Rambus, Inc. · NASDAQ:RMBS
Rambus — Q1 2024 Earnings Presentation
29 slides from Rambus's earnings presentation, Jul 15, 2024
Slide 1: Rambus Investor Presentation Q1 2024
Rambus Investor Presentation Q1 2024
Slide 2: Safe Harbor for Forward-Looking Statements; Other Disclosures
Safe Harbor for Forward-Looking Statements; Other Disclosures This presentation contains forward-looking statements, including those relating to the Company’s expectations regarding business opportunities, the Company’s ability to deliver long-term, profitable growth, industry growth rates, timing o
Slide 3: Rambus at a glance: $225M product revenue, $196M cash from operations
$225M Industry-Leading Chips and Silicon IP 2023 Product Revenue Data Center $196M >75% of Chip and 2023 Cash from Operations Silicon IP Revenue GSA 2023 Most Respected Emerging +42% Semiconductor Company 5-year CAGR $100-500M Revenue Product Revenue 34 Years San Jose HQ ~600 Employees ~2700 Technol
Slide 4: Semiconductor Solutions Built on Innovation
Semiconductor Solutions Built on Innovation Rambus Offerings Markets Served Chips Memory Product Sales Automotive Interface Chips Silicon IP Data Center IP Licenses Government & Edge Interface IP Security IP Innovations Patent Licenses \ IoT Foundational R&D and IP 4
Slide 5: Amplified Opportunities in Data Center
Amplified Opportunities in Data Center Delivering higher Bridging the latency & capacity Improving efficiency with performance with DDR5 gap with memory tiering composable computing Cache Increasing latency and capacity On chip IO Composable DRAM resources: Increasing bandwidth Direct attach Compute
Slide 6: Rambus Solutions for the Data Center
Rambus Solutions for the Data Center DDR5 RDIMM Server Motherboard AI Accelerator/GPU Card 2 1 3 4 Rambus Products: Chips 1 Memory Interface Chips: Registering Clock Driver, SPD Hub, Temperature Sensor 2 Root of Trust Security IP with Quantum Safe Cryptography Silicon IP 3 HBM/GDDR Memory Controller
Slide 7: Rambus Memory Interface Chips
SPD Hub Rambus Memory Interface Chips Driving the pace of server main memory performance Temperature Registering Temperature Sensor Clock Driver Sensor DDR5 Server Chipset 42% Industry-leading DDR5 RCDs DDR5 companion chip portfolio: • SPD Hub* 5-Year Product Revenue CAGR Gen1 4800 MT/s to Gen4 7200
Slide 8: Silicon IP Solutions for AI
Silicon IP Solutions for AI • Essential building blocks for high- performance chips: HBM, GDDR, PCIe, CXL, PQC, Root of Trust, IME/IDE • Key Benefits • Deliver industry-leading bandwidth performance • Enable high-speed data communications between devices Interface IP Security IP PCIe or CXL • Protec
Slide 9: Rambus Uniquely Positioned for Novel Memory Solutions
Rambus Uniquely Positioned for Novel Memory Solutions Industry leading performance to 7200 MT/s for Industry Leadership DDR5-based servers DDR5 Memory Interface Chipset World-class expertise in memory interface and Core Expertise interconnect subsystems (digital controller and security IP) HBM3E Mem
Slide 10: Product Leadership Driving Long-term Growth
Product Leadership Driving Long-term Growth DDR5 memory interface chipsets delivering industry- leading performance z HBM, GDDR, PCIe, and CXL 2018-2023 z controller IP critical to data center and AI 42% Product Revenue Broadest portfolio of secure CAGR* root of trust, protocol engine, and crypto ac
Slide 11: Financial Highlights
Financial Highlights Product Revenue* ($M) Pro Forma Operating Expenses ($M) 221 217 227 225 189 78 77 68 144 143 141 120 2021 2022 2023 2021 2022 2023 *Consisting Primarily of Memory Interface Chips R&D SG&A Cash from Operations ($M) & FCF per Share ($) Cash Equivalents & Return of Capital ($M) 250
Slide 12: Rambus Investment Summary
Rambus Investment Summary Amplified opportunity in data center as memory relevance accelerates fueled by AI Pioneer of industry-leading chips and silicon IP enabling critical performance improvements for the continued evolution of the data center Continued innovation feeds patent portfolio and produ
Slide 13: Detailed Financials
Detailed Financials Strong cash generation fuels growth initiatives and return of value to stockholders
Slide 14: Outstanding Cash Generation
