Rambus, Inc.

we will conduct a question and answer session. If you would like to ask a question, you may press star one on your touchtone phone at any time. If anyone should require assistance during the conference, please press star zero 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 the conference.

Thank you, Operator, and welcome to the Rambis Conference. fourth quarter and full year 2024 results conference call. I'm Desmond Lynch, Chief Financial Officer at Rambis, and on the call with me today is Luke Settison, 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 the 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 discussion 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, Desi.

and good afternoon everyone 2024 was a great year for the company thanks to our continued strategic execution we gained market share in our core business and introduced a record number of new chip products to lay the foundation for even greater success in 2025 and beyond we finished the year very strongly with q4 revenue beating the high end of guidance We delivered record quarterly results from memory interface chips, propelling us to an annual record for product revenue of $247 million. We completed the strategic extension of our patent licensing agreement with Micron through 2029, fortifying our long-term licensing foundation. And we achieved a new annual high for cash from operations. generating $231 million in 2024. Our excellent cash generation enables us to sustain our strong investment in new product development and technology leadership while consistently returning value to our stockholders. Before I go into more detail on our business results, let me first take a moment to talk about the important market and technology trends that our strategy addresses and some of our key accomplishments in 2024. AI and the ongoing evolution of the data center continue to be strong catalysts for long-term secular growth due to the increasing technical needs of data-intensive applications, which demand unprecedented levels of hardware performance. To enable the robust, high-performance, and high capacity memory subsystems critical to meeting these needs, a growing number of specialized chips are required for signal and power integrity at increasingly extreme data rates. RAMBUS has been a pioneer in this space for 35 years, recognized these trends very early on and addressed them through our unique combination of expertise and focused investment in our industry-leading roadmap. To capitalize on this market trend and amplify our market opportunity, we are strategically expanding our product portfolio and, in 2024, we introduced a record number of new products for the company. We furthered our vanguard position with continued market share gains across multiple generations of our DDR5 RCD and were the first to market with our Gen5 RCD for DDR5-8000, which we announced in October. We diversified our project portfolio into power management, a critical component in high-performance systems, with state-of-the-art DDR5 server PMICs that support the highest bandwidth and capacity use cases. We introduced the industry's first complete chipset for industry-standard DDR5 MR DIMMs running at 12,800 mega transfers per second to enable the next wave of DDR5 systems, which have sampled to customers. And we are receiving very positive feedback. Beyond the data center, the cutting edge technologies first leveraged in servers are cascading into the client market as performance demands continue to soar. With that, We leveraged our technology and expertise to enable state-of-the-art performance in notebooks and desktops with the introduction of our Client Clock Driver chip and expect this space to continue to expand. And finally, in addition to these chip milestones, we introduced the industry's first GDDR7 and HBM4 memory controllers, a family of PCIe7 digital IP and new security IP solutions with protections for post-quantum computing. These accomplishments continue to drive our ongoing industry leadership and will double our addressable market in the years to come. Turning now to the businesses, in Q4, memory interface chips delivered record revenue of $73 million, up 11% quarter over quarter and up 37% year-over-year, and we expect further growth in Q1. These great quarterly results contributed to the robust second half we projected, which was up 30% over the first half and provided a solid foundation of strength going into 2025. We are pleased to see increased sales of our core GDR5 RCD products, driven by data-centered demand growth and continued share gains, as well as early contributions from new products. As I mentioned in my opening remarks, we introduced a record number of products with eight new chips in 2024 that are in varying stages of rollout and qualification with our customers. We are very excited by the positive customer feedback on these new products with early shipments underway for both server and client applications. Turning to silicon IP, AI continues to drive long-term momentum and fueled excellent results in Q4, and we remain on track with our long-term growth expectations. The push for tail solutions in AI is creating tailwinds for our high-performance IP at Tier 1 custom silicon providers and startups alike. With that, we are seeing strong demand for industry-leading solutions like our HBM4 and GDDR7 memory controllers, along with our security IP, which are vital building blocks for cutting edge AI accelerators, graphics, and HPC applications. Across all of our businesses, RAMBUS is strategically focused on advanced system memory bandwidth and capacity through groundbreaking memory, connectivity, and power management solutions. As a fundamental pillar of our growth strategy, we will continue leveraging our strong balance sheet to support our strategic investments in new products, further expanding our market opportunity and driving the long-term growth of the company. As we look ahead to 2025 and beyond, firmly stepping into the era of AI everywhere, AI models will continue to evolve and proliferate pushing the boundaries of hardware design. And with that, the requirements for power, performance, and security will both intensify and broaden to new markets and use cases. In anticipation of these needs, we have established a strong market position, accelerated our product roadmap, and put the foundation in place for an exciting future by significantly increasing our addressable market. In summary, we closed out 2024 in great fashion, gaining momentum throughout the year and beating guidance for revenue in Q4. Through our steadfast execution and investment, we delivered record annual product revenue and expanded our product portfolio and addressable markets. Our unwavering focus and leadership on signal and power integrity solutions I've laid the foundation for growth, and we are well positioned for 2025 and beyond. 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?