OLED Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the fourth quarter and full year ended December 31, 2024.

“We are pleased to report that 2024 was a record-breaking year of solid financial performance,” said Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation. “Across the OLED industry, product roadmaps are expanding, and leading panel makers are investing in new fabs to meet the increasing demand, particularly in the emerging IT and automotive markets. We believe this new capex cycle will pave the way for meaningful new OLED capacity, new OLED products, and new OLED adoptees. As a pioneer and leader in the ecosystem, we are well positioned to continue supporting our customers and enabling the industry with our broadening portfolio of energy-efficient, high-performing phosphorescent materials and OLED technologies.”

Financial Highlights for the Fourth Quarter of 2024

• Total revenue in the fourth quarter of 2024 was $162.3 million as compared to $158.3 million in the fourth quarter of 2023.
• Revenue from material sales was $93.3 million in the fourth quarter of 2024 as compared to $82.2 million in the fourth quarter 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 $64.4 million in the fourth quarter of 2024 as compared to $72.9 million in the fourth quarter of 2023. The decrease was primarily due to a reduction in cumulative catch-up adjustments related to royalty and license fees and changes in customer mix.
• Cost of material sales was $34.2 million in the fourth quarter of 2024 as compared to $33.4 million in the fourth quarter of 2023 due to higher unit material volume.
• Total gross margin was 77% in the fourth quarter of 2024 and 2023.
• Fourth quarter 2024 results include $8.9 million of restructuring costs, recorded in research and development expenses, related to the planned closure of the OVJP California location and related reorganization; and $6.7 million of foreign currency exchange losses related to a tax receivable denominated in Korean Won. These two items resulted in a combined $0.26 reduction in diluted earnings per share for the fourth quarter of 2024. Foreign exchange gains of $2.6 million were recognized in the fourth quarter of 2023 related to this tax receivable denominated in Korean Won, resulting in a $0.04 increase in diluted earnings per share.
• Operating income was $52.5 million in the fourth quarter of 2024 as compared to $64.7 million in the fourth quarter of 2023.
• The effective income tax rate was 16.8% and 18.0% in the fourth quarter of 2024 and 2023, respectively.
• Net income was $46.0 million or $0.96 per diluted share in the fourth quarter of 2024 as compared to $62.0 million or $1.29 per diluted share in the fourth quarter of 2023.

Revenue Comparison

($ in thousands)

 

Three Months Ended December 31,

 

2024

 

 

2023

Material sales

 

$

93,265

 

 

$

82,240

Royalty and license fees

 

 

64,411

 

 

 

72,865

Contract research services

 

 

4,617

 

 

 

3,215

Total revenue

 

$

162,293

 

 

$

158,320

 

Cost of Materials Comparison

($ in thousands)

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Material sales

 

$

93,265

 

 

$

82,240

 

Cost of material sales

 

 

34,248

 

 

 

33,379

 

Gross margin on material sales

 

 

59,017

 

 

 

48,861

 

Gross margin as a % of material sales

 

 

63

%

 

 

59

%

 

Financial Highlights for the Full Year of 2024

• Total revenue in the full year 2024 was $647.7 million as compared to $576.4 million in the full year 2023.
• Revenue from material sales was $365.4 million in the full year 2024 as compared to $322.0 million in the full year 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 $266.8 million in 2024 as compared to $238.4 million in 2023. The increase in royalty and license fees was primarily the result of higher unit material volume and changes in customer mix.
• Cost of material sales was $137.0 million in 2024 as compared to $123.1 million in 2023 primarily due to an increase in materials sales volume and product mix, partially offset by a $5.4 million decrease in inventory reserve expense.
• Total gross margin was 77% in the full year 2024 and 2023.
• Results for 2024 include $8.9 million of restructuring costs, recorded in research and development expenses, related to the planned closure of the OVJP California location and related reorganization; and $7.2 million of foreign currency exchange losses related to a tax receivable denominated in Korean Won. These two items resulted in a combined $0.27 reduction in diluted earnings per share for the full year 2024. Foreign exchange losses of $732,000 were recognized in the full year 2023 related to this tax receivable denominated in Korean Won, resulting in a $0.01 decrease in diluted earnings per share.
• Operating income was $238.8 million in 2024 as compared to $217.2 million in 2023.
• The effective income tax rate was 18.4% and 17.2% in 2024 and 2023, respectively.
• Net income was $222.1 million or $4.65 per diluted share in 2024 compared to $203.0 million or $4.24 per diluted share in 2023.

Revenue Comparison

($ in thousands)

 

Year Ended December 31,

 

2024

 

 

2023

Material sales

 

$

365,419

 

 

$

322,029

Royalty and license fees

 

 

266,820

 

 

 

238,389

Contract research services

 

 

15,445

 

 

 

16,011

Total revenue

 

$

647,684

 

 

$

576,429

 

Cost of Materials Comparison

($ in thousands)

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Material sales

 

$

365,419

 

 

$

322,029

 

Cost of material sales

 

 

137,006

 

 

 

123,076

 

Gross margin on material sales

 

 

228,413

 

 

 

198,953

 

Gross margin as a % of material sales

 

 

63

%

 

 

62

%

 

2025 Guidance

The Company believes that its 2025 revenue will be in the range of $640 million to $700 million. The OLED industry remains at a stage where many variables can have a material impact on results, and the Company thus caveats its financial guidance accordingly.

