Q2 2024 ASML Holding NV Earnings Call - Pre-Recorded
Hello, everyone. We published our Q2 results today, and I would like to take the opportunity to discuss this with you in more detail.
Hello, everyone. We published our Q2 reserves today and I would like to take the opportunity to discuss this with you in more detail.
Q2, 2024 was a good quarter.
Q2, 2024 was a good quarter.
Christophe Fouquet: Hello, everyone. We published our Q2 results today, and I would like to take the opportunity to discuss this with you in more detail. Q2 2024 was a good quarter. Our Q2 sales are just over EUR 6.2 billion. That's at the high end of our guidance, primarily driven by more immersion system sales. Our Installed Base Management came in at EUR 1.48 billion. This is slightly higher than guided, driven by increased service revenue. Our gross margin for Q2 is 51.5%, above our guidance. This is primarily driven by the product mix, more immersion systems. Net income for the quarter was EUR 1.6 billion. Our net bookings came in at EUR 5.6 billion, of which EUR 2.5 billion in EUV system.
Christophe Fouquet: Hello, everyone. We published our Q2 results today, and I would like to take the opportunity to discuss this with you in more detail. Q2 2024 was a good quarter. Our Q2 sales are just over EUR 6.2 billion. That's at the high end of our guidance, primarily driven by more immersion system sales. Our Installed Base Management came in at EUR 1.48 billion. This is slightly higher than guided, driven by increased service revenue. Our gross margin for Q2 is 51.5%, above our guidance. This is primarily driven by the product mix, more immersion systems. Net income for the quarter was EUR 1.6 billion. Our net bookings came in at EUR 5.6 billion, of which EUR 2.5 billion in EUV system.
Our second quarter sales are just over $6 2 billion euro.
Our second quarter sales are just over $6 2 billion euro.
That's at the high end of our guidance, primarily driven by more emergency stem cells.
That's at the high end of our guidance, primarily driven by more emergency stem cells or.
Our installed base management came in at 148 billion Euro.
Our installed base management came in at 148 billion Euro.
This is slightly higher than guided driven by increased service revenue.
This is slightly higher than guided driven by increased service revenue.
Our gross margin for Q2 is 51, 5% above.
Our gross margin for Q2 is 51, 5% above.
Above our guidance.
Above our guidance.
This is primarily driven by the product mix more emergency steps.
This is primarily driven by the product mix more emergency steps.
Net income for the quarter was $1 6 billion.
Net income for the quarter was $1 6 billion Euro.
Our net bookings came in at $5 6 billion of which $2 5 billion Euro <unk> step.
Our net bookings came in at $5 6 billion of which $2 5 billion Euro <unk>.
At the end of Q2, ASML added backlog of around 39 billion euros.
At the end of Q2, ASML added backlog of around 39 billion euros.
Christophe Fouquet: At the end of Q2, ASML had a backlog of around EUR 39 billion. Now I will talk about the outlook for the third quarter and the full year, and I will give you our guidance for Q3. In Q3, we expect total net sales to be between EUR 6.7 billion and 7.3 billion. We expect our Q3 Installed Base Management revenue to be around EUR 1.4 billion. For the third quarter, we expect a gross margin between 50% and 51%. Our outlook for the full year 2024 has not changed. We expect a revenue similar to last year. As indicated before, and based on our current guidance, H2 is expected to be significantly higher than H1. This is in line with the industry's continued recovery from the downturn.
Christophe Fouquet: At the end of Q2, ASML had a backlog of around EUR 39 billion. Now I will talk about the outlook for the third quarter and the full year, and I will give you our guidance for Q3. In Q3, we expect total net sales to be between EUR 6.7 billion and 7.3 billion. We expect our Q3 Installed Base Management revenue to be around EUR 1.4 billion. For the third quarter, we expect a gross margin between 50% and 51%. Our outlook for the full year 2024 has not changed. We expect a revenue similar to last year. As indicated before, and based on our current guidance, H2 is expected to be significantly higher than H1. This is in line with the industry's continued recovery from the downturn.
Now I would talk about the outlook for the third quarter on the full year and I will give you our guidance for Q3.
Now I will talk about the outlook for the third quarter and the full year and I will give you our guidance for Q3.
In Q3, we expect total net sales to be between $6 7 billion Euro and seven 3 billion.
In Q3, we expect total net sales to be between $6 7 billion Euro and $7 3 billion.
We expect our Q3 installed base management revenue to be around one 4 billion.
