• Revenue: $68.1 million for Q4 2024, up 61% year over year and 18% sequentially.
• Full Year Revenue: $202.7 million, up 41% from the prior year.
• Non-GAAP Gross Margin: 58.8% for Q4 2024, up 70 basis points sequentially.
• Non-GAAP Net Income: $11.8 million for Q4 2024.
• Non-GAAP Earnings Per Share (EPS): $0.48 for Q4 2024.
• Cash Flow from Operations: $13.6 million for Q4 2024.
• Cash, Cash Equivalents, and Short-term Investments: $419 million at the end of Q4 2024.
• Q1 2025 Revenue Outlook: $53 to $55 million, an increase of 64% year over year at the midpoint.
• Q1 2025 Gross Margin Outlook: Approximately 57%.
• Q1 2025 Non-GAAP EPS Outlook: $0.09 to $0.13 per share.

• Warning! GuruFocus has detected 4 Warning Signs with SITM.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SiTime Corp (NASDAQ:SITM) reported a 61% year-over-year revenue growth for Q4 2024, demonstrating strong profitability.
• The company achieved a 41% growth for the full year 2024, surpassing its target.
• SiTime Corp (NASDAQ:SITM) introduced 10 new platforms since Q2 2023, offering 40 products with average selling prices ranging from $1 to over $200.
• The company has strong bookings for 2025, indicating a positive outlook for the year.
• SiTime Corp (NASDAQ:SITM) is seeing increasing demand in various sectors, including communications, enterprise data centers, and automotive, which are expected to drive growth in 2025.

Negative Points

• SiTime Corp (NASDAQ:SITM) expects typical seasonality in Q1 2025, with a projected revenue decrease to $53-$55 million.
• Gross margins are expected to decline to approximately 57% in Q1 2025 due to seasonality and manufacturing absorption issues.
• The company faces challenges in ramping new products, which may impact short-term gross margins.
• There is uncertainty regarding the impact of new product introductions from SiTime Corp (NASDAQ:SITM)'s largest customer in 2025.
• The automotive business faces potential risks due to the shifting center of gravity towards China, which may affect market dynamics.

Q & A Highlights

Q: Can you provide insights into the strong bookings momentum for 2025 across your segments? A: Rajesh Vashist, CEO: Most growth in 2025 will come from the Communications, Enterprise, and Data Center (CED) segment. We expect growth in Consumer Mobile IoT and Industrial, Automotive, and Aerospace, but not to the same extent as CED.

Q: Within the CED segment, which applications do you expect to see the most growth in 2025? A: Rajesh Vashist, CEO: We sell more units into AECs and NIC cards, with smaller volumes in GPUs and optical modules. Pricing is higher for GPU products, but volumes are lower. We expect growth across all these segments.

Q: Are you still confident in achieving a 25% to 30% growth target for 2025 and 2026? A: Rajesh Vashist, CEO: Yes, we see that kind of growth coming from the breadth of the market we address and the activity in these markets with our latest products.

Q: Can you explain the expected gross margin decline to 57% in Q1 2025? A: Elizabeth Howe, CFO: The decline is due to typical seasonality and manufacturing absorption issues, along with additional depreciation and ramping new products. We expect margins to improve over time as we mature these products.

Q: How is SiTime positioned in the Chinese automotive market compared to Western markets? A: Rajesh Vashist, CEO: SiTime's products are used in innovative products, and China is leading in automotive innovation, especially in electric vehicles and automation. Currently, 30% to 40% of our automotive business comes from China.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.