securities

57,421

   

44,443

 

246,397

 

195,087

Purchase of property and equipment

(8,121)

   

(7,601)

 

(17,215)

 

(17,188)

Net cash used in investing activities

(15,214)

   

(38,486)

 

(136,400)

 

(125,331)

Cash flows from financing activities:

               

Purchases of treasury shares

(30,000)

   

-

 

(30,000)

 

(112)

Conversion of convertible senior notes

(18,506)

   

-

 

(18,506)

 

-

Proceeds from exercise of options

90

   

-

 

160

 

122

Net cash provided by financing activities

(48,416)

   

-

 

(48,346)

 

10

Effect of exchange rate fluctuations on cash and cash equivalents

(1,076)

   

(25)

 

(315)

 

(2,357)

Changes in cash and cash equivalents and restricted cash

3,816

   

(8,906)

 

50,205

 

(4,147)

Cash and cash equivalents and restricted cash -beginning of period

153,963

   

116,480

 

107,574

 

111,721

Cash and cash equivalents - end of period

157,779

   

107,574

 

157,779

 

107,574

                   

 

 

NOVA LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)

 
 

Three months ended

 

December 31,
2024

 

September 30,
2024

 

December 31,
2023

GAAP gross profit

109,931

 

101,333

 

74,012

Stock-based compensation*

1,805

 

1,722

 

1,537

Amortization of acquired intangible assets

1,182

 

1,380

 

1,354

Non-GAAP gross profit

112,918

 

104,435

 

76,903

GAAP gross margin as a percentage of revenues

56 %

 

57 %

 

55 %

Non-GAAP gross margin as a percentage of revenues

58 %

 

58 %

 

57 %

           

GAAP operating income

55,471

 

49,231

 

33,662

Stock-based compensation*

6,349

 

6,194

 

5,654

Acquisition related expenses

917

 

-

 

-

Amortization of acquired intangible assets

1,267

 

1,467

 

1,461

Non-GAAP operating income

64,004

 

56,892

 

40,777

GAAP operating margin as a percentage of revenues

28 %

 

28 %

 

25 %

Non-GAAP operating margin as a percentage of revenues

33 %

 

32 %

 

30 %

           

GAAP net income

50,481

 

51,279

 

38,068

Stock-based compensation*

6,349

 

6,194

 

5,654

Acquisition related expenses

917

 

-

 

-

Amortization of acquired intangible assets

1,267

 

1,467

 

1,461

Amortization of debt issuance costs

310

 

326

 

324

Revaluation of operating lease and intercompany loans

4,706

 

(2,309)

 

(827)

Tax effect of non-GAAP adjustments

(1,728)

 

(901)

 

(1,083)

Non-GAAP net income

62,302

 

56,056

 

43,597

           

GAAP basic earnings per share

1.72

 

1.76

 

1.31

Non-GAAP basic earnings per share

2.13

 

1.93

 

1.50

           

GAAP diluted earnings per share

1.58

 

1.60

 

1.20

Non-GAAP diluted earnings per share

1.94

 

1.74

 

1.36

           

Shares used for calculation of earnings per share
(in thousands):

         

Basic

29,304

 

29,099

 

28,975

Diluted

32,062

 

32,238

 

32,023

           

* Stock-based compensation for the three months ended December 31, 2024 included in - Cost of revenues - 1,805; Research and development, net - 2,747; Sales and marketing - 1,234; General and administrative - 563.

 

 

NOVA LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)

 
 

Year ended December 31,

 

2024

 

2023

GAAP gross profit

387,086

 

293,177

Stock-based compensation*

7,013

 

4,946

Acquisition-related inventory step-up

5,284

 

5,430

Non-GAAP gross profit

399,383

 

303,553

GAAP gross margin as a percentage of revenues

58 %

 

57 %

Non-GAAP gross margin as a percentage of revenues

59 %

 

59 %

       

GAAP operating income

187,540

 

132,263

Stock-based compensation*

25,209

 

18,286

Acquisition related expenses

917

 

-

Amortization of acquired intangible assets

5,643

 

5,857

Non-GAAP operating income

219,309

 

156,406

GAAP operating margin as a percentage of revenues

28 %

 

26 %

Non-GAAP operating margin as a percentage of revenues

33 %

 

30 %

       

GAAP net income

183,762

 

136,310

Stock-based compensation*

25,209

 

18,286

Acquisition related expenses

917

 

-

Amortization of acquired intangible assets

5,643

 

5,857

Amortization of debt issuance costs

1,280

 

1,284

Revaluation of operating lease liabilities

3,221

 

(1,994)

Tax effect of non-GAAP adjustments

(5,106)

 

(3,852)

Non-GAAP net income

214,926

 

155,891

       

GAAP basic earnings per share

6.31

 

4.73

Non-GAAP basic earnings per share

7.38

 

5.41

       

GAAP diluted earnings per share

5.75

 

4.28

Non-GAAP diluted earnings per share

6.69

 

4.86

       

Shares used for calculation of earnings per share
(in thousands):

     

Basic

29,113

 

28,828

Diluted

32,138

 

32,089

 

* Stock-based compensation for the year ended December 31, 2024, included in - Cost of revenues – 7,013;
Research and development, net – 11,179; Sales and marketing – 4,864; General and administrative - 2,153.

 

 

NOVA LTD.

SUPPLEMENTAL INFORMATION - RECONCILIATION OF FIRST QUARTER 2025

GAAP TO NON-GAAP GUIDANCE

(U.S. dollars) (Unaudited)

 
 

Low

 

High

Estimated GAAP net income per diluted share

1.75

 

1.91

Estimated non-GAAP items:

     

Stock-based compensation

0.19

 

0.19

Amortization of acquired intangible assets and inventory step-up

0.07

 

0.07

Acquisition related expenses

0.02

 

0.02

Amortization of issuance costs

0.01

 

0.01

Tax effect of non-GAAP adjustments

(0.04)

 

(0.04)

Estimated non-GAAP net income per diluted share

2.00

 

2.16

 

Company Contact:
Guy Kizner, Chief Financial Officer
Tel: +972-73-229-5760
E-mail - [email protected]
Nova website link - https://www.novami.com/

Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
E-mail - [email protected]

 

Logo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg

 

 

 

 

Contact Us

Company Contact from options
Investor Relations Contact