Universal Display Corporation Reports Strong Q1 2024 Financial Results and Raises Revenue Guidance for 2024

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, 2024Three Months Ended March 31, 2023
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 Materials63%58%
UDC’s first quarter of 2024 financials snapshot. (Source: UDC)