In the first quarter of 2024, Universal Display Corporation (UDC) had total revenue reaching $165.3 million, marking an increase from the $130.5 million reported in the same period of 2023. This growth was fueled by a surge in material sales revenue, which climbed to $93.3 million compared to $70.2 million in Q1 2023, driven by heightened demand for emitter materials.
Royalty and license fees also saw a significant uptick, rising to $68.3 million from $55.2 million in the previous year’s first quarter, primarily due to increased unit material volume. However, the cost of material sales also rose, reaching $34.1 million, up from $29.5 million in Q1 2023, largely attributed to higher material sales volume. Despite this, the gross margin on material sales improved to 63%, compared to 58% in the same period last year.
Operating income saw a substantial increase, reaching $62.9 million, compared to $45.4 million in Q1 2023, while net income stood at $56.9 million up from $39.8 million in the previous year’s first quarter.
Looking ahead, UDC has revised its 2024 revenue guidance, anticipating a range of $635 million to $675 million. However, the company acknowledges the inherent variability within the OLED industry, which may impact results, and therefore provides this guidance with caution.
| Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | |
| Revenue | $165,259 | $130,467 |
| Material Sales | $93,284 | $70,190 |
| Royalty and License Fees | $68,268 | $55,210 |
| Contract Research Services | $3,707 | $5,067 |
| Cost of Material Sales | $34,096 | $29,488 |
| Gross Margin on Materials | $59,188 | $40,702 |
| Gross Margin % on Materials | 63% | 58% |
