Rambus : Investor Presentation

Published: 2022-01-12 13:46:19 ET RMBS

Rambus Investor Presentation

Q4 2021

Safe Harbor for Forward-Looking Statements; Other Disclosures

This presentation contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including those relating to Rambus' expectations regarding business opportunities, the Company's ability to deliver ongoing long-term, profitable growth, the successful integration of AnalogX and PLDA, product and investment strategies, and the Company's outlook and financial guidance for the fourth quarter of 2021 and related drivers.

Such forward-looking statements are based on current expectations, estimates and projections, management's beliefs and certain assumptions made by the Company's management. Actual results may differ materially. The Company's business generally is subject to a number of risks which are described more fully in Rambus' periodic reports filed with the Securities and Exchange Commission, as well as the potential adverse impacts related to, or arising from, the Novel Coronavirus (COVID-19). The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

Effective January 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers in ASC 606. The adoption of ASC 606 materially impacted the timing of revenue recognition for the Company's fixed-fee intellectual property licensing arrangements. The adoption of ASC 606 did not have a material impact on the Company's other revenue streams, net cash provided by operating activities, or its underlying financial position.

This presentation contains non-GAAP financial measures, including operating costs and expenses, interest and other income (expense), net and diluted net income (loss) per share. In computing these non-GAAP financial measures, stock-based compensation expenses, acquisition-related transaction costs and retention bonus expense, amortization expenses, depreciation expense on unused Electronic Design Automation ("EDA") software licenses, expense on abandoned operating leases, restatement and shareholder activist costs, facility restoration costs, non-cash interest expense and certain other one-time adjustments were considered. The non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes the non-GAAP financial measures are appropriate for both its own assessment of, and to show investors, how the Company's performance compares to other periods. Reconciliation from GAAP to non-GAAP results are made available and more fully described on our website as well as the back of this deck and in the earnings release.

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Rambus at a Glance

Improving data

30+ Years

bandwidth, capacity

Tech leadership

and security

& innovation

HQ in California

~700

with offices WW in

Employees

India, EU and Asia

Worldwide

Continued Innovation

3000+

feeds licensing and

Patents and

product roadmap

Applications

YoY Revenue Growth

41% from Products,

Contract and Other*

*Excludes discontinued businesses

2020

Strong balance sheet

$185.5M

Pioneer of industry-leading

and cash generation

Cash from

fuel strategic initiatives

chips and silicon IP making

Operations

data faster and safer

z

Data Center

Share of product*

revenue from Data

75%+

Center & Edge

*Includes Product and Contract & Other

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MEMORY AND I/O BANDWIDTH LIMITING FACTOR FOR SYSTEM PERFORMANCE

MORE AND MORE DATA

Data usage growing at 35% CAGR to 175ZB by 2025, driving overall server unit growth up 8% per year

GROWING AI/ML ADOPTION

Over 25% of server shipments in 2025 will be AI-specific with $10B in AI silicon

RAPID

DATA CENTER

GROWTH DRIVING

ACCELERATING SHIFT TO CLOUD

Cloud driving Data Center growth, with equipment spend at top 5 hyperscalers

doubling to $100B by 2024

TECHNOLOGY

PROCESSING AT THE EDGE

DEMAND

Edge workloads increasing by

34% per year leading to $5B in

Edge silicon by 2024

SECURITY THREATS ON THE RISE

Total number of DDoS attacks projected to double from

7.9M in 2018 to 15.4M in 2023

INCREASING CONNECTIVITY

In 2021, there we 27B connected smart devices capturing and sending data, up 10B over 5 years

HARDWARE SECURITY IS MISSION CRITICAL TO PROTECT VALUABLE DATA

Source: IDC, 650 Group, Cisco, MaretsandMarkets

Amplified Market Opportunity

Increasing need for bandwidth and security

FORECASTED ANNUAL GROWTH*

Market ↑4.5%: DataCenter

System ↑8%: ServerUnits

Chip

↑26%:

Server

DRAM Bits

*Source: Arizton, IDC, Gartner

Exponential rise in data usage driving secular growth

Rising AI/ML workloads driving server growth

Need for more data driving memory bandwidth and bit growth

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Disclaimer

Rambus Inc. published this content on 11 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 January 2022 18:45:04 UTC.