Outstanding Cash Generation ASC 606 ASC 606 ASC 606 ASC 606 ASC 606 In Millions Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Revenue $122.4 $113.8 $119.8 $105.3 $122.2 Balanced portfolio drives growth Total Operating Costs and Disciplined investment to support core $85.4 $86.3 $75.7 $72.9 $71.9 Expenses1
Slide 15: Strong Balance Sheet Supports Strategic Initiatives
Strong Balance Sheet Supports Strategic Initiatives In Millions Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total Cash & Marketable $313.2 $292.1 $332.6 $375.5 $425.8 Driven by continued strong cash from operations Securities Total Assets $1,012.6 $962.6 $1,127.1 $1,184.3 $1,256.1 Strong balance sheet a
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net Income (Loss) in Millions (ASC 606) (ASC 606) (ASC 606) (ASC 606) (ASC 606) GAAP Net Income $16 $3 $169 $103 $59 Adjustments: Stock-based compensation $10 $13 $11 $10 $11 Acquisition/divestiture-related costs a
Slide 17: Revenue and Licensing Billings
Revenue and Licensing Billings ASC 606 ASC 606 In Thousands Q1'22 Q2'22 Q3'22 Q4'22 FY 2022 Q1'23 Q2'23 Q3'23 Q4'23 FY 2023 Royalty Revenue $30,464 $48,038 $29,878 $31,436 $139,816 $28,169 $40,672 $28,857 $52,412 $150,110 Product Revenue $47,969 $53,302 $58,619 $67,178 $227,068 $63,775 $54,978 $52,1
Slide 18: GAAP to Non-GAAP Income Statement
GAAP to Non-GAAP Income Statement GAAP Non-GAAP Delta In $ Millions Actual Actual to Q4’23 Q4’23 GAAP Revenue $122.2 $122.2 $- Cost of revenue 24.1 20.9 (3.2) Research and development 36.0 32.2 (3.7) Sales, general and administrative 25.9 18.7 (7.1) Change in fair value of earn-out liability 1.1 0.0
Slide 19: Product Overview
Product Overview Industry-leading Chips and Silicon IP
Slide 20: Memory Interface Chips
Memory Interface Chips Chips • • DDR5 Server Chipset DDR4 Server Chipset Providing memory bandwidth and capacity to unleash the power of CPUs and accelerators CXL Memory Initiative Chips Silicon IP Innovations 20
Slide 21: DDR5 DIMM Chipset
DDR5 DIMM Chipset Industry-leading Performance and Margin • Compliant with latest JEDEC spec up to 7200 MT/s • Wide margin IO design with advanced programmability • Exceeds JEDEC reliability requirements Optimized Power • Frequency-based power optimization Best-in-class Debug and Serviceability • In
Slide 22: CXL Memory Initiative
CXL Memory Initiative Bridging the Latency Gap with CXL CXL Platform Development Kit (PDK) Increasing latency and capacity Increasing bandwidth Server Memory Hierarchy • Enables prototyping and test of memory • Compute Express Link (CXL) enables expansion and pooling solutions a new tiered memory ar
Slide 23: Silicon IP
Interface IP Silicon IP • • PCI Express CXL Enabling accelerated computing • HBM with high-performance interfaces • GDDR and hardware-level security Security IP • Root of Trust • MACsec • IPsec • IME Chips Silicon IP Innovations
Slide 24: Interface IP: Memory Interface and Interconnect IP
Interface IP: Memory Interface and Interconnect IP Video Memory Controllers Interconnect Controllers Compression DDR-Type HBM CXL PCI Express MIPI VESA FEC Application CSI-2/ DSC/ DP/ DDR LPDDR GDDR 2/2E 3/3E 2.0 3.1 5.0 6.1 DSI-2 VDC-M HDMI Focus Data Center AI/Edge Automotive Government & Defense
Slide 25: Security IP: Protecting Data at Rest, in Motion, and in Use
Security IP: Protecting Data at Rest, in Motion, and in Use Cipher Root of Trust Network Security Crypto Cores Provisioning Engines Application Firmware IPsec Key Programmable MACsec IME Crypto TRNG Infrastructure Focus Controlled TLS Management Data Center N/A AI/Edge Automotive N/A Government & De
Slide 26: Rambus Labs
Rambus Labs Next-Gen Memory Enabling next-generation data centers through innovation, Post-Quantum research and development Computing Security Chips Silicon IP Innovations
Slide 27: Key Areas of Focus for Rambus Labs
Key Areas of Focus for Rambus Labs Next-Gen Memory Secure and Reliable Security for AI/ML Strategic Customer & Architectures and Memory Systems and PQC Product Roadmap Performance Support 27
Slide 28: Innovating to Meet Market Needs: Rambus Patent Portfolio
Innovating to Meet Market Needs Rambus Patent Portfolio Industry Recognition of Rambus Patents 3500 ~2700 450 Grants/Publications(pending) per Publication Year 400 3000 Cumulative Pending and Granted Patents 350 2500 300 2000 250 1500 200 Source: Innography, patent citations 150 1000 • Fundamental R
Slide 29: Thank you
Thank you~. 2)