SiTime (SITM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $43.9 million, up 58% year-over-year and 33% sequentially, surpassing guidance due to strong demand in communications, enterprise, and datacenter segments.

• All end markets expanded at double-digit rates, with CED segment tracking close to 70% growth for the year.

• Inventory normalization has occurred, and strong bookings are expected to drive sequential growth in Q3 and Q4.

• New product introductions and design wins, especially in AI hardware, are fueling growth, with 70 unique part numbers shipped to 30 AI-focused customers.

• Investments in product diversification and customer relationships position the company to benefit from rising AI-driven demand.

Financial highlights

• Q2 2024 revenue: $43.9 million (up 58% year-over-year, 33% sequentially).

• GAAP gross profit: $21.5 million (49.1% margin); non-GAAP gross profit: $25.3 million (57.7% margin).

• GAAP net loss: $26.8 million ($1.16 per diluted share); non-GAAP net income: $2.8 million ($0.12 per diluted share).

• Operating expenses: $53.8 million GAAP, $28.1 million non-GAAP.

• Total cash, cash equivalents, and short-term investments: $453 million at quarter end.

Outlook and guidance

• Q3 revenue expected to increase 25%-27% sequentially to about $55 million.

• Gross margins projected to trend toward 58% in Q3, with long-term expectations above 60%.

• Operating expenses for Q3 anticipated at $30.5-$31 million; non-GAAP EPS expected at 23-27 cents.

• All three segments expected to grow year-over-year in Q3, with data center/AI as the fastest-growing.

• Management expects continued investment in R&D and sales to support growth and new product introductions.