In This Article:
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Silvaco Group Inc (NASDAQ:SVCO) reported a 13% increase in bookings and achieved 10% organic revenue growth over fiscal year 2023.
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The company added over 46 new customer logos, indicating growing demand for its software platforms.
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Silvaco Group Inc (NASDAQ:SVCO) launched an acquisition strategy targeting high growth sectors such as AI, photonics, and IoT, adding more than $600 million in incremental serviceable addressable market (SAM).
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The company introduced a new performance metric, annual contract value (ACV), to provide greater insight into its recurring revenue base.
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Silvaco Group Inc (NASDAQ:SVCO) is strategically expanding its capabilities in high growth sectors and maintaining a disciplined approach to managing operating expenses, cash flow, and liquidity.
Negative Points
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Silvaco Group Inc (NASDAQ:SVCO) encountered short-term macroeconomic headwinds, resulting in the deferral of certain customer orders, impacting less than 10% of annual revenue.
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Revenue for the quarter was $14.1 million, below guidance due to delays in closing two key bookings totaling $4.4 million.
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The company reported a non-GAAP operating loss of $2.5 million and a non-GAAP net loss of $0.07 per share for Q1 2025.
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Non-GAAP gross margin for the quarter was 82%, down from 88% in Q1 2024, primarily due to lower revenue and increased costs.
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Silvaco Group Inc (NASDAQ:SVCO) recognized an incremental $13.1 million charge related to ongoing litigation, impacting financial results.
Q & A Highlights
Q: With the acquisitions now included in the $67 million calendar 2025 revenue guidance, how much of that is acquisition-related revenue, and how much is included in Q2's guidance? A: Keith Pinsky, Interim CFO, clarified that the acquisitions add between $4 and $6 million to the full year. The guidance includes some incremental revenue from these acquisitions throughout the year, but specific amounts for Q2 were not detailed.
Q: Can you quantify the degree of conservatism in your guidance due to the macroeconomic environment? A: Babak Tahiri, CEO, explained that the main impact has been order delays due to macroeconomic uncertainties, such as tariffs. These delays are estimated to affect about 10% of the revenue, and this has been factored into the new guidance.
Q: How should we think about the timing for additional deals following the recent acquisitions? A: Babak Tahiri stated that while the company aims for a linear revenue contribution from acquisitions, they are working to accelerate this process. The PPC acquisition has already shown quicker-than-expected customer renewals, and similar efforts are underway for TechX.