ONTO Onto Innovation Inc

Record quarterly revenue with full year revenue growth of 21%

Onto Innovation Inc. (NYSE: ONTO) (“Onto Innovation,” “Onto,” or the “Company”) today announced financial results for the fourth quarter and full year 2024.

2024 Fourth Quarter Financial Highlights

• Record revenue of $264 million led by advanced nodes and advanced packaging markets, delivering sixth consecutive quarter of growth.
• GAAP gross margin of 50% and non-GAAP gross margin of 55%, excluding acquisition and restructuring-related charges.
• GAAP operating income of $42 million and non-GAAP operating income of $75 million.
• GAAP net income of $49 million and non-GAAP net income of $75 million.
• GAAP diluted earnings per share of $0.98; non-GAAP diluted earnings per share of $1.51 above the high end of guidance range.
• Cash from operations of $56 million, or 21% of revenue.

2024 Full Year Financial Highlights

• Total revenue of $987 million grew 21% over 2023.
• Cash generated from operations of $246 million improved by 43% over 2023.
• Full year GAAP diluted earnings per share of $4.06 grew 65% over 2023.
• Full year non-GAAP diluted earnings per share of $5.34 grew 43% over 2023.

Fourth Quarter and Full Year Business Highlights

• AI packaging revenue grew 180% over 2023.
• Advanced nodes revenue improved for the fourth consecutive quarter, with momentum expected to continue in 2025.
• New products released to support next generation 3D interconnect technology and inspection tools for unpatterned wafer, panel and compound semiconductor applications.

Michael Plisinski, chief executive officer of Onto Innovation, commented, “Onto Innovation finished the year strongly, carried forward by investments in AI, power semiconductors, and new gate all around transistor technology. The current market momentum in AI packaging and increased demand from the advanced nodes combined with the new products we recently launched position us to continue to address the challenges our customers face today and into the future.”

 

Onto Innovation Inc.

Key Quarterly Financial Data

(In thousands, except per share amounts)

 

U.S. GAAP

 

 

December 28,

2024

 

 

September 28,

2024

 

 

December 30,

2023

 

 

Revenue

 

$

263,939

 

 

$

252,210

 

 

$

218,856

 

 

Gross profit margin

 

 

50

%

 

 

54

%

 

 

49

%

 

Operating income

 

$

42,460

 

 

$

53,072

 

 

$

28,230

 

 

Net income

 

$

48,817

 

 

$

53,051

 

 

$

30,309

 

 

Net income per diluted share

 

$

0.98

 

 

$

1.07

 

 

$

0.61

 

 

NON-GAAP

 

 

December 28,

2024

 

 

September 28,

2024

 

 

December 30,

2023

 

 

Revenue

 

$

263,939

 

 

$

252,210

 

 

$

218,856

 

 

Gross profit margin

 

 

55

%

 

 

55

%

 

 

52

%

 

Operating income

 

$

75,468

 

 

$

69,999

 

 

$

56,391

 

 

Net income

 

$

74,831

 

 

$

66,386

 

 

$

52,443

 

 

Net income per diluted share

 

$

1.51

 

 

$

1.34

 

 

$

1.06

 

 

Outlook

For the first fiscal quarter ending March 29, 2025, the Company is providing the following guidance:

• Revenue is expected to be in the range of $260 to $274 million.
• GAAP diluted earnings per share is expected to be in the range of $1.14 to $1.28.
• Non-GAAP diluted earnings per share is expected to be in the range of $1.40 to $1.54.

Webcast & Conference Call Details

Onto Innovation will host a conference call at 4:30 p.m. Eastern Time today, February 6, 2025, to discuss its fourth quarter 2024 and full year 2024 financial results and other matters in greater detail. To participate in the call, please dial (888) 394-8218 or International: +1 (646) 828-8193 and reference conference ID 1186967 at least five (5) minutes prior to the scheduled start time. A live webcast will also be available at www.ontoinnovation.com.

To listen to the live webcast, please go to the website at least fifteen (15) minutes early to register, download and install any necessary audio software. There will be a replay of the conference call available for one year on the Company’s website at www.ontoinnovation.com.

Discussion of Non-GAAP Financial Measures

In addition to information regarding the Company’s results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company has provided in this release non-GAAP financial measures, including non-GAAP gross margin as a percentage of revenue, non-GAAP operating income, non-GAAP operating expenses, non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin as a percentage of revenue, which exclude amortization of intangibles, merger and acquisition-related expenses and benefits, litigation expenses and benefits and restructuring costs. Non-GAAP gross margin as a percentage of revenue, non-GAAP operating income, non-GAAP operating expenses, non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin as a percentage of revenue can also exclude certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability or otherwise are not representative of our ongoing operations, tax provisions/benefits related to the previous items, and significant discrete tax events. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods.

