Universal Display Corporation (NASDAQ:OLED) Q3 2024 Earnings Conference Call October 30, 2024 5:00 PM ET Company Participants Darice Liu - Director, Investor Relations Steve Abramson - President & Chief Executive Officer Brian Millard - Vice President & Chief Financial Officer Conference Call Participants Martin Yang - Oppenheimer & Company Scott Searle - ROTH Capital Partners Nam Kim - Arete Research Operator Good day, ladies and gentlemen, and welcome to Universal Display Corporation's Third Quarter Earni ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ___________ Commission File Number 1-12031 UNIVERSAL DISPLAY CORPORATION (Exact name of registrant as specified in its charter) Pennsylvan ...

Revenue Performance - Total revenue for Q3 2024 was $161.6 million, up from $141.1 million in Q3 2023, representing a year-over-year increase of 14.0%[3] - Revenue from material sales decreased to $83.4 million in Q3 2024 from $92.5 million in Q3 2023, a decline of 9.5%[3] - Revenue from royalty and license fees increased to $74.6 million in Q3 2024, compared to $45.9 million in Q3 2023, marking a significant increase of 62.8%[3] - For the first nine months of 2024, total revenue was $485.4 million, up from $418.1 million in the same period of 2023, a growth of 16.1%[6] - Total revenue for Q3 2024 was $161.6 million, a 14.6% increase from $141.1 million in Q3 2023[17] Income and Profitability - Operating income for Q3 2024 was $67.0 million, up from $48.4 million in Q3 2023, reflecting a growth of 38.4%[3] - Net income for Q3 2024 was $66.9 million, or $1.40 per diluted share, compared to $51.5 million, or $1.08 per diluted share in Q3 2023, an increase of 29.8% in net income[3] - Gross margin for Q3 2024 was $125.8 million, compared to $106.8 million in Q3 2023, reflecting a 17.8% increase[17] - Net income for the nine months ended September 30, 2024, was $176,060,000, an increase from $141,033,000 in the same period of 2023, representing a growth of approximately 25%[18] Cash Flow and Dividends - Cash and cash equivalents decreased to $79.6 million as of September 30, 2024, down from $92.0 million at the end of 2023[16] - Cash dividends declared per common share increased to $0.40 in Q3 2024, compared to $0.35 in Q3 2023[17] - Cash dividends paid amounted to $57,837,000, compared to $50,083,000 in the previous year, indicating an increase of approximately 15.5%[18] - The company announced a fourth quarter cash dividend of $0.40 per share, payable on December 31, 2024[10] Tax and Guidance - The effective income tax rate increased to 17.9% in Q3 2024 from 4.4% in Q3 2023, primarily due to changes in IRS regulations[3] - The company revised its 2024 revenue guidance to a range of $625 million to $645 million, reflecting a more modest growth expectation[9] Assets and Equity - Total assets increased to $1.81 billion as of September 30, 2024, compared to $1.67 billion at the end of 2023, a growth of 8.5%[16] - Shareholders' equity rose to $1.59 billion as of September 30, 2024, up from $1.45 billion at the end of 2023, an increase of 9.7%[16] Operational Changes - Universal Display is positioned to benefit from a new OLED adoption cycle in medium-sized displays, particularly in IT and automotive sectors[2] Cash Flow Activities - Net cash provided by operating activities increased to $219,027,000 from $117,707,000, reflecting a significant rise of about 86%[18] - Net cash used in investing activities was $167,141,000, a notable increase from $75,368,000, highlighting a rise of about 121%[18] - Proceeds from the sale and maturity of investments totaled $200,768,000, down from $346,407,000, showing a decrease of approximately 42%[18] - The company reported a decrease in cash and cash equivalents of $12,426,000, compared to a decrease of $14,107,000 in the prior year[18] Other Financial Metrics - Stock-based compensation increased to $23,812,000 from $18,623,000, representing a growth of approximately 27.5%[18] - Accounts receivable saw a significant increase of $52,157,000, compared to a decrease of $29,528,000 in the previous year[18] - The company reported a net change in accounts payable and accrued expenses related to purchases of property and equipment of $(5,573,000), compared to $887,000 in the prior year[18] - Unrealized gain on available-for-sale securities was $4,117,000, up from $3,304,000, reflecting an increase of about 24.5%[18]

Universal Display Corporation (OLED) reported relatively modest second-quarter 2024 results, with both the top and bottom lines falling short of the Zacks Consensus Estimate. However, the company reported a top-line expansion year over year, backed by solid demand for emitter materials. The company is witnessing strong OLED proliferation from leading manufacturers. The introduction of new OLED PC products and healthy traction in the IT landscape acted as a tailwind. Management is undertaking several measure ...

