SiTime Corporation Q2 FY2025 earnings call

• SiTime is pioneering precision timing in the semiconductor industry, focusing on high-value applications in AI data centers, automated driving, defense, and industrial.
• Q2 2025 was exceptional with 58% Y/Y revenue growth, gross margin at 58.2%, and EPS at $0.47. All customer segments grew.
• The data center segment, led by the Elite family and Cascade clocking, grew 137% Y/Y. New products like the Symphonic mobile clock generator chip offer power and accuracy advantages for GNSS and 5G applications, contributing to revenue.
• Expect sequential revenue growth in Q3 and Q4 2025, with at least 40% revenue growth for the second consecutive year, driven by AI infrastructure demand and momentum across markets.

In Q2 2025, SiTime reported revenue of $69.5 million, a 58% year-over-year increase. The CED (comms, enterprise, data center) segment led growth with a 137% year-over-year jump to $36 million, representing 52% of total revenue. The automotive, industrial, and defense segment grew 11% year-over-year to $16.5 million, and the mobile, IoT, consumer segment grew 23% year-over-year to $17 million, each accounting for 24% of revenue.

• For Q3 2025, revenue is expected to be $77 million to $79 million.
• Gross margins are projected to be between 58% and 59%.
• Operating expenses are expected to be in the range of $34 million to $34.5 million.
• Interest income is anticipated to be $7.5 million to $8 million.
• Diluted share count is approximately 26.8 million shares.
• Non-GAAP EPS is expected to be in the range of $0.67 to $0.75 per share.
• The company expects sequential revenue growth in Q3 and Q4 2025 and to grow revenue by at least 40% for the second consecutive year.

The company may make forward-looking statements, and actual results could differ materially from those anticipated. Risks are described in the 10-K filed on February 14, 2025, and subsequent SEC filings. Key risks include uncertainties in predicting all risks, impact of various factors on business, and differences between forward-looking statements and actual results.

Q: Chris Caso asked about expectations for growth by segment and mobile segment guidance.

A: Elizabeth A. Howe stated CED led by AI is the strongest growth area, and Rajesh Vashist discussed the policy of including mobile segment growth in guidance when there's sufficient visibility.

Q: Tore Svanberg inquired about mobile, IoT, consumer business and data center content.

A: Elizabeth A. Howe mentioned focus on CED and consumer seasonality, while Rajesh Vashist talked about opportunities in automotive, industrial, and defense markets.

Q: Suji Desilva asked about gross margin tailwinds from new products.

A: Rajesh Vashist discussed new products like the Elite family and Cascade family being higher ASP and contributing to margin expansion.

Q: Nathaniel Quinn Bolton asked about data center content and Symphonic product.

A: Rajesh Vashist noted architectural advantages in data center content and Symphonic product having higher ASP due to system-level solutions.

Q: Thomas O'Malley asked about CED growth and consumer trajectory.

A: Elizabeth A. Howe explained CED leading growth in aggregate and consumer segment picking up in second half.

Q: Tore Svanberg asked about data center architectures and 5G space.

A: Rajesh Vashist discussed need for system-level solutions in data center architectures and expected growth in 5G space in coming years.