Nova Ltd. (NASDAQ:NVMI) Q1 2024 Earnings Call Transcript May 9, 2024 8:30 AM ET

Company Participants

Miri Segal - Chief Executive Officer, MS-IR LLC
Gaby Waisman - President and CEO
Dror David - Chief Financial Officer

Conference Call Participants

Vivek Arya - Bank of America Securities
Vedvati Shrotre - Evercore
Charles Shi - Needham & Company
Mark Miller - The Benchmark Company

Operator

Good day, and welcome to the Nova Limited Q1, 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Miri Segal, CEO of MS-IR. Please go ahead.

Miri Segal

Thank you, operator. And good day, everybody. I would like to welcome all of you to Nova's first quarter 2024 financial results conference call. With us on the line today are Gaby Waisman, President and CEO; Dror David, CFO; and Guy Kizner, Corporate VP of Finance and Incoming CFO.

Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements, and the Safe Harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, Please view it in the investor relations section of the company's website. Gaby will begin the call with the business update, followed by Dror with an overview of the financials. We will then open the call for the question-and-answer session.

I'll now turn the call over to Gaby Weissman, Nova's President and CEO. Gaby, please go ahead.

Gaby Waisman

Thank you, Miri, and thank you all for joining us today. I will start the call today by summarizing our first quarter performance highlights. Following my commentary, Dror will review the quarterly financial results in detail.

Nova delivered another strong quarter, exceeding the high end of guidance in both revenue and profit with record non-GAAP EPS, operating and free cash flow. Our performance was supported by a favorable product mix, backed by a diverse exposure to opportunities across market segments, territories, customers and technologies. The increased demand for our advanced portfolio, combined with Nova's robust operational model, continues to drive us forward.

With our guidance for the second quarter in mind, we are back on track for a growth trajectory and we remain confident in our ability to execute our strategic plan. Our solid execution resulted in a sequential and year-over-year revenue growth with our cash reserves totaling approximately $700 million. Positive indicators of a memory recovery cycle, driven primarily by advanced DRAM devices such as DDR5 and HBM, have increased the memory share of our product revenue to 40% this quarter, with Korea playing a major role. At the same time, our diverse portfolio and exposure to multiple markets enabled us to leverage the demand for mature nodes from China.