CEVA Inc. (CEVA), a leading licensor of silicon and software IP for smart edge devices, saw its stock soar 18.98% in the pre-market session on Thursday, February 13th, 2025. This significant surge was driven by the company's strong fourth quarter and full year 2024 financial results, which exceeded analysts' expectations.

For the fourth quarter, CEVA reported revenue of $29.2 million, surpassing the consensus estimate of $27.6 million. The company's adjusted earnings per share (EPS) of $0.11 were in line with analysts' forecasts. The robust performance was fueled by record royalty revenue of $13.5 million, reflecting a 9% year-over-year increase and marking the fifth consecutive quarter of growth in this segment.

Notably, CEVA secured significant licensing deals during the quarter, including a Wi-Fi architecture license with a global microcontroller (MCU) leader and a cellular DSP license with a U.S. mobile original equipment manufacturer (OEM) for an in-house 5G modem. These strategic partnerships not only solidify CEVA's position in wireless connectivity but also hold the potential to drive substantial long-term royalty streams.

For the full year 2024, CEVA reported revenue of $106.9 million, representing a 10% increase compared to the previous year. The company's royalty revenue soared 18% year-over-year to $46.9 million, driven by robust demand across various verticals. CEVA's diversified customer base, spanning multiple industries and leveraging the growing role of artificial intelligence (AI), has proven to be a powerful foundation for sustained growth.

Amir Panush, CEVA's Chief Executive Officer, expressed confidence in the company's ability to capitalize on organic growth opportunities and explore non-organic avenues to accelerate growth further. The record shipments of 2 billion CEVA-powered smart edge devices in 2024, representing over 60 devices sold every second globally, underscore the company's strong market position and potential for future success.