Nova Ltd. Q3 FY2024 earnings call

• Nova achieved a record quarter, exceeding revenue and profitability guidance with 39% YOY revenue growth and strong profitability. • Driven by record sales in materials, metrology, advanced packaging, and advanced dimensional portfolio. • Anticipates 28% YOY annual revenue growth at midpoint for 2024, with robust demand in leading edge manufacturing and AI driving investments in advanced nodes. • Highlights include qualification of VeraFlex IV platform with memory customer, record sales in advanced packaging, and strong performance of standalone optical CD solutions.

Nova delivered a record third quarter with revenues reaching $179 million, a 39% year-over-year growth. Product revenue distribution was approximately 75% from logic and foundry and approximately 25% from memory. The quarter also saw robust performance across product lines and territories, with record sales in materials, metrology solutions, advanced packaging processes, and the advanced dimensional portfolio.

• Fourth quarter revenues expected to be between $181M and $191M. • GAAP EPS range $1.51-$1.70, non-GAAP EPS range $1.72-$1.91. • Midpoint of fourth quarter guidance anticipates GAAP gross margin ~57%, non-GAAP ~58%, operating expenses GAAP ~$55M, non-GAAP ~$50M. • 2024 annual revenues expected to grow ~28% YOY at midpoint, with strong non-GAAP profitability.

Q: Atif Malik asked about gate-all-around and China demand.

A: Gabriel Waisman discussed gate-all-around revenue estimation to $500M by 2026, continued robust demand in China.

Q: Charles Shi asked about China exposure and gate-all-around customer.

A: Gabriel Waisman said China exposure within peer range, advanced nodes revenue share to increase.

Q: Vedvati Shrotre asked about memory investments and gate-all-around trajectory.

A: Gabriel Waisman talked about memory demand, continued strong trajectory for gate-all-around, and China exposure moderation with advanced nodes growth.