Arteris, Inc.

Good afternoon, everyone, and welcome to the Atris IP first quarter 2022 earnings call. All material contained in the webcast is the sole property and copy of Atris IP with all rights reserved. For opening remarks and introductions, I will now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead.

Thank you, and good afternoon. With me today from Atris IP are Charlie Janik, Chief Executive Officer, and Nick Hawkins, Chief Financial Officer. Charlie will begin with a brief review of the business results for the first quarter ended March 31st, 2022. Nick will then review the financial results for the first quarter followed by the company's outlook for the second quarter and full year of 2022. We will then open the call for questions. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of the federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to differ materially from those anticipated, and you should not place undue reliance on forward-looking statements. Additional information regarding these risks and uncertainties and factors that could cause actual results to differ appear in the press release, our Taras IP issue today, and in the documents and reports filed by our terrorist IP from time to time with the Securities and Exchange Commission. Please note, during this call, we will cite certain non-GAAP measures, including non-GAAP net loss, non-GAAP net loss per share, and free cash flow, which are not measures prepared in accordance with U.S. GAAP. These non-GAAP measures are presented as we believe that they provide investors with a means of evaluating and understanding how the company's management evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. A reconciliation of these non-GAAP measures to the nearest GAAP measure can be found in the press release for the quarter ended March 31, 2022. In addition, for a definition of certain key performance indicators used in this presentation, such as annual contract value, design starts, active customers and remaining performance obligations, please see the press release for the quarter ended March 31st, 2022. Listeners who do not have a copy of the press release for the quarter ended March 31st, 2022 may obtain a copy by visiting the investor relations section of the company's website. Now I'd like to turn the call over to Charlie.

Thank you, Erica. And thanks to everyone for joining us on the call this afternoon. We're excited to report a strong first quarter to start 2022 with annual contract value plus trailing 12-month royalties of $52.8 million, up 26% year-over-year. Demonstrating our continuing momentum are active customers increased by seven new system IP customers in the quarter. Total customer design starts in the quarter were 19 SOC projects. Major new customer deals, including IP licenses to Cambricon, Rapid Silicon, and SocioNext. Cambricon selected Arteris IP knock interconnect solution based on our strong technology track record for automotive machine learning applications. We also signed a key new deal with a major ride sharing company in a quarter and announced that BMW licensed Arteris IP for a neural network accelerator project. Additionally, Sondrell deployed Arteris IP for their next-generation automotive AI ML SOCs. We believe these relationships underline that SOC creation is occurring at all stages of the automotive supply chain, from semiconductor companies to Tier 1 vendors, automotive OEMs, and ride-sharing companies, as electrification, automated driving, and ECU consolidation revolutionize the industry. Besides the progress in automotive, we also continued a strong momentum in AI ML, consumer electronics, enterprise, and 5G communication market segments. We continue to close new deals addressing AI ML technology during the first quarter across numerous verticals. The market for machine learning at the edge continues to be promising with continued addition of new customers and a broad range of applications. On the product front in the first quarter, We continued our strong investment in engineering new system IP products and are confident that we will continue our multi-year track record of delivering at least one new major system IP product in 2022. Democratization of SOC design, as well as disintermediation of the semiconductor supply chain, we believe is driving a strong need for automation of system IP solutions in order to compensate for a shortage of SOC architects and skilled interconnect IP engineers. While we are seeing strong demand for our products, we're also seeing worldwide inflationary pressures in terms of employee compensation and service provider pricing. As we discussed in our prior conference calls, we are seeing the regionalization of the semiconductor industry. However, the troubling events in Ukraine are driving the United States and Europe together into a more cohesive block than previously predicted. I should mention that Arteris IP has no current exposure to either Ukraine or Russia. We believe that it is important, however, for Arteris IP to continue to expand its multi-regional presence in order to be a global system IP provider. Lastly, in the first quarter, we continued to strengthen our management team by adding Michal Savinsky as our Chief Marketing Officer. Michal joins us following a 22-year career at Cadence Design Systems, including leadership roles in product strategy, solutions, and customer engagement, culminating as a corporate vice president, marketing, and business development. With Michal's addition, we now have a complete top management team with significant public company experience for our next stage of growth. With that, I'll turn it over to Nick to discuss our financial results in more detail.