▾ G11 Media Network: | ChannelCity | ImpresaCity | SecurityOpenLab | Italian Channel Awards | Italian Project Awards | Italian Security Awards | ...
InnovationOpenLab

Rambus Reports First Quarter 2025 Financial Results

Rambus Inc. (NASDAQ:RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the first quarter ended March 31, 2025. GAAP revenue for the f...

Business Wire
  • Exceeded guidance for Q1 revenue and earnings
  • Delivered record quarterly product revenue of $76.3 million, up 52% year over year
  • Generated outstanding quarterly cash from operations of $77.4 million

 

SAN JOSE, Calif.: Rambus Inc. (NASDAQ:RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the first quarter ended March 31, 2025. GAAP revenue for the first quarter was $166.7 million, licensing billings were $73.3 million, product revenue was $76.3 million, and contract and other revenue was $16.4 million. The Company also generated $77.4 million in cash provided by operating activities in the first quarter.

“We had an excellent start to 2025, beating revenue and earnings expectations for Q1 with very strong cash from operations and record product revenue from memory interface chips,” said Luc Seraphin, chief executive officer of Rambus. “Through our ongoing strategic execution and robust business model, we continued our market leadership in core DDR5 chip products and progress in new products, positioning us well to deliver long-term growth and continued value to stockholders.”

Quarterly Financial Review - GAAP

Three Months Ended

March 31,

(In millions, except for percentages and per share amounts)

 

2025

 

 

 

2024

 

Revenue

 

 

 

Product revenue

$

76.3

 

 

$

50.4

 

Royalties

 

74.0

 

 

 

47.5

 

Contract and other revenue

 

16.4

 

 

 

20.0

 

Total revenue

 

166.7

 

 

 

117.9

 

Cost of product revenue

 

30.6

 

 

 

20.0

 

Cost of contract and other revenue

 

0.6

 

 

 

0.6

 

Amortization of acquired intangible assets (included in total cost of revenue)

 

1.7

 

 

 

3.1

 

Total operating expenses (1)

 

70.7

 

 

 

64.1

 

Operating income

$

63.1

 

 

$

30.1

 

Operating margin

 

38

%

 

 

26

%

Net income

$

60.3

 

 

$

32.9

 

Diluted net income per share

$

0.56

 

 

$

0.30

 

Net cash provided by operating activities

$

77.4

 

 

$

39.1

 

_________________________________________
(1) Includes amortization of acquired intangible assets of approximately $0.2 million for the three months ended March 31, 2024.

Quarterly Financial Review - Supplemental Information(1)

Three Months Ended

March 31,

(In millions)

 

2025

 

 

2024

Licensing billings (operational metric) (2)

$

73.3

 

$

63.2

Product revenue (GAAP)

$

76.3

 

$

50.4

Contract and other revenue (GAAP)

$

16.4

 

$

20.0

Non-GAAP cost of product revenue

$

30.4

 

$

19.9

Cost of contract and other revenue (GAAP)

$

0.6

 

$

0.6

Non-GAAP total operating expenses

$

59.4

 

$

53.7

Interest and other income (expense), net (GAAP)

$

4.5

 

$

4.2

Diluted share count (GAAP)

 

109

 

 

110

_________________________________________
(1)

See “Supplemental Reconciliation of GAAP to Non-GAAP Results” table included below.

(2)

Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements.

GAAP revenue for the quarter was $166.7 million. The Company also had licensing billings of $73.3 million, product revenue of $76.3 million, and contract and other revenue of $16.4 million. The Company had total GAAP cost of revenue of $32.9 million and operating expenses of $70.7 million. The Company also had total non-GAAP operating expenses of $90.4 million (including non-GAAP cost of revenue of $31.0 million). The Company had GAAP diluted net income per share of $0.56. The Company’s basic share count was 107 million shares and its diluted share count was 109 million shares.

Cash, cash equivalents, and marketable securities as of March 31, 2025 were $514.4 million, an increase of $32.6 million as compared to December 31, 2024, mainly due to $77.4 million in cash provided by operating activities, offset by $30.8 million in payments of taxes on restricted stock units and $7.9 million paid to acquire property and equipment.

2025 Second Quarter Outlook

The Company will discuss its full revenue guidance for the second quarter of 2025 during its upcoming conference call. The following table sets forth the second quarter outlook for other measures.

(In millions)

GAAP

 

Non-GAAP (1)

Licensing billings (operational metric) (2)

$64 - $70

 

$64 - $70

Product revenue (GAAP)

$77 - $83

 

$77 - $83

Contract and other revenue (GAAP)

$17 - $23

 

$17 - $23

Total operating costs and expenses

$110 - $106

 

$94 - $90

Interest and other income (expense), net

$4

 

$4

Diluted share count

109

 

109

_________________________________________

(1)

See “Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates” table included below.

(2)

Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements.

For the second quarter of 2025, the Company expects licensing billings to be between $64 million and $70 million. The Company also expects royalty revenue to be between $67 million and $73 million, product revenue to be between $77 million and $83 million, and contract and other revenue to be between $17 million and $23 million. Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales and solutions licensing, among other matters.

The Company also expects operating costs and expenses to be between $110 million and $106 million. Additionally, the Company expects non-GAAP operating costs and expenses to be between $94 million and $90 million. These expectations also assume a tax rate of 20% and a diluted share count of 109 million, and exclude stock-based compensation expense of $14 million and amortization of acquired intangible assets of $2 million.

Conference Call

The Company’s management will discuss the results of the quarter during a conference call scheduled for 2:00 p.m. PT today. The call will be audio and slides will be available online at investor.rambus.com and a replay will be available for the next week at the following numbers: (866) 813-9403 (domestic) or (+1) 929-458-6194 (international) with ID# 214203.

