Arteris(AIP) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, Arteris generated revenue of $16.5 million and reported a net loss of$8.1 million, with a net loss per share of $0.20[80]. - Total revenue for the three months ended March 31, 2025, was$16.532 million, a 28% increase from $12.947 million in the same period of 2024[112]. - Licensing, support, and maintenance revenue increased by$3.596 million, or 31%, to $15.335 million for the three months ended March 31, 2025, compared to$11.739 million in 2024[114]. - Gross profit margin improved to 91% for the three months ended March 31, 2025, compared to 89% in the same period of 2024[113]. - Net loss for the three months ended March 31, 2025, was $8.121 million, a decrease from a net loss of$9.403 million in 2024[112]. - Cost of revenue increased slightly by $58,000, or 4$1.526 million for the three months ended March 31, 2025, compared to $1.468 million in 2024[115]. - Other income (expense), net decreased by$218,000, or 23%, to $718,000 for the three months ended March 31, 2025, from$936,000 in 2024[121]. - Provision for income taxes decreased by $102,000, or 28$268,000 for the three months ended March 31, 2025, compared to $370,000 in 2024[123]. - Loss from equity method investment was$815,000 for the three months ended March 31, 2025, compared to $759,000 in 2024, reflecting a 7$62.1 million, an increase from $53.5 million as of March 31, 2024, while total ACV plus royalties reached$66.8 million, up from $58.2 million[92]. - 60.1$1.027 million, or 9%, to $11.862 million for the three months ended March 31, 2025, from$10.835 million in 2024[116]. - Sales and marketing (S&M) expenses increased by $1.073 million, or 20$6.529 million for the three months ended March 31, 2025, compared to $5.456 million in 2024[118]. - Research and development expenses are expected to increase in absolute terms, reflecting ongoing investments in technology and product development[86]. Cash Flow and Liquidity - As of March 31, 2025, the company had$42.3 million in cash and cash equivalents, with $12.8 million in long-term investments[124]. - For the three months ended March 31, 2025, net cash provided by operating activities was$2.9 million, despite a net loss of $8.1 million[128]. - The company experienced a$10.3 million decrease in accounts receivable for the three months ended March 31, 2025[128]. - Net cash used in investing activities for the three months ended March 31, 2025 was $0.1 million, primarily due to purchases of available-for-sale securities[130]. - Net cash provided by financing activities for the three months ended March 31, 2024 was less than$0.1 million, primarily from stock option exercises[133]. - The company believes its current cash and cash equivalents will be sufficient to meet liquidity requirements for at least the next 12 months[125]. Industry Context - The semiconductor industry is characterized by cyclical trends, which can significantly impact revenue and customer demand for Arteris' products[90]. - Arteris' interconnect IP solutions are critical for enabling sophisticated applications across various markets, including automotive and consumer electronics[79]. Other Information - The company had no off-balance sheet financing arrangements during the periods presented[134]. - Non-cash charges for the three months ended March 31, 2025 included stock-based compensation of $4.3 million[128]. - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of certain accounting standards[138].