Rambus, Inc.

Welcome to the Rambus third quarter fiscal year 2024 earnings conference call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question and answer session. If you would like to ask a question, you may press star 1 on your touchtone phone at any time. If anyone should require assistance during the conference, please press star 0 at any time. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Desmond Lynch, Chief Financial Officer. You may begin your conference.

Thank you, Operator, and welcome to the RAMBIS third quarter 2024 results conference call. I am Desmond Lynch, Chief Financial Officer at RAMBIS, and on the call with me today is Luke Serafin, our CEO. The press release for the results that we will be discussing today has been filed with the SEC on Form 8K. We are webcasting this call along with slides that we will reference during portions of today's call. A replay of this call can be accessed on our website beginning today at 5pm Pacific time. Our discussions today will contain forward-looking statements including our expectations regarding projected financial results, financial prospects, market growth, demand for our solutions and other market factors, and the effects of ASC 606 on reported revenue, amongst other items. These statements are subject to risks and uncertainties that may be discussed during this call and are more fully described in the documents we file with the SEC, including our 8Ks, 10Qs and 10Ks. These forward-looking statements may differ materially from our actual results and we are under no obligation to update these statements. In an effort to provide greater clarity in the financials, we are using both GAAP and non-GAAP financial presentations in both our press release and on this call. A reconciliation of these non-GAAP financials to the most directly comparable GAAP measures has been included in our press release in our slide presentation and on our website at rambus.com on the investor relations page under financial releases. In addition, we will continue to provide operational metrics such as licensing billings to give our investors better insight into our operational performance. The order of our call today will be as follows. Luke will start with an overview of the business. I will discuss our financial results And then we will end with Q&A. I'll now turn the call over to Luke to provide an overview of the quarter. Luke.

Thank you, Des, and good afternoon, everyone. In Q3, the company delivered strong sequential growth fueled by a double-digit increase in product revenue driven by continued market leadership from our DDR5 memory interface chips and sustained execution across our growing portfolio of products. And while we invest in our product and technology leadership, we continue to generate excellent cash from operations and deliver consistent returns of value to our stockholders. In Q3 alone, we generated $62 million of cash from our operations and repurchased $50 million of stock, marking our fifth consecutive quarter of share repurchases. In continued demonstration of our product leadership, earlier this month, we were the first to introduce complete chipsets for industry-standard DDR5 mRDIMs at 12,800 megatransfers per second and RDIMs at 8,000 megatransfers per second, which are commonly referred to as the mRDIM 12,800 and RDIM 8,000, respectively. Designed to meet the insatiable demand for higher memory performance in advanced data center and AI workloads, These new chipsets represent a significant expansion of our addressable market and long-term growth opportunity. In Q3, memory interface chips delivered revenue of $66 million, up 17% sequentially and 27% year-over-year. And in Q4, we anticipate our third consecutive quarter of double-digit sequential growth. As expected, we are pleased to see that data center demand growth in the second half of this year is driving increased sales of our core DDR5 RCD products, where we continue to gain share and early contributions from new products. We are also very excited by the positive customer feedback on our new products with qualification shipments underway for both server and client applications. The rapid development of new leadership memory subsystem products is critical to the sustained advancement of powerful server architectures. And the growth of AI and other data-intensive applications are accelerating the cadence of new products. As a fundamental pillar to our growth strategy, we will continue to leverage our strong balance sheet to support our strategic investments in new products to expand our market opportunity and to drive the long-term growth of the company. The recent introductions of our complete chipsets for the industry standard DDR5M RDM12800 and RDM8000, which I mentioned earlier, are great illustrations of this strategy in action. These new chipsets enable the next wave of DDR5-based systems and incorporate the advanced clocking control and power management features needed for higher capacity and higher bandwidth modules. As a recap, our newly announced offerings for DDR5-based systems include the Gen5 RCD, enabling next-generation standard RDMs operating at 8,000 megatransfers per second, The multiplexed RCD or MRCD and multiplexed data buffer or MDB enabling industry standard MRDIMs running at 12,800 megatransfers per second. And finally, the second generation server PMIC designed for both the RDiM and MRDIM. Our SPD hub and temperature sensor are also utilized in both the MRDIM and RDiM memory modules, rounding out our comprehensive chipset offerings. These chipsets are designed to intercept future generation server platforms currently targeted for 2026 and beyond that will use the next wave of DDR5. As part of this next wave, the RDM8000 and MRDM12800 are designed around a common architecture that allows an end user to populate a server with either module type, enabling flexible and scalable server memory configurations. Addressing a broad range of traditional and AI servers, a DDR5 RDM8000 utilizes the Gen5 RCD and next-generation server PNIC to deliver more than 67% greater bandwidth versus the first generation of DDR5. This represents an important new benchmark in server main memory and supports the ongoing growth of AI and other compute-intensive workloads. As AI continues to scale with larger and more complex models demanding ever greater memory bandwidth and capacity, the industry standard MRDIM will be key to expanding the DDR5 roadmap to meet these needs. MRDIM does this by employing another and efficient module design that boosts data transfer rates and system performance by multiplexing two ranks of DRAM. In order to support the increased complexity of this functionality, Each DDR5-MRDIM12800 requires one MRCD and 10MDB chips to multiplex the memory channel and support more memory devices. This doubles the bandwidth and provides for greater capacity while using the same physical connections of DDR5-RDIMs. As I previously mentioned, our second generation server PNIC is part of the chipset for both the RDiM8000 and MRDIM12800. This new server PIMIC supports higher speeds as well as more DRAM and logic chips per module. The second generation server PIMIC along with the Gen5 RCD, MRCD and MDB are further demonstrations of RAMBUS product leadership and are exciting new additions to our chip portfolio that significantly increase our addressable market in the years to come. Turning to Silicon IP, AI continues to drive long-term momentum across our IP business. We further expanded our portfolio of leading AI-focused offerings with the introduction of the industry's first HBM4 memory controller IP. This new HBM4 controller IP provides a vital building block for cutting edge AI accelerators, graphics, and HPC applications. Looking ahead, The requirements for power, performance, and security will only intensify spurred by generative AI and other data-intensive workloads. Across all of our businesses, RAMBUS is strategically focused on advancing system memory bandwidth and capacity through innovative memory, connectivity, and power management solutions. In closing, Q3 was a strong quarter for the company. driven by excellent execution and double-digit product revenue growth from our chip business. Consistent with our view that we would see our performance strengthening throughout the year, we are poised for another quarter of double-digit product revenue growth in Q4 and are on track for greater than 30% product growth in the second half compared to the first half of the year. Through our continued leadership in DDR5 RCDs, growing momentum in new products, and the introduction of our industry-first MRDM and RDM chipsets, we continue to expand our addressable market and are well positioned to capitalize on secular trends in data center and AI. Our strong cash generation enables us to continue investing in innovative products and to pursue strategic initiatives that drive the long-term growth of the company while consistently delivering value to our stockholders. As always, I'd like to thank our customers, partners, and employees for their ongoing support. And with that, I'll turn the call over to Dev to discuss the quarterly financial results. Dev?