#None #financial results #Valens Semiconductor #Hod Hasharon #Connectivity

Valens Semiconductor's 2024 Financial Summary

Valens Semiconductor Ltd., a recognized leader in high-performance connectivity solutions, released its financial results for the fourth quarter and the entire 2024 fiscal year. Despite a tough market landscape, the company is optimistic about upcoming opportunities for growth.

Key Highlights

In Q4, Valens reported revenues of $16.7 million, surpassing its projected guidance, marking the fourth consecutive quarter of revenue growth. The gross margin was also robust, with GAAP gross margin at 60.4% and non-GAAP gross margin at 64.5%. The company maintained a solid financial position, holding $131 million in cash, cash equivalents, and short-term deposits.

Gideon Ben-Zvi, CEO of Valens Semiconductor, acknowledged the challenges faced in 2024 across the semiconductor sector but expressed confidence in the company’s recovery. He noted, “Although our sales were impacted by ongoing inventory digestion and weak customer market conditions, we believe we are now emerging from the bottom of the cycle.”

Financial Overview

Fourth Quarter Results

• - Revenues: $16.7 million
• - Gross Margin: 60.4% GAAP
• - Gross Margin Non-GAAP: 64.5%
• - Net Loss: $(7.3) million, an improvement from a net loss of $(10.4) million in Q3 2024.
• - Adjusted EBITDA: $(3.7) million, which was better than earlier predictions.

For the automotive segment, revenues accounted for 30% of the total, totaling $5 million in Q4, reflecting a decline from previous quarters. The cross-industry business, which significantly includes revenues from the newly acquired Acroname, composed about 70% of total revenues.

Full Year Results

Overall for 2024, Valens revenues totaled $57.9 million, down from $84.2 million in 2023. Despite challenging conditions, automotive revenues grew from 31.8% to 37.3% of total business, showcasing resilience and adaptability. The company also noted decreasing gross margins, which analysts attribute to an adjustment in product mix and lower fixed cost absorption in specific areas.

Looking Ahead

Valens Semiconductor detailed an ambitious five-year plan aimed at quadrupling its revenues. This strategy will leverage growth in sectors such as video conferencing, machine vision, and automotive products, notably targeting the evolving Advanced Driver Assistance Systems (ADAS) market.

The company is set to launch several new products designed to meet the increasing demand for high-speed connectivity solutions, including the recently debuted VS6320 chipset, which has already attracted interest from over 50 clients in the audio-video and industrial sectors.

Furthermore, Valens announced an ongoing share repurchase program reflecting commitment towards enhancing shareholder value, alongside maintaining a debt-free balance sheet. CFO Guy Nathanzon emphasized the company’s readiness to capitalize on market opportunities, stating, “Our fortress balance sheet positions us well for growth.”

Q1 and Full Year 2025 Outlook

For the first quarter of 2025, Valens is targeting revenues between $16.3 million and $16.6 million and projecting a gross margin range of 60.8% to 61.3%. The company is optimistic about recovery in the professional audio-video market and plans to expand further into industrial machine vision and automotive segments with strategic design wins.

In conclusion, while Valens Semiconductor navigated a challenging 2024, its commitment to innovation and strategic growth places it in a strong position moving forward, indicating significant potential as the market rebounds.