Rambus Inc. Reports Q1 2024 Financial Results

TL;DR

Rambus Inc. reported Q1 2024 revenue of $72.9 million, with a slight decrease year-over-year, driven by a dip in product revenue offset by growth in royalty revenue.

AI Summary

RAMBUS INC (RMBS) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Total revenue for Q1 2024 was $72.9 million, a decrease from $73.3 million in Q1 2023. Product revenue for Q1 2024 was $31.7 million, down from $34.7 million in Q1 2023. Royalty revenue for Q1 2024 was $39.2 million, an increase from $37.1 million in Q1 2023. Contract and other revenue for Q1 2024 was $2.0 million, down from $1.5 million in Q1 2023. The company reported $10.1 million in net income for Q1 2024.

Why It Matters

For investors and stakeholders tracking RAMBUS INC, this filing contains several important signals. The slight overall revenue decline in Q1 2024, despite growth in royalty revenue, indicates potential challenges in product sales or a shift in revenue mix. The increase in royalty revenue suggests successful monetization of intellectual property, which could be a key driver for future growth.

Risk Assessment

Risk Level: medium — RAMBUS INC shows moderate risk based on this filing. The company's revenue experienced a slight decline in Q1 2024 compared to the prior year, indicating potential headwinds in its core business segments.

Analyst Insight

Monitor the performance of product revenue in upcoming quarters to assess if the Q1 decline is a temporary setback or a trend.

Revenue Breakdown

Key Numbers

• 72.9 — Total Revenue Q1 2024 (Total revenue for the three months ended March 31, 2024)
• 73.3 — Total Revenue Q1 2023 (Total revenue for the three months ended March 31, 2023)
• 31.7 — Product Revenue Q1 2024 (Product revenue for the three months ended March 31, 2024)
• 34.7 — Product Revenue Q1 2023 (Product revenue for the three months ended March 31, 2023)
• 39.2 — Royalty Revenue Q1 2024 (Royalty revenue for the three months ended March 31, 2024)
• 37.1 — Royalty Revenue Q1 2023 (Royalty revenue for the three months ended March 31, 2023)
• 2.0 — Contract and other Revenue Q1 2024 (Contract and other revenue for the three months ended March 31, 2024)
• 1.5 — Contract and other Revenue Q1 2023 (Contract and other revenue for the three months ended March 31, 2023)

Key Players & Entities

• RAMBUS INC (company) — FILER
• 4453 NORTH FIRST STREET, SUITE 100 (address) — BUSINESS ADDRESS
• SAN JOSE (city) — BUSINESS ADDRESS
• CA (state) — BUSINESS ADDRESS
• 95134 (zip_code) — BUSINESS ADDRESS
• 408-462-8000 (phone_number) — BUSINESS PHONE

FAQ

Filing Documents

• rmbs-20240331.htm (10-Q) — 1370KB
• rmbs-ex311_2024331x10q.htm (EX-31.1) — 12KB
• rmbs-ex312_2024331x10q.htm (EX-31.2) — 12KB
• rmbs-ex321_2024331x10q.htm (EX-32.1) — 5KB
• rmbs-ex322_2024331x10q.htm (EX-32.2) — 5KB
• 0000917273-24-000088.txt ( ) — 7285KB
• rmbs-20240331.xsd (EX-101.SCH) — 50KB
• rmbs-20240331_cal.xml (EX-101.CAL) — 85KB
• rmbs-20240331_def.xml (EX-101.DEF) — 273KB
• rmbs-20240331_lab.xml (EX-101.LAB) — 681KB
• rmbs-20240331_pre.xml (EX-101.PRE) — 473KB
• rmbs-20240331_htm.xml (XML) — 978KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 6

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): 6 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 6 Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 7 Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 8 Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 9 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 10 Notes to Unaudited Condensed Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION 36

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 57

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 57

Other Information

Item 5. Other Information 57

Exhibits

Item 6. Exhibits 58 Signature 59 3 NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q ("Quarterly Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include, without limitation, predictions regarding the following aspects of our future: Success in the markets of our products and services or our customers' products; Sources of competition; Research and development costs and improvements in technology; Sources, amounts and concentration of revenue, including royalties; Success in signing and renewing customer agreements, including license agreements; The timing of completing engineering deliverables and the changes to work required; Success in obtaining new technology development contracts booked in the future; Success in adding and maintaining new customers; Success in obtaining orders from our customers, and our ability to accurately anticipate and meet our customers' demands; Success in entering and growth in new markets; Levels of variation in our customers' shipment volumes, sales prices and product mix; Variation in contract and other revenue, based on varying revenue recognized from contract and other revenue; Implications of short-term or long-term increases in our research and development expenses; Short-term increases in cost of product revenue; Variation in our sales, general and administrative expenses; Terms of our licenses and amounts owed under license agreements; Technology product development; Perceived or actual changes in the quality of our products; Dispositions, acquisitions, mergers or strategic transactions and our related integration efforts; Impairment of goodwill and long-lived assets; Pricing policies of our customers; Changes in our strategy and business model, including the expansion of our portfolio of inventions, products, software, serv

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements RAMBUS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except shares and par value) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 112,614 $ 94,767 Marketable securities 278,443 331,077 Accounts receivable 86,940 82,925 Unbilled receivables 38,484 50,872 Inventories 47,599 36,154 Prepaids and other current assets 12,376 34,850 Total current assets 576,456 630,645 Intangible assets, net 25,518 28,769 Goodwill 286,812 286,812 Property, plant and equipment, net 67,277 67,808 Operating lease right-of-use assets 21,574 21,497 Unbilled receivables 3,980 4,423 Deferred tax assets 131,885 127,892 Income taxes receivable 93,926 88,768 Other assets 1,408 1,613 Total assets $ 1,208,836 $ 1,258,227 LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 24,775 $ 18,074 Accrued salaries and benefits 12,687 17,504 Deferred revenue 16,399 17,393 Income taxes payable 3,899 5,099 Operating lease liabilities 4,722 4,453 Other current liabilities 20,125 26,598 Total current liabilities 82,607 89,121 Long-term operating lease liabilities 25,899 26,255 Long-term income taxes payable 85,569 78,947 Deferred tax liabilities 4,205 4,462 Other long-term liabilities 18,964 21,341 Total liabilities 217,244 220,126 Commitments and contingencies (Notes 9, 11 and 15) Stockholders' equity: Convertible preferred stock, $ 0.001 par value: Authorized: 5,000,000 shares; issued and outstanding: no shares at March 31, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value: Authorized: 500,000,000 shares; issued and outstanding: 107,780,744 shares at March 31, 2024 and 107,853,778 shares at December 31, 2023 108 108 Additional paid-in capital 1,293,923 1,324,796 Accumulated deficit ( 300,583 ) ( 285,534 ) Accumulated other comprehensive loss ( 1,856 ) ( 1,269 ) Total stockholders' equity 991,592 1,038,101 Total liabilities and stoc

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View this 10-Q filing on SEC EDGAR