Onto Innovation Inc. (NYSE: ONTO) has unveiled its financial results for the fourth quarter and full year of 2024, showcasing a robust performance that underscores the Company’s strategic positioning in the semiconductor market. The results reflect a sustained momentum driven by advancements in AI packaging and increased demand for advanced node technologies.

1. Fourth Quarter Financial Highlights

The fourth quarter of 2024 marked a significant milestone for Onto Innovation, with record revenues reaching $264 million. This achievement represents the sixth consecutive quarter of growth for the Company, fueled primarily by the advanced nodes and advanced packaging sectors. Key financial metrics for the quarter include:

GAAP Gross Margin: 50%

Non-GAAP Gross Margin: 55% (excluding acquisition and restructuring-related charges)

Operating Income:

GAAP: $42 million

Non-GAAP: $75 million

Net Income:

GAAP: $49 million

Non-GAAP: $75 million

Diluted Earnings Per Share:

GAAP: $0.98

Non-GAAP: $1.51 (exceeding the high end of guidance)

Additionally, the Company generated $56 million in cash from operations, equating to 21% of its revenue for the quarter.

2. Full Year Financial Highlights

For the full year 2024, Onto Innovation reported total revenues of $987 million, reflecting a substantial 21% growth compared to 2023. Highlights for the year include:

Cash generated from operations: $246 million, a notable improvement of 43% over the previous year.

GAAP diluted earnings per share: $4.06, up 65% from 2023.

Non-GAAP diluted earnings per share: $5.34, representing a 43% increase.

3. Business Highlights

The fourth quarter and full year saw impressive developments across various segments:

AI Packaging Revenue: Surged by 180% compared to 2023, highlighting Onto's strong foothold in a rapidly evolving market.

Advanced Nodes Revenue: Continued to improve for the fourth consecutive quarter, with positive momentum expected to persist into 2025.

Launch of new products aimed at supporting next-generation 3D interconnect technology and inspection tools tailored for unpatterned wafer, panel, and compound semiconductor applications.

CEO Michael Plisinski commented on the results, stating, “Onto Innovation finished the year strongly, carried forward by investments in AI, power semiconductors, and new gate all around transistor technology. The current market momentum in AI packaging and increased demand from the advanced nodes combined with the new products we recently launched position us to continue to address the challenges our customers face today and into the future.”

4. Outlook for Q1 2025

Looking ahead, Onto Innovation has provided guidance for the first fiscal quarter ending March 29, 2025. The Company expects:

Revenue: Between $260 million and $274 million.

GAAP Diluted Earnings Per Share: In the range of $1.14 to $1.28.

Non-GAAP Diluted Earnings Per Share: Expected to range from $1.40 to $1.54.

5. Conference Call and Webcast Details

Onto Innovation will host a conference call at 4:30 p.m. Eastern Time today to discuss its fourth quarter and full year financial results in greater detail. Interested parties can participate by dialing (888) 394-8218 or International: +1 (646) 828-8193 and referencing conference ID 1186967 at least five minutes prior to the start. A live webcast will also be available on the Company's website at www.ontoinnovation.com, with a replay accessible for one year.

With strong growth in both revenue and earnings per share, Onto Innovation Inc. is well-positioned to capitalize on trends in the semiconductor industry, particularly in the realm of artificial intelligence and advanced packaging technologies. As the Company continues to innovate and expand its product offerings, it remains a key player to watch in the evolving tech landscape.

Original press release