PDF Solutions, Inc. (NASDAQ:PDFS) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET

Company Participants

John Kibarian – President and Chief Executive Officer

Adnan Raza – Chief Financial Officer

Conference Call Participants

Blair Abernethy – Rosenblatt Securities

Thomas Diffely – D.A. Davidson

Gus Richard – Northland Capital Markets

Operator

Good day, everyone, and welcome to the PDF Solutions, Inc. Conference Call to Discuss its Financial Results for the Fourth Quarter and Year-End 2022 Conference Call ending Saturday, December 31, 2022. At this time, all participants are in listen-only. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded.

If you have not yet received a copy of the corresponding press release, it has been posted to PDF's website at www.pdf.com. Some of the statements that will be made in the course of this conference are forward-looking, including statements regarding PDF's future financial results and performance, growth rates and demand for its solutions. PDF's actual results could differ materially.

You should refer to the section entitled Risk Factors on Pages 17 through 30 of PDF's annual report on Form 10-K for the fiscal year ended December 31, 2021, and similar disclosures in subsequent SEC filings. The forward-looking statements and risks stated in this conference call are based upon information available to PDF today. PDF assumes no obligation to update them.

Now I'd like to introduce John Kibarian, PDF's President and Chief Executive Officer; and Adnan Raza, PDF's Chief Financial Officer. Mr. Kibarian, please go ahead.

John Kibarian

Thank you for joining us on today's call. If you've not already seen our earnings press release and management report for the fourth quarter and the full year, please go to the Investors section of our website where each has been posted. As Adnan will discuss in more detail, 2022 was another record year for total revenue in a year where our analytics business achieved tremendous growth, growing 40% year-over-year. That on top of 63% growth in 2021, which benefited from the inorganic growth associated with our Cimetrix acquisition.

Beyond the strong growth, we laid the foundation for continued success in 2023 and beyond. Today, I'll provide a summary for the fourth quarter and 2022. Our perspective on the market in 2023 and then conclude with remarks about our growth for 2023.

During 2022, overall in Q4 specifically, PDF was increasingly recognized by our customers as critical to their success in developing, ramping and controlling new products and processes. During the year, more than 20 companies booked over $1 million in business with PDF, representing just under 90% of total bookings. These companies span the IC supply chain from equipment makers to foundries to IDMs to fabless companies. They've been most end markets also from advanced computing to RF to microcontrollers to memory and into analog chips.