Arteris Reports 8% Revenue Growth to $57.7 Million, Net Loss Improves

Arteris, Inc. reported a revenue increase of 8% for the fiscal year ending December 31, 2024, generating $57.7 million compared to $53.7 million in 2023. The company experienced a net loss of $33.6 million, a slight improvement from the $36.9 million loss reported in the previous year. The increase in revenue was primarily driven by new licensing agreements with existing customers and the addition of new clients, which contributed to a rise in licensing, support, and maintenance revenue, which grew by 9% to $52.8 million. However, variable royalties decreased by 15%, reflecting a decline in revenue from royalty audits.

In terms of operational metrics, Arteris added 10 net new active customers during 2024, bringing the total to 76 confirmed design starts. The company reported an Annual Contract Value (ACV) of $60.7 million, up from $50.9 million in 2023, indicating a growing customer adoption of its semiconductor system IP solutions. The company’s total ACV, including royalties, reached $65.1 million, up from $56.1 million the previous year. Geographically, 39.4% of revenue came from the Americas, 12.5% from Europe and the Middle East, and 48.1% from the Asia Pacific region, with China accounting for 29.2% of total revenue.

Strategically, Arteris has focused on enhancing its product offerings through acquisitions, notably the purchase of Magillem in 2020 and Semifore in 2022, which have bolstered its SoC integration automation capabilities. The company continues to invest heavily in research and development, with R&D expenses totaling $45 million, representing 78% of its revenue. This investment is aimed at addressing the increasing complexity of System-on-Chip designs and expanding its market share in high-growth sectors such as automotive and enterprise computing.

Looking ahead, Arteris anticipates continued investment in its business, which may lead to further net losses in the short term. The company is optimistic about the growth potential in the semiconductor industry, driven by the increasing demand for sophisticated on-chip processing solutions. However, it acknowledges the risks associated with market conditions, competition, and the need for sustained customer adoption of its technologies. The management remains focused on executing its growth strategy, which includes expanding its customer base and enhancing its product portfolio through ongoing innovation and strategic acquisitions.