The earnings call reflects a company experiencing significant growth in fiscal 2024, with strong revenue increases and improved margins. However, the fourth quarter presented challenges such as declining gross margins, increased operating expenses, and potential revenue delays due to export restrictions in China. The overall sentiment is cautious optimism, balancing substantial annual progress with notable quarterly setbacks.

Company Guidance

During AXT's Fourth Quarter 2024 Financial Conference Call, the company provided various financial metrics and guidance. For Q4 2024, revenue was $25.1 million, up from $23.6 million in Q3 2024 and $20.4 million in Q4 2023. Product category revenue included $9.1 million from indium phosphide, $5.4 million from gallium arsenide, $1.6 million from germanium substrates, and $9.0 million from consolidated raw material joint ventures. Regional revenue distribution was 79% from Asia Pacific, 11% from Europe, and 10% from North America. Non-GAAP gross margin fell to 17.9% from 24.3% in Q3 2024. Operating expenses rose to $9.9 million, mainly due to increased legal and R&D expenses. The non-GAAP operating loss was $5.4 million, with a net loss of $4.3 million or $0.10 per share. Cash and investments decreased by $5.0 million to $33.8 million. For fiscal year 2024, revenue totaled $99.4 million, a 31% increase from 2023, with a non-GAAP net loss of $8.5 million. Looking ahead to Q1 2025, revenue is expected to range between $18.0 million and $20.0 million, with a non-GAAP net loss between $0.13 and $0.15 per share due to indium phosphide export restrictions impacting sales.

Significant Revenue Growth in Fiscal Year 2024

Revenue for the fiscal year 2024 was $99.4 million, up from $75.8 million in fiscal year 2023, reflecting a 31% increase in revenue driven by growth across all product categories.

Improved Gross Margin and Net Loss

Non-GAAP gross margin for fiscal year 2024 was 24.3%, up from 18.1% in fiscal 2023. GAAP gross margin also improved to 24% from 17.6%. Non-GAAP net loss improved to $8.5 million from $14.3 million in fiscal 2023.

Expansion in Data Center and Wireless Markets

Strong performance in data center infrastructure and wireless handset markets, particularly in China, contributed to revenue growth, with notable advancements in low EPD gallium arsenide and 8-inch gallium arsenide and 6-inch indium phosphide substrates.

Growth in Raw Material Joint Ventures

Revenue from consolidated raw material joint venture companies was $32 million in 2024, up 12% from the previous year, driven by increased demand for materials such as gallium, arsenic, and indium.

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AXT (AXTI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

AXTI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Apr 23, 2025	2025 (Q1)	-0.14 / -	-0.03	―	―	―
Feb 20, 2025	2024 (Q4)	-0.04 / -0.10	-0.07	-42.86% (-0.03)	―
Oct 31, 2024	2024 (Q3)	-0.06 / -0.05	-0.12	58.33% (+0.07)	―
Aug 01, 2024	2024 (Q2)	-0.05 / -0.02	-0.1	80.00% (+0.08)	―
May 02, 2024	2024 (Q1)	-0.08 / -0.03	-0.06	50.00% (+0.03)	―
Feb 22, 2024	2023 (Q4)	-0.13 / -0.07	0.05	-240.00% (-0.12)	―
Nov 02, 2023	2023 (Q3)	-0.11 / -0.12	0.13	-192.31% (-0.25)	―
Aug 03, 2023	2023 (Q2)	-0.10 / -0.10	0.13	-176.92% (-0.23)	―
Apr 27, 2023	2023 (Q1)	-0.10 / -0.06	0.07	-185.71% (-0.13)	―
Feb 16, 2023	2022 (Q4)	0.02 / 0.05	0.07	-28.57% (-0.02)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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AXTI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 20, 2025	$2.29	―	―
Oct 31, 2024	$2.58	$2.11	-18.22%
Aug 01, 2024	$3.29	$2.68	-18.54%
May 02, 2024	$3.03	$3.66	+20.79%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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