NATICK, Mass., Feb. 12, 2025 /PRNewswire/ — Cognex Corporation (NASDAQ: CGNX) today reported financial results for the fourth quarter and full year 2024. Table 1 below shows selected financial data for Q4-24 and the full year 2024 compared with Q4-23 and the full year 2023.
“Cognex delivered strong results in the fourth quarter, with revenue at the high end of our guidance range. Growth was driven by continued momentum in our Logistics and Semiconductor businesses, including accelerated demand late in the quarter. Across most of our other factory automation end markets, demand remains soft but stable, while Automotive remains very weak,” said Robert J. Willett, CEO.
Mr. Willett added, “Cognex continues to define the leading edge of technology in industrial machine vision. Powerful AI models are making our advanced technology easier to use, enabling us to improve our customers’ experience and address many more use cases. We recently launched VisionPro Deep Learning 4.0, Cognex’s first product to utilize next-generation AI Transformer models, and our new AI-driven DataMan series, our most powerful and easiest-to-use ID readers yet.”
In addition to Mr. Willett’s comments, Dennis Fehr, CFO, stated, “Revenue growth coupled with cost discipline and working capital efficiencies led to above-guidance adjusted EBITDA margin, with year-on-year expansion of 580 basis points, and strong free cash flow generation of $49 million. We were pleased to return $57 million in capital to shareholders during the quarter.”
Table 1
(Dollars in millions, except per share amounts)
Current
Quarter
Q4-24
Prior Year
Quarter
Q4-23
Y/Y
Change
Current
Year
2024
Prior
Year
2023
Y/Y
Change
Revenue
$230
$197
+17 %
$915
$838
+9 %
Operating Income
$31
$13
+142 %
$115
$131
-12 %
% of Revenue
13.4 %
6.5 %
+690 bps
12.6 %
15.6 %
(300) bps
Adjusted EBITDA*
$42
$25
+71 %
$156
$155
+1 %
% of Revenue
18.5 %
12.6 %
+580 bps
17.1 %
18.5 %
(140) bps
Net Income per Diluted Share
$0.16
$0.07
+153 %
$0.62
$0.65
-6 %
Adjusted EPS (Diluted)*
$0.20
$0.11
+84 %
$0.74
$0.73
0 %
Note: Numbers shown may not foot due to rounding.
*Adjusted EBITDA and Adjusted EPS (Diluted) include Non-GAAP adjustments. A reconciliation from GAAP to Non-GAAP metrics is provided in this news release.
Details of the Quarter
Statement of Operations Highlights – Fourth Quarter of 2024
Details of the Year
Statement of Operations Highlights – Full Year 2024
Balance Sheet and Cash Flow Highlights – December 31, 2024
Financial Outlook – First Quarter of 2025
1Cognex has provided the forward-looking non-GAAP measures of adjusted gross margin, adjusted EBITDA margin, and adjusted effective tax rate, but cannot, without unreasonable effort, forecast such items to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as restructuring charges, acquisition and integration charges, and amortization of acquisition-related intangible assets, all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of Cognex’s control. Additionally, these items are outside of Cognex’s normal business operations and not used by management to assess Cognex’s operating results. Cognex believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, Cognex believes that the probable significance of such information is low. Information with respect to special items for certain historical periods is included in the section entitled “Reconciliation of Selected Items From GAAP to Non-GAAP”.
Analyst Conference Call and Simultaneous Webcast
COGNEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 186,094
$ 202,655
Current investments, amortized cost of $60,725 and $132,799 in 2024 and 2023, respectively, allowance for credit losses of $0 in 2024 and 2023
59,956
129,392
Accounts receivable, allowance for credit losses of $827 and $583 in 2024 and 2023, respectively
143,359
114,164
Unbilled revenue
3,055
2,402
Inventories
157,527
162,285
Prepaid expenses and other current assets
63,376
68,099
Total current assets
613,367
678,997
Non-current investments, amortized cost of $345,033 and $250,790 in 2024 and 2023, respectively, allowance for credit losses of $0 in 2024 and 2023
340,898
244,230
Property, plant, and equipment, net
98,445
105,849
Operating lease assets
67,326
75,115
Goodwill
384,937
393,181
Intangible assets, net
90,684
112,952
Deferred income taxes
392,166
400,400
Other assets
5,027
7,088
Total assets
$ 1,992,850
$ 2,017,812
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 38,046
$ 21,454
Accrued expenses
71,760
72,374
Accrued income taxes
25,685
16,907
Deferred revenue and customer deposits
25,035
31,525
Operating lease liabilities
8,854
9,624
Total current liabilities
169,380
151,884
Non-current operating lease liabilities
61,363
68,977
Deferred income taxes
217,155
246,877
Reserve for income taxes
26,365
26,685
Non-current accrued income taxes
—
18,338
Other liabilities
1,082
299
Total liabilities
475,345
513,060
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value – Authorized: 400 shares in 2024 and 2023, respectively, no shares issued and outstanding
—
—
Common stock, $0.002 par value – Authorized: 300,000 shares in 2024 and 2023, respectively, issued and outstanding: 170,434 and 171,599 shares in 2024 and 2023, respectively
341
343
Additional paid-in capital
1,090,638
1,037,202
Retained earnings
499,303
512,543
Accumulated other comprehensive loss, net of tax
(72,777)
(45,336)
Total shareholders’ equity
1,517,505
1,504,752
Total liabilities and shareholders’ equity
$ 1,992,850
$ 2,017,812
COGNEX CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three-months Ended
Twelve-months Ended
December 31,
2024
September 29,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Revenue
$ 229,684
$ 234,742
$ 196,670
$ 914,515
$ 837,547
Cost of revenue (1)
71,825
75,343
61,626
288,721
236,306
Gross profit
157,859
159,399
135,044
625,794
601,241
Percentage of revenue
68.7 %
67.9 %
68.7 %
68.4 %
71.8 %
Research, development, and engineering expenses (1)
32,538
35,210
34,693
139,815
139,400
Percentage of revenue
14.2 %
15.0 %
17.6 %
15.3 %
16.6 %
Selling, general, and administrative expenses (1)
94,481
92,625
90,372
370,914
339,139
Percentage of revenue
41.1 %
39.5 %
46.0 %
40.6 %
40.5 %
Loss (recovery) from fire
—
—
(2,750)
—
(8,000)
Operating income
30,840
31,564
12,729
115,065
130,702
Percentage of revenue
13.4 %
13.4 %
6.5 %
12.6 %
15.6 %
Foreign currency gain (loss)
445
1,221
(129)
1,531
(10,039)
Investment income
4,174
3,561
1,520
13,971
14,093
Other income (expense)
341
209
234
922
592