We expect our Q3 installed base management revenue to be around one 4 billion.
For the third quarter, we expect our gross margin between 50% and 51%.
For the third quarter, we expect our gross margin between 50% and 51%.
Our outlook for the full year 2024, as no change we expect revenue similar to last year.
Our outlook for the full year 2024, as not change we expect revenue similar to last year.
As indicated before and based on our current guidance. The second half of the year is expected to be significantly higher than the first half. This is in line with the industry's continued recovery from the Doctor.
As indicated before and based on our current guidance. The second half of the year is expected to be significantly higher than the first half. This is in line with the industry's continued recovery from the Doctor.
Our guidance on market segment is similar to what we have stated in previous quarters. We.
Our guidance on market segment is similar to what we have stated in previous quarters.
We expect logic revenue to be slightly lower in 2024 compared to 2020 free as customers Digest the capacity added in 2023.
We expect logic revenue to be slightly lower in 2024 compared to 2020 free as customers Digest the capacity added in 2023.
Christophe Fouquet: Our guidance on market segment is similar to what we have stated in previous quarters. We expect logic revenue to be slightly lower in 2024 compared to 2023 as customers digest the capacity added in 2023. For memory, we currently see revenue growth in 2024 compared to 2023. This is primarily driven by DRAM technology node transition in support of advanced memory such as DDR5 and High Bandwidth Memory. Our Installed Base business is expected to be flat relative to 2023. As we have said before, 2024 is a transition year. We continue to make investments, both in capacity ramp and technology, to be ready for the expected strong demand in 2025.
Christophe Fouquet: Our guidance on market segment is similar to what we have stated in previous quarters. We expect logic revenue to be slightly lower in 2024 compared to 2023 as customers digest the capacity added in 2023. For memory, we currently see revenue growth in 2024 compared to 2023. This is primarily driven by DRAM technology node transition in support of advanced memory such as DDR5 and High Bandwidth Memory. Our Installed Base business is expected to be flat relative to 2023. As we have said before, 2024 is a transition year. We continue to make investments, both in capacity ramp and technology, to be ready for the expected strong demand in 2025.
For memory, we currently see revenue growth in 2024 compared to 2020 free.
For memory, we currently see revenue growth in 2024 compared to 2020 free dish.
This is primarily driven by DRAM technology node transition in support of advanced memories, such as DDR, five and high bandwidth memory.
This is primarily driven by DRAM technology node transition in support of advanced memories, such as <unk>, five and high bandwidth memory.
Our installed base business is expected to be flat relative to 2023.
Our installed base business is expected to be flat relative to 2023.
As we have said before 2024 is a transition year.
As we have said before 2024 is a transition year.
We continue to make investments both in capacity ramp and technology to be ready for the expecting strong demand in 2025.
We continue to make investments both in capacity ramp and technology to be ready for the expected strong demand in 2025.
Based on the different levers discussed in the past quarter and the net impact on margin, we still expect a slightly lower gross margin in 2024 compared to 2023.
Based on the different levers discussed in the past quarter and the net impact on margin, we still expect a slightly lower gross margin in 2024 compared to 2023.
Christophe Fouquet: Based on the different levels discussed in the past two quarters and the net impact on margin, we still expect a slightly lower gross margin in 2024 compared to 2023. Now, I also want to share with you some important update about our EUV technology. First of all, our 0.33 NA systems. We have shipped additional NXE:3800E system this quarter, and we are continuing to ramp as planned. As customers transition to the 3800E this year, we expect the majority of shipments in the H2 to be 3800E. Regarding High NA or our 0.55 NA system, we have shipped the second system this quarter, and our first system is running qualification wafers at a customer. The second system is also now under installation, and this is progressing well.
Christophe Fouquet: Based on the different levels discussed in the past two quarters and the net impact on margin, we still expect a slightly lower gross margin in 2024 compared to 2023. Now, I also want to share with you some important update about our EUV technology. First of all, our 0.33 NA systems. We have shipped additional NXE:3800E system this quarter, and we are continuing to ramp as planned. As customers transition to the 3800E this year, we expect the majority of shipments in the H2 to be 3800E. Regarding High NA or our 0.55 NA system, we have shipped the second system this quarter, and our first system is running qualification wafers at a customer. The second system is also now under installation, and this is progressing well.
Now I also want to share with you some important updates about our <unk> technology.
Now I also want to share with you some important updates about our ULE technology.
First of all our poetry for your initial steps we have shipped additional <unk> 3800 in E system. This quarter and we are continuing to ramp as planned.
