Universal Display Announces 3Q 2024 Financial Results

Universal Display reported financial results for the third quarter ended Sept. 30, 2024.

Total revenue in the third quarter of 2024 was $161.6 million as compared to $141.1 million in the third quarter of 2023.

Revenue from material sales was $83.4 million in the third quarter of 2024 as compared to $92.5 million in the third quarter of 2023. The decrease in material sales was primarily due to changes in customer mix as material volumes were relatively flat between periods.

Revenue from royalty and license fees was $74.6 million in the third quarter of 2024 as compared to $45.9 million in the third quarter of 2023. The increase in royalty and license fees was primarily the result of changes in customer mix and a $6.8 million increase in cumulative catch-up adjustment between periods.

Total gross margin was 78% in the third quarter of 2024 as compared to 76% in the third quarter of 2023. Operating income was $67 million in the third quarter of 2024 as compared to $48.4 million in the third quarter of 2023. Net income was $66.9 million or $1.40 per diluted share in the third quarter of 2024 as compared to $51.5 million or $1.08 per diluted share in the third quarter of 2023.

“With strong year-to-date results, we are on track to achieve record revenues, earnings, and operating cash flow in 2024 as we continue our growth trajectory. The rate of growth this year, though, is expected to be more modest than previously projected. With recent updates to customer order expectations for the fourth quarter, we are lowering our 2024 revenue forecast range to $625 million to $645 million,” said Brian Millard, VP and CFO of Universal Display Corporation.

“We believe that 2024 marks the start of a new OLED adoption cycle for medium-sized displays, namely IT and automotive,” added Millard. “With leading tablet, notebook, monitor, as well as auto OEMs expected to broaden their product roadmaps for OLEDs, significant investments in new OLED facilities are being deployed for these nascent market segments. As a leader in the OLED ecosystem, we are enabling and supporting this long runway of growth. Our world-class technology continues to set industry standards, our global partnerships continue to expand and deepen, and we continue to leverage our unparalleled expertise.”

Total revenue in the first nine months of 2024 was $485.4 million as compared to $418.1 million in the first nine months of 2023.

Revenue from material sales was $272.2 million in the first nine months of 2024 as compared to $239.8 million in the first nine months of 2023. The increase in material sales was primarily due to strengthened demand for our emitter materials, partially offset by changes in customer mix.

Revenue from royalty and license fees was $202.4 million in the first nine months of 2024 as compared to $165.5 million in the first nine months of 2023. The increase in royalty and license fees was primarily the result of higher unit material volume and changes in customer mix during the third quarter of 2024.

Total gross margin was 77% in the first nine months of 2024 as compared to 76% in the first nine months of 2023. Operating income was $186.3 million in the first nine months of 2024 as compared to $152.4 million in the first nine months of 2023. Net income was $176.1 million or $3.69 per diluted share in the first nine months of 2024 compared to $141.0 million or $2.95 per diluted share in the first nine months of 2023.