We utilize several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures to be helpful in assessing the performance of the ongoing operations of our business. We believe that disclosing non-GAAP financial measures provides useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. We also believe that disclosing non-GAAP financial measures provides useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. More specifically, management adjusts for the excluded items for the following reasons:

Amortization of intangibles: we do not acquire businesses and assets on a predictable cycle. The amount of purchase price allocated to the purchased intangible assets and the term of amortization can vary significantly and are unique to each acquisition or purchase. We believe that excluding amortization of purchased intangible assets allows the users of our financial statements to better review and understand the historic and current results of our operations, and also facilitates comparisons to peer companies.

Merger or acquisition related expenses and benefits: we incur expenses or benefits with respect to certain items associated with our mergers and acquisitions, such as transaction and integration costs, change in control payments, adjustments to the fair value of assets, etc. We exclude such expenses or benefits as they are related to acquisitions and have no direct correlation to the operation of our ongoing business.

Restructuring expenses: we incur restructuring and impairment charges on individual or groups of employed assets, which arise from unforeseen circumstances and/or often occur outside of the ordinary course of our ongoing business. Although these events are reflected in our GAAP financials, these transactions may limit the comparability of our ongoing operations with prior and future periods.

Litigation expenses and benefits: we may incur charges or benefits as well as legal costs in connection with litigation and other contingencies unrelated to our core operations. We exclude these charges or benefits, when significant, as well as legal costs associated with significant legal matters, because we do not believe they are reflective of ongoing business and operating results.

Income tax expense: we estimate the tax effect of the items identified to determine a non-GAAP annual effective tax rate applied to the pretax amount to calculate the non-GAAP provision for income taxes. We also adjust for items for which the nature and/or tax jurisdiction requires the application of a specific tax rate or treatment.

From time to time in the future, there may be other items excluded if we believe that doing so is consistent with the goal of providing useful information to investors and management.

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”) which include, but are not limited to, statements regarding Onto Innovation’s business momentum and future growth; technology development, product introduction and acceptance of Onto Innovation’s products and services; Onto Innovation’s manufacturing practices and ability to deliver both products and services consistent with its customers’ demands and expectations and strengthen its market position; Onto Innovation’s expectations regarding the semiconductor market outlook; Onto Innovation’s future quarterly financial outlook; as well as other matters that are not purely historical data. Onto Innovation wishes to take advantage of the “safe harbor” provided for by the Act and cautions that actual results may differ materially from those projected as a result of various factors, including risks and uncertainties, many of which are beyond Onto Innovation’s control. Such factors include, but are not limited to, the Company’s ability to leverage its resources to improve its position in its core markets; its ability to weather difficult economic environments; its ability to open new market opportunities and target high-margin markets; the strength/weakness of the back-end and/or front-end semiconductor market segments; fluctuations in customer capital spending; the Company’s ability to effectively manage its supply chain and adequately source components from suppliers to meet customer demand; the effects of political, economic, legal, and regulatory changes or conflicts on the Company's global operations; its ability to adequately protect its intellectual property rights and maintain data security; the effects of natural disasters or public health emergencies on the global economy and on the Company’s customers, suppliers, employees, and business; its ability to effectively maneuver global trade issues and changes in trade and export regulations, tariffs and license policies; the Company’s ability to maintain relationships with its customers and manage appropriate levels of inventory to meet customer demands; and the Company’s ability to successfully integrate acquired businesses and technologies. Additional information and considerations regarding the risks faced by Onto Innovation are available in Onto Innovation’s Form 10-K report for the year ended December 30, 2023, and other filings with the Securities and Exchange Commission. As the forward-looking statements are based on Onto Innovation’s current expectations, the Company cannot guarantee any related future results, levels of activity, performance, or achievements. Onto Innovation does not assume any obligation to update the forward-looking information contained in this press release, except as required by law.

About Onto Innovation

Onto Innovation is a leader in process control, combining global scale with an expanded portfolio of leading-edge technologies that include: unpatterned wafer quality; 3D metrology spanning chip features from nanometer scale transistors to large die interconnects; macro defect inspection of wafers and packages; metal interconnect composition; factory analytics; and lithography for advanced semiconductor packaging. Our breadth of offerings across the entire semiconductor value chain combined with our connected thinking approach results in a unique perspective to help solve our customers’ most difficult yield, device performance, quality, and reliability issues. Onto Innovation strives to optimize customers’ critical path of progress by making them smarter, faster and more efficient. With headquarters and manufacturing in the U.S., Onto Innovation supports customers with a worldwide sales and service organization. Additional information can be found at www.ontoinnovation.com.