First of all our poetry for your initial steps we have shipped additional X E 38 under the E system. This quarter and we are continuing to ramp as planned.
As customers transition to the 30th owner to each year, we expect the majority of shipments in the second half of the year to be 30 analysts.
As customers transition to the 30th owner that each year, we expect the majority of shipments in the second half of the year to be 30 entered.
Regarding iron ore all five five NSC stem, we have shipped the second system this quarter and our first system is running qualification wafer at a customer.
Regarding iron ore all five five NSC stem, we have shipped the second system this quarter and our first system is running qualification with her at a customer.
The second C. Sam is also now under installation and this is progressing well.
Secondly, Sam is also now under installation and this is progressing well.
Our customer interests for ion as high.
Customer interest for ion as high.
They are using already our system into joint SMS I make I in a lab in relevant for any share with her exposures and developments.
They are using already our system into joined ASML I make I in a lab in relevant for any share with her exposures and developments.
Christophe Fouquet: Our customer interest for High NA is high. They are using already our system in the joint ASML imec High NA lab in Veldhoven for initial wafer exposures and development. We have now achieved images with a resolution of 8 nm, which is a new world record. We are, with High NA, enabling an almost three times increase in transistor density relative to a 0.33 NA system. Our system in Veldhoven has exposed the first wafers for multiple logic and memory customer. All in all, good momentum on High NA, high interest, and we are progressing well against our customer expectations. Let's switch now to our longer-term outlook. When it comes to demand and our business beyond 2024, we expect, as we discussed in previous quarters, that the overall semiconductor inventory levels will continue to improve.
Christophe Fouquet: Our customer interest for High NA is high. They are using already our system in the joint ASML imec High NA lab in Veldhoven for initial wafer exposures and development. We have now achieved images with a resolution of 8 nm, which is a new world record. We are, with High NA, enabling an almost three times increase in transistor density relative to a 0.33 NA system. Our system in Veldhoven has exposed the first wafers for multiple logic and memory customer. All in all, good momentum on High NA, high interest, and we are progressing well against our customer expectations. Let's switch now to our longer-term outlook. When it comes to demand and our business beyond 2024, we expect, as we discussed in previous quarters, that the overall semiconductor inventory levels will continue to improve.
We have now achieved images with a resolution of eight nanometer, which is a new world record.
We have now achieved images with a resolution of eight nanometer, which is a new world record.
We are with ion E, enabling an almost three times increase in transistor density relative to a point free free NSE Stan.
We are with ion E, enabling an almost three times increase in transistor density relative to a point free free NSE step.
Our system is available as exposed the first wafers for multiple logic and memory customers.
Our system in development as exposed the first wafers for multiple logic and memory customers.
So all in all good momentum on <unk> high interest and we are progressing well against our customer expectations.
So all in all good momentum on <unk> high interest and we are progressing well against our customer expectations.
Let's switch now to our longer term outlook when it comes to demand in our business beyond 2024, we expect as we discussed in previous quarters that the overhaul semiconductor inventory levels, we continue to improve.
Let's switch now to our longer term outlook when it comes to demand and our business beyond 2024, we expect as we discussed in previous quarters that the overhaul semiconductor inventory levels, we continue to improve we.
We also see today, a further improvement in litho tool utilization levels at both logic and memory customer.
We also see today, a further improvement in litho tool utilization levels at both logic and memory customer.
While there are still uncertainties in the market, primarily driven by the macro environment. We expect a continued industry recovery in the second half of 2024.
While there are still uncertainties in the market, primarily driven by the macro environment. We expect a continued industry recovery in the second half of 2024.
Christophe Fouquet: We also see today further improvement in litho tool utilization levels at both logic and memory customer. While there are still uncertainties in the market, primarily driven by the macro environment, we expect a continued industry recovery in H2 2024. We currently see strong development in artificial intelligence, driving most of the industry recovery and growth ahead of other market segments. Based on discussion with our customer and supported by our strong backlog, we currently expect 2025 to be a strong year, driven by a number of factors as mentioned last quarter. The secular growth driver in the semiconductor end market are still very much intact. The energy transition, electrification, and artificial intelligence will continue to drive demand. We also see an expanding application space along with increasing lithography on future technology nodes.
