Navitas Semiconductor (NVTS) Baird 2024 Global Consumer, Technology & Services Conference summary

Technology and market positioning

• Focus on gallium nitride (GaN) and silicon carbide (SiC) semiconductors, enabling high-speed, high-voltage, and efficient power conversion for diverse applications.

• GaN is used for high-speed, compact, and efficient power systems, while SiC is suited for high-voltage, high-power uses like EVs and renewables.

• Agnostic approach to technology allows hybrid solutions, addressing a broad range of customer needs in automotive, data center, and consumer electronics.

• Market opportunity estimated at $22 billion annually, with a commitment to outpace industry growth rates.

• No legacy silicon business, enabling faster growth and focus on next-generation technologies.

Financial performance and outlook

• Revenue doubled last year to $80 million, with Q1 and Q2 estimates showing continued growth.

• $130 million in cash and no debt, with a roadmap to EBITDA breakeven at $55 million in quarterly revenue.

• Customer pipeline represents $1.6 billion in lifetime revenue, up 30% since December.

• Expecting a stronger second half of 2024 and robust 2025 based on design-in pipeline and market recovery.

• Inventory adjustments in automotive and solar, but mobile and other segments show strong adoption and growth.

Application and customer diversification

• Automotive: SiC dominates high-voltage (800V/1200V) and heavy-duty applications; GaN is used in lower-voltage, city EVs and hybrid systems.

• Solar: SiC used in high-power inverters; GaN adoption growing in microinverters as companies transition from silicon.

• Mobile: Leading market share in fast chargers, with rapid adoption of GaN in high-end and now mainstream devices.

• Data center: GaN enables higher efficiency and smaller, cost-effective power supplies, meeting strict EU efficiency standards.

• Home appliances: GaN used in a variety of products, leveraging high-speed and integrated features for performance.