(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | Description | ||||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) |
By: | /s/ Nicholas B. Hawkins | |||||||
Name: | Nicholas B. Hawkins | |||||||
Title: | Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
Q3 2023 | FY 2023 | |||||||
(in millions, except %) | ||||||||
ACV + TTM royalties | $57.0 - $61.0 | $60.4 - $65.4 | ||||||
Revenue | $12.5 - $13.5 | $54.0 - $56.0 | ||||||
Non-GAAP operating loss (%) | 42.0% - 62.0% | 34.5% - 49.5% | ||||||
Free cash flow (%) | (35.6)% - (10.6)% | (20.5)% - (10.5)% |
Time: | 4:30 PM ET | ||||||||||
United States/Canada Toll Free: | 1-888-886-7786 | ||||||||||
International Toll: | 1-416-764-8658 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Licensing, support and maintenance | $ | 12,998 | $ | 14,033 | $ | 24,842 | $ | 24,608 | |||||||||||||||
Variable royalties and other | 1,736 | 789 | 3,046 | 1,969 | |||||||||||||||||||
Total revenue | 14,734 | 14,822 | 27,888 | 26,577 | |||||||||||||||||||
Cost of revenue | 1,225 | 1,289 | 2,349 | 2,268 | |||||||||||||||||||
Gross profit | 13,509 | 13,533 | 25,539 | 24,309 | |||||||||||||||||||
Operating expense: | |||||||||||||||||||||||
Research and development | 12,087 | 10,371 | 23,468 | 19,827 | |||||||||||||||||||
Sales and marketing | 5,601 | 4,456 | 10,606 | 8,377 | |||||||||||||||||||
General and administrative | 4,504 | 4,132 | 8,905 | 8,147 | |||||||||||||||||||
Total operating expenses | 22,192 | 18,959 | 42,979 | 36,351 | |||||||||||||||||||
Loss from operations | (8,683) | (5,426) | (17,440) | (12,042) | |||||||||||||||||||
Interest expense | (27) | (18) | (59) | (38) | |||||||||||||||||||
Other income (expense), net | 835 | 127 | 1,743 | 66 | |||||||||||||||||||
Loss before provision for income taxes and loss from equity method investment | (7,875) | (5,317) | (15,756) | (12,014) | |||||||||||||||||||
Loss from equity method investment, net of tax | 734 | — | 1,568 | — | |||||||||||||||||||
Provision for income taxes | 556 | 351 | 851 | 474 | |||||||||||||||||||
Net loss | $ | (9,165) | $ | (5,668) | $ | (18,175) | $ | (12,488) | |||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.26) | $ | (0.18) | $ | (0.52) | $ | (0.39) | |||||||||||||||
Weighted average shares used on computing per share amounts, basic and diluted | 35,250,157 | 32,258,228 | 34,925,800 | 31,940,293 |
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 26,334 | $ | 37,423 | |||||||
Short-term investments | 28,640 | 30,728 | |||||||||
Accounts receivable, net of allowance of $250 for both periods | 9,582 | 7,143 | |||||||||
Prepaid expenses and other current assets | 5,856 | 5,818 | |||||||||
Total current assets | 70,412 | 81,112 | |||||||||
Property and equipment, net | 5,171 | 3,617 | |||||||||
Long-term investments | 5,838 | 4,427 | |||||||||
Equity method investment | 10,329 | 11,897 | |||||||||
Operating lease right-of-use assets | 1,859 | 1,883 | |||||||||
Intangibles, net | 4,192 | 4,575 | |||||||||
Goodwill | 4,178 | 4,218 | |||||||||
Other assets | 4,847 | 3,787 | |||||||||
TOTAL ASSETS | $ | 106,826 | $ | 115,516 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 210 | $ | 572 | |||||||
Accrued expenses and other current liabilities | 10,825 | 12,095 | |||||||||
Operating lease liabilities, current | 709 | 899 | |||||||||
Deferred revenue, current | 30,413 | 28,839 | |||||||||
Vendor financing arrangements, current | 1,581 | 1,264 | |||||||||
Total current liabilities | 43,738 | 43,669 | |||||||||
Deferred revenue, noncurrent | 22,963 | 21,840 | |||||||||
Operating lease liabilities, noncurrent | 1,181 | 1,009 | |||||||||
Vendor financing arrangements, noncurrent | 1,348 | 448 | |||||||||
Deferred income, noncurrent | 9,405 | 9,993 | |||||||||
Other liabilities | 1,271 | 1,022 | |||||||||
Total liabilities | 79,906 | 77,981 | |||||||||
Stockholders' equity: | |||||||||||
Preferred stock, par value of $0.001 - 10,000,000 shares authorized and no shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | — | — | |||||||||
Common stock, par value of $0.001 - 300,000,000 shares authorized as of June 30, 2023 and December 31, 2022; 36,033,361 and 34,625,875 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 36 | 34 | |||||||||
Additional paid-in capital | 111,403 | 103,778 | |||||||||
Accumulated other comprehensive income | 34 | 101 | |||||||||
Accumulated deficit | (84,553) | (66,378) | |||||||||
Total stockholders' equity | 26,920 | 37,535 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 106,826 | $ | 115,516 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | (18,175) | $ | (12,488) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 1,275 | 929 | |||||||||
Stock-based compensation | 7,267 | 5,693 | |||||||||
Amortization of deferred income | (585) | — | |||||||||
Loss from equity method investment | 1,568 | — | |||||||||
Net accretion of discounts on available-for-sale securities | (497) | — | |||||||||
Gain on deconsolidation of subsidiary | — | (149) | |||||||||
Other, net | 10 | 12 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (2,438) | 9,168 | |||||||||
Prepaid expenses and other assets | (710) | (2,232) | |||||||||
Accounts payable | (371) | (1) | |||||||||