Dividend

The Company also announced a first quarter 2025 cash dividend of $0.45 per share on the Company’s common stock. The cash dividend is payable on March 31, 2025 to all shareholders of record as of the close of business on March 17, 2025.

Conference Call Information

In conjunction with this release, Universal Display will host a conference call on Thursday, February 20, 2025 at 5:00 p.m. Eastern Time. The live webcast of the conference call can be accessed under the events page of the Company's Investor Relations website at ir.oled.com. Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call.

About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 6,500 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/.

Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other Company, brand or product names may be trademarks or registered trademarks.

All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.

Follow Universal Display Corporation

X Facebook YouTube

(OLED-C)

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

 

December 31, 2024

 

December 31, 2023

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

98,980

 

 

$

91,985

 

Short-term investments

 

 

393,690

 

 

 

422,137

 

Accounts receivable

 

 

113,648

 

 

 

139,850

 

Inventory

 

 

182,938

 

 

 

175,795

 

Other current assets

 

 

110,575

 

 

 

87,365

 

Total current assets

 

 

899,831

 

 

 

917,132

 

PROPERTY AND EQUIPMENT, net of accumulated depreciation of $169,877 and $143,908

 

 

195,239

 

 

 

175,150

 

ACQUIRED TECHNOLOGY, net of accumulated amortization of $203,621 and $186,850

 

 

73,554

 

 

 

90,325

 

OTHER INTANGIBLE ASSETS, net of accumulated amortization of $11,842 and $10,414

 

 

5,446

 

 

 

6,874

 

GOODWILL

 

 

15,535

 

 

 

15,535

 

INVESTMENTS

 

 

457,593

 

 

 

299,548

 

DEFERRED INCOME TAXES

 

 

78,320

 

 

 

59,108

 

OTHER ASSETS

 

 

106,815

 

 

 

105,289

 

TOTAL ASSETS

 

$

1,832,333

 

 

$

1,668,961

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable

 

$

36,590

 

 

$

10,933

 

Accrued expenses

 

 

46,026

 

 

 

52,080

 

Deferred revenue

 

 

33,074

 

 

 

47,713

 

Other current liabilities

 

 

9,720

 

 

 

8,096

 

Total current liabilities

 

 

125,410

 

 

 

118,822

 

DEFERRED REVENUE

 

 

537

 

 

 

12,006

 

RETIREMENT PLAN BENEFIT LIABILITY

 

 

54,450

 

 

 

52,249

 

OTHER LIABILITIES

 

 

35,411

 

 

 

38,658

 

Total liabilities

 

 

215,808

 

 

 

221,735

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500)

 

 

2

 

 

 

2

 

Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 48,834,541 and 48,731,026 shares issued, and 47,468,893 and 47,365,378 shares outstanding at December 31, 2024 and December 31, 2023, respectively

 

 

488

 

 

 

487

 

Additional paid-in capital

 

 

723,719

 

 

 

699,554

 

Retained earnings

 

 

934,655

 

 

 

789,553

 

Accumulated other comprehensive loss

 

 

(1,055

)

 

 

(1,086

)

Treasury stock, at cost (1,365,648 shares at December 31, 2024 and December 31, 2023)

 

 

(41,284

)

 

 

(41,284

)

Total shareholders’ equity

 

 

1,616,525

 

 

 

1,447,226

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,832,333

 

 

$

1,668,961

 

   

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except share and per share data)

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

REVENUE:

 

(Unaudited)

 

 

 

Material sales

 

$

93,265

 

 

$

82,240

 

 

$

365,419

 

 

$

322,029

 

Royalty and license fees

 

 

64,411

 

 

 

72,865

 

 

 

266,820

 

 

 

238,389

 

Contract research services

 

 

4,617

 

 

 

3,215

 

 

 

15,445

 

 

 

16,011

 

Total revenue

 

 

162,293

 

 

 

158,320

 

 

 

647,684

 

 

 

576,429

 

COST OF SALES

 

 

37,352

 

 

 

36,019

 

 

 

148,461

 

 

 

135,376

 

Gross margin

 

 

124,941

 

 

 

122,301

 

 

 

499,223

 

 

 

441,053

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Research and development

 

 

46,287

 

 

 

33,641

 

 

 

157,187

 

 

 

130,481

 

Selling, general and administrative

 

 

19,529

 

 

 

16,830

 

 

 

74,286

 

 

 

67,387

 

Amortization of acquired technology and other intangible assets

 

 

4,552

 

 

 

4,551

 

 

