Qorvo (QRVO) Goldman Sachs Communacopia + Technology Conference 2024 summary

Financial performance and outlook

• June quarter revenue exceeded guidance, driven by strong performance in the Advanced Cellular Group, especially with the largest customer, and robust demand for ultra-wideband and Wi-Fi products in CSG.

• September quarter revenue is guided to grow 16% at the midpoint, with broad-based growth expected, particularly from the largest customer ramping up, while Android is expected to be down sequentially.

• HPA experienced a temporary decline due to defense program timing but anticipates strong growth in the second half of the year.

• Wi-Fi rollouts in developing countries and the transition to Wi-Fi 6E/7 are key growth drivers in CSG.

• Interest rate-sensitive markets like base station, broadband, and solar remain challenged, but power management and SatCom products are performing well.

Market trends and technology drivers

• Smartphone unit growth is expected to remain modest, but 5G unit growth is projected at around 10%, with incremental content opportunities as 5G adoption continues.

• AI in smartphones could drive future upgrade cycles, with RF content and ultra-wideband technology positioned to benefit from context-aware applications.

• RF technology will play a critical role in enabling AI features in flagship devices, increasing demand for advanced RF solutions.

• The company maintains strong relationships and design wins with its largest customer, providing visibility and confidence for future growth.

• Android's 4G-to-5G transition is ongoing, with incremental upgrades and content opportunities as new standards are adopted.

HPA business strategy and growth

• Top priorities for HPA include scaling defense, aerospace, and SatCom, with a goal to double the business and capitalize on electronic warfare and AESA radar upgrade cycles.

• Power management is a key focus, aiming for a balanced revenue mix between handset and non-handset markets.

• HPA's end markets are led by defense and aerospace (40-45%), with growth also expected in SatCom, industrial, data center, and automotive.

• The acquisition of Anokiwave has strengthened beamforming capabilities for SatCom and terminal markets.

• Power management is central to trends in AI and electrification, with targeted market expansion in handsets, defense, and automotive.