Silvaco expects non-GAAP gross margin around 88% in Q3
Overview
Semiconductor design software firm's Q2 revenue rose 48% yr/yr but missed analyst expectations
Adjusted EPS for Q2 beat analyst expectations, marking return to non-GAAP profitability
Company announced new partnerships with NVIDIA, Dassault Systemes, and expanded Micron Technologies tie-up
Result Drivers
IP REVENUE GROWTH - Record IP revenue in Q2, up 48% sequentially and 238% yr/yr, driven by foundational IP and Mixel offerings
COST CONTROL - Tight management of operating expenses enabled return to non-GAAP profitability
STRATEGIC PARTNERSHIPS - New and expanded partnerships with NVIDIA, Dassault Systemes, and Micron Technologies supported technology adoption and market reach
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Silvaco Group Inc is $14.50, about 74.7% above its August 5 closing price of $8.30
The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 103 three months ago
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