Everspin: Fiscal 4Q24 and Full Year 2024 Financial Results

Everspin Technologies, Inc. announced preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2024.

“We are pleased to report fourth quarter results with revenue above our expectations and earnings per share at the high end of our guidance range,” said Sanjeev Aggarwal, president and CEO. “We had a total of 178 design wins in 2024 and we are excited about the opportunities ahead of us to expand our reach in the NOR flash, SRAM and storage markets.“

Fourth Quarter 2024 Results

• Total revenue of $13.2 million, compared to $16.7 million in the fourth quarter of 2023.
• MRAM product sales, which includes both Toggle and STT-MRAM revenue, of $11.0 million, compared to $12.4 million in the fourth quarter of 2023.
• Licensing, royalty, patent, and other revenue of $2.2 million, compared to $4.3 million in the fourth quarter of 2023.
• Gross margin of 51.3%, compared to 58.1% in the fourth quarter of 2023.
• GAAP operating expenses of $8.4 million, compared to $8.1 million in the fourth quarter of 2023.
• Other income, net of $2.6 million, compared to $0.4 million in the fourth quarter of 2023.
• GAAP net income of $1.2 million, or $0.05 per diluted share, compared to net income of $2.0 million, or $0.09 per diluted share, in the fourth quarter of 2023.
• Adjusted EBITDA of $3.2 million, compared to $3.6 million in the fourth quarter of 2023.
• Cash and cash equivalents as of December 31, 2024, increased to $42.1 million.

Full Year 2024 Results

• Total revenue of $50.4 million, compared to $63.8 million in 2023.
• MRAM product sales, which includes both Toggle and STT-MRAM revenue, of $42.2 million, compared to $53.1 million in 2023.
• Licensing, royalty, patent, and other revenue of $8.2 million, compared to $10.6 million in 2023.
• Gross margin of 51.8%, compared to 58.4% in 2023.
• GAAP operating expenses of $33.2 million, compared to $31.4 million in 2023.
• Other income, net of $7.8 million, compared to $3.2 million in 2023.
• GAAP net income of $0.8 million, or $0.04 per diluted share, compared to net income of $9.1 million, or $0.42 per diluted share, in 2023.
• Adjusted EBITDA of $9.2 million, compared to $15.3 million in 2023.

“Our solid results this quarter were driven by strength in our product revenue and RAD-Hard projects,” said Bill Cooper, CFO, Everspin. “Our balance sheet remains strong and we remain committed to maintaining financial discipline while scaling our business and converting additional design wins to revenue.“

Business Outlook
For the first quarter 2025, Everspin expects total revenue in a range of $12 million to $13 million and GAAP net loss per basic share to be between $(0.10) and $(0.05). Non-GAAP net (loss) income per basic share is anticipated to be between $(0.05) and $0.00.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges are impacted by the timing of employee stock transactions, the future fair market value of Everspin’s common stock, and Everspin’s future hiring and retention needs, all of which are difficult to predict and subject to constant change. These factors could be material to Everspin’s results computed in accordance with GAAP. This outlook is dependent on Everspin’s current expectations, which may be impacted by, among other things, evolving external conditions, such as public health-related events or outbreaks, local safety guidelines, worsening impacts due to supply chain constraints or interruptions, including recent market volatility, semiconductor downturn and the other risk factors described in Everspin’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, its Quarterly Reports on Form 10-Q filed with the SEC during 2024, as well as in its subsequent filings with the SEC.

Use of Non-GAAP Financial Measures
Everspin supplements the reporting of its financial information determined under generally accepted accounting principles in the US of America (GAAP) with the following non-GAAP financial measures:

• Non-GAAP net income (loss), which is defined as the GAAP measure, excluding the effect of stock-based compensation charges.
• Adjusted EBITDA, which is defined as net income adjusted for interest expense, taxes, depreciation and amortization, stock-based compensation expense, and restructuring costs (if any).

Everspin’s management and board of directors use these non-GAAP measures to understand and evaluate its operating performance and trends, to prepare and approve its annual budget and to develop short-term and long-term operating and financing plans. Accordingly, Everspin believes that these non-GAAP measures provide useful information for investors in understanding and evaluating its operating results in the same manner as its management and board of directors. These non-GAAP financial measures should be considered in addition to, not as superior to, or as a substitute for, financial measures reported in accordance with GAAP. Moreover, other companies may define these non-GAAP measures differently, which limits the usefulness of this measure for comparisons with such other companies. Everspin encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Everspin hosted a conference call for analysts and investors on February 26. The live webcast of the call will be accessible on the company’s website at investor.everspin.com. An archived webcast of the conference call will be accessible from the Investor Relations section of Everspin’s website for 12 months.