Slide 1: Quarterly Earnings Presentation Q2 FY25
QUARTERLY EARNINGS PRESENTATION Q2 FY25 NASDAQ: SMTC 1 | QUARTERLY EARNINGS PRESENTATION | Q2 FY25
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, which are based on the based on the Company's current expectations, estimates and projections abo
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the Company's consolidated financial statements prepared in accordance with GAAP, this presentation includes a presentation of select non-GAAP financial measures. The Company's non-GAAP measures of gross margin, SG&A expense, product development and engineer
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures In the financial results provided in this presentation, the Company also presents adjusted EBITDA, adjusted EBITDA margin and free cash flow. Adjusted EBITDA is defined as net (loss) income plus interest expense, interest income, provision (benefit) for income taxes, depr
Slide 5: CEO Message: Competitive Strength and Near-Term Priorities
Semtech’s Competitive Strength and Differentiation Stable financial World-leading World-class Customers value our foundation to capture technologies and management processes core technologies and significant growth products developed and systems and a are asking for our CEO Message opportunities and
Slide 6: Q2'25 Results
Q2’25 RESULTS 6 || QUARTERLY QUARTERLYEARNINGS EARNINGSPRESENTATION PRESENTATION | | Q2 Q2FY25 FY25
Slide 7: Q2'25 Net Sales
"Semtech continues to execute on an established strategy to grow our business, as demonstrated by solid second quarter financial performance and a favorable outlook for our third quarter that forecasts acceleration of this growth," said Hong Hou, Semtech's president and chief executive officer. "We
Slide 8: Infrastructure End Market
Infrastructure End Market Data Center, PON/FTTH, Wireless, Infrastructure Circuit Protection • Hyperscale data center net sales more than doubled Y/Y, with strong demand for our FiberEdge TIAs, laser Q2’25 NET SALES drivers and Tri-Edge 50G PAM4 products • Increasing capex targets reported by hypers
Slide 9: High-End Consumer End Market
High-End Consumer End Market Consumer Circuit Protection, PerSe® Smart Sensing • End demand increased Y/Y with expectation for a seasonally stronger Q3 Q2’25 NET SALES • Consumer circuit protection had broad-based, double- digit Y/Y market share growth as we expand on platforms and applications • Hi
Slide 10: Industrial End Market
Industrial End Market LoRa®, Modules, Routers, Smart Connectivity, RF Industrial, Industrial Circuit Protection, Professional AV • LoRa-enabled solutions net sales of $28.7 million, up 34% Q/Q and 72% Y/Y Q2’25 NET SALES • Semtech is fully-committed to LoRa’s future and its continued innovation and
Slide 11: Summary Financial Results
Summary Financial Results GAAP FINANCIAL RESULTS QUARTER ENDED (in millions, except per share data) Q225 Q125 Q224 Net sales $ 215.4 $ 206.1 $ 238.4 Gross margin 49.0 % 48.3 % 42.3 % Operating expenses, net $ 97.7 $ 96.4 $ 400.8 Operating income (loss) $ 7.8 $ 3.1 $ (300.1) Operating margin 3.6 % 1.
Slide 12: Q3'25 Outlook
Q3’25 OUTLOOK 12 || QUARTERLY QUARTERLYEARNINGS EARNINGSPRESENTATION PRESENTATION | | Q2 Q2FY25 FY25
Slide 13: Q3'25 Outlook
Q3’25 Outlook* (in millions, except per share data) Net sales $ 233.0 +/- $ 5.0 Net Sales Outlook • Infrastructure market is expected Non-GAAP Financial Measures to be up with data center leading the growth Gross margin 52.0 % +/- 50 bps • High-end consumer is expected Operating expenses, net $ 81.0
Slide 14: Q&A
Q&A 14 || QUARTERLY QUARTERLYEARNINGS EARNINGSPRESENTATION PRESENTATION | | Q2 Q2FY25 FY25
Slide 15: Net Sales Schedules
APPENDIX NET SALES SCHEDULES 15 || QUARTERLY QUARTERLYEARNINGS EARNINGSPRESENTATION PRESENTATION | | Q2 Q2FY25 FY25
Slide 16: Net Sales Schedules
Net Sales Schedules END MARKET Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24 Infrastructure $52.9 $56.0 $39.4 $43.2 $42.4 High-End Consumer 37.1 34.5 32.1 37.6 34.0 Industrial 125.3 115.6 121.5 120.2 162.0 Total $215.4 $206.1 $192.9 $200.9 $238.4 REPORTABLE SEGMENT Q2 FY25 Q1 FY25 Q4 FY24 Q3 FY24 Q2 FY24
Slide 17: Reconciliation of GAAP to Non-GAAP Results
Supplemental Information: RECONCILATION OF GAAP TO NON-GAAP RESULTS For additional information on our Non-GAAP Presentation, see Non-GAAP Financial Measures on pages 3-4 above. 17 || QUARTERLY QUARTERLYEARNINGS EARNINGSPRESENTATION PRESENTATION | | Q2 Q2FY25 FY25
Slide 18: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results QUARTER ENDED July 28, 2024 April 28, 2024 July 30, 2023 Q225 Q125 Q224 Gross margin (GAAP) 49.0 % 48.3 % 42.3 % Share-based compensation 0.3 % 0.4 % 0.2 % Amortization of acquired technology 1.1 % 1.1 % 4.4 % Transaction and integration related costs, net
Slide 19: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results QUARTER ENDED July 28, 2024 April 28, 2024 July 30, 2023 Q225 Q125 Q224 Operating expenses, net (GAAP) $ 97,696 $ 96,449 $ 400,837 Share-based compensation (16,424) (14,552) (12,874) Intangible amortization (282) (307) (4,871) Transaction and integration re
Slide 20: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results QUARTER ENDED July 28, 2024 April 28, 2024 July 30, 2023 Q225 Q125 Q224 Operating income (loss) (GAAP) $ 7,768 $ 3,143 $ (300,109) Share-based compensation 17,138 15,234 13,399 Intangible amortization 2,561 2,588 15,444 Transaction and integration related c
Slide 21: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results QUARTER ENDED July 28, 2024 April 28, 2024 July 30, 2023 Q225 Q125 Q224 Operating margin (GAAP) 3.6 % 1.5 % (125.9) % Share-based compensation 8.0 % 7.4 % 5.6 % Intangible amortization 1.2 % 1.3 % 6.5 % Transaction and integration related costs, net 0.7 % 0
Slide 22: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results QUARTER ENDED July 28, 2024 April 28, 2024 July 30, 2023 Q225 Q125 Q224 Interest expense, net (GAAP) $ 28,145 $ 22,687 $ 23,497 Amortization of deferred financing costs (2,379) (2,379) (1,689) Write-off of deferred financing costs (5,497) — (771) Investment
Slide 23: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results QUARTER ENDED July 28, 2024 April 28, 2024 July 30, 2023 Q225 Q125 Q224 GAAP net loss attributable to common stockholders $ (170,295) $ (23,159) $ (382,002) Adjustments to GAAP net loss attributable to common stockholders: Share-based compensation 17,138 15
Slide 24: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results QUARTER ENDED July 28, 2024 April 28, 2024 July 30, 2023 Q225 Q125 Q224 GAAP net loss attributable to common stockholders $ (170,295) $ (23,159) $ (382,002) Interest expense 28,578 23,229 24,171 Interest income (433) (542) (674) Loss on extinguishment of de
Slide 25: Thank You
THANK YOU Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries. Copyright © 2024 Semtech Corporation. All rights reserved. 25 | QUARTERLY EARNINGS PRESENTATION | Q2 FY25