Silvaco Group Reports 10% Revenue Growth to $59.7 Million, Faces Net Loss of $39.4 Million

Silvaco Group, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $59.7 million, a 10% increase from $54.2 million in 2023. The growth was primarily driven by a 12% rise in software license revenue, which amounted to $44.0 million, up from $39.3 million the previous year. However, the company also faced a net loss of $39.4 million, compared to a smaller loss of $0.3 million in 2023. This decline in profitability was attributed to increased operating expenses, including a substantial rise in stock-based compensation following the company's initial public offering (IPO) in May 2024.

The IPO was a notable strategic development for Silvaco, raising approximately $114.0 million in gross proceeds. The company utilized these funds for various corporate purposes, including repaying existing debts and investing in research and development. The IPO also marked a transition to a public company, which has led to increased operational costs and the need for enhanced compliance with regulatory requirements. As of December 31, 2024, Silvaco had over 800 customers globally, with a significant portion of its revenue derived from Asia (53%), followed by North America (38%) and Europe (9%).

Operationally, Silvaco's bookings increased to $65.8 million in 2024, up from $58.1 million in 2023, indicating a growing demand for its technology computer-aided design (TCAD) and electronic data automation (EDA) software solutions. The company reported a customer retention rate of approximately 90%, with a notable increase in new customer acquisitions, particularly in the power and memory markets. The company also expanded its product offerings, including the introduction of its artificial intelligence-based fab technology co-optimization solution, which began licensing in the second quarter of 2024.

Looking ahead, Silvaco aims to continue its growth trajectory by focusing on expanding its presence in key markets such as automotive, high-performance computing, and the Internet of Things. The company plans to invest further in research and development to enhance its product offerings and maintain competitive advantages in the semiconductor industry. However, management acknowledged potential challenges, including economic uncertainties and geopolitical tensions, particularly in relation to U.S.-China trade relations, which could impact future revenue growth and operational stability.