Non-GAAP Financial Information

In the commentary set forth above and in the financial statements included in this earnings release, the Company presents the cost of product revenue and operating expenses as non-GAAP financial measures. In computing each of these non-GAAP financial measures, the following items were considered as discussed below: stock-based compensation expense, acquisition-related costs and retention bonus expense, amortization of acquired intangible assets, and certain other one-time adjustments. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes the non-GAAP financial measures are appropriate for both its own assessment of, and to show investors, how the Company’s performance compares to other periods. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. A reconciliation from GAAP to non-GAAP results is included in the financial statements contained in this release.

The Company’s non-GAAP financial measures reflect adjustments based on the following items:

Stock-based compensation expense. These expenses primarily relate to employee stock purchase plans, and employee non-vested equity stock and non-vested stock units. The Company excludes stock-based compensation expense from its non-GAAP measures primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results. Additionally, given the fact that other companies may grant different amounts and types of equity awards and may use different option valuation assumptions, excluding stock-based compensation expense permits more accurate comparisons of the Company’s results with peer companies.

Acquisition-related costs and retention bonus expense. These expenses include all direct costs of certain acquisitions and the current periods’ portion of any retention bonus expense associated with the acquisitions. The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and have no direct correlation to the Company’s operations.

Amortization of acquired intangible assets. The Company incurs expenses for the amortization of intangible assets acquired in acquisitions. The Company excludes these items because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from the Company’s prior acquisitions and have no direct correlation to the operation of the Company’s core business.

Change in fair value of earn-out liability. This change is due to adjustments to acquisition purchase consideration. The Company excludes these adjustments because such adjustments are not directly related to ongoing business results and do not reflect expected future operating expenses.

Income tax adjustments. For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 20 percent and 22 percent for 2025 and 2024, respectively, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied these tax rates to its non-GAAP financial results for all periods in the relevant years to assist the Company’s planning.

On occasion in the future, there may be other items, such as significant gains or losses from contingencies, that the Company may exclude in deriving its non-GAAP financial measures if it believes that doing so is consistent with the goal of providing useful information to investors and management.

About Rambus Inc.

Rambus is a global semiconductor company dedicated to enabling the future of the data center and artificial intelligence (“AI”) by delivering innovative memory and security solutions that address the evolving needs of the industry. As a pioneer with 35 years of advanced semiconductor design experience, Rambus is at the forefront of enabling the next era of AI-driven computing, addressing the critical challenges of accelerating and securing data movement in the data center, edge, and client markets. Rambus is a leader in high-performance memory subsystems, offering a balanced and diverse portfolio of products encompassing chips and silicon intellectual property (IP). Focusing primarily on the data center, our innovative solutions maximize performance and security in computationally intensive systems. For more information, visit rambus.com.

Forward-Looking Statements

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including those relating to Rambus’ expectations regarding business opportunities, the Company’s ability to deliver long-term, profitable growth, product and investment strategies, and the Company’s outlook and financial guidance for the second quarter of 2025 and related drivers, and the Company’s ability to effectively manage market challenges. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by the Company’s management. Actual results may differ materially. The Company’s business generally is subject to a number of risks which are described more fully in Rambus’ periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

Rambus Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

(In thousands)

March 31,
2025

 

December 31,
2024

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

132,185

 

$

99,775

Marketable securities

 

382,204

 

 

382,023

Accounts receivable

 

119,142

 

 

122,813

Unbilled receivables

 

23,624

 

 

25,070

Inventories

 

44,701

 

 

44,634

Prepaids and other current assets

 

17,600

 

 

15,942

Total current assets

 

719,456

 

 

690,257

Intangible assets, net

 

15,347

 

 

17,059

Goodwill

 

286,812

 

 

286,812

Property and equipment, net

 

81,988

 

 

75,509

Operating lease right-of-use assets

 

20,369

 

 

21,454

Deferred tax assets

 

134,230

 

 

136,466

Income taxes receivable

 

115,898

 

 

109,947

Other assets

 

5,265

 

 

5,632

Total assets

$

1,379,365

 

$

1,343,136

 

 

 

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

16,356

 

$

18,522

Accrued salaries and benefits

 

14,157

 

 

19,193

Deferred revenue

 

20,336

 

 

19,903

EDA tools software licenses liability

 

8,086

 

 

8,438

Operating lease liabilities

 

5,727

 

 

5,617

Other current liabilities

 

6,200

 

 

10,139

Total current liabilities

If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter.

Related news

Last News

RSA at Cybertech Europe 2024

Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for…

Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurity

G11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes

How Austria is making its AI ecosystem grow

Always keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries

Sparkle and Telsy test Quantum Key Distribution in practice

Successfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing…

Most read

Securonix Acquires ThreatQuotient to Deliver Industry’s Broadest and Deepest…

Today, Securonix, a five-time Leader in the Gartner® Magic Quadrant™ for Security Information and Event Management (SIEM), announced the acquisition of…

Confidential Computing Poised for Explosive Growth as Anjuna Secures Three…

Anjuna, a leader in Confidential Computing and AI Data Fusion Clean Rooms, today announced the addition of a new top five global bank to its growing roster…

PubNub Evolves Its Platform with AI-Native Development, Real-Time Moderation,…

PubNub, the leader in real-time interactive apps, unveiled the next evolution of its platform. It introduces AI-native development, real-time decision…

Glean Raises $150M Series F at $7.2B Valuation to Accelerate Enterprise…

Work AI leader Glean today announced it raised $150 million in Series F financing, bringing its valuation to $7.2 billion. The round was led by Wellington…