Core Insights - Universal Display Corp. reported revenue of $158.51 million for the quarter ended June 2024, reflecting an 8.1% increase year-over-year, but fell short of the Zacks Consensus Estimate by 1.01% [1] - The company's EPS was $1.10, up from $1.04 in the same quarter last year, but also missed the consensus estimate of $1.14 by 3.51% [1] Revenue Breakdown - Material sales revenue was $95.44 million, exceeding the average estimate of $91.55 million by analysts, with a year-over-year increase of 23.8% [3] - Contract research services generated $3.51 million, slightly above the average estimate of $3.28 million, but showed a significant year-over-year decline of 30.6% [4] - Royalty and license fees amounted to $59.55 million, below the average estimate of $65.30 million, representing a year-over-year decrease of 7.5% [5] Stock Performance - Over the past month, Universal Display shares have returned 2.1%, outperforming the Zacks S&P 500 composite's return of 1.1% [5] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [5]

Universal Display Corporation (NASDAQ:OLED) Q2 2024 Earnings Conference Call August 1, 2024 5:00 PM ET Company Participants Darice Liu - Senior Director, IR Steven Abramson - President and CEO Brian Millard - VP and CFO Conference Call Participants Mehdi Hosseini - SIG Chris Grenga - Needham & Company Martin Yang - Oppenheimer & Company Brian Lee - Goldman Sachs Operator Good day ladies and gentlemen and welcome to Universal Display Corporation's Second Quarter 2024 Earnings Conference Call. My name is Sher ...

Universal Display Corp. (OLED) came out with quarterly earnings of $1.10 per share, missing the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.51%. A quarter ago, it was expected that this organic light-emitting diode technology company would post earnings of $1.05 per share when it actually produced earnings of $1.19, delivering a surprise of ...

Revenue Performance - Total revenue for the three months ended June 30, 2024, was $158.5 million, an increase of 8.1% from $146.6 million in the same period of 2023[146]. - Total revenue for the six months ended June 30, 2024, was $323.8 million, an increase of 17% from $277.0 million for the same period in 2023[158]. - Material sales increased by 24% to $95.4 million for the three months ended June 30, 2024, compared to $77.1 million in the same period of 2023, with unit material volume increasing by 23%[147]. - Material sales reached $188.7 million for the six months ended June 30, 2024, up 28% from $147.3 million in the prior year, with a 30% increase in unit material volume[159]. - Revenue from royalty and license fees decreased by 8% to $59.6 million for the three months ended June 30, 2024, down from $64.4 million in the same period of 2023[148]. - Royalty and license fees increased by 7% to $127.8 million for the six months ended June 30, 2024, compared to $119.6 million for the same period in 2023[160]. Expenses and Income - Research and development expenses increased to $36.8 million for the three months ended June 30, 2024, compared to $32.3 million in the same period of 2023, primarily due to higher operating costs[151]. - Research and development expenses rose to $74.8 million for the six months ended June 30, 2024, from $63.7 million in the same period in 2023, marking a 17% increase[163]. - Selling, general and administrative expenses increased to $39.1 million for the six months ended June 30, 2024, compared to $32.5 million for the same period in 2023, reflecting a rise of 20%[164]. - Operating income for the three months ended June 30, 2024, was $56.4 million, a decrease from $58.6 million in the same period of 2023[146]. - Net income for the three months ended June 30, 2024, was $52.3 million, compared to $49.7 million in the same period of 2023, reflecting an increase of 5.4%[146]. Margins and Financial Ratios - Gross margin for the three months ended June 30, 2024, was $120.2 million, with a gross margin percentage of 76%, down from 78% in the same period of 2023[150]. - Gross margin for the six months ended June 30, 2024, increased to 77% from 76% in the prior year, driven by higher revenue from material sales and royalty and license fees[162]. - The effective income tax rate decreased to 19.3% for the six months ended June 30, 2024, from 22.6% in the same period in 2023, with income tax expense recorded at $26.2 million for both periods[169]. Cash Flow and Liquidity - Cash provided by operating activities for the six months ended June 30, 2024, was $139.2 million, significantly higher than $57.4 million for the same period in 2023[171]. - As of June 30, 2024, the company had total liquidity of $879.0 million, up from $799.6 million as of December 31, 2023[170]. - Interest income, net was $19.5 million for the six months ended June 30, 2024, compared to $13.2 million for the same period in 2023, reflecting a 48% increase[168]. Manufacturing and Operational Insights - The new manufacturing site in Shannon, Ireland, is expected to double production capacity and diversify the manufacturing base for phosphorescent emitters[145]. - The company anticipates fluctuations in annual and quarterly results due to various factors, including sales timing and customer demand[145]. Risk Management - The company prepares its Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles, which involve critical accounting policies related to revenue recognition, deferred revenue, inventories, and income taxes[177]. - As of June 30, 2024, the company had no off-balance sheet arrangements that could expose it to credit, liquidity, or market risk[180]. - The company does not utilize financial instruments for trading purposes and holds no derivative financial instruments that could expose it to significant market risk, primarily facing interest rate changes[181]. - Substantially all of the company's revenue is derived from outside of North America, primarily denominated in U.S. dollars, mitigating significant foreign exchange risk[182].

Exhibit 99.1 Press Release Universal Display Contact: Darice Liu investor@oled.com media@oled.com +1 609-964-5123 Universal Display Corporation Announces Second Quarter 2024 Financial Results EWING, N.J. – August 1, 2024 – Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the second quarter ended June 30, 2024. "We reported solid second quarter results as the OLED IT adoption ...

Over the last 30 days, there has been an upward revision of 0.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights. The consensus estimate for 'Revenues- ...