Universal Display Announces 2Q 2024 Financial Results

Universal Display Corporation reported financial results for the second quarter ended June 30, 2024.

Total revenue in the second quarter of 2024 was $158.5 million as compared to $146.6 million in the second quarter of 2023.

Revenue from material sales was $95.4 million in the second quarter of 2024 as compared to $77.1 million in the second quarter of 2023. The increase in material sales was primarily due to strengthened demand for our emitter materials.

Revenue from royalty and license fees was $59.6 million in the second quarter of 2024 as compared to $64.4 million in the second quarter of 2023. The decrease in royalty and license fees was primarily the result of changes in customer mix between periods, partially offset by increased sales volume.

“We reported solid second quarter results as the OLED IT adoption cycle begins to gain momentum,” said Brian Millard, VP and CFO of Universal Display Corporation. “With leading OEMs embarking on their OLED IT journey with the introduction of new OLED PC products, we believe that a new multi-year capex cycle has commenced to support this growth.

“As the broadening proliferation of OLEDs across the consumer landscape fuels the market’s positive trajectory, we are enhancing our operational and strategic infrastructure and fortifying our leadership position in the ecosystem.,” added Millard. “This new chapter in our long-term growth story is expected to usher in tremendous opportunities for the industry and for us.”

Total gross margin was 76% in the second quarter of 2024 as compared to 78% in the second quarter of 2023. The decrease was primarily due to changes in customer and product mix.
Operating income was $56.4 million in the second quarter of 2024 as compared to $58.6 million in the second quarter of 2023.

Total revenue in the first half of 2024 was $323.8 million as compared to $277.0 million in the first half of 2023.

Revenue from material sales was $188.7 million in the first half of 2024 as compared to $147.3 million in the first half of 2023. The increase in material sales was primarily due to strengthened demand for our emitter materials.

Revenue from royalty and license fees was $127.8 million in the first half of 2024 as compared to $119.6 million in the first half of 2023. The increase in royalty and license fees was primarily the result of higher unit material volume, partially offset by a reduced cumulative catch-up adjustment and changes in customer mix between periods.

Total gross margin was 77% in the first half of 2024 as compared to 76% in the first half of 2023. Total revenue in the second quarter of 2024 was $158.5 million as compared to $146.6 million in the second quarter of 2023. Operating income was $119.3 million in the first half of 2024 as compared to $104.0 million in the first half of 2023.