Christophe Fouquet: We also see today further improvement in litho tool utilization levels at both logic and memory customer. While there are still uncertainties in the market, primarily driven by the macro environment, we expect a continued industry recovery in H2 2024. We currently see strong development in artificial intelligence, driving most of the industry recovery and growth ahead of other market segments. Based on discussion with our customer and supported by our strong backlog, we currently expect 2025 to be a strong year, driven by a number of factors as mentioned last quarter. The secular growth driver in the semiconductor end market are still very much intact. The energy transition, electrification, and artificial intelligence will continue to drive demand. We also see an expanding application space along with increasing lithography on future technology nodes.
We currently see strong development in artificial intelligence driving most of the industry recovery and growth ahead of other market segments.
We currently see strong development in artificial intelligence driving most of the industry recovery and growth ahead of other market segments.
Based on discussion with our customer and supported by our strong backlog. We currently expect 2025 to be a strong year driven by a number of factor as mentioned last quarter.
Based on discussion with our customer and supported by our strong backlog. We currently expect 2025 to be a strong year driven by a number of factor as mentioned last quarter.
The secular growth driver in the semiconductor end market are still very much intact.
The secular growth driver in the semiconductor end market are still very much intact.
The energy transition electrification and artificial intelligence will continue to drive demand. We also see an expanding application space along with increasing the geography on future technology nodes. This will also drive demand for both advanced and mature nodes the industry expects to be in the <unk>.
The energy transition electrification and artificial intelligence will continue to drive demand.
We also see an expanding application space, along with increasing the geography on future technology nodes. This will also drive demand for both advanced and mature nodes the industry expects to be in a cyclical upturn in 2025.
Cyclical upturn in 2025.
Christophe Fouquet: This will also drive demand for both advanced and mature nodes. The industry expects to be in a cyclical upturn in 2025. As a result, we need to prepare for a number of new fabs that are being built today across the globe. Those fabs will be spread geographically and are strategic for all our customers. They all schedule to take our system. It's essential that we keep our focus on the future and build capacity in preparation for further long-term growth. We have discussed this long-term growth in our Investor Day in November 2022. There, our annual revenue forecast for 2025 was between EUR 30 billion and 40 billion. Our opportunity for 2030 annual revenue was between EUR 44 billion and 60 billion.
Christophe Fouquet: This will also drive demand for both advanced and mature nodes. The industry expects to be in a cyclical upturn in 2025. As a result, we need to prepare for a number of new fabs that are being built today across the globe. Those fabs will be spread geographically and are strategic for all our customers. They all schedule to take our system. It's essential that we keep our focus on the future and build capacity in preparation for further long-term growth. We have discussed this long-term growth in our Investor Day in November 2022. There, our annual revenue forecast for 2025 was between EUR 30 billion and 40 billion. Our opportunity for 2030 annual revenue was between EUR 44 billion and 60 billion.
As a result, we need to prepare for a number of new fabs that are being built today across the globe those fabs will be spread geographically and our strategy for all our customer they all scheduled to take our system.
As a result, we need to prepare for a number of new fabs that are being built today across the globe those fabs will be spread geographically and our strategy for all our customer they all scheduled to take our system.
It's essential that we keep our focus on the future and build capacity in preparation for further long term growth.
It's essential that we keep our focus on the future and build capacity in preparation for further long term growth.
We have discussed this long term growth in our Investor day in November 22.
We have discussed this long term growth in our Investor day in November 22.
There are annual revenue forecast for 2025 was between 30 million Euro and 40 billion.
There are annual revenue forecast for 2025 was between 30 million Euro and 40 billion.
Our opportunity for 2030 annual revenue was between 44 billion Euro and $60 billion.
Our opportunity for 2030 annual revenue was between 44 billion Euro and $60 billion.
We plan to update all of you during our Investor day. This year on November 14, 2024 in summary.
We plan to update all of you during our Investor day. This year on November 14, 2024 in summary.
Although they are still near term uncertainties, primarily driven by the macro environment, we remain confident in our long term growth opportunity. Thank.
Christophe Fouquet: We plan to update our view during our Investor Day this year on 14 November 2024. In summary, although there are still near-term uncertainties, primarily driven by the macro environment, we remain confident in our long-term growth opportunity. Thank you very much for joining me today.
Christophe Fouquet: We plan to update our view during our Investor Day this year on 14 November 2024. In summary, although there are still near-term uncertainties, primarily driven by the macro environment, we remain confident in our long-term growth opportunity. Thank you very much for joining me today.
So they are still near term uncertainties, primarily driven by the macro environment, we remain confident in our long term growth opportunity. Thank.
Thank you very much for joining me today.
Thank you very much for joining me today.