Universal Display reported financial results for the fourth quarter and full year ended Dec. 31, 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 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. Operating income was $238.8 million in 2024 as compared to $217.2 million in 2023.

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.

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.

Operating income was $52.5 million in the fourth quarter of 2024 as compared to $64.7 million in the fourth quarter of 2023. 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.

“We are pleased to report that 2024 was a record-breaking year of solid financial performance,” said Brian Millard, VP and CFO 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,” Millard added.
     
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.