SiTime Corp. Q3 FY2024 earnings call

• SiTime is the leader in precision timing, a $10 billion market. Q3 revenue grew 62% to $57.7 million, net income was 17% of revenue. CED was a major growth driver in Q3, with over 200% y-o-y growth, and expected to lead growth in 2025.
• Beth Howe discussed Q3 financials: non-GAAP gross margins 58.1%, up 40 basis points sequentially. Non-GAAP operating profit was $4 million, Q3 marked return to operating profitability. Balance sheet: accounts receivable $30.2 million, inventory $71.9 million, cash from operations $8.2 million, ended quarter with $435 million in cash, cash equivalents, and short-term investments. Outlook for Q4: revenue $63M-$65M, non-GAAP gross margins 58%-58.5%, non-GAAP operating expenses $31M-$31.5M, interest income ~$4.5M, diluted shares ~24.4M.

In the third quarter, SiTime's revenue was $57.7 million, up 62% year-on-year. The Communications Enterprise and Data Center (CED) segment was a major growth driver, with revenue of $19.7 million (34% of sales) up 233% year-on-year. The Automotive, Industrial and Aerospace segment had revenue of $17.7 million (31% of sales) increasing 51% year-on-year. The Mobile, IoT and Consumer segment had revenue of $20.3 million (35% of sales) up 14% year-on-year, with sales to the largest customer totaling $13.1 million (23% of sales).

• Q4 revenue expected to be $63 million to $65 million.
• Non-GAAP gross margins预计在58%到58.5%之间。
• Non-GAAP operating expenses预计在3100万到3150万美元之间。
• Interest income预计约450万美元。
• Diluted outstanding shares预计约2440万股。
• CED expected to lead growth in 2025.

The company may make forward-looking statements, and actual results could differ materially from forward-looking statements. Risks associated with the business are described in the 10-K filed on February 26th, 2024, and subsequent SEC filings. Non-GAAP financial measures are provided in addition to but not as a substitute for GAAP measures.

Q: Sujeeva De silva asked about the data center market content mix, specifically optical top rack switch versus expanding into AECs and the mix of content positions.

A: Rajesh Vashist said all areas will continue to grow, with large content growth in switches, CPU servers, and pluggables.

Q: Quinn Bolton asked about GPU-to-GPU networks content.

A: Rajesh Vashist mentioned growth across server, switch, and GPU areas, with pluggables having the least dollar amount but switches, servers, and GPUs having significant growth.

Q: Melissa Fairbanks asked about segment guidance for the fourth quarter.

A: Beth Howe said CED is expected to lead the way, with other segments like Consumer IoT Mobile and Auto, Industrial, Aerospace also growing.

Q: Jeremy asked about precision timing versus quartz, penetration rate, and programmability impact.

A: Rajesh Vashist talked about TAM, SiTime's penetration in the $3 billion precision timing market, and the diverse segments within it.

Q: Chris Caso asked about clock market penetration.

A: Rajesh Vashist discussed Aura acquisition, design wins, and the trajectory for clocking revenue to reach about $100 million in the coming years.