SiTime (SITM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $57.7 million, up 62% year-over-year, with all customer segments and regions posting at least double-digit growth; CED, Greater China, and EMEA grew at triple digits.

• CED (Communications, Enterprise, Data Center) revenue grew over 200% year-over-year, driven by AI infrastructure investments.

• Non-GAAP net income was $9.6 million ($0.40 per share), while GAAP net loss was $19.3 million ($0.83 per share); net income was 17% of revenue.

• Gross margin declined to 51% on a GAAP basis due to higher amortization of acquired intangibles, while non-GAAP gross margin was 58.1%.

• Strategy focuses on high-value, high-growth timing products for diverse applications, including AI, automotive, and IoT.

Financial highlights

• Q3 non-GAAP gross margin was 58.1%, up 40 basis points sequentially; GAAP gross margin was 51%.

• Non-GAAP operating profit was $4 million, a $9.7 million improvement year-over-year, with 75% gross profit flow-through.

• Non-GAAP net income was $9.6 million, or $0.40 per share; GAAP net loss was $19.3 million.

• Cash, cash equivalents, and short-term investments stood at $434.8 million at quarter end.

• Q3 included a $12.9 million payment related to the Aura acquisition.

Outlook and guidance

• Q4 2024 revenue expected at $63–$65 million; non-GAAP gross margin 58–58.5%.

• Non-GAAP operating expenses projected at $31–$31.5 million; non-GAAP EPS expected at $0.39–$0.45.

• CED and consumer IoT/mobile segments expected to lead Q4 growth; auto/industrial/aerospace to continue growing.

• Company targets ~30% annual revenue growth into 2025 and beyond, with CED outpacing overall growth.

• Long-term gross margin target remains above 60%, expected to be reached in the second half of 2025.