Nova Ltd. (NASDAQ:NVMI) Q3 2024 Earnings Conference Call November 7, 2024 8:30 AM ET

Company Participants

Miri Segal - CEO of MS-IR
Gabriel Waisman - President & CEO
Guy Kizner - CFO

Conference Call Participants

Atif Malik - Citi
Charles Shi - Needham
Vedvati Shrotre - Evercore ISI

Operator

Good day, and thank you for waiting. Welcome to the Nova Ltd Third Quarter 2024 Results Conference Call. Today, all participants will be in listen-only mode. [Operator Instructions] Please note, that today’s event is being recorded.

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

Miri Segal

Thank you, operator, and good day to everybody. I would like to welcome all of you to Nova's third quarter 2024 financial results conference call. With us on the line today are Gaby Waisman, President and CEO; and Guy Kizner, CFO. Before we begin, I would like to 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 Guy 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 Waisman, Nova's President and CEO. Gaby, please go ahead.

Gabriel Waisman

Thank you, Miri, and thank you all for joining us. I will start the call by summarizing our third quarter performance highlights. Following my commentary, Guy will review the quarterly financial results in detail. Nova delivered another record quarter, exceeding the high end of the guidance in revenue and profitability with robust performance across our product lines and in multiple territories.

Our revenue result represents approximately 39% growth year-over-year and our recurring high profitability outcome reflects the efficiency embedded in our operational model. Our performance is driven by the record sales of our materials, metrology solutions, record sales to advanced packaging processes and the increased demand for our advanced dimensional portfolio. Given our guidance for the fourth quarter, we expect our annual revenues to grow approximately 28% year-over-year at the midpoint, outperforming the anticipated wafer fab equipment growth in 2024.

As we now have more clarity on our performance in 2024, I want to share some thoughts on next year. We see robust demand from leading edge manufacturing including advanced packaging and expected to manifest in our 2025 performance. Nova benefits from long-term trends driving the need for semiconductors and the substantial investment in wafer fabrication equipment. We persist with our long-term strategy and are confident in executing our plans. We expect WFE growth in 2025 to be higher than this year and we also anticipate it will be another growth year for Nova.