SiTime Corporation Q3 FY2025 earnings call

• AI drives demand for better timing and synchronization, with SiTime's applications centered around AI, including networking, computing hardware, and next-generation communications equipment.
• Q3 2025 was a milestone quarter with strong revenue growth, improving gross margins, and exceptional bookings. Growth is seen geographically with double-digit percentage growth in every region.
• Continued design win momentum across end customer segments, especially with CED, communications, enterprise, and datacenter customers seeing 115% YOY revenue growth.
• Three growth trends identified: increased revenue from existing oscillator and clock generator shipments, new design wins, and shorter lead times for CED orders.
• Introduction of the Titan Platform, transforming the resonator market by enabling semiconductor level packaging and integration, with an incremental $400 million SAM expected to grow to $1 billion by 2028.
• Beth Howe discussed Q3 financial results, balance sheet details (accounts receivable, inventory, cash from operations), and provided Q4 outlook.

In Q3 2025, SiTime reported revenue of $83.6 million, up 45% year-over-year. The Communications Enterprise Datacenter segment had revenue of $42.1 million, up 115% year-over-year, representing 51% of total revenue. The Mobile IoT Consumer segment had revenue of $21.3 million, up 4% year-over-year, representing 25% of total revenue. The Automotive Industrial Defense segment had revenue of $20.2 million, up 14% year-over-year, representing 24% of total revenue. Q3 non-GAAP gross margin was 58.8%, and non-GAAP EPS was $0.87, more than doubling year-over-year.

• For Q4 2025, SiTime expects revenue of $100 million to $103 million.
• Gross margins are expected to be between 60% and 60.5%.
• Operating expenses are projected to be $35 million to $36 million.
• Interest income is expected to be $7 million to $7.5 million.
• Diluted share count is approximately 27 million shares.
• Non-GAAP EPS for Q4 is expected to be in the range of $1.16 to $1.21 per share.

• The company may make forward-looking statements, and actual results could differ materially from those anticipated. Risks are detailed in the 10-K filed on February 14, 2025, and subsequent SEC filings.
• Uncertainties related to predicting all risks and assessing their impact on the business.

Q: Could you give us a sense for what's driving the strength in Q4?

A: Beth Howe mentioned continuation of trends and sequential growth in each segment, with AI and datacenter business leading growth, and adoption of new mobile Symphonic product and performance in aerospace and defense also contributing.

Q: How does the Titan resonator market affect margins?

A: Rajesh Vashist stated that ASPs for resonators are lower than oscillators and clocks, but gross margins are in the 60% regime and likely higher, with design wins in tens of millions of units level.

Q: Any update on M&A?

A: Rajesh Vashist said SiTime is interested in M&A but noted atomic clock businesses are far out in revenue terms and they are looking for near-term M&A with impact.

Q: Update on go-to-market strategy?

A: Rajesh Vashist said they are making progress in the semiconductor area, looking at the whole ecosystem, and seeing increased need for SiTime products due to requirements like less latency, smaller size, lower power.

Q: Customer base and market penetration?

A: Rajesh Vashist mentioned they are in the early innings, selling to various segments including semiconductor companies, hyperscalers, OEMs, etc., and are expanding R&D and marketing/sales to address markets.

Q: Visibility and lead times in CED business?

A: Rajesh Vashist said SiTime has a robust supply chain and value chain, no hoarding, but heard of some optical and substrate component shortages but nothing specific to timing.

Q: Seasonality thoughts for 2026?

A: Beth Howe said they still see seasonality, expecting a pattern from Q4 to Q1, but strong demand across portfolio mitigates some effects and big customers can cause shifting between quarters.