Accrued expenses and other liabilities | 16 | (704) | |||||||||
Deferred revenue | 2,696 | (1,391) | |||||||||
Net cash used in operating activities | (9,944) | (1,163) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | (735) | (205) | |||||||||
Purchases of available-for-sale securities | (19,544) | — | |||||||||
Proceeds from maturities of available-for-sale securities | 20,650 | — | |||||||||
Payments relating to investment in equity method investment | — | (520) | |||||||||
Net cash provided by (used in) investing activities | 371 | (725) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Payments of contingent consideration for business combination | (1,000) | (1,573) | |||||||||
Principal payments under vendor financing arrangements | (488) | (407) | |||||||||
Proceeds from exercise of stock options | 417 | 443 | |||||||||
Payments to tax authorities for shares withheld from employees | (57) | (843) | |||||||||
Payments of deferred offering costs | — | (256) | |||||||||
Net cash used in financing activities | (1,128) | (2,636) | |||||||||
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (10,701) | (4,524) | |||||||||
CASH. CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 37,423 | 85,825 | |||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | 26,722 | $ | 81,301 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gross profit | $ | 13,509 | $ | 13,533 | $ | 25,539 | $ | 24,309 | |||||||||||||||
Stock-based compensation expense included in cost of revenue | 122 | 260 | 205 | 356 | |||||||||||||||||||
Amortization of acquired intangible assets (1) | 49 | — | 49 | — | |||||||||||||||||||
Non-GAAP gross profit | $ | 13,680 | $ | 13,793 | $ | 25,793 | $ | 24,665 | |||||||||||||||
Gross margin | 92 | % | 91 | % | 92 | % | 91 | % | |||||||||||||||
Non-GAAP gross margin | 93 | % | 93 | % | 92 | % | 93 | % | |||||||||||||||
Research and development | $ | 12,087 | $ | 10,371 | $ | 23,468 | $ | 19,827 | |||||||||||||||
Stock-based compensation expense | (2,485) | (1,493) | (3,914) | (2,637) | |||||||||||||||||||
Amortization of acquired intangible assets (1) | (85) | (85) | (220) | (170) | |||||||||||||||||||
Non-GAAP research and development | $ | 9,517 | $ | 8,793 | $ | 19,334 | $ | 17,020 | |||||||||||||||
Sales and marketing | $ | 5,601 | $ | 4,456 | $ | 10,606 | $ | 8,377 | |||||||||||||||
Stock-based compensation expense | (737) | (728) | (1,422) | (999) | |||||||||||||||||||
Amortization of acquired intangible assets (1) | (57) | (35) | (114) | (69) | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 4,807 | $ | 3,693 | $ | 9,070 | $ | 7,309 | |||||||||||||||
General and administrative | $ | 4,504 | $ | 4,132 | $ | 8,905 | $ | 8,147 | |||||||||||||||
Stock-based compensation expense | (938) | (903) | (1,726) | (1,701) | |||||||||||||||||||
Non-GAAP general and administrative | $ | 3,566 | $ | 3,229 | $ | 7,179 | $ | 6,446 | |||||||||||||||
Loss from operations | $ | (8,683) | $ | (5,426) | $ | (17,440) | $ | (12,042) | |||||||||||||||
Stock-based compensation expense | 4,282 | 3,384 | 7,267 | 5,693 | |||||||||||||||||||
Amortization of acquired intangible assets (1) | 191 | 120 | 383 | 239 | |||||||||||||||||||
Non-GAAP loss from operations | $ | (4,210) | $ | (1,922) | $ | (9,790) | $ | (6,110) | |||||||||||||||
Net loss | $ | (9,165) | $ | (5,668) | $ | (18,175) | $ | (12,488) | |||||||||||||||
Stock-based compensation expense | 4,282 | 3,384 | 7,267 | 5,693 | |||||||||||||||||||
Amortization of acquired intangible assets (1) | 191 | 120 | 383 | 239 | |||||||||||||||||||
Non-GAAP net loss (2) | $ | (4,692) | $ | (2,164) | $ | (10,525) | $ | (6,556) | |||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.26) | $ | (0.18) | $ | (0.52) | $ | (0.39) | |||||||||||||||
Per share impacts of adjustments to net loss (3) | $ | 0.13 | $ | 0.11 | $ | 0.22 | $ | 0.18 | |||||||||||||||
Non-GAAP EPS, basic and diluted | $ | (0.13) | $ | (0.07) | $ | (0.30) | $ | (0.21) | |||||||||||||||
Weighted average shares used in computing per share amounts, basic and diluted | 35,250,157 | 32,258,228 | 34,925,800 | 31,940,293 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Net cash used in operating activities | $ | (9,944) | $ | (1,163) | |||||||
Less: | |||||||||||
Purchases of property and equipment | (735) | (205) | |||||||||
Free cash flow | $ | (10,679) | $ | (1,368) | |||||||
Net cash provided by (used in) investing activities | $ | 371 | $ | (725) | |||||||
Net cash used in financing activities | $ | (1,128) | $ | (2,636) |
Cover |
Aug. 03, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 03, 2023 |
Entity Registrant Name | ARTERIS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-40960 |
Entity Tax Identification Number | 27-0117058 |
Entity Address, Address Line One | 595 Millich Dr. |
Entity Address, Address Line Two | Suite 200 |
Entity Address, City or Town | Campbell |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 95008 |
City Area Code | 408 |
Local Phone Number | 470-7300 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.001 par value per share |
Trading Symbol | AIP |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Amendment Flag | false |
Entity Central Index Key | 0001667011 |
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