Company: AIP
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001667011-25-000022
Chunk: 29

Company: Arteris, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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2 3 Net loss(49)%(73)%

Comparison of the Three Months Ended March 31, 2025 and 2024

Revenue

Three Months Ended March 31,Change20252024$%(dollars in thousands)Licensing, support and maintenance$15,335 $11,739 $3,596 31 %Variable royalties1,167 818 349 43 %Other30 390 (360)(92)%Total$16,532 $12,947 $3,585 28 %

Revenue from licensing, support and maintenance increased $3.6 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase was primarily due to new license arrangements with existing customers. Growth in our variable royalty revenue was primarily due to an increase in product sales of certain existing customers. Other revenue decreased primarily due to revenue from professional services that was recognized during the three months ended March 31, 2024, which did not repeat during the three months ended March 31, 2025.

Cost of revenue

Three Months Ended March 31,Change20252024$%(dollars in thousands)Cost of revenue$1,526 $1,468 $58 4 %

Cost of revenue remained relatively flat for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. 

27

Operating expenses

Three Months Ended March 31,Change20252024$%(dollars in thousands)Research and development$11,862 $10,835 $1,027 9 %Sales and marketing6,529 5,456 1,073 20 %General and administrative4,323 4,322 1 — %Total operating expenses$22,714 $20,613 $2,101 10 %

Research and development expenses

R&D expenses increased, $1.0 million, or 9%, to $11.9 million for the three months ended March 31, 2025 from $10.8 million for the three months ended March 31, 2024. The increase in R&D expenses was due to higher employee-related costs of $0.7 million, including stock-based compensation expense. We also received lower grants of $0.2 million by our subsidiary in France for R&D projects and incurred higher professional