ASML's 2023 Net Sales: €27.6B, 30% YoY Growth

On January On the 24th of January, ASML, a prominent manufacturer of photolithography equipment, released its financial report for the fourth quarter and full year of 2023, outperforming market expectations.

· Q4 2023 Revenue: €7.2 Billion, with 39% from Mainland China

ASML disclosed that its net sales for Q4 2023 amounted to €7.2 billion, featuring a gross profit margin of 51.4%, surpassing expectations. The revenue distribution included €5.7 billion from system net sales and €1.6 billion from installation base management sales. With a gross profit margin of 51.4%, the quarter yielded a net profit of €2 billion. The spike in demand for ASML's cutting-edge Extreme Ultraviolet (EUV) equipment led to Q4 2023 order bookings of €9.19 billion (approximately $9.98 billion), more than doubling from the previous quarter. Notably, orders for ASML's advanced EUV lithography machines amounted to €5.6 billion.

In terms of net system sales, ASML sold 13 EUV systems, 29 Immersion Deep Ultraviolet (DUV) systems (ArFi), 10 ArF dry systems, 54 KrF systems, and 18 i-Line systems in Q4 2023. The revenue distribution indicated a dominance of 40% from EUV systems and 38% from Immersion DUV systems.

Breaking down the revenue by end-application, 63% of Q4 2023 revenue came from logic chip manufacturing, while 37% originated from the storage chip manufacturing sector. 

Regionally, Mainland China remained ASML's largest revenue contributor at 39%, albeit experiencing a 7% decline from the previous quarter. South Korea contributed 25%, China Taiwan 13%, the United States 11%, and Japan 3%.

· Full-Year 2023 Revenue: €27.6 Billion, Net Profit €7.8 Billion

ASML reported a full-year net sales of €27.6 billion for 2023, marking a 30% increase from 2022's €21.2 billion. The gross profit margin stood at 51.3%, resulting in a net profit of €7.8 billion.

The specific revenue sources highlight a 30% growth in sales of EUV systems, reaching €9.1 billion, including confirmed revenue from 53 EUV systems (an increase of 13 units from the previous year) and shipments of 42 EUV systems. This includes the delivery of the first module of the High NA EUV EXE:5000 system.

In the realm of DUV systems, sales for 2023 grew by 60% to €12.3 billion, including confirmed revenue from 396 systems. This comprises 125 Immersion DUV systems (a rise of 44 units from the previous year), along with increased sales of ArF dry, KrF, and i-Line systems. ASML also delivered the first NXT:1980Fi immersion system and XT:400M i-line system during this period.

For the entire year, 73% of ASML's system revenue came from logic chip manufacturing, while 27% originated from storage chip manufacturing. 

Regionally, China Taiwan emerged as the largest revenue source for the year at 30%, albeit experiencing a 12% decline from the previous year. Mainland China rapidly increased its revenue contribution to 29%, marking a substantial 15% increase from the previous year. South Korea followed closely at 24%, and the United States contributed 10%.

Looking ahead, ASML anticipates net sales between €5 billion and €5.5 billion and a gross margin between 48% and 49% for the first quarter of 2024.

ASML's President and CEO, Peter Wennink, expressed a conservative outlook for the entire year, with an estimated R&D cost of €1.07 billion and revenue expected to be similar to 2023.