Company: AIP
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001667011-25-000010
Chunk: 118

Company: Arteris, Inc.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 118
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, and 2023

Revenue

Year Ended December 31,Change20242023$%(in thousands)Licensing, support and maintenance$52,815 $48,273 $4,542 9 %Variable royalties4,405 5,158 (753)(15)%Other504 235 269 114 %Total$57,724 $53,666 $4,058 8 %

Revenue from licensing, support and maintenance increased $4.5 million for the year ended December 31, 2024, compared to the year ended December 31, 2023. The increase was primarily due to new license arrangements with existing customers, and the addition of new customers. The decline in variable royalty revenue was primarily due to revenue from royalty audits in the year ended December 31, 2023. Other revenue increased for the year ended December 31, 2024, compared to the year ended December 31, 2023, due to timing of completion of professional services.

Cost of revenue

Year Ended December 31,Change20242023$%(in thousands)Cost of revenue$5,962 $5,077 $885 17 %

Cost of revenue increased $0.9 million or 17% for the year ended December 31, 2024, from $5.1 million for the year ended December 31, 2023 The increase in cost of revenue during the year ended December 31, 2024, was primarily due to higher FAE employee-related expenses.

65

Operating expenses

Year Ended December 31,Change20242023$%(in thousands)Research and development$45,007 $45,128 $(121)— %Sales and marketing20,796 20,659 137 1 %General and administrative17,555 17,944 (389)(2)%Total operating expenses$83,358 $83,731 $(373)— %

Research and development expenses

R&D expenses decreased $0.1 million, to $45.0 million for the year ended December 31, 2024, from $45.1 million for the year ended December 31, 2023. The decrease in R&D expenses was primarily attributable to $0.9 million of grants received by our subsidiary in France for R&D projects, which were partially offset by higher professional fees of $0.4 million, higher employee-related costs of $0.4 million