Source: Onto Innovation Inc. ONTO-I

(Financial tables follow)

 

ONTO INNOVATION INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands) - (Unaudited)

 

 

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

852,328

 

 

$

697,811

 

Accounts receivable, net

 

 

308,142

 

 

 

226,556

 

Inventories

 

 

286,979

 

 

 

327,773

 

Prepaid expenses and other current assets

 

 

30,073

 

 

 

31,127

 

Total current assets

 

 

1,477,522

 

 

 

1,283,267

 

Net property, plant and equipment

 

 

123,868

 

 

 

103,611

 

Goodwill and intangibles, net

 

 

457,437

 

 

 

483,186

 

Other assets

 

 

58,264

 

 

 

39,648

 

Total assets

 

$

2,117,091

 

 

$

1,909,712

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

106,236

 

 

$

91,931

 

Other current liabilities

 

 

63,853

 

 

 

55,795

 

Total current liabilities

 

 

170,089

 

 

 

147,726

 

Other non-current liabilities

 

 

21,120

 

 

 

25,451

 

Total liabilities

 

 

191,209

 

 

 

173,177

 

Stockholders’ equity

 

 

1,925,882

 

 

 

1,736,535

 

Total liabilities and stockholders’ equity

 

$

2,117,091

 

 

$

1,909,712

 

 

ONTO INNOVATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts) - (Unaudited)

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 28,

 

 

December 30,

 

 

December 28,

 

 

December 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue

 

$

263,939

 

 

$

218,856

 

 

$

987,321

 

 

$

815,868

 

Cost of revenue

 

 

131,531

 

 

 

110,890

 

 

 

472,013

 

 

 

395,614

 

Gross profit

 

 

132,408

 

 

 

107,966

 

 

 

515,308

 

 

 

420,254

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

34,892

 

 

 

24,021

 

 

 

116,767

 

 

 

104,442

 

Sales and marketing

 

 

19,409

 

 

 

15,349

 

 

 

76,155

 

 

 

61,765

 

General and administrative

 

 

25,548

 

 

 

27,017

 

 

 

85,846

 

 

 

83,147

 

Amortization

 

 

10,099

 

 

 

13,349

 

 

 

49,437

 

 

 

54,822

 

Total operating expenses

 

 

89,948

 

 

 

79,736

 

 

 

328,205

 

 

 

304,176

 

Operating income

 

 

42,460

 

 

 

28,230

 

 

 

187,103

 

 

 

116,078

 

Interest income, net

 

 

8,965

 

 

 

6,456

 

 

 

33,489

 

 

 

20,356

 

Other expense, net

 

 

(154

)

 

 

(860

)

 

 

(145

)

 

 

(3,852

)

Income before provision for income taxes

 

 

51,271

 

 

 

33,826

 

 

 

220,447

 

 

 

132,582

 

Provision for income taxes

 

 

2,454

 

 

 

3,517

 

 

 

18,777

 

 

 

11,423

 

Net income

 

$

48,817

 

 

$

30,309

 

 

$

201,670

 

 

$

121,159

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.99

 

 

$

0.62

 

 

$

4.09

 

 

$

2.47

 

Diluted

 

$

0.98

 

 

$

0.61

 

 

$

4.06

 

 

$

2.46

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

49,374

 

 

 

49,151

 

 

 

49,343

 

 

 

48,971

 

Diluted

 

 

49,630

 

 

 

49,562

 

 

 

49,660

 

 

 

49,318

 

 

ONTO INNOVATION INC.

NON-GAAP FINANCIAL SUMMARY

(In thousands, except percentage and per share amounts) - (Unaudited)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 28,

 

 

December 30,

 

 

December 28,

 

 

December 30,

 

2024

 

 

2023

 

 

2024

 

 

2023

Revenue

$

263,939

 

$

218,856

 

$

987,321

 

$

815,868

 

Gross profit

$

143,886

 

$

112,751

 

$

529,466

 

$

427,439

 

Gross margin as percentage of revenue

 

55

%

 

52

%

 

54

%

 

52

%

Operating expenses

$

68,418

 

$

56,360

 

$

262,170

 

$

231,996

 

Operating income

$

75,468

 

$

56,391

 

$

267,296

 

$

195,443

 

Operating margin as a percentage of revenue

 

29

%

 

26

%

 

27

%

 

24

%

Net income

$

74,831

 

$

52,443

 

$

265,023

 

$

183,857

 

Net income per diluted share

$

1.51

 

$

1.06

 

$

5.34

 

$

3.73

 

 

RECONCILIATION OF GAAP GROSS PROFIT,

OPERATING EXPENSES OPERATING INCOME, GROSS MARGIN AND OPERATING MARGIN TO NON-GAAP

GROSS PROFIT, OPERATING EXPENSES, OPERATING INCOME, GROSS MARGIN AND OPERATING MARGIN

(In thousands, except percentages) - (Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 28,

 

December 30,

 

December 28,

 

December 30,

 

2024

2023

2024

2023

U.S. GAAP gross profit

$

132,408

 

$

107,966

 

$

515,308

 

$

420,254

 

Pre-tax non-GAAP items:

 

 

 

 

 

 

 

 

Merger and acquisition related expenses

 

(15

)

 

37

 

 

90

 

 

158

 

Restructuring expenses

 

11,493

 

 

4,748

 

 

14,068

 

 

7,027

 

Non-GAAP gross profit

 

143,886

 

 

112,751

 

 

529,466

 

 

427,439

 

U.S. GAAP gross margin as a percentage of revenue

 

50

%

 

49

%

 

52

%

 

52

%

Non-GAAP gross margin as a percentage of revenue

 

55

%

 

52

%

 

54

%

 

52

%

U.S. GAAP operating expenses

$

89,948

 

$

79,736

 

$

328,205

 

$

304,176

 

Pre-tax non-GAAP items:

 

 

 

 

 

 

 

 

Merger and acquisition related expenses

 

5,468

 

 

214

 

 

7,562

 

 

2,449

 

Restructuring expenses

 

5,963

 

 

346

 

 

9,009

 

 

3,572

 

Litigation expenses

 

—

 

 

9,467

 

 

27

 

 

11,337

 

Amortization of intangibles

 

10,099

 

 

13,349

 

 

49,437

 

 

54,822

 

Non-GAAP operating expenses

 

68,418

 

 

56,360

 

 

262,170

 

 

231,996

 

Non-GAAP operating income

$

75,468

 

$

56,391

 

$

267,296

 

$

195,443

 

U.S. GAAP operating margin as a percentage of revenue

 

16

%

 

13

%

 

19

%

 

14

%

Non-GAAP operating margin as a percentage of revenue

 

29

%

 

26

%

 

27

%

 

24

%

 

ONTO INNOVATION INC.

RECONCILIATION OF GAAP NET INCOME TO

NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER DILUTED SHARE

(In thousands, except share and per share data) - (Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 28,

 

December 30,

 

December 28,

 

December 30,

 

2024

2023

2024

2023

U.S. GAAP net income

$

48,817

 

$

30,309

 

$

201,670

 

$

121,159

 

Pre-tax non-GAAP items:

 

 

 

 

 

 

 

 

Merger and acquisition related expenses

 

5,453

 

 

251

 

 

7,652

 

 

2,607

 

Restructuring expenses

 

17,456

 

 

5,094

 

 

23,077

 

 

10,599

 

Litigation expenses

—

 

 

9,467

 

 

27

 

 

11,337

 

Amortization of intangibles

 

10,099

 

 

13,349

 

 

49,437

 

 

54,822

 

Net tax provision adjustments

 

(6,994

)

 

(6,027

)

 

(16,840

)

 

(16,667

)

Non-GAAP net income

$

74,831

 

$

52,443

 

$

265,023

 

$

183,857

 

Non-GAAP net income per diluted share

$

1.51

 

$

1.06

 

$

5.34

 

$

3.73

 

 

ONTO INNOVATION INC

SUPPLEMENTAL INFORMATION - RECONCILIATION OF FIRST QUARTER 2025

GAAP TO NON-GAAP GUIDANCE

 

 

Low

 

 

High

 

Estimated GAAP net income per diluted share

$

1.14

 

 

$

1.28

 

Estimated non-GAAP items:

 

 

 

 

 

Amortization of intangibles

 

0.22

 

 

 

0.22

 

Merger and acquisition related expenses

 

0.01

 

 

 

0.01

 

Restructuring expenses

 

0.07

 

 

 

0.07

 

Net tax provision adjustments

 

(0.04

)

 

 

(0.04

)

Estimated non-GAAP net income per diluted share

$

1.40

 

 

$

1.54

 

 

 

 

 

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206103321/en/

For more information, please contact: Sidney Ho +1 408.376.9163 sidney.ho@ontoinnovation.com