PDF : Second Quarter 2023 Earnings Management Report

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Exhibit 99.2

Q2 2023

Management Report

August 8, 2023

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Contents

• Q2 2023 Results
• • Overview
  • Key Financial & Operating Metrics
  • Revenue by Geographic Area
• Q2 2023 Non-GAAP Results
• • Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
  • Reconciliation of GAAP to Non-GAAP Spending by Function
• Related Information

The following commentary is provided by management and should be referenced in conjunction with PDF Solutions' Second Quarter 2023 financial results press release available on its Investor Relations website at http://www.pdf.com/financial-news. These remarks represent management's current views of the Company's financial and operational performance and are provided to give investors and analysts further insight into its performance in advance of the earnings call webcast. The Company disclaims any duty to update this information for future events.

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PDF Solutions Reports Second Quarter 2023 Results

Q2 2023 Key Metrics

FINANCIAL RESULTS SUMMARY

Revenue: $41.6M

GAAP Gross Margin: 70%

Non-GAAP Gross Margin: 74%

GAAP Diluted EPS: $0.17

Non-GAAP Diluted EPS: $0.19

Operating Cash Flow: ($5.6M)

Cash Used for Capital Expenditures: $3.1M

• Q2 2023 Total revenues of $41.6M, up
  2% over Q1 2023, and up 20% over Q2
  2022.
• Q2 2023 Analytics revenue of $37.1M, up 2% over Q1 2023, and up 19% over Q2 2022.
• Q2 2023 Integrated yield ramp revenue of $4.5M, up 1% over Q1 2023, and up 26% over Q2 2022.

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Key Financial & Operating Metrics - Quarterly

(in thousands, except share data, which is in millions, and percentages)

		Q2'23			Q1'23			Q4'22			Q3'22			Q2'22
Revenues		$ 41,601			$ 40,759			$ 40,523			$ 39,860			$ 34,668
GAAP Gross Margin
	70%			71%			71%			69%			65%
Non-GAAP Gross Margin
	74%			75%			74%			72%			69%
Outstanding Debt
	$ -			$ -			$ -			$ -			$ -
Operating Cash Flow
	($ 5,633)			($ 982)			$ 24,275			$ 1,403			$ 3,624
Cash Used for Capital Expenditures (CAPEX)
	$ 3,099			$ 2,902			$ 1,725			$ 2,118			$ 2,822
$ Shares Repurchased
	$ -			$ -			$ -			$ -			$ 16,693
Weighted Average Common Shares Outstanding
	37.9			37.7			37.4			37.2			37.0
Effective Tax Rate Expense (Benefit)
	(132)%			52%			55%			37%			821%

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Key Financial & Operating Metrics - Year to Date

(in thousands, except share data, which is in millions, and percentages)

		Six Months Ended June 30,
		2023	2022	2021
Revenues		$ 82,360			$ 68,166			$ 51,619
GAAP Gross Margin		71%			65%			58%
Non-GAAP Gross Margin		74%			69%			63%
Outstanding Debt		$ -			$ -			$ -
Operating Cash Flow		($ 6,615)			$ 6,620			($ 195)
Cash Used for CAPEX		$ 6,001			$ 4,587			$ 1,121
$ Shares Repurchased		$ -			$ 22,471			$ 4,523
Weighted Average Common Shares Outstanding		37.8			37.3			37.0
Effective Tax Rate Expense (Benefit)		(95)%			89%			9%

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