 

18,200

 

 

 

15,993

 

Patent costs

 

 

1,964

 

 

 

2,300

 

 

 

8,699

 

 

 

9,356

 

Royalty and license expense

 

 

120

 

 

 

233

 

 

 

2,048

 

 

 

647

 

Total operating expenses

 

 

72,452

 

 

 

57,555

 

 

 

260,420

 

 

 

223,864

 

OPERATING INCOME

 

 

52,489

 

 

 

64,746

 

 

 

238,803

 

 

 

217,189

 

Interest income, net

 

 

10,609

 

 

 

7,865

 

 

 

40,682

 

 

 

28,166

 

Other (loss) income, net

 

 

(7,773

)

 

 

2,996

 

 

 

(7,357

)

 

 

(184

)

Interest and other (loss) income, net

 

 

2,836

 

 

 

10,861

 

 

 

33,325

 

 

 

27,982

 

INCOME BEFORE INCOME TAXES

 

 

55,325

 

 

 

75,607

 

 

 

272,128

 

 

 

245,171

 

INCOME TAX EXPENSE

 

 

(9,306

)

 

 

(13,629

)

 

 

(50,049

)

 

 

(42,160

)

NET INCOME

 

$

46,019

 

 

$

61,978

 

 

$

222,079

 

 

$

203,011

 

NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

BASIC

 

$

0.97

 

 

$

1.30

 

 

$

4.66

 

 

$

4.25

 

DILUTED

 

$

0.96

 

 

$

1.29

 

 

$

4.65

 

 

$

4.24

 

WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

BASIC

 

 

47,545,820

 

 

 

47,571,382

 

 

 

47,548,931

 

 

 

47,559,669

 

DILUTED

 

 

47,671,374

 

 

 

47,657,854

 

 

 

47,652,662

 

 

 

47,622,763

 

CASH DIVIDEND DECLARED PER COMMON SHARE

 

$

0.40

 

 

$

0.35

 

 

$

1.60

 

 

$

1.40

 

 

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net income

 

$

222,079

 

 

 

203,011

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation

 

 

25,940

 

 

 

27,409

 

Impairment of property and equipment and right-of-use asset due to OVJP restructuring

 

 

7,498

 

 

 

—

 

Amortization of intangibles

 

 

18,200

 

 

 

15,993

 

Amortization of premium and discount on investments, net

 

 

(7,399

)

 

 

(11,603

)

Stock-based compensation

 

 

30,032

 

 

 

24,109

 

Deferred income tax benefit

 

 

(19,117

)

 

 

(3,766

)

Retirement plan expense, net of benefit payments

 

 

1,808

 

 

 

3,129

 

Decrease (increase) in assets:

 

 

 

 

Accounts receivable

 

 

26,202

 

 

 

(47,186

)

Inventory

 

 

(7,143

)

 

 

7,425

 

Other current assets

 

 

(23,210

)

 

 

(41,574

)

Other assets

 

 

(2,968

)

 

 

4,450

 

Increase (decrease) in liabilities:

 

 

 

 

Accounts payable and accrued expenses

 

 

10,357

 

 

 

4,047

 

Other current liabilities

 

 

1,269

 

 

 

(21,481

)

Deferred revenue

 

 

(26,108

)

 

 

(4,159

)

Other liabilities

 

 

(3,700

)

 

 

(5,027

)

Net cash provided by operating activities

 

 

253,740

 

 

 

154,777

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Purchases of property and equipment

 

 

(42,637

)

 

 

(59,792

)

Purchase of intangibles

 

 

—

 

 

 

(66,563

)

Purchases of investments

 

 

(594,848

)

 

 

(531,103

)

Proceeds from sale and maturity of investments

 

 

473,075

 

 

 

574,165

 

Net cash used in investing activities

 

 

(164,410

)

 

 

(83,293

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Proceeds from issuance of common stock

 

 

2,220

 

 

 

2,012

 

Payment of withholding taxes related to stock-based compensation to employees

 

 

(8,386

)

 

 

(8,206

)

Cash dividends paid

 

 

(76,169

)

 

 

(66,735

)

Net cash used in financing activities

 

 

(82,335

)

 

 

(72,929

)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

6,995

 

 

 

(1,445

)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

 

 

91,985

 

 

 

93,430

 

CASH AND CASH EQUIVALENTS, END OF YEAR

 

$

98,980

 

 

$

91,985

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

Unrealized gain on available-for-sale securities

 

$

411

 

 

$

8,938

 

Common stock issued to Board of Directors and Scientific Advisory Board that was earned and accrued for in a previous period

 

 

300

 

 

 

300

 

Net change in accounts payable and accrued expenses related to purchases of property and equipment

 

 

(9,448

)

 

 

678

 

Cash paid for income taxes, net of refunds

 

 

71,973

 

 

 

96,176

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250220659738/en/

Universal Display Contact: Darice Liu investor@oled.com media@oled.com +1 609-964-5123