Slide 1: Silicon Labs Investor Presentation
Silicon Labs Investor Presentation J U LY 2 4 , 2 0 2 4
Slide 2: Private Securities Litigation Reform Act of 1995
Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements based on Silicon Labs’ current expectations. The words “believe”, “estimat e”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silicon Labs are in
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to the GAAP results provided throughout this presentation, Silicon Labs has provided non -GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which rec onc
Slide 4: Pure-Play Leader of Intelligent Wireless Connectivity
FOUNDED IN 1996 Pure-Play Leader of Revenue $M Intelligent Wireless L I ST E D SL AB $1,024 Connectivity $721 $782 $511 ~ 2 1 , 0 0 0 C U ST O M E R S CY2020 CY2021 CY2022 CY2023 ~ 1 , 5 0 0 P A TE N T A S S E TS
Slide 5: IoT Accelerating Market Opportunity
Edge IoT Market Growth* ($B) $17.4 IoT Accelerating $13.2 Market Opportunity … … … $7.0 $6.4 2016 2019 2023 2025 2020 Analyst Day 2022 Analyst Day Source: Average of WSTS and Gartner research combined *As outlined in 2022 Analyst Day with management estimates.
Slide 6: Our Vision and Values
OUR VISION OUR VALUES To empower developers to create wirelessly connected devices that We hire, foster and empower transform industries, grow great talent economies, and improve lives. We create customer value and commercial success through innovation and simplicity We meet our commitments and hold
Slide 7: Revenue Q2 2024
Revenue Q2 2024 Revenue $57M Home & Life Q2 2024 $145 M Q1 2024 $106 M 37% Q-Q Growth ▪ Revenue of $145 million increased 37% q/q $88M ▪ Sequential revenue growth in both Industrial & the Home & Life and Industrial & Commercial Commercial business units 7 ©Silicon Labs Inc. All rights reserved.
Slide 8: Gross Margin Q2 2024
Gross Margin Q2 2024 ▪ GAAP and non-GAAP gross margin improved to 53% in Q2, up from 52% in Q1 GAAP Q2 2024 53% Q1 2024 52% Non-GAAP Q2 2024 53% Q1 2024 52% 8 ©Silicon Labs Inc. All rights reserved.
Slide 9: Earnings Per Share Q2 2024
Earnings Per Share Q2 2024 ▪ GAAP loss per share grew to $(2.56) in Q2 from $(1.77) in Q1 due to a one-time non-cash tax charge ▪ Non-GAAP loss per share improved to $(0.56) in Q2 from $(0.92) in Q1 GAAP $(1.77) $(2.56) Q1 2024 Q2 2024 Non-GAAP $(0.92) $(0.56) Q1 2024 Q2 2024 9 ©Silicon Labs Inc. Al
Slide 10: Q2 2024 Balance Sheet Highlights
Q2 2024 Balance Sheet Highlights ($ in Millions) Q1 2024 Q2 2024 Q/Q Cash, Cash Equivalent & STI 332.7 339.2 6.5 Accounts Receivable 32.6 41.2 8. 6 Inventories 198.2 166.1 (32.1) Total Debt 0 0 0 10 ©Silicon Labs Inc. All rights reserved.
Slide 11: Q3 2024 Outlook
Q3 2024 Outlook ($ in Millions) Q3 2024 Revenue $160-$170 million Gross Margin1 54%-56% (Non-GAAP) Operating Expenses1 $101-$103 million (Non-GAAP) Effective Tax Rate1 20% of pre-tax income (Non-GAAP) 1 These items are non-GAAP and exclude stock compensation expense, amortization of intangible asset
Slide 12: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) Three Months Ended June 29, 2024 Non-GAAP Income GAAP Percent of Stock Compensation Intangible Asset Non-GAAP Percent Statement Items GAAP Measure Revenue Expense Amo
Slide 13: Unaudited Forward-Looking Statements Regarding Business Outlook
Unaudited Forward-Looking Statements Regarding Business Outlook Unaudited Forward-Looking Statements Regarding Business Outlook (In millions, except per share data) Three Months Ended September 28, 2024 Non-GAAP Non-GAAP Business Outlook GAAP Measure Adjustments** Measure Gross margin 54% to 56% —%
Slide 14: Positioned to Win, Lead and Scale in Home & Life
Making IoT as ubiquitous as the electricity at home or the smartphone in your pocket Positioned to Win, Actively shaping the future of wireless standards and ecosystems Lead and Scale in Home & Life Outperforming market with secure, optimized, wireless solutions that work with every ecosystem
Slide 15: Home & Life
Home & Life Home & Life ($M) Q2 2024 $57 Q1 2024 $41 39% Q-Q Growth Home & Life SAM 2025 2023 2021 Life Home >12% 2021->2025 CAGR 15 ©Silicon Labs Inc. All rights reserved.
Slide 16: Established Industrial & Commercial IoT Leader
Established Industrial & Megatrends accelerate growth Commercial IoT Leader Large and growing market Broad, diverse, durable customer application base Our IoT solutions are well-positioned to capture significant share of growth
Slide 17: Industrial & Commercial
Industrial & Commercial Industrial & Commercial ($M) Q2 2024 $88 Q1 2024 $65 35% Q-Q Growth Industrial & Commercial SAM 2025 2023 2021 >15% Smart Cities Commercial Industrial 2021->2025 CAGR 17 ©Silicon Labs Inc. All rights reserved.
Slide 18: Deep Customer Relationships & Commitment to Innovation
Deep Customer Relationships & Commitment to Innovation Leap Awards 2023 EE Awards of Asia & Taiwan Embedded World 2023 Great place to work 2023 Bronze in Embedded Computing BG27 and 2023 Best in show MG27 SoCs Certified since 2019 Best RF / Wireless IC of the Year, BG27/MG27 Pro Kit for Amazon Sidew
Slide 19: Revenue Diversity Across Customers and Regions
Revenue Diversity Across Customers and Regions 2023 Customers 2023 Region EMEA Long Tail Largest customer is Americas <5% ~130 $1M customers APAC 19 ©Silicon Labs Inc. All rights reserved.
Slide 20: Unmatched Breadth & Depth of Our Wireless Portfolio
Unmatched Breadth & Depth of Our Wireless Portfolio 20 ©Silicon Labs Inc. All rights reserved.
Slide 21: Purpose-built Platform for the IoT
Purpose-built Platform for the IoT
Slide 22: Strong & Sustainable Growth, & Highly Attractive Target Model
Strong & Sustainable Current* Long-Term Target Model @ Various Revenue Levels* Growth, & Highly Attractive Revenue High growth $1.25B $1.5B Target Model Revenue CAGR % CAGR ~20% Gross Margin %1 High-50s% Mid-50s% (Non-GAAP) Growth supported by massive pipeline Operating expenses % of sales1 Mid-40s%
Slide 23: Thank you
6S» SILICON LABS